GET DAILY SIGNALSSea Limited (SE) Shows Strong Q3 Revenue Growth Despite EPS Shortfall
Key Takeaways
- Sea Limited reported third-quarter 2026 revenue of $8.58 billion, up 43.4% year over year, beating consensus estimates.
- Diluted earnings per share (EPS) came in at $0.78, below analyst expectations, while net income rose 34.0% to $502.5 million.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 28.9% to $931.3 million.
- Shopee delivered a record $269.2 million in adjusted EBITDA, with Monee and Garena also posting double-digit revenue growth.
- Shares declined in premarket trading as investors focused on rising expenses and a moderating profit trajectory.
- Management reaffirmed full-year 2026 Shopee targets of roughly 25% gross merchandise volume growth and about $1 billion in adjusted EBITDA.
- For deeper coverage, visit the company's Major News, Today's Price Move, Price Targets, and Forecast pages.
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Earnings Context and Why It Matters
Sea Limited's third-quarter report offers a useful window into the health of its three core businesses: the Shopee e-commerce platform, the Monee digital financial services unit, and the Garena gaming division. After solid momentum earlier in 2026, I was watching whether the company could sustain rapid revenue growth while defending profitability against intensifying competition from rivals such as TikTok Shop, Lazada, and Shein. The results highlight a familiar tension for SE: top-line expansion remains impressive, but heavier spending on logistics, marketing, and credit-loss provisions continues to pressure the bottom line. How management balances investment against earnings discipline will shape sentiment in the quarters ahead. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Sea Limited reported revenue of $8.58 billion for the third quarter ended September 30, 2026, a 43.4% increase from $5.99 billion a year earlier and above consensus estimates near $8.1 billion to $8.3 billion. Net income rose 34.0% to $502.5 million. Diluted EPS was $0.78, up from $0.59 a year ago but below the roughly $0.99 to $1.04 analysts had forecast on a non-GAAP basis. Adjusted EBITDA increased 28.9% to $931.3 million.
By segment, Shopee revenue climbed 41.3% to $6.1 billion, with gross merchandise volume (GMV), the total value of goods sold, up 23.3% to $39.7 billion and adjusted EBITDA reaching a record $269.2 million. Monee revenue jumped 63.9% to $1.6 billion, while its loan book grew 60% to $12.6 billion. Garena revenue rose 28.6% to $840.1 million. Rising sales and marketing costs and an 82.3% increase in credit-loss provisions weighed on overall profitability.
Market Reaction and Investor Sentiment
Sea Limited shares fell in premarket trading following the announcement, with reports pointing to declines ranging from roughly 1% to nearly 9% as investors digested the mixed results. The market's focus centered on the EPS shortfall relative to consensus, even as revenue exceeded expectations. Investors also weighed the sharp increase in sales and marketing spending and a larger provision for credit losses, which signaled rising costs and some credit-quality pressure in Monee's lending book. A slowdown in GMV, advertising, and bookings growth reinforced concerns that growth is decelerating across several fronts. At the same time, the company's expanded share buyback authorization provided a modest offset to negative sentiment.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will watch whether SE can convert its strong revenue growth into sustained earnings growth. Management reaffirmed its full-year 2026 targets for Shopee, including approximately 25% GMV growth and about $1 billion in adjusted EBITDA, but did not signal when heavy investment in logistics and monetization would peak.
Expense discipline will be a central theme. Sales and marketing costs and credit-loss provisions both rose sharply in the quarter, and Monee's non-performing loan ratio ticked up to 1.3%. How management manages underwriting and credit quality in markets such as Thailand and Brazil will matter for the financial services segment's profitability.
Competitive dynamics in Southeast Asian e-commerce also remain a key factor, with pressure from TikTok Shop, Lazada, and Shein influencing pricing and marketing intensity. Additionally, the company is investing in AI, cloud computing, and new initiatives such as Sea Cloud, which management has described as early-stage and long-term. Investors will monitor how these investments affect margins over time. Finally, potential strategic moves, including a possible separate listing for Monee within one to three years, could serve as notable catalysts. From what I see, this is important because it could unlock additional value.
Using AI Tools in My Research
In my own analysis, I frequently turn to Tickeron