Sea Limited Posts 48% Revenue Growth as Shopee Returns to Profitability
The Singapore-based technology conglomerate reported $7.8 billion in Q2 revenue, with its e-commerce arm generating over $250 million in adjusted EBITDA and targeting $1 billion for the full year.
Strong Quarter Across All Segments
Sea Limited reported revenue of $7.8 billion for the second quarter of 2026, up 48% year-over-year, alongside adjusted EBITDA of over $917 million (earnings call, 2026-08-11). The results demonstrated continued momentum across the company's three core businesses: Shopee, Garena, and SeaMoney.
CEO Forrest Li highlighted that the company's investments have enabled both Shopee and SeaMoney to "strengthen our market leadership while improving our user penetration" with "unit economics continue to improve, a testament to our strong financial discipline and operational efficiency" (earnings call, 2026-08-11).
Shopee Accelerates User Growth
Shopee, the company's e-commerce platform, generated adjusted EBITDA of more than $250 million during the quarter, marking eight consecutive quarters of sequential GMV growth. GMV increased 28% year-over-year (earnings call, 2026-08-11).
The platform saw significant acceleration in user acquisition, with average monthly new active buyers growing more than 35% year-over-year. Total monthly active buyers increased 18% year-over-year, while purchase frequency rose 8% (earnings call, 2026-08-11).
Monetization strengthened considerably, with advertising revenue up more than 70% and ad take rate improving by over 90 basis points year-over-year. The number of ad-paying sellers rose around 45%, while average ad spend per seller increased more than 15% (earnings call, 2026-08-11).
Li expressed optimism about full-year performance, stating "we are optimistic that Shopee will achieve the milestone of $1 billion in adjusted EBITDA for the full year" (earnings call, 2026-08-11).
Logistics and VIP Program Gains Traction
Shopee's logistics capabilities continued to advance, with instant delivery orders growing around 80% year-over-year while cost per order fell by around 20%. Fulfillment volumes increased more than 20% quarter-over-quarter, with some markets seeing more than 60% of fulfilled parcels arriving next day (earnings call, 2026-08-11).
The Shopee VIP membership program exceeded 15 million members at the end of June, up 25% from the previous quarter, with monthly retention remaining around 80%. In Brazil, where the program launched in April, membership already surpassed 1 million (earnings call, 2026-08-11).
SeaMoney Expands Credit Business
SeaMoney's loan book reached $11.1 billion at the end of June, up 52% year-over-year, with asset quality remaining stable at a 90-day NPL ratio of 1.0%. The Philippines became the company's fifth market with a loan book exceeding $1 billion (earnings call, 2026-08-11).
Active credit users grew around 34% year-over-year to over 40 million, with the company adding approximately 5.3 million unique first-time borrowers during the quarter. Off-platform Shopee Later transactions accounted for over 20% of the total Shopee Later portfolio, reaching 35% in some markets (earnings call, 2026-08-11).
Garena Maintains Momentum
Garena delivered bookings growth of 15% year-over-year with profitability "remaining solid and growing well year-on-year." Free Fire, now in its ninth year, continues to draw over 100 million average daily active users (earnings call, 2026-08-11).
This article was generated by MarginX from the earnings call on 2026-08-11. It is not investment advice.