Sea Ltd.'s Q4 Earnings Miss Shadows Massive 38% Revenue Surge For Shopee, Garena

Core Insights - Sea Ltd reported a fiscal fourth-quarter 2025 revenue of $6.85 billion, a 38.4% year-on-year increase, surpassing analyst expectations of $6.45 billion, but earnings per share of 63 cents fell short of the consensus forecast of 66 cents [1] Segment Performance - Sea generates revenue through three segments: Garena, Shopee, and Monee [2] Shopee - Shopee's quarterly revenue rose 35.8% to $4.3 billion, driven by a 30.5% year-on-year increase in gross orders totaling 4 billion and a 28.6% year-on-year increase in GMV to $36.7 billion; adjusted EBITDA was $202.5 million, up 33.0% year-on-year [3] Monee - Monee's quarterly revenue increased by 54.3% to $1.1 billion, attributed to growth in its credit business; adjusted EBITDA was $263.1 million, up 24.7% year-on-year [4] Garena - Garena's quarterly revenue climbed 35.1% to $701 million, driven by an increase in active users and deeper paying user penetration; bookings were $672.4 million, up 23.8% year-on-year, with adjusted EBITDA at $363.8 million, up 25.6% year-on-year; quarterly active users reached 633.3 million, up 2.5% year-on-year, and paying users were 58.0 million, up 15.0% year-on-year [5] Financial Health - Sea generated $1.48 billion in operating cash flow during the quarter and ended December 31, 2025, with $6.42 billion in cash and equivalents; the CEO highlighted broad-based, sustainable growth supported by an expanding user base [6] Future Outlook - The company expects Shopee's strong growth momentum and profitability to continue into 2026, aiming for a 25% year-on-year increase in Shopee's annual GMV while maintaining full-year adjusted EBITDA at least at 2025 levels in absolute dollar terms [7][8]