Sea Limited (SE) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Sea Limited reported revenue of $5.36 billion for the quarter ended June 2025, reflecting a year-over-year increase of 37.2% and a surprise of +4.67% over the Zacks Consensus Estimate of $5.12 billion [1] - The company's EPS was $0.85, up from $0.46 in the same quarter last year, although it fell short of the consensus estimate of $0.99 by -14.14% [1] Financial Performance Metrics - Gross GMV for E-commerce reached $29.8 million, exceeding the average estimate of $28.6 million [4] - Quarterly active users totaled 665, slightly above the average estimate of 664 [4] - Gross Orders in E-commerce were 3.3 billion, surpassing the average estimate of 3.03 billion [4] - Bookings for Digital Entertainment amounted to $661.3 million, compared to the estimated $635.72 million [4] - Quarterly paying users were 62, exceeding the average estimate of 60 [4] - Revenue from Digital Entertainment was $559.12 million, above the average estimate of $520.42 million [4] - Revenue from E-Commerce reached $3.77 billion, compared to the average estimate of $3.62 billion, marking a +33.7% year-over-year change [4] - Revenue from Digital Financial Services was $882.81 million, exceeding the average estimate of $799.75 million, with a +70% year-over-year increase [4] - Revenue from Other Services was $46.48 million, surpassing the average estimate of $36.66 million, reflecting a +51.4% year-over-year change [4] - Adjusted EBITDA for Digital Entertainment was $368.19 million, slightly above the average estimate of $357.85 million [4] - Adjusted EBITDA for E-commerce was $227.69 million, below the average estimate of $248.63 million [4] - Unallocated expenses showed an adjusted EBITDA of -$8.14 million, better than the average estimate of -$20.22 million [4] Stock Performance - Sea Limited's shares have returned -3.2% over the past month, contrasting with the Zacks S&P 500 composite's +2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]