Sea Limited (SE) Delivers Strong Q2 Revenue Growth, Shares Surge +14.8%
Key Takeaways
- Revenue surpassed expectations: Sea Limited reported second-quarter GAAP revenue of $7.8 billion, up 48.1% year-over-year and comfortably above the consensus estimate of approximately $7.1 billion.
- Earnings per share came in below forecasts: Diluted earnings per share (EPS) landed at $0.70, missing Wall Street estimates that ranged from $0.86 to $1.00, though it grew 7.7% from $0.65 in the same quarter a year ago.
- All three business segments delivered double-digit growth: Shopee, Monee, and Garena each posted strong year-over-year revenue gains, with the e-commerce and fintech arms leading the charge.
- Adjusted EBITDA rose to $917.2 million: Total adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 10.6% year-over-year, reflecting improving operational leverage.
- Stock rallied on the top-line beat: Shares jumped as much as 14.8% in the trading session following the release, as investors rewarded the robust revenue growth despite the bottom-line shortfall.
Why These Results Matter Right Now
Sea Limited’s second-quarter results arrived at an important juncture for the Southeast Asian technology company. It operates the Shopee e-commerce platform, the Monee digital financial services business, and the Garena gaming unit, and has been balancing an aggressive investment phase with efforts to demonstrate that profitable growth can be sustained. The Q2 2026 report comes after a solid first quarter in which revenue grew 46.6% yet EPS also missed consensus. This quarter’s figures help test whether Sea can keep expanding across e-commerce, fintech, and gaming while advancing toward its profitability targets, particularly the $1 billion Shopee adjusted EBITDA goal for the full year.
Breaking Down the Q2 Numbers
Sea Limited reported total GAAP revenue of $7.8 billion for the second quarter ended June 30, 2026, a 48.1% increase from $5.3 billion in the prior-year period and well above the analyst consensus estimate of approximately $7.1 billion. Gross profit rose 47.3% to $3.5 billion. Net income reached $458.1 million, up 10.6% from $414.2 million a year earlier. Diluted EPS came in at $0.70, up 7.7% year-over-year but below the consensus range of $0.86 to $1.00. Total adjusted EBITDA grew 10.6% to $917.2 million. I also checked segment trends using Tickeron’s AI Pattern Search Engine to see how the results compared with historical patterns.
Shopee generated GAAP revenue of $5.6 billion, up 48.2% year-over-year, with gross merchandise volume (GMV) rising 28.4% to $38.3 billion and gross orders climbing 27.5% to 4.2 billion. Core marketplace revenue, driven by transaction fees and advertising, surged 65.6% to $4.3 billion. Shopee’s adjusted EBITDA was $255.4 million, up 12.2%.
Monee posted GAAP revenue of $1.4 billion, up 58.9%, with consumer and SME loans principal outstanding reaching $11.1 billion, a 62.5% increase. The 90-day non-performing loan (NPL) ratio remained stable at 1.0%. Monee’s adjusted EBITDA rose 12.8% to $288.0 million.
Garena recorded bookings of $763.5 million, up 15.5%, while GAAP revenue grew 33.5% to $746.6 million. The division’s adjusted EBITDA rose 16.7% to $429.8 million, representing 56.3% of bookings. Quarterly active users held steady at 666.3 million, while paying users increased 10.2% to 68.1 million.
How the Market Reacted
The market’s response to Sea Limited’s Q2 results was decisively positive. Despite the EPS miss, shares surged as much as 14.8% during the August 11 trading session and closed sharply higher. Investors focused on the strength of top-line momentum and the company’s confident outlook rather than the per-share earnings shortfall, which was partly attributable to a significantly higher income tax expense of $250.6 million compared with $144.1 million a year ago. The revenue beat of roughly $700 million over consensus signaled that underlying demand across Shopee, Monee, and Garena remains robust. The repurchase of 4.7 million shares for $416.8 million under the $1.0 billion buyback program was also viewed positively as a sign of management’s confidence in long-term value. Stronger-than-expected sales, stable asset quality in the lending book, and reaffirmed full-year GMV growth targets gave investors reason to look past the headline EPS miss.
What Investors Should Watch Next
Looking ahead, Sea Limited enters the second half of 2026 with solid momentum but several areas worth monitoring. Management reiterated its expectation for Shopee to deliver approximately 25% GMV growth for the full year, while noting potential foreign-exchange headwinds and a tougher comparison base in the fourth quarter. The company remains optimistic that Shopee will reach the $1 billion adjusted EBITDA milestone for the full year, a key profitability benchmark.
On the fintech side, Monee’s loan book expansion to $11.1 billion, with Brazil as a fast-growing market, will stay in focus. The stability of the 90-day NPL ratio at 1.0% despite rapid credit growth is encouraging, yet investors will watch whether asset quality holds as the portfolio scales. The planned launch of a standalone Monee app in Brazil is another development to track.
For Garena, new titles such as Palworld Online and Monster Hunter Outlanders could provide catalysts. Still, the segment remains heavily dependent on Free Fire, now in its ninth year, so successful diversification will matter for sustained growth. Cost trends also deserve attention: sales and marketing expenses rose 64.5% year-over-year to $1.7 billion, and the provision for credit losses increased 71.5% to $555.2 million. How these costs evolve relative to revenue growth will influence Sea’s profitability path ahead.
Enhancing Research with AI Tools
In my own analysis, I frequently use Tickeron’s AI Screener to compare stocks like Sea Limited against peers on key metrics such as growth rates, valuation, and technical signals. This platform helps surface relevant opportunities in the e-commerce and fintech space more efficiently than manual methods. It has become a regular part of my process for identifying ideas that align with the themes in Sea’s results.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Disclaimers and LimitationsContributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
SE in -2.27% downward trend, declining for three consecutive days on September 11, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where SE declined for three days, in 267 of 320 cases, the price declined further within the following month. The odds of a continued downward trend are 83%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for SE moved out of overbought territory on August 13, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In 26 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 68%.
The Momentum Indicator moved below the 0 level on August 25, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SE as a result. In 58 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for SE turned negative on August 19, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 34 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 68%.
SE moved below its 50-day moving average on September 09, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SE crossed bearishly below the 50-day moving average on September 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 54%.
The Aroon Indicator for SE entered a downward trend on September 18, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for SE moved above the 200-day moving average on August 26, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +0.40% 3-day Advance, the price is estimated to grow further. Considering data from situations where SE advanced for three days, in 258 of 317 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 58 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. SE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 80 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.829) is normal, around the industry mean (57.056). P/E Ratio (39.301) is within average values for comparable stocks, (39.827). Projected Growth (PEG Ratio) (0.979) is also within normal values, averaging (1.801). Dividend Yield (0.000) settles around the average of (0.017) among similar stocks. P/S Ratio (2.379) is also within normal values, averaging (1.321).
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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a provider of online gaming services
Industry InternetRetail
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