SINGAPORE--(BUSINESS WIRE)--Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the third quarter ended September 30, 2026.
In the third quarter of 2026, Sea’s GAAP revenue was US$8.6 billion, up 43.4% year-on-year. The Company also achieved gross profit of US$3.9 billion, up 51.4% year-on-year, and net income of US$502.5 million, up 34.0% year-on-year. Adjusted EBITDA1 increased by 28.9% year-on-year to reach US$931.3 million.
“Our strong momentum from the first half of the year has continued into the third quarter. We are pleased with this solid performance, and will continue to focus on executing our priorities with discipline,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
On Shopee, he said, “Shopee delivered another strong quarter, again achieving new record highs in both top- and bottom-line metrics. Our strategies have proven effective at strengthening our fundamentals, giving us a growing buyer base, stronger monetization, and improving unit economics.”
On Monee, Mr. Li said, “Monee also delivered another quarter of healthy growth while staying disciplined in how we manage risk and how we invest. We are reaching more users, deepening relationships with existing ones, and extending credit into more everyday spending scenarios, both on- and off-Shopee.”
On Garena, Mr. Li said, “Garena delivered a solid third quarter, with bookings continuing to grow and profitability continuing to improve. Free Fire anchored this performance with strong bookings growth, and Arena of Valor continued its strong momentum from its 10th year anniversary celebrations.”
Third Quarter 2026 Business Highlights
Share Repurchase Program
Pursuant to our US$1.0 billion share repurchase program, as of today, we have repurchased 11.1 million shares for an aggregate amount of US$997.2 million. In addition, on November 9, 2026, the board of directors approved an additional US$1.0 billion to the Company’s share repurchase authorization, without expiration.
The timing, amount, and method of any share repurchases under the new authorization will be determined based on market conditions and other considerations.
| 1 For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures.” | |
| 2 Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform. | |
| 3 GAAP revenue for Garena plus change in Garena’s deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to Garena. | |
Unaudited Summary of Financial Results | ||||||
(Amounts are expressed in thousands of US dollars “$” except for per share data) | ||||||
| For the Three Months ended September 30, |
| ||||
| 2025 | 2026 | YOY% | |||
| $ | $ |
| |||
Revenue |
|
|
| |||
Service revenue | 5,468,374 | 7,833,693 | 43.3% | |||
Sales of goods | 517,650 | 748,591 | 44.6% | |||
| 5,986,024 | 8,582,284 | 43.4% | |||
Cost of revenue |
|
|
| |||
Cost of service | (2,894,778) | (3,936,440) | 36.0% | |||
Cost of goods sold | (491,892) | (710,403) | 44.4% | |||
| (3,386,670) | (4,646,843) | 37.2% | |||
Gross profit | 2,599,354 | 3,935,441 | 51.4% | |||
Other operating income | 27,018 | 23,889 | (11.6%) | |||
Sales and marketing expenses | (1,150,299) | (1,886,748) | 64.0% | |||
General and administrative expenses | (340,027) | (425,217) | 25.1% | |||
Provision for credit losses | (373,825) | (681,519) | 82.3% | |||
Research and development expenses | (286,275) | (301,675) | 5.4% | |||
Total operating expenses | (2,123,408) | (3,271,270) | 54.1% | |||
Operating income | 475,946 | 664,171 | 39.5% | |||
Non-operating income, net | 61,170 | 123,313 | 101.6% | |||
Income tax expense | (161,096) | (280,386) | 74.0% | |||
Share of results of equity investees | (1,032) | (4,640) | 349.6% | |||
Net income | 374,988 | 502,458 | 34.0% | |||
Earnings per share
|
|
|
| |||
Basic | 0.63 | 0.81 | 28.6% | |||
Diluted | 0.59 | 0.78 | 32.2% | |||
Change in deferred revenue of Garena | 187,619 | 49,878 | (73.4%) | |||
Adjusted EBITDA for Shopee (1) | 186,055 | 269,171 | 44.7% | |||
Adjusted EBITDA for Monee (1) | 258,312 | 298,256 | 15.5% | |||
Adjusted EBITDA for Garena (1) | 314,029 | 458,161 | 45.9% | |||
Adjusted EBITDA for Other Services (1) | (25,119) | (83,876) | 233.9% | |||
Unallocated expenses (2) | (10,938) | (10,429) | (4.7%) | |||
Total adjusted EBITDA (1) | 722,339 | 931,283 | 28.9% | |||
(1) For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures.” | ||||||
(2) Unallocated expenses within total adjusted EBITDA are mainly related to general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the Chief Operating Decision Maker (“CODM”) as part of segment performance. | ||||||
Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025
Revenue
Our total GAAP revenue increased by 43.4% to US$8.6 billion in the third quarter of 2026 from US$6.0 billion in the third quarter of 2025. The table below sets forth our revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).
