Quick Verdict
Sea Limited (NYSE: SE) posted Q2 2026 revenue of $7.79 billion, up 48.1% year-over-year and beating consensus estimates of roughly $7.1–7.34 billion, while diluted EPS of $0.70 missed analyst forecasts of $0.83–$1.00. These Sea Limited Q2 2026 Earnings results sent shares initially surging over 14% intraday on August 11 as investors focused on top-line momentum despite the bottom-line shortfall.
About Sea Limited
Sea Limited (NYSE: SE) is a Singapore-founded (2009) global technology company operating three core businesses: Shopee (e-commerce), Monee (digital financial services), and Garena (digital entertainment/gaming). Shopee is the largest e-commerce platform in Southeast Asia and Taiwan and a leading platform in Brazil; Monee is a leading digital financial services provider expanding into Latin America, and Garena is a global online games developer best known for Free Fire.
The stock closed at $121.79 on August 14, 2026, down 1.24% on the day, after an earlier post-earnings rally. Sea repurchased 4.7 million shares for $416.8 million during the quarter under its $1.0 billion buyback program, signaling continued capital return alongside growth investment.
Top Financial Highlights
- Total revenue of $7.79 billion, up 48.1% year-over-year, led by Shopee and Monee
- Gross profit of $3.55 billion, up 47.3% year-over-year; gross margin slipped slightly to 45.6% from 45.8%
- Net income of $458.1 million, up 10.6% year-over-year
- Diluted EPS of $0.70, up from $0.65 a year earlier, but below the $0.83–$1.00 analyst consensus range
- Total Adjusted EBITDA of $917.2 million, up 10.6% year-over-year
- Operating income rose 33.3% to $650.3 million, though operating margin narrowed to 8.4% from 9.3%
- Shopee GAAP revenue of $5.6 billion, up 48.2%, with GMV of $38.3 billion (+28.4%) and gross orders of 4.2 billion (+27.5%)
- Monee GAAP revenue of $1.4 billion, up 58.9%, with consumer/SME loan book reaching $11.1 billion (+62.5%)
- Garena bookings of $763.5 million, up 15.5%, with over 100 million average daily active users for Free Fire
- Cash, cash equivalents and restricted cash totaled $5.99 billion as of June 30, 2026 (cash and equivalents alone: $3.53 billion)
- Net cash generated from operating activities was $2.56 billion for the first six months of 2026
- Income tax expense jumped 74.0% to $250.6 million, pressuring net income growth
- Management guidance: Shopee is targeting $1 billion in full-year adjusted EBITDA and roughly 25% GMV growth for 2026
- Shopee ad revenue grew more than 70% year-over-year, with ad take rate improving by over 90 basis points
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
- The image presents a year-over-year comparison of revenue for the three months ended June 30, 2026, versus the same period in 2025. Total revenue increased from approximately $5.26 billion to $7.79 billion, representing strong growth of 48.1%.
- The growth was broad-based across the company’s major service platforms. Shopee remained the largest revenue contributor, increasing 48.9% to about $4.93 billion. Monee recorded the fastest growth at 58.9%, reaching approximately $1.40 billion, while Garena revenue rose 33.5% to around $746.6 million. Revenue from sales of goods also increased 42.8% to about $657.7 million.
- Overall, the results indicate strong expansion across e-commerce, digital financial services, and digital entertainment, with Shopee continuing to anchor the revenue base while Monee delivered the strongest growth rate.
Beat or Miss?
| Metric | Reported | Estimated/Expected | Difference/Analysis |
| Revenue | $7.79 billion | $7.09–$7.34 billion (consensus) | Beat by roughly $450M–$700M (~7-10%) |
| Diluted EPS | $0.70 | $0.83–$1.00 (consensus range) | Missed by $0.13–$0.30, largely due to higher tax expense |
| Adjusted EBITDA | $917.2 million | Not explicitly disclosed by consensus in sources | Up 10.6% YoY, slightly below Q1 2026’s $1.03 billion sequentially |
| Net Income | $458.1 million | N/A | Up 10.6% YoY despite tax headwind |
What Leadership Is Saying
“Our strong momentum from the first quarter has continued into the second. Our investments have enabled Shopee and Monee to continue to strengthen our market leadership while improving our user penetration. We will continue to invest prudently in serving more users and serving them better, broadening our foundation for profitable growth into the future.” — Forrest Li, Chairman and CEO
“We still believe that 2%-3% is quite within our reach for the year,” — Tony Hou, CFO
CFO Hou also noted that second-half adjusted EBITDA is expected to exceed first-half totals in absolute terms, driven by continued GMV growth and initiative optimization.
Historical Performance (YoY)
| Category | Q2 2026 | Q2 2025 | Change (%) |
| Revenue | $7.79 billion | $5.26 billion | 48.10% |
| Net Income | $458.1 million | $414.2 million | 10.60% |
| Operating Expenses | $2.90 billion | $1.92 billion | 50.90% |
| Adjusted EBITDA | $917.2 million | $829.2 million | 10.60% |
Peer Comparison: Sea vs. Grab (Q2 2026)
| Category | Sea (SE) Q2 2026 | Grab (GRAB) Q2 2026 | Notes |
| Revenue | $7.79 billion (+48.1% YoY) | $997 million (+22% YoY) | Sea’s scale is far larger given its e-commerce dominance |
| Net Income | $458.1 million (+10.6% YoY) | $235 million (+571% YoY, boosted by a $307M one-time Superbank gain) | Grab’s jump is largely non-operational |
| Adjusted EBITDA | $917.2 million (+10.6% YoY) | $168 million (+54% YoY) | Grab shows faster margin expansion off a smaller base |
Note: PDD Holdings (Pinduoduo), another regional e-commerce peer, had not yet reported Q2 2026 results as of this writing; its earnings are scheduled for August 24, 2026.
How the Market Reacted?
Sea’s shares jumped as much as 14.8% during the August 11 trading session, and rose 9.58% in premarket trading to $125.80 from a prior close of $114.80, as investors rewarded the strong revenue beat and confident full-year guidance despite the EPS miss. The rally reflected investor focus on top-line momentum across Shopee, Monee, and Garena rather than the per-share earnings shortfall, which stemmed largely from a higher tax expense.
By August 14, however, shares had pulled back to close at $121.79, down 1.24% on the day, suggesting some of the initial enthusiasm cooled as the market digested margin and tax-related concerns. Overall sentiment on the print remained net positive, anchored by record Shopee GMV, robust Monee loan growth, and reaffirmed 2026 guidance targets.
Sources
