Sea Limited Gears Up to Report Q4 Earnings: What's in the Offing?

Core Insights - Sea Limited (SE) is expected to report its fourth-quarter 2025 results on March 3, with earnings estimated at 90 cents per share, a decrease of one cent from the previous 30 days, compared to 62 cents per share in the same quarter last year. Revenue is projected at $6.78 billion, indicating a year-over-year growth of 36.28% [1][8] Financial Performance - Sea Limited has missed the Zacks Consensus Estimate for earnings in the last four quarters, with an average negative surprise of 16.09% [2] - The company’s provisions for credit losses surged by 76.3% year over year in Q3 2025, while its loan portfolio expanded to $7.9 billion, a 69.8% increase, which may have negatively impacted earnings in Q4 2025 [3] - Total cost of revenues increased by 37.3% year over year in Q3 2025, driven by a 38.8% rise in e-commerce costs and a 43.7% increase in digital entertainment costs, which likely continued to constrain profitability in Q4 2025 [4] - Income tax expenses rose by 74% year over year in the previous quarter, alongside foreign exchange losses, including an $8 million loss, which are expected to have pressured net income in Q4 2025 [5] Business Segments - Sea Limited's e-commerce platform, Shopee, demonstrated strong performance with a 28.4% year-over-year increase in GMV and gross orders, contributing positively to the company's Q4 2025 results [6][8] Earnings Prediction - The current Earnings ESP for Sea Limited is +4.83%, but it holds a Zacks Rank of 5 (Strong Sell), indicating that the model does not predict an earnings beat for this quarter [7][9]