| For the Three Months ended September 30, |
| ||
| 2025 |
| 2026 | YOY% |
| $ |
| $ |
|
Service revenue |
|
|
|
|
Shopee | 3,778,680 |
| 5,324,020 | 40.9% |
Monee | 989,861 |
| 1,621,938 | 63.9% |
Garena | 653,033 |
| 840,105 | 28.6% |
Other Services(1) | 46,800 |
| 47,630 | 1.8% |
Sales of goods | 517,650 |
| 748,591 | 44.6% |
Total revenue | 5,986,024 |
| 8,582,284 | 43.4% |
(1) Other Services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments. | ||||
Cost of Revenue
Our total cost of revenue increased by 37.2% to US$4.6 billion in the third quarter of 2026 from US$3.4 billion in the third quarter of 2025. The table below sets forth our cost of revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).
| For the Three Months ended September 30, |
| ||
| 2025 |
| 2026 | YOY% |
| $ |
| $ |
|
Cost of service |
|
|
|
|
Shopee | 2,535,135 |
| 3,469,184 | 36.8% |
Monee | 125,669 |
| 180,809 | 43.9% |
Garena | 224,225 |
| 239,953 | 7.0% |
Other Services(1) | 9,749 |
| 46,494 | 376.9% |
Cost of goods sold | 491,892 |
| 710,403 | 44.4% |
Total cost of revenue | 3,386,670 |
| 4,646,843 | 37.2% |
(1) Other Services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments. | ||||
Other Operating Income
Our other operating income was US$23.9 million and US$27.0 million in the third quarter of 2026 and 2025, respectively. Other operating income mainly consists of rebates from our logistics services providers.
Sales and Marketing Expenses
Our total sales and marketing expenses increased by 64.0% to US$1.9 billion in the third quarter of 2026 from US$1.2 billion in the third quarter of 2025. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).
| For the Three Months ended September 30, |
| ||||
| 2025 |
| 2026 | YOY% | ||
Sales and Marketing Expenses | $ |
| $ |
| ||
Shopee | 894,670 |
| 1,431,592 | 60.0% | ||
Monee | 157,964 |
| 334,630 | 111.8% | ||
Garena | 51,424 |
| 53,947 | 4.9% | ||
General and Administrative Expenses
Our general and administrative expenses increased by 25.1% to US$425.2 million in the third quarter of 2026 from US$340.0 million in the third quarter of 2025.
Provision for Credit Losses
Our provision for credit losses increased by 82.3% to US$681.5 million in the third quarter of 2026 from US$373.8 million in the third quarter of 2025.
Research and Development Expenses
Our research and development expenses increased by 5.4% to US$301.7 million in the third quarter of 2026 from US$286.3 million in the third quarter of 2025.
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$123.3 million in the third quarter of 2026, as compared to a net non-operating income of US$61.2 million in the third quarter of 2025. The non-operating income in the third quarter of 2026 was primarily due to investment gain of US$65.2 million and interest income of US$62.2 million.
Income Tax Expense
We had a net income tax expense of US$280.4 million and US$161.1 million in the third quarter of 2026 and 2025, respectively.
Net Income or Loss
As a result of the foregoing, our net income increased by 34.0% to US$502.5 million in the third quarter of 2026 from US$375.0 million in the third quarter of 2025.
Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited’s Ordinary Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.81 in the third quarter of 2026, compared to basic earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.63 in the third quarter of 2025.
Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.78 in the third quarter of 2026, compared to diluted earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.59 in the third quarter of 2025.
Webcast and Conference Call Information
The Company’s management will host a conference call today to review Sea’s business and financial performance.
