SEA (NYSE:SE – Get Free Report) announced its earnings results on Tuesday. The Internet company based in Singapore reported $0.70 earnings per share for the quarter, missing the consensus estimate of $0.86 by ($0.16), Briefing.com reports. The company had revenue of $7.79 billion for the quarter, compared to analysts’ expectations of $7.12 billion. SEA had a return on equity of 13.84% and a net margin of 5.98%.The company’s quarterly revenue was up 48.3% compared to the same quarter last year. During the same period last year, the business earned $0.65 EPS.
Here are the key takeaways from SEA’s conference call:
- Sea reported strong second-quarter growth, with revenue up 48% year over year to $7.8 billion and adjusted EBITDA up 11% to $917 million; net income rose 11% to $458 million despite a substantially higher tax expense.
- Shopee’s GMV increased 28% to $38.3 billion, while new active buyers, engagement, advertising, VIP membership, and content-driven orders all accelerated. Management maintained its approximately 25% full-year GMV growth outlook and expects Shopee to exceed $1 billion in adjusted EBITDA in 2026.
- Monee continued rapid expansion, with its loan book up 62% to $11.1 billion, revenue up 59%, and adjusted EBITDA reaching $288 million; active credit users surpassed 40 million while the 90-day NPL ratio remained stable at 1.0%.
- Garena bookings grew 15% and adjusted EBITDA rose 17%, supported by Free Fire’s more than 100 million average daily active users. New titles Palworld Online and Monster Hunter Outlanders are expected to broaden the gaming portfolio, with Monster Hunter Outlanders targeted for launch this year in selected markets.
- Monee’s higher loan growth is also producing increased credit-loss provisions, primarily due to the growing mix of off-Shopee lending and Brazil, which management describes as a higher-interest, higher-risk market. Shopee also flagged potential foreign-exchange headwinds and continued investment needs in fulfillment and logistics, even as unit economics improve.
SEA Stock Down 2.2%
SE stock opened at $128.62 on Thursday. The stock has a market cap of $78.59 billion, a P/E ratio of 49.66, a PEG ratio of 1.28 and a beta of 1.54. The company has a current ratio of 1.58, a quick ratio of 1.56 and a debt-to-equity ratio of 0.05. SEA has a twelve month low of $77.05 and a twelve month high of $199.30. The company’s 50 day moving average is $101.21 and its two-hundred day moving average is $96.74.
Analysts Set New Price Targets
Check Out Our Latest Stock Analysis on SEA
Key SEA News
Here are the key news stories impacting SEA this week:
- Positive Sentiment: Revenue and business growth beat expectations: Sea reported revenue of approximately $7.8 billion, up 48.1% year over year and above the $7.12 billion consensus estimate. Shopee, fintech platform Monee and gaming division Garena each delivered double-digit growth. Net income rose 10.6% to $458.1 million and adjusted EBITDA increased to $917.2 million. Sea Limited Jumped 15%, But Can the Rally Last?
- Positive Sentiment: Shopee profitability outlook improved: Management maintained its 25% gross merchandise value growth target and raised its Shopee adjusted EBITDA goal to more than $1 billion, up from a previous floor of $881 million. The guidance supports the view that Sea’s e-commerce investments are translating into stronger profitability. SE Q2 Earnings Call Keeps Shopee Growth Outlook Intact
- Positive Sentiment: Reduced short interest may support momentum: Short interest fell 36.5% to 12.3 million shares as of July 31, representing about 2% of shares outstanding and 2.9 days of average trading volume. This indicates that bearish positioning has eased.
- Neutral Sentiment: Analyst views remain mixed: Benchmark raised its price target from $140 to $175 and assigned a buy rating, while the broader analyst consensus remains “Moderate Buy” with a target near $148.30. However, Zacks Research downgraded the stock from “hold” to “strong sell,” highlighting valuation and execution risks.
- Negative Sentiment: Profit growth was slower than revenue growth: Sea earned $0.70 per share, below the $0.86 consensus estimate. With the stock trading around $128.62, substantially above its 50-day and 200-day moving averages and at a price-to-earnings ratio near 50, investors may demand continued earnings acceleration.
- Negative Sentiment: Significant insider selling adds caution: CEO Xiaodong Li sold 1.06 million shares worth approximately $137.3 million, reducing his direct stake by 78.6%. Other executives and insiders, including the COO, CFO and president, also sold shares. These transactions may weigh on sentiment after the earnings-driven rally.
Insiders Place Their Bets
In other news, CFO Tianyu Hou sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $128.28, for a total transaction of $641,400.00. Following the sale, the chief financial officer owned 40,000 shares of the company’s stock, valued at $5,131,200. The trade was a 11.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Feng Zhao sold 2,000 shares of the company’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $128.26, for a total transaction of $256,520.00. Following the completion of the transaction, the insider owned 148,000 shares in the company, valued at approximately $18,982,480. This trade represents a 1.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 1,640,650 shares of company stock valued at $197,385,910. 0.22% of the stock is owned by insiders.
Institutional Trading of SEA
A number of hedge funds have recently added to or reduced their stakes in the business. State of Tennessee Department of Treasury raised its position in shares of SEA by 32.4% in the 4th quarter. State of Tennessee Department of Treasury now owns 718,949 shares of the Internet company based in Singapore’s stock worth $83,750,000 after buying an additional 175,746 shares during the period. Align Financial LLC purchased a new stake in shares of SEA during the 4th quarter worth about $2,897,000. Advisory Services Network LLC grew its holdings in shares of SEA by 7.1% during the 4th quarter. Advisory Services Network LLC now owns 3,609 shares of the Internet company based in Singapore’s stock worth $460,000 after purchasing an additional 239 shares during the period. Captrust Financial Advisors increased its position in SEA by 22.6% during the 4th quarter. Captrust Financial Advisors now owns 28,941 shares of the Internet company based in Singapore’s stock worth $3,692,000 after purchasing an additional 5,343 shares in the last quarter. Finally, Oarsman Capital Inc. raised its stake in shares of SEA by 89.0% in the 4th quarter. Oarsman Capital Inc. now owns 2,124 shares of the Internet company based in Singapore’s stock valued at $271,000 after acquiring an additional 1,000 shares during the period. 59.53% of the stock is owned by institutional investors and hedge funds.
About SEA
Sea Limited (NYSE: SE) is a Singapore-based consumer internet company that operates a trio of interconnected businesses across digital entertainment, e-commerce and digital financial services. Founded in 2009 as Garena and later rebranded as Sea, the company is headquartered in Singapore and listed on the New York Stock Exchange. Sea positions itself as a technology platform focused on enabling online consumers, merchants and developers primarily across Southeast Asia and adjacent markets.
Sea’s digital entertainment arm, Garena, is a game developer and publisher that also organizes esports initiatives and operates online gaming platforms.
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