Quick Summary
- SE stock gained 5.4% following Q1 revenue of $7.1B, significantly exceeding the $6.45B Wall Street forecast
- Adjusted earnings per share landed at $0.67, below the analyst target of $0.76
- Shopee delivered record-breaking GMV of $37.3B, representing 30.2% annual growth
- Garena achieved its strongest performance since 2021, with bookings climbing 20.1% to $931.4M
- Monee revenue jumped 57.8% to $1.2B, while the loan portfolio expanded 71.3% year-over-year
Shares of Sea Limited (SE) climbed 5.4% following the company’s May 12 release of first-quarter 2026 financial results, despite falling short on earnings. Investors focused on revenue performance that significantly exceeded analyst projections.
The Singapore-based technology conglomerate reported quarterly revenue of $7.1 billion, crushing the Street’s $6.45 billion expectation. This represents a substantial 46.6% increase compared to the $4.8 billion generated during the same period last year. However, adjusted earnings per share of $0.67 missed the consensus estimate of $0.76 by nine cents.
Net profit increased 6.7% to reach $438.2 million. Adjusted EBITDA across all segments expanded 9.3% from the prior year to $1.0 billion.
Chief Executive Officer Forrest Li emphasized that the organization continues making strategic investments to strengthen its market position while maintaining rigorous financial management.
E-Commerce Division Achieves Milestone Performance
Shopee, the company’s e-commerce platform, posted breakthrough quarterly results. The division’s gross merchandise value soared to $37.3 billion, marking a 30.2% increase from the previous year. Segment revenue advanced 44.4% to reach $4.5 billion.
The core marketplace business—encompassing transaction-based fees and digital advertising—surged 61.0% to $3.8 billion. This metric serves as the primary indicator of the platform’s ability to monetize its user base over time.
Adjusted EBITDA for Shopee decreased to $223.2 million from $264.4 million in the first quarter of 2025. Management explained the decline as a result of strategic investment initiatives. The company reaffirmed guidance for approximately 25% annual GMV growth throughout 2026.
Total gross orders processed during the quarter reached 4.0 billion, increasing 29.3% year-over-year. Li highlighted the quarter as setting new benchmarks across GMV, order count, and revenue generation.
Gaming Division Returns to Growth Trajectory
Garena, the company’s digital entertainment segment, demonstrated impressive momentum. Total bookings increased 20.1% to $931.4 million, while revenue expanded 40.6% to $696.6 million.
The gaming unit’s adjusted EBITDA grew 25.2% to $573.6 million. EBITDA margin relative to bookings improved to 61.6%, up from 59.1% in the year-ago quarter.
Free Fire remained the primary revenue driver, with Arena of Valor contributing record-setting performance. The platform served 666.5 million quarterly active users, remaining essentially stable year-over-year, while paying users expanded 12.4% to 72.6 million.
Monee, the digital financial services division, maintained strong growth. Revenue climbed 57.8% to $1.2 billion, with adjusted EBITDA increasing 14% to $275.2 million. The combined consumer and SME loan portfolio reached $9.9 billion, representing 71.3% annual expansion.
Non-performing loans remained at 1.1% of the total loan book, a key metric management monitors as lending activity scales.
Throughout the first quarter, Sea executed share repurchases of 1.8 million shares totaling $168.4 million under its $1.0 billion buyback authorization.