Details of the conference call and webcast are as follows:
Date and time: | 7:30 AM U.S. Eastern Time on November 10, 2026 8:30 PM Singapore / Hong Kong Time on November 10, 2026
| |
Webcast link: | https://events.q4inc.com/attendee/360627099
|
A replay of the conference call will be available at the Company’s investor relations website (www.sea.com/investor/home). An archived webcast will be available at the same link above.
About Sea Limited
Sea Limited (NYSE: SE) is a global technology company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across e-commerce, digital financial services, and digital entertainment, known as Shopee, Monee, and Garena respectively. Shopee is the largest e-commerce platform in Southeast Asia and Taiwan and is a leading e-commerce platform in Brazil. Monee is a leading digital financial services provider in Southeast Asia with a growing presence in Latin America. Garena is a leading global online games developer and publisher.
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expect,” “anticipate,” “aim,” “future,” “intend,” “plan,” “believe,” “estimate,” “likely to,” “potential,” “confident,” “guidance,” and similar statements. Among other things, statements that are not historical facts, including statements about Sea’s beliefs and expectations, the business, financial and market outlook, and projections from its management in this announcement, as well as Sea’s strategic and operational plans, contain forward-looking statements. Sea may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Sea’s goals and strategies; its future business development, financial condition, financial results, results of operations, financing needs, and sources of funding; the expected growth in, and market size of, the e-commerce, digital financial services, and digital entertainment industries in the markets where it operates, including segments within those industries; expected changes or guidance in its revenue, costs and expenses, or capital expenditures; its ability to continue to source, develop and offer new and attractive online games and to offer other engaging Garena content; the expected growth of its Shopee, Monee and Garena businesses; its expectations regarding growth in its user base, level of engagement, and monetization; its ability to continue to develop new technologies and/or upgrade its existing technologies; growth and trends of its markets and competition in its industries; risks associated with new business initiatives, including our artificial intelligence, cloud, and infrastructure initiatives; government policies and regulations relating to its industries, including the effects of any government orders or actions on its businesses; general economic, political, social and business conditions in its markets; and the impact of widespread health developments. Further information regarding these and other risks is included in Sea’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Sea undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to help evaluate our operating performance:
These non-GAAP financial measures have limitations as analytical tools. None of the above financial measures should be considered in isolation or construed as an alternative to revenue, net loss/income, or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to Sea’s data. We compensate for these limitations by reconciling the non-GAAP financial measures to their nearest U.S. GAAP financial measures, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on any single financial measure.
The tables below present selected financial information of our reporting segments, the non-GAAP financial measures that are most directly comparable to GAAP financial measures, and the related reconciliations between the financial measures. Amounts are expressed in thousands of US dollars (“$”).
| For the Three Months ended September 30, 2026 | |||||||||||
| Shopee | Monee | Garena |
Other
|
Unallocated
| Consolidated | ||||||
| $ | $ | $ | $ | $ | $ | ||||||
Operating income (loss) | 155,421 | 288,487 | 453,205 | (90,371) | (142,571) | 664,171 | ||||||
Depreciation and Amortization | 113,750 | 9,769 | 4,956 | 6,495 | - | 134,970 | ||||||
Share-based compensation | - | - | - | - | 132,142 | 132,142 | ||||||
Adjusted EBITDA | 269,171 | 298,256 | 458,161 | (83,876) | (10,429) | 931,283 | ||||||
|
|
|
|
|
|
| ||||||
Net effect of changes in deferred
