Sea Limited

Sea reported second-quarter 2026 GAAP revenue of $7.8 billion, up 48% year over year, and adjusted EBITDA of $917 million, up 11% year over year. Net income was $458 million, up 11% year over year. Shopee GMV increased 28% year over year to $38.3 billion, gross orders were up 27% to $4.2 billion, Shopee GAAP revenue was $5.6 billion, and Shopee adjusted EBITDA was $255 million. Sea also said Monee consumer and SME loans principal outstanding reached $11.1 billion, up 62% year over year, with 90-day NPLs at 1.0%, while Garena bookings grew 15% year over year to $764 million and adjusted EBITDA was $430 million. Looking ahead, management reiterated full-year Shopee GMV growth of around 25% and said it remains optimistic that Shopee will achieve more than $1 billion in adjusted EBITDA for the full year.

Forrest Li framed the quarter as a continuation of strong momentum, saying Sea is improving both scale and unit economics while investing prudently for profitable growth. He highlighted Shopee’s gains in new buyers, advertising, logistics, fulfillment, VIP, and content, and said Brazil remains a key growth market where Sea is outpacing the broader market. On Monee, he emphasized that better risk models and broader product reach are enabling growth while keeping credit performance stable, and on Garena he pointed to Free Fire’s longevity and the pipeline of new titles as reasons for confidence.

Tony Hou provided the key financial bridge: Sea revenue of $7.8 billion, adjusted EBITDA of $917 million, and net income of $458 million. He broke out Shopee revenue at $5.6 billion, marketplace revenue at $4.9 billion, core marketplace revenue at $4.3 billion, and value-added services revenue at $0.7 billion; Shopee adjusted EBITDA was $255 million. He also said consumer and SME loans principal outstanding was $11.1 billion, including $10 billion on-book and $1.1 billion off-book, with 90-day NPLs at 1.0%, and noted that higher provisions were mainly due to a higher mix of off-Shopee SPayLater and Brazil loans.

Analysts focused on whether Shopee margins and GMV growth can keep improving, how much further take rates and ad monetization can rise, and whether fulfillment investment is still early or nearing maturity. Management said GMV growth remains on track for around 25% for the full year, unit economics are improving quarter on quarter, and Shopee still has room to expand monetization through ads and other take-rate levers. On fulfillment, management said the business is still in the ramp-up stage but is gaining scale and economics, helped by a capex-light model and more integration with logistics. On Monee, management said rising provisions mostly reflect a richer mix of off-Shopee and Brazil lending, while credit risk remains stable by country, segment, and product.