SEA NYSE: SE reported second-quarter 2026 revenue of $7.8 billion, up 48% from a year earlier, while adjusted EBITDA rose 11% to more than $917 million. Net income increased 11% year over year to $458 million, as growth in its Shopee e-commerce and Monee financial-services businesses helped offset a higher income tax expense.
Chairman and Chief Executive Officer Forrest Li said the company’s first-quarter momentum continued through the second quarter, supported by investments intended to expand user penetration while improving operating efficiency. “We will continue to invest prudently in serving more users and serving them better,” Li said.
Shopee Posts Higher GMV and Buyer Growth
Shopee’s gross merchandise value increased 28% year over year to $38.3 billion, while gross orders grew 27% to 4.2 billion. The platform generated $5.6 billion in GAAP revenue, including $4.3 billion in core marketplace revenue, up 66% from a year earlier. Shopee adjusted EBITDA increased 12% to $255 million.
Li said Shopee recorded its eighth consecutive quarter of sequential GMV growth and reached new highs in cross-border volume and revenue. Average monthly new active buyers rose more than 35% year over year, while monthly active buyers increased 18%. Purchase frequency rose 8%.
Advertising was a significant contributor to monetization. Ad revenue increased more than 70%, and ad take rate improved by more than 90 basis points year over year. The number of ad-paying sellers increased about 45%, while average ad spending per seller rose more than 15%.
The company continued to invest in faster delivery, fulfillment services and content-led commerce. In Indonesia, instant-delivery order volume grew about 80% year over year, while cost per order declined about 20%. Across Southeast Asia, orders from livestreaming and short-form video rose more than 50% and represented more than 35% of physical-goods orders.
Shopee VIP membership exceeded 15 million at the end of June, up 45% from the prior quarter. In Asia, VIP members generated 24% of quarterly GMV, while average monthly retention was about 80%. Brazil’s VIP program, launched in April, surpassed 1 million members.
Brazil remained Shopee’s fastest-growing market in the quarter, according to Li. The company said it outpaced broader market GMV growth, reduced average buyer waiting time by 15% year over year and nearly added 500 official brands. GMV from Shopee Mall sellers more than doubled.
Chief Financial Officer Tony Hou said Sea remained confident in its full-year target for Shopee GMV growth of about 25%, while noting potential foreign-exchange headwinds and a higher GMV comparison base in the fourth quarter. The company also expects Shopee to generate more than $1 billion in adjusted EBITDA for the full year.
Financial Services Loan Book Expands
Monee, Sea’s financial-services business, reported GAAP revenue of $1.4 billion, up 59% year over year, and adjusted EBITDA of $288 million, up 13%. Consumer and small- and medium-sized enterprise loans outstanding reached $11.1 billion at the end of June, a 62% increase from a year earlier.
The 90-day nonperforming loan ratio stood at 1.0%. The loan book included $10 billion of on-book loans and $1.1 billion of off-book loans.
Li said improvements to Monee’s underwriting models lifted approval rates by around 10% compared with prior models while maintaining a similar risk level. The company added approximately 5.3 million first-time borrowers during the quarter, and active credit users increased about 34% to more than 40 million. Average loans outstanding per user rose about 20%.
Off-Shopee SPayLater accounted for more than 20% of the total SPayLater portfolio at quarter-end and reached as much as 35% in certain markets. Monee also said monthly transacting users of its standalone ShopeePay app more than doubled during the quarter. The app is available in Indonesia, Thailand, Malaysia and Vietnam, and Sea plans to launch a similar standalone application in Brazil.
Hou said higher provisions for credit losses primarily reflected changes in loan mix, including growth in off-Shopee SPayLater and Brazilian lending. He described Brazil as a higher-interest-rate, higher-risk market.
Garena Bookings Rise as New Games Are Planned
Garena bookings increased 15% year over year to $764 million, while GAAP revenue climbed 34% to $747 million. Adjusted EBITDA rose 17% to $430 million.
Li said Free Fire continued to draw more than 100 million average daily active users in its ninth year. The company credited new gameplay, localized content and campaigns for sustaining engagement. Its “Booyah Olé” campaign song generated more than 350 million social-media views, according to Li.
Garena also announced plans for two games based on established intellectual property: Palworld Online, an open-world multiplayer survival-adventure game developed and published by Garena under license from Perfect World, and Monster Hunter Outlanders, a survival hunting action game developed by Tencent using Capcom’s Monster Hunter franchise.
President Chris Feng said Palworld Online is expected to be published globally on a gradual, market-by-market basis. Monster Hunter Outlanders is targeted for launch this year in markets including Southeast Asia, Latin America and Taiwan, with potential expansion into the Middle East and additional markets.
Looking ahead, management said it expects to balance Shopee’s growth investments with profitability while continuing to improve advertising, logistics, fulfillment and artificial-intelligence capabilities. Hou said the company sees a relatively stable competitive environment and believes Shopee’s fulfillment operation still has room to expand across Southeast Asia, Taiwan and Brazil.
About SEA (NYSE:SE)
Sea Limited NYSE: SE is a Singapore-based consumer internet company that operates a trio of interconnected businesses across digital entertainment, e-commerce and digital financial services. Founded in 2009 as Garena and later rebranded as Sea, the company is headquartered in Singapore and listed on the New York Stock Exchange. Sea positions itself as a technology platform focused on enabling online consumers, merchants and developers primarily across Southeast Asia and adjacent markets.
Sea's digital entertainment arm, Garena, is a game developer and publisher that also organizes esports initiatives and operates online gaming platforms.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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