| - | - | 52,030 | - | - | 52,030 | ||||||
| ||||||||||||
| For the Three Months ended September 30, 2025 | |||||||||||
| Shopee | Monee | Garena |
Other
|
Unallocated
| Consolidated | ||||||
| $ | $ | $ | $ | $ | $ | ||||||
Operating income (loss) | 110,117 | 248,177 | 309,811 | (27,039) | (165,120) | 475,946 | ||||||
Depreciation and Amortization | 75,938 | 10,135 | 4,218 | 1,920 | - | 92,211 | ||||||
Share-based compensation | - | - | - | - | 154,182 | 154,182 | ||||||
Adjusted EBITDA | 186,055 | 258,312 | 314,029 | (25,119) | (10,938) | 722,339 | ||||||
|
|
|
|
|
|
| ||||||
Net effect of changes in deferred
| - | - | 151,915 | - | - | 151,915 | ||||||
(1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services.” | ||||||||||||
(2) Unallocated expenses are mainly related to share-based compensation, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. | ||||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||
Amounts expressed in thousands of US dollars (“$”) except for number of shares & per share data | ||||
|
For the Nine Months
| |||
| 2025 | 2026 | ||
| $ | $ | ||
Revenue |
|
| ||
Service revenue | 14,701,824 | 21,448,879 | ||
Sales of goods | 1,384,777 | 2,018,673 | ||
|
|
| ||
Total revenue | 16,086,601 | 23,467,552 | ||
|
|
| ||
Cost of revenue |
|
| ||
Cost of service | (7,543,556) | (10,916,243) | ||
Cost of goods sold | (1,297,688) | (1,920,400) | ||
|
|
| ||
Total cost of revenue | (8,841,244) | (12,836,643) | ||
|
|
| ||
Gross profit | 7,245,357 | 10,630,909 | ||
|
|
| ||
Operating income (expenses) |
|
| ||
Other operating income | 93,822 | 75,750 | ||
Sales and marketing expenses | (3,089,493) | (4,961,058) | ||
General and administrative expenses | (970,558) | (1,223,432) | ||
Provision for credit losses | (979,498) | (1,702,178) | ||
Research and development expenses | (879,561) | (912,504) | ||
|
|
| ||
Total operating expenses | (5,825,288) | (8,723,422) | ||
|
|
| ||
Operating income | 1,420,069 | 1,907,487 | ||
Interest income | 260,872 | 197,917 | ||
Interest expense | (26,951) | (4,205) | ||
Net investment (loss) gain | (6,527) | 97,817 | ||
Net gain on debt extinguishment | 17,289 | 909 | ||
Foreign exchange loss | (11,006) | (41,800) | ||
Income before income tax and share of results of equity
|
1,653,746 | 2,158,125 | ||
Income tax expense | (441,467) | (744,989) | ||
Share of results of equity investees | (12,262) | (14,340) | ||
|
|
| ||
Net income | 1,200,017 | 1,398,796 | ||
|
|
| ||
Net income attributable to non-controlling interests | (18,967) | (39,280) | ||
Net income attributable to Sea Limited’s ordinary
| 1,181,050 | 1,359,516 | ||
|
|
| ||
Earnings per share: |
|
| ||
Basic | 1.99 | 2.23 | ||
Diluted | 1.89 | 2.15 | ||
|
|
| ||
Weighted average shares used in earnings per share computation
|
|
| ||
Basic | 592,592 | 610,532 | ||
Diluted | 638,092 | 633,066 | ||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Amounts expressed in thousands of US dollars (“$”) | ||||
|
| As of December 31, | As of September 30, | |
|
| 2025 | 2026 | |
|
| $ | $ | |
ASSETS |
|
|
| |
Current assets |
|
|
| |
Cash and cash equivalents |
| 4,158,920 | 2,905,303 | |
Restricted cash |
| 2,216,733 | 2,279,002 | |
Accounts receivable, net of allowance for credit losses of
|
| 378,047 | 450,661 | |
Prepaid expenses and other assets |
| 1,979,004 | 2,613,824 | |
Loans receivable, net of allowance for credit losses of
|
| 7,405,741 | 9,813,986 | |
Inventories, net |
| 222,578 | 323,863 | |
Short-term investments |
| 6,413,261 | 5,112,821 | |
Amounts due from related parties |
| 475,211 | 485,969 | |
Total current assets |
| 23,249,495 | 23,985,429 | |
|
|
|
| |
Non-current assets |
|
|
| |
Property and equipment, net |
| 1,306,837 | 1,865,922 | |
Operating lease right-of-use assets, net |
| 1,425,198 | 2,079,063 | |
Intangible assets, net |
| 12,210 | 5,706 | |
Long-term investments |
| 1,888,829 | 3,272,907 | |
Prepaid expenses and other assets |
| 185,643 | 386,150 | |
Loans receivable, net of allowance for credit losses of
|
| 558,336 |
789,662 | |
Restricted cash |
| 43,814 | 48,189 | |
Deferred tax assets |
| 596,155 | 669,442 | |
Goodwill |
| 104,462 | 98,816 | |
Total non-current assets |
| 6,121,484 | 9,215,857 | |
Total assets |
| 29,370,979 | 33,201,286 | |
For enquiries, please contact:
Investors / analysts: ir@sea.com
Media: media@sea.com
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