Sea Ltd
(NYSE:SE)
$
128.11
-3.4 (-2.59%)
Market Cap: 78.47 Bil
Enterprise Value: 73.62 Bil
PE Ratio: 49.46
PB Ratio: 6.10
GF Score: 81/100 
Q2 2026 Sea Ltd Earnings Call Transcript
Aug 11, 2026 / 11:30AM GMT
Release Date Price:
$131.51
(+14.56%)
Key Points
Positve
- Sea Ltd (SE) delivered strong Q2 2026 results with total revenue up 48% year-on-year to $7.8 billion and adjusted EBITDA of $917 million, reflecting robust growth across all business segments.
- Shopee's GMV grew 28% year-on-year, marking eight consecutive quarters of sequential growth, with new active buyers up over 35% year-on-year and ad revenue surging more than 70%.
- Monee's loan book reached $11.1 billion, up 62% year-on-year, with stable asset quality (90-day NPL at 1.0%) and the addition of 5.3 million new first-time borrowers in the quarter.
- Garena's bookings grew 15% year-on-year to $764 million, driven by Free Fire's continued popularity with over 100 million average daily active users, and the company is expanding its portfolio with new IP-based games.
- Management expressed confidence in achieving Shopee's full-year adjusted EBITDA target of $1 billion, supported by improving unit economics and a stable competitive landscape.
- The company is leveraging AI to enhance credit risk models, improving approval rates by around 10% while maintaining risk levels, and to optimize advertising algorithms, boosting ad take rates.
- ShopeeVIP membership surpassed 15 million, up 45% quarter-on-quarter, with strong retention and higher engagement, contributing to improved unit economics.
- Brazil remains the fastest-growing market for Shopee, with GMV growth outpacing the market, supported by logistics improvements and expansion into upmarket segments.
- Monee's off-Shopee SPayLater is scaling well, now accounting for over 20% of the total portfolio, and the company is expanding its standalone ShopeePay app to new markets.
- The company maintains a disciplined, CapEx-light approach to investments, such as fulfillment centers, which are improving cost structures and operational efficiency.
Negative
- Sea Ltd (SE) faces potential foreign exchange headwinds due to weaker local currencies against the US dollar, which could impact GMV growth in the second half of the year.
- Monee's adjusted EBITDA growth slowed to 13% year-on-year, partly due to increased investments in new user acquisition and expansion into lower-return segments, which may pressure margins.
- Provisions for credit losses increased in Q2, driven by a higher mix of off-Shopee SPayLater and Brazil loans, which are inherently higher-risk and could impact profitability if asset quality deteriorates.
- Shopee's adjusted EBITDA margin remains relatively low at around 0.67% of GMV, and the path to the medium-term target of 2-3% requires continued cost improvements and take rate increases, which may take time.
- The competitive landscape, while stable, could intensify, especially in Brazil where competitors are adjusting take rates and free shipping thresholds, potentially requiring Sea Ltd (SE) to invest more to maintain growth.
- Garena's growth is still heavily reliant on Free Fire, and the success of new game launches (Palworld Online, Monster Hunter Outlanders) is uncertain, with potential delays or underperformance.
- The company's aggressive expansion in credit, particularly in new markets like Brazil, carries inherent risks of higher default rates and regulatory challenges, which could lead to increased provisions.
- Shopee's fulfillment and logistics investments are still in early stages, and while unit economics are improving, they may not reach optimal efficiency in the near term, limiting margin expansion.
- The increase in take rates, while beneficial for revenue, could face pushback from sellers if not balanced with value-added services, potentially affecting seller retention and ecosystem health.
- Sea Ltd (SE) faces seasonality in Q4 with a higher GMV base, which could make it challenging to sustain the same growth rates, especially if consumer spending weakens.
Operator
Good morning and good evening to all, and welcome to the Sea Limited second-quarter 2026 results conference call. (Operator Instructions) And finally, I would like to advise all participants that this call is being recorded. Thank you.
I'd now like to welcome Mr. KC Ong to begin the conference. Please go ahead.
KC Ong
Sea Ltd - Investor Relations
Hello, everyone, and welcome to Sea's 2026 second quarter earnings conference call. I am KC 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 with the closest GAAP
Already have an account? Log in
Get the full story
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
7-Day Free Trial · Cancel Anytime
Subscription fee may be tax deductible.
Excellent 
4.6 out of 5 
Trustpilot
Trustpilot
Survey
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
Follow Us
Disclaimers