Sea Limited Reports Third Quarter 2025 Results

Core Insights - Sea Limited reported strong financial results for Q3 2025, with total GAAP revenue reaching US$6.0 billion, a 38.3% increase year-on-year [7][11] - The company aims to sustain high and profitable growth across its three core businesses: e-commerce, digital financial services, and digital entertainment [2][3] E-commerce - Shopee achieved record-setting quarterly GMV, gross order volume, and revenue, with a projected full-year GMV growth of over 25% for 2025 [3] - E-commerce GAAP revenue increased by 36.6% to US$3.8 billion, driven by GMV growth [16] - Gross orders totaled 3.6 billion, up 28.4% year-on-year, with total GMV at US$32.2 billion, also reflecting a 28.4% increase [7] Digital Financial Services - Monee reported a GAAP revenue increase of 60.8% to US$989.9 million, primarily due to growth in the consumer and SME credit business [7][16] - The principal outstanding for consumer and SME loans reached US$7.9 billion, a 69.8% increase year-on-year [7] - Adjusted EBITDA for digital financial services was US$258.3 million, up 37.5% year-on-year [7] Digital Entertainment - Garena's bookings increased by 51% year-on-year, marking the best quarter since 2021, with a strong performance driven by campaigns for Free Fire [3][7] - Digital entertainment GAAP revenue rose by 31.2% to US$653.0 million, attributed to an increase in active users and deeper paying user penetration [16] - The segment is on track to achieve over 30% year-on-year growth in bookings for 2025 [3] Financial Performance - Total gross profit for the quarter was US$2.6 billion, up 39.7% year-on-year [7] - Total adjusted EBITDA reached US$874.3 million, a 67.7% increase from the previous year [7] - Net income for Q3 2025 was US$375.0 million, compared to US$153.3 million in Q3 2024, reflecting a 144.6% increase [25][7] User Metrics - Quarterly active users reached 670.8 million, a 6.7% increase year-on-year, while quarterly paying users grew by 31.2% to 65.9 million [10] - The average bookings per user increased to US$1.25 from US$0.89 in the previous year [10]