Sea Limited Reports First Quarter 2026 Results

Sea Limited (NYSE:SE) ("Sea" or the "Company") today announced its financial results for the first quarter ended March 31, 2026.

In the first quarter of 2026, Sea's GAAP revenue was US$7.1 billion, up 46.6% year-on-year. The Company also achieved gross profit of US$3.1 billion, up 40.7% year-on-year, and net income of US$438.2 million, up 6.7% year-on-year. Adjusted EBITDA¹ increased by 9.3% year-on-year to reach US$1.0 billion.

"We have had a strong start to the year. 2026 is a year where we are leaning in to deepen our competitive moats, while maintaining financial discipline. Our strong revenue growth reflects the effectiveness of these investments, and we are already seeing unit economics start to improve for some of these initiatives. We believe this is the right approach to maximize long-term value, given the significant runway for growth still ahead of us in our markets," said Forrest Li, Sea's Chairman and Chief Executive Officer.

On Shopee, he said, "Shopee delivered another record-setting quarter, achieving new highs in GMV, gross order volume, and revenue while maintaining financial discipline. Looking ahead, we are confident in the strength of our Shopee ecosystem and our ability to execute our strategies. We are on track to deliver our 2026 guidance: to grow Shopee's annual GMV by around 25% year-on-year, with full year adjusted EBITDA no lower than 2025 in absolute dollar terms."

On Monee, Mr. Li said, "Monee continues to grow healthily while maintaining stable asset quality. Expansion into more user segments, off-Shopee use cases, and early markets like Brazil are giving us a much larger addressable opportunity across our portfolio. We remain confident that Monee will be a significant long-term profit contributor for Sea."

On Garena, Mr. Li said, "Garena had a stellar start to 2026, delivering its best quarter since 2021. This performance was driven by the continued strength of Free Fire, alongside a record contribution from Arena of Valor. The sustained success of both games demonstrates our unique ability to operate games well across genres, in multiple markets, and over long periods of time. We will remain focused on delivering fresh experiences and building the long-term value of our game portfolio."

On the growing role of AI, he said, "We have taken a practical, results-oriented approach, embedding AI into our operations to drive better outcomes for our users and greater efficiency across our platform. Across our ecosystem, we see the AI era as creating significant opportunities for a company like ours – with established scale, rich cross-vertical data, and deep local expertise."

First Quarter 2026 Business Highlights

• Shopee
  • Gross orders totaled 4.0 billion for the quarter, increasing by 29.3% year-on-year.
  • GMV was US$37.3 billion for the quarter, increasing by 30.2% year-on-year.
  • GAAP revenue was US$5.1 billion, up 45.1% year-on-year.
  • GAAP revenue included US$4.5 billion of GAAP marketplace revenue, which consists of core marketplace revenue and value-added services revenue and increased by 44.4% year-on-year.
    • Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 61.0% year-on-year to US$3.8 billion.
    • Value-added services revenue, mainly consisting of revenues related to logistics services, was down 8.1% year-on-year to US$691.6 million as a result of higher revenue net-off against shipping subsidies.
  • Adjusted EBITDA¹ was US$223.2 million, as compared to US$264.4 million for the first quarter of 2025.

• Monee
  • GAAP revenue was US$1.2 billion, up 57.8% year-on-year.
  • Adjusted EBITDA¹ was US$275.2 million, up 14.0% year-on-year.
  • Monee revenue and operating income are primarily attributed to the consumer and SME credit business. As of March 31, 2026, consumer and SME loans principal outstanding was US$9.9 billion, up 71.3% year-on-year. This consists of US$8.8 billion on-book and US$1.1 billion off-book loans principal outstanding².
  • Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding², was 1.1%, stable quarter-on-quarter.

• Garena
  • Bookings³ were US$931.4 million, up 20.1% year-on-year.
  • GAAP revenue was US$696.6 million, up 40.6% year-on-year.
  • Adjusted EBITDA¹ was US$573.6 million, up 25.2% year-on-year.
  • Adjusted EBITDA represented 61.6% of bookings for the first quarter of 2026, as compared to 59.1% for the first quarter of 2025.
  • Quarterly active users were 666.5 million, as compared to 661.8 million for the first quarter of 2025.
  • Quarterly paying users were 72.6 million, up 12.4% year-on-year. Paying user ratio was 10.9%, as compared to 9.8% for the first quarter of 2025.
  • Average bookings per user were US$1.40, as compared to US$1.17 for the first quarter of 2025.

Share Repurchase Program

During the first quarter of 2026, pursuant to our US$1.0 billion share repurchase program, we have repurchased 1.8 million shares for an aggregate amount of US$168.4 million.

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

Revenue

Our total GAAP revenue increased by 46.6% to US$7.1 billion in the first quarter of 2026 from US$4.8 billion in the first quarter of 2025. The table below sets forth our revenue breakdown. Amounts are expressed in thousands of US dollars ("$").

• Shopee: GAAP revenue increased by 44.4% to US$4.5 billion in the first quarter of 2026 from US$3.1 billion in the first quarter of 2025, primarily driven by the growth of GMV.

• Monee: GAAP revenue increased by 57.8% to US$1.2 billion in the first quarter of 2026 from US$787.1 million in the first quarter of 2025, primarily driven by the growth of our credit business as our lending activities increased.

