Sea Limited (SE) Stock: Slides Despite Shopee Growth and $502.5M Quarterly Profit

TLDR

• SE stock drops 6.70% premarket to $72.78 despite Sea’s strong Q3 earnings report.
• Sea Limited’s quarterly revenue jumps 43.4% to $8.6B as Shopee drives growth.
• Shopee’s gross merchandise value climbs 23.3% to $39.7B during the quarter.
• Monee revenue surges 63.9%, while credit loss provisions climb 82.3% in Q3.
• Garena EBITDA rises 45.9% as Sea approves another new $1B share buyback plan.

Sea Limited (SE) shares plunged 6.70% to $72.78 in premarket trading Tuesday, despite reporting strong third-quarter earnings. The stock previously closed 2.94% higher at $77.96, gaining $2.23 during the regular session. Meanwhile, Sea reported $8.6 billion in quarterly revenue and $502.5 million in net income.

Sea Limited, SE

Sea Limited Reports 43.4% Revenue Growth in Q3

Sea Limited reported a 43.4% annual revenue increase for the quarter ending September 30, 2026. The company’s revenue climbed from $5.99 billion last year to $8.58 billion. Additionally, gross profit increased 51.4% to $3.94 billion as revenue growth outpaced direct costs.

Net income rose 34% to $502.5 million, compared with $375 million during the previous year. Meanwhile, diluted earnings per share increased from $0.59 to $0.78, representing 32.2% growth. The company also reported adjusted EBITDA of $931.3 million, marking a 28.9% annual increase.

Sea recorded higher operating expenses as it expanded its business operations. Sales and marketing costs jumped 64% to $1.89 billion, while credit loss provisions increased 82.3%. Consequently, total operating expenses reached $3.27 billion, reflecting 54.1% annual growth.

Shopee Growth and Monee Lending Support Revenue Expansion

Shopee continued driving Sea Limited’s e-commerce expansion during the third quarter. The platform processed 4.5 billion gross orders, representing 25.5% annual growth. Meanwhile, gross merchandise value increased 23.3% to $39.7 billion, reflecting stronger transaction activity.

Shopee generated $6.1 billion in revenue, representing a 41.3% increase from last year. Its core marketplace revenue climbed 50.6% to $4.6 billion, supported by transaction fees and advertising. Additionally, adjusted EBITDA increased 44.7% to $269.2 million as the platform improved profitability.

Sea’s financial services division, Monee, also recorded substantial growth during the quarter. Revenue surged 63.9% to $1.6 billion, while adjusted EBITDA reached $298.3 million. However, outstanding consumer and business loans grew 60% to $12.6 billion, alongside higher credit loss provisions.

Garena Profitability Improves as Sea Expands Buybacks

Garena contributed additional earnings growth through its gaming operations, including Free Fire and Arena of Valor. The division generated $840.1 million in revenue, representing 28.6% annual growth. Furthermore, adjusted EBITDA jumped 45.9% to $458.2 million, supported by stronger operating performance.

Garena recorded $890 million in bookings, marking a 5.9% increase from the previous year. Quarterly paying users climbed 4.1% to 68.6 million, while total active users reached 671.7 million. Average bookings per user increased from $1.25 to $1.33.

Sea Limited announced another $1 billion share repurchase authorization following its existing buyback program. The company had already repurchased 11.1 million shares for approximately $997.2 million. Despite stronger earnings and expanded buybacks, SE stock faced selling pressure following the quarterly results.

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