GET DAILY SIGNALSSea Limited (SE) Delivers Strong Q3 Revenue Growth of 43.4%
Key Takeaways
- Sea Limited (SE) reported third-quarter 2026 revenue of $8.58 billion, up 43.4% year over year and ahead of consensus estimates of roughly $8.1 billion.
- Net income rose 34.0% to $502.5 million, while diluted earnings per share (EPS) reached $0.78, below some analysts' expectations.
- Adjusted EBITDA climbed 28.9% to $931.3 million, reflecting broad growth across all three segments.
- Shopee posted its most profitable quarter ever with adjusted EBITDA of $269.2 million, while Monee and Garena both delivered double-digit revenue growth.
- The company authorized an additional $1.0 billion share repurchase program after nearly completing its existing buyback.
Why These Results Matter
Sea Limited's third-quarter results offer a useful snapshot of one of Southeast Asia's major internet platforms, covering e-commerce through Shopee, financial services via Monee, and gaming with Garena. I track these updates because they show whether the company can keep expanding revenue while building sustainable profits. In recent periods, Sea has invested heavily in logistics and credit while working to improve unit economics. The latest numbers highlight record revenue and higher net income, yet they also point to rising costs in sales, marketing, and credit provisions, which raises questions about margin control as the holiday season approaches.
The Quarter in Detail
Sea Limited reported total GAAP revenue of $8.58 billion for the third quarter ended September 30, 2026, up 43.4% from $5.99 billion a year earlier and above consensus estimates near $8.1 billion. Net income increased 34.0% to $502.5 million, while diluted EPS attributable to ordinary shareholders rose to $0.78 from $0.59 in the prior-year period, though this fell short of some adjusted analyst forecasts. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
By segment, Shopee generated $6.1 billion in revenue (up 41.3%), with gross merchandise volume (GMV) growing 23.3% to $39.7 billion and adjusted EBITDA reaching $269.2 million, up 44.7%. Monee revenue climbed 63.9% to $1.6 billion, with adjusted EBITDA of $298.3 million and consumer and SME loans principal outstanding up 60.0% to $12.6 billion. Garena posted revenue of $840.1 million (up 28.6%) and bookings of $890.0 million, with adjusted EBITDA up 45.9% to $458.2 million. Management reaffirmed full-year 2026 targets of roughly 25% GMV growth and about $1 billion in Shopee adjusted EBITDA.
Market Reaction
Despite the revenue beat, SE shares declined sharply in premarket trading, falling roughly 8% to 9%. Investors appeared focused on the earnings-per-share shortfall and higher operating costs. Sales and marketing expenses jumped 64.0% year over year to $1.9 billion, while the provision for credit losses increased 82.3% to $681.5 million, driven by growth in the lending book and shifts in the credit environment. The overall picture shows solid top-line momentum alongside heavier spending and a modest rise in the non-performing loan ratio to 1.3%, leaving sentiment cautious even as management highlighted execution and announced a fresh $1.0 billion buyback authorization.
Forward Outlook
Looking ahead, the focus will be on whether Sea can maintain its growth trajectory without letting expenses rise faster than revenue. The fourth quarter usually brings stronger e-commerce activity across Southeast Asia and Brazil, which may support Shopee's GMV and monetization, though it often increases logistics and promotional costs as well.
Credit quality at Monee will remain important. The non-performing loan ratio moved up to 1.3% from 1.0% in the prior quarter, and management noted adjustments to underwriting in certain markets. How the company balances risk management with loan book expansion will shape views on the financial services segment.
In gaming, attention will turn to whether Garena's Free Fire and Arena of Valor sustain engagement and bookings, along with any early progress on newer initiatives such as artificial intelligence and cloud infrastructure. The expanded share repurchase program could offer some support, but the key question remains how per-share earnings develop as the company continues to invest for growth.
Using Tickeron Tools in My Research
When reviewing results like these, I find Tickeron's AI Screener helpful for quickly filtering stocks by industry, technical patterns, fundamentals, and AI signals. It allows me to compare opportunities across the market and track shifting conditions without manual effort, which fits well into a broader analysis workflow for names like Sea Limited.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SE's RSI Oscillator recovers from oversold territory
The RSI Oscillator for SE moved out of oversold territory on November 03, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 42 similar instances when the indicator left oversold territory. In 35 of the 42 cases the stock moved higher. This puts the odds of a move higher at 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 47 of 61 cases where SE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 77%.
The Momentum Indicator moved above the 0 level on November 06, 2026. You may want to consider a long position or call options on SE as a result. In 63 of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 82%.
The Moving Average Convergence Divergence (MACD) for SE just turned positive on November 04, 2026. Looking at past instances where SE's MACD turned positive, the stock continued to rise in 38 of 49 cases over the following month. The odds of a continued upward trend are 78%.
Following a +3.08% 3-day Advance, the price is estimated to grow further. Considering data from situations where SE advanced for three days, in 254 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
SE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 50-day moving average for SE moved below the 200-day moving average on November 02, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
The Aroon Indicator for SE entered a downward trend on October 30, 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.
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 Valuation Rating of 76 (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 (3.592) is normal, around the industry mean (22.398). P/E Ratio (28.048) is within average values for comparable stocks, (9.569). Projected Growth (PEG Ratio) (0.951) is also within normal values, averaging (1.774). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. P/S Ratio (2.379) is also within normal values, averaging (1.328).
The Tickeron Price Growth Rating for this company is 79 (best 1 - 100 worst), indicating slightly worse than average price growth. SE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 94 (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 92, placing this stock worse than average.
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General Information
a provider of online gaming services
Industry InternetRetail
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