• Garena: GAAP revenue increased by 40.6% to US$696.6 million in the first quarter of 2026 from US$495.6 million in the first quarter of 2025. This increase was primarily due to the increase in our active user base as well as the deepened paying user penetration.

• Sales of goods: GAAP revenue increased by 50.6% to US$612.4 million in the first quarter of 2026 from US$406.6 million in the first quarter of 2025.

Cost of Revenue

Our total cost of revenue increased by 51.7% to US$4.0 billion in the first quarter of 2026 from US$2.6 billion in the first quarter of 2025. The table below sets forth our cost of revenue breakdown. Amounts are expressed in thousands of US dollars ("$").

• Shopee: Cost of revenue increased by 54.7% to US$3.0 billion in the first quarter of 2026 from US$1.9 billion in the first quarter of 2025, primarily driven by an increase in logistics costs as orders volume grew, as well as investment in our logistics capabilities for better user experience.

• Monee: Cost of revenue increased by 33.9% to US$142.5 million in the first quarter of 2026 from US$106.4 million in the first quarter of 2025, primarily driven by costs associated with our credit business, which include collection expenses and bank transaction fees, and server and hosting expenses.

• Garena: Cost of revenue increased by 19.6% to US$216.5 million in the first quarter of 2026 from US$181.0 million in the first quarter of 2025, primarily from third-party payment channel costs, which was largely in line with the increase in Garena revenue.

• Cost of goods sold: Cost of goods sold increased by 57.1% to US$587.0 million in the first quarter of 2026 from US$373.8 million in the first quarter of 2025.

Other Operating Income

Our other operating income was US$27.6 million and US$34.9 million in the first 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 52.1% to US$1.4 billion in the first quarter of 2026 from US$929.7 million in the first quarter of 2025. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars ("$").

General and Administrative Expenses

Our general and administrative expenses increased by 31.5% to US$403.8 million in the first quarter of 2026 from US$307.2 million in the first quarter of 2025.

Provision for Credit Losses

Our provision for credit losses increased by 65.1% to US$465.5 million in the first quarter of 2026 from US$281.9 million in the first quarter of 2025.

Research and Development Expenses

Our research and development expenses were US$296.7 million in the first quarter of 2026, as compared to US$295.9 million in the first quarter of 2025, relatively flat year-on-year.

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$61.8 million in the first quarter of 2026, as compared to a net non-operating income of US$89.2 million in the first quarter of 2025. The non-operating income in the first quarter of 2026 was primarily due to interest income of US$67.1 million.

Income Tax Expense

We had a net income tax expense of US$214.0 million and US$136.3 million in the first quarter of 2026 and 2025, respectively.

Net Income or Loss

As a result of the foregoing, our net income increased by 6.7% to US$438.2 million in the first quarter of 2026 from US$410.8 million in the first 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$0.70 in the first quarter of 2026, compared to basic earnings per share attributable to Sea Limited's ordinary shareholders of US$0.68 in the first quarter of 2025.

Diluted earnings per share attributable to Sea Limited's ordinary shareholders was US$0.67 in the first quarter of 2026, compared to diluted earnings per share attributable to Sea Limited's ordinary shareholders of US$0.65 in the first 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:

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, and results of operations; 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 or 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; 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:

• "Adjusted EBITDA" for our Garena segment represents operating income (loss) plus (a) depreciation and amortization expenses, and (b) the net effect of changes in deferred revenue and its related cost for our Garena segment. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.

• "Adjusted EBITDA" for our Shopee segment, Monee segment and other services segment represents operating income (loss) plus depreciation and amortization expenses. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.

• "Total adjusted EBITDA" represents the sum of adjusted EBITDA of all our segments combined, plus unallocated expenses. We believe that the total adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.

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 ("$") except for number of shares & per share data.

Net cash used in investing activities amounted to US$1,604 million for the three months ended March 31, 2026. This was primarily attributable to an increase in loans receivable of our credit business of US$1,061 million, net purchases of investments of US$432 million mainly consisting of time deposits and sovereign and corporate debt securities, as well as purchase of property and equipment of US$139 million to support the existing operations. Net cash generated from financing activities amounted to US$480 million for the three months ended March 31, 2026. This was primarily attributable to an increase in bank deposits of US$495 million and net proceeds from other funding sources related to credit business of US$180 million, offset by the cash used in repurchase of ordinary shares of US$164 million and cash used in repurchase of convertible notes of US$54 million.

UNAUDITED SEGMENT INFORMATION

The Company has three reportable segments, namely Shopee, Monee and Garena. The Chief Operating Decision Maker ("CODM"), comprising our senior management team, evaluates each segment's financial performance by reviewing revenue, significant operating expenses, and segment operating income or loss. To allocate resources for each segment, the CODM evaluates these results, along with certain key operating metrics of each segment. This assessment is done regularly by monitoring each segment's actual financial and operating performance against projections as part of the Company's business planning and budgeting process. Amounts are expressed in thousands of US dollars ("$").

View source version on businesswire.com: https://www.businesswire.com/news/home/20260511833139/en/

For enquiries, please contact:



Investors / analysts: ir@sea.com

Media: media@sea.com