Sea Limited Shares Tumble 23% After Earnings Miss Despite Strong Revenue Growth

Core Insights - Sea Limited's shares fell over 23% intra-day after reporting fourth-quarter earnings that missed analyst expectations despite revenue exceeding forecasts [1] - Adjusted earnings per share were $0.63, below the consensus estimate of $0.80, while revenue reached $6.9 billion, surpassing the forecast of $6.49 billion and representing a 38.4% year-over-year increase from $5.0 billion [1][2] Financial Performance - Net income increased by 72.9% year over year to $410.9 million, and adjusted EBITDA rose 33.2% to $787.1 million, but the earnings miss triggered a significant selloff [2] - For fiscal 2026, Sea projects Shopee's gross merchandise value growth at approximately 25% year over year, with full-year adjusted EBITDA expected to be no lower than 2025 levels in absolute dollar terms [2] Segment Performance - Shopee's revenue grew 35.8% year over year to $4.3 billion, driven by GMV growth of 28.6% to $36.7 billion, with gross orders increasing by 30.5% to 4.0 billion [3] - Adjusted EBITDA for Shopee reached $202.5 million, up 33.0% year over year [3] - The fintech segment, Monee, reported revenue of $1.1 billion, a 54.3% year-over-year increase, with adjusted EBITDA rising 24.7% to $263.1 million [3] - Garena gaming revenue increased by 35.1% to $701.0 million, while adjusted EBITDA climbed 25.6% to $363.8 million [3] Annual Overview - For the full year 2025, Sea generated revenue of $22.9 billion, reflecting a 36.4% year-over-year increase, with net income rising to $1.6 billion compared to $447.8 million in 2024 [4]