Q3 2025 Sea Ltd Earnings Call Transcript
Key Points
- Sea Ltd (SE) reported a strong third quarter with total revenue of $6 billion and adjusted EBITDA of $874 million, representing 38% and 68% year-on-year growth, respectively.
- Shopee achieved record-setting performance with a 28% year-on-year growth in GMV, driven by increased active buyers and higher purchase frequency.
- Monee's loan book expanded by 70% year-on-year, reaching $7.9 billion, while maintaining a stable risk profile with a 90-day NPL ratio of 1.1%.
- Garena delivered its best quarter since 2021, with bookings up 51% year-on-year, driven by successful campaigns like Squid Game and NARUTO SHIPPUDEN Chapter 2.
- Sea Ltd (SE) continues to enhance its logistics capabilities, with SPX Express now handling more than half of Shopee's orders, improving delivery speed and reducing costs.
- E-commerce margin trends showed a decline, with the margin coming down to 0.6% in the quarter despite higher take rates.
- The company is investing heavily in logistics and fulfillment capabilities, which may impact short-term profitability.
- There is increased competition in the Southeast Asian e-commerce market, with potential threats from live streaming peers shifting traffic to shelf-based models.
- The VIP membership program, while promising, requires upfront investment and may initially impact gross margins.
- Concerns about potential massive AI CapEx investments were raised, although Sea Ltd (SE) clarified its focus on application rather than infrastructure development.
Good morning and good evening to all, and welcome to the Sea Limited third-quarter 2025 results conference call. (Operator Instructions) And finally, I would like to advise all participants that this call is being recorded. Thank you.
I would now like to welcome Ms. Rebecca Lee to begin the conference. Please go ahead.
Thank you. Hello, everyone, and welcome to Sea's 2025 third-quarter earnings conference call. I am Rebecca from Sea's Investor Relations team. On this call, we may make forward-looking statements, which are inherently subject to risks and uncertainties and may not be realized in the future for various reasons as stated in our press release. Also, this call includes the discussion of certain non-GAAP financial measures such as adjusted EBITDA.
We believe these measures can enhance our investors' understanding of the actual cash flows of our major businesses when used as a complement to our GAAP disclosures. For a discussion of the use of non-GAAP financial measures and reconciliation
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