Sea Limited reported third‑quarter 2025 results that included a record $5.99 billion in revenue, up 38% year‑over‑year, and $874 million in adjusted EBITDA, a 68% increase. Net income rose to $375 million, a 145% jump from Q3 2024. The company’s GAAP earnings per share were $0.59, falling short of the consensus estimate of $1.03 by 42%, while revenue exceeded the consensus of $5.97 billion by roughly 5.5%.
Segment performance was uneven but overall strong. Shopee generated $3.78 billion in service revenue, a 36.6% increase, and $186 million in adjusted EBITDA, a 440% jump from the prior year, driven by higher GMV and improved margin mix. SeaMoney’s digital financial services revenue reached $990 million, up 60.8%, with $258 million in adjusted EBITDA, reflecting a broadened loan book and higher fee income. Garena’s digital entertainment revenue hit $653 million, up 31.2%, and $466 million in adjusted EBITDA, a 48% rise, supported by a rebound in game bookings and a shift toward higher‑margin titles. Other services posted a modest negative adjusted EBITDA of $25 million, largely due to one‑time restructuring costs.
The revenue beat can be attributed to robust demand in Shopee’s core Southeast Asian markets and a successful expansion into Brazil, which added new sellers and increased transaction volume. The EPS miss, however, stemmed from higher operating expenses, including intensified marketing spend and investment in AI infrastructure, as well as a one‑time charge related to a regulatory compliance audit. These costs offset the revenue growth and prevented the company from meeting analyst expectations for earnings per share.
Sea Limited raised its full‑year GMV growth guidance for Shopee to over 25% from the previously forecast 20%, signaling confidence in continued e‑commerce momentum. The company also reiterated its outlook for a 38% revenue growth for the year, up from the prior guidance of 35%, reflecting stronger performance in its core markets and a more favorable mix of high‑margin services. The guidance increase underscores management’s belief that the company’s scale and AI‑driven efficiencies will sustain growth even as it continues to invest heavily in logistics and product innovation.
CEO Forrest Li emphasized that “AI represents a fundamental technological revolution that will create massive new opportunities.” He added that Shopee’s record‑setting quarter, combined with SeaMoney’s expanding loan book and Garena’s rebound, positions the company well to capture additional growth. Li also noted that the company remains focused on cost discipline while investing in high‑return verticals, indicating a balanced approach to growth and profitability.
Investors reacted with mixed sentiment. The revenue beat generated optimism about the company’s top‑line strength and the raised Shopee guidance, while the significant EPS miss highlighted ongoing pressure on profitability from higher operating costs and one‑time charges. Management’s focus on AI and cost discipline was viewed as a positive long‑term strategy, but the short‑term earnings shortfall tempered enthusiasm. Overall, the market’s response reflected the tension between strong revenue growth and the challenges of translating that growth into earnings.
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