Sea Limited (SE) Reports Strong Revenue Growth with Q2 Results Despite EPS Miss

Sea Limited (NYSE: SE) has released its financial results for the second quarter of 2025, showcasing significant growth across its primary business segments. The company has surpassed expectations, reflecting its strategic focus on expansion while maintaining profitability.

Sea Limited Reports Total GAAP Revenue of $5.3B for Q2, Up 38.2% y/y

Sea Limited reported a total GAAP revenue of $5.3 billion for the second quarter of 2025, marking a 38.2% increase year-over-year. This performance exceeded the anticipated revenue of $5.12 billion, reflecting the company’s strategic focus on growth across its key segments. The e-commerce division, driven by Shopee, contributed significantly with a revenue of $3.8 billion, up 33.7% from the previous year. This growth was primarily fueled by a 28.2% increase in Gross Merchandise Volume (GMV) to $29.8 billion. Shopee’s success in Brazil, where it celebrated its five-year anniversary, was particularly noteworthy as it became the market leader by order volume.

Sea’s digital financial services segment also demonstrated impressive growth, with GAAP revenue reaching $882.8 million, a 70% increase year-over-year. The segment’s growth was driven by the expansion of its credit business, which saw consumer and SME loans principal outstanding rise by 94% to $6.9 billion. The digital entertainment segment, led by Garena, reported a 28.4% increase in GAAP revenue to $559.1 million. This growth was supported by a 23.2% rise in bookings to $661.3 million, as the company expanded its user base and increased its paying user ratio.

In terms of profitability, Sea Limited achieved a gross profit of $2.4 billion, up 52.1% from the previous year. The company’s net income for the quarter was $414.2 million, a significant increase from $79.9 million in the same period last year. Earnings per share (EPS) for the quarter were $0.68 on a basic basis and $0.65 on a diluted basis, both below the expected EPS of $0.99.

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Sea Limited Raises Full-Year Guidance for Garena

Looking ahead, Sea Limited remains optimistic about its future performance and has provided encouraging guidance for the rest of the year. The company has raised its full-year guidance for Garena, expecting bookings to grow by more than 30% year-over-year. This optimism is grounded in the continued success of Free Fire, which has established itself as a lasting franchise with a growing global appeal. Sea plans to explore new genres and markets, leveraging AI to enhance future gaming experiences.

For the e-commerce segment, Sea anticipates the growth momentum to continue into the third quarter, driven by Shopee’s strong performance in Asia and Brazil. The company is committed to reinforcing its market leadership while ensuring profitable growth. The digital financial services segment, led by Monee, is expected to maintain its growth trajectory as the credit business expands across various markets. Sea’s prudent risk management and diversification of its loan portfolio are key factors supporting this growth.

The company’s strategic focus on long-term profitability while pursuing growth opportunities is evident in its financial outlook. Sea’s management has expressed confidence in delivering another strong year, with a commitment to maximizing shareholder value. This forward-looking approach, coupled with the company’s robust performance in the second quarter, positions Sea Limited well for sustained success in the coming quarters.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.