Sea Limited Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Core Insights - Sea Limited (SE) reported adjusted earnings of 80 cents per share in Q4 2025, a 29% increase year-over-year, but missed the Zacks Consensus Estimate by 11.11% [1] - Revenues reached $6.9 billion, up 38.4% year-over-year, driven by growth in Shopee and Monee, slightly beating the Zacks Consensus Estimate by 0.65% [1] E-commerce Performance - Shopee revenues totaled $5 billion, reflecting a 35.8% year-over-year increase, with GAAP marketplace revenues of $4.3 billion and GAAP product revenues of $0.6 billion [2] - Gross Merchandise Volume (GMV) increased by 28.6% year-over-year to $36.7 billion, with gross orders reaching 4 billion, a 30.5% increase [2][8] - Shopee served approximately 400 million active buyers and 20 million sellers in 2025, achieving $127 billion in GMV, with expectations of a 25% increase in full-year 2026 GMV [3] Digital Financial Services - Monee's revenues surged 54.3% year-over-year to $1.1 billion, primarily due to strong growth in the credit business [3] - The principal outstanding for consumer and SME loans increased 80% year-over-year to $9.2 billion, with non-performing loans over 90 days stable at 1.1% [4] Digital Entertainment - Garena revenues reached $701 million, marking a 35.1% year-over-year growth, driven by an increase in active users and improved paying user penetration [4] - Quarterly active users were 633.3 million, up 2.5% year-over-year, while quarterly paying users increased by 15% to 58 million, raising the paying user ratio to 9.2% [5] Financial Metrics - Gross profit increased 36% year-over-year to $3 billion, with a gross margin contraction of 80 basis points to 43.8% [7] - Adjusted EBITDA for the quarter was $787.1 million, up 33.2% year-over-year, with an adjusted EBITDA margin of 11.5% [9] - Shopee's adjusted EBITDA reached $202.5 million, while Monee's adjusted EBITDA increased 24.7% to $263.1 million [9] Balance Sheet and Cash Flow - As of December 31, 2025, SE had cash and cash equivalents of $4.16 billion, up from $3.07 billion as of September 30, 2025 [11] - The company repurchased 116.2 thousand shares for $14.5 million during Q4 2025 as part of a $1.0 billion share repurchase program [11] - Cash generated from operating activities was $1.48 billion in the reported quarter, compared to $1.18 billion in the previous quarter [11]