Sea Limited Slides After Q4 Earnings Miss Despite Revenue Growth
March 3, 2026 9:43 AM
IH Market News
Sea Limited (NYSE:SE) shares fell sharply in premarket trading Tuesday after the company reported fourth-quarter earnings that missed Wall Street expectations, overshadowing strong revenue growth and improving profitability across its businesses. The stock dropped about 15% following the release.
Adjusted earnings per share came in at $0.63, below the analyst consensus of $0.80. Revenue, however, topped forecasts, rising 38.4% year over year to $6.9 billion, ahead of the $6.49 billion estimate and up from $5.0 billion in the same period last year.
For the quarter, Sea posted net income of $410.9 million, a 72.9% increase from a year earlier, while adjusted EBITDA climbed 33.2% to $787.1 million.
“2025 has been a great year for Sea. All our businesses scaled well, exceeding our initial growth expectations,” said Forrest Li, Chairman and Chief Executive Officer. “We were successful in 2025 because we chose the right set of strategies and we executed them well. 2026 will be a continuation of this approach.”
Within its e-commerce arm Shopee, fourth-quarter revenue jumped 35.8% to $4.3 billion, supported by a 28.6% rise in gross merchandise value (GMV) to $36.7 billion. Gross orders increased 30.5% year over year to 4.0 billion. Shopee generated adjusted EBITDA of $202.5 million, up 33.0%.
For fiscal 2026, Sea expects Shopee GMV to grow around 25% year over year and anticipates full-year adjusted EBITDA to be at least in line with 2025 levels in absolute dollar terms. Shopee recorded adjusted EBITDA of $880.6 million in 2025.
The company’s fintech unit, Monee, delivered revenue of $1.1 billion in the quarter, up 54.3% year over year, with adjusted EBITDA rising 24.7% to $263.1 million. Meanwhile, digital entertainment division Garena saw revenue increase 35.1% to $701.0 million, and adjusted EBITDA grow 25.6% to $363.8 million.
For the full year 2025, Sea reported revenue of $22.9 billion, up 36.4% from the prior year. Net income reached $1.6 billion, compared with $447.8 million in 2024.
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Original: Sea Limited Slides After Q4 Earnings Miss Despite Revenue Growth
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