Sea Limited reported its fourth‑quarter and full‑year 2025 financial results, posting GAAP revenue of $6.9 billion for the quarter and $22.9 billion for the year, a 38.4 % year‑over‑year increase that beat consensus estimates. Net income rose to $410.9 million in Q4 and $1.6 billion for the year, up 72.9 % and 260 % respectively. Adjusted EBITDA climbed 33.2 % to $787.1 million in Q4 and 75.2 % to $3.4 billion for the full year. The company’s earnings per share of $0.63 fell short of the consensus estimate of $0.90, marking an EPS miss despite the revenue beat.
The segment‑level breakdown shows Shopee generated $4.3 billion in total revenue for Q4, driven by $3.6 billion in core marketplace transaction fees and $0.7 billion in logistics services. Monee reported $1.1 billion in revenue for the quarter, while Garena posted $701 million. These figures correct the earlier misstatement that Monee and Garena each earned $3.8 billion and $2.4 billion in Q4.
The EPS miss was largely attributable to higher credit provisions and increased operating expenses, including logistics, payment fees, and royalties, which eroded profitability. While revenue grew, the cost of revenue and non‑operating expenses rose, compressing margins and offsetting the gains from higher sales volumes. The company’s operating margin improved modestly, but the net effect was a lower EPS than analysts expected.
Sea’s management reiterated its 2026 outlook, projecting Shopee’s gross merchandise volume to grow about 25 % year‑over‑year and maintaining adjusted EBITDA at least at 2025 levels. The guidance signals confidence in continued demand and operational leverage, even as the company faces rising costs and competitive pressures. The company also confirmed a $1 billion share‑repurchase program announced in November 2025, underscoring its commitment to returning value to shareholders.
Investors reacted negatively to the earnings release, focusing on the EPS miss as the primary driver of the market’s response. The revenue beat was noted, but the shortfall in earnings per share outweighed the upside, leading to a cautious stance among market participants.
Sea’s broader strategy continues to emphasize a shift from a growth‑at‑all‑costs model to a self‑funding ecosystem. The company highlighted its ability to generate record revenue and improved profitability, while acknowledging the need to manage rising credit losses and operating costs. The share‑repurchase program and guidance for 2026 reinforce the company’s confidence in its long‑term trajectory.
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