Sea Limited (NYSE: SE) Financial Performance Analysis

Core Insights - Sea Limited (NYSE: SE) reported an earnings per share (EPS) of $0.63, which was below the estimated $0.90, but revenue reached approximately $6.9 billion, exceeding expectations of $6.43 billion [1][6] Financial Performance - In Q4 2025, Sea Limited achieved a GAAP revenue of $6.9 billion, representing a 38.4% increase year-on-year [2][6] - The company reported a gross profit of $3 billion, a 36% rise year-on-year, and a net income of $410.9 million, reflecting a significant 72.9% increase [2] Market Reaction - Despite strong financial results, Sea Limited's stock experienced a sell-off, similar to MercadoLibre (NASDAQ: MELI), which also reported robust financials [3][6] - MercadoLibre's revenue for Q4 2025 was $8.76 billion, a 44.6% increase year-over-year, indicating a parallel trend in stock price movements for both companies [3] Valuation Metrics - Sea Limited has a price-to-earnings (P/E) ratio of approximately 32.56, indicating investor confidence in its earnings potential [4] - The price-to-sales ratio is about 2.20, suggesting the market values the company at 2.20 times its sales [4] - The enterprise value to sales ratio is around 2.25, reflecting the company's total valuation compared to its sales [4] Financial Health - The company has a debt-to-equity ratio of approximately 0.42, indicating a moderate level of debt compared to equity [5] - With a current ratio of about 1.44, Sea Limited demonstrates its ability to cover short-term liabilities with short-term assets [5] - An earnings yield of about 3.07% provides a comprehensive view of Sea Limited's financial standing and potential for future growth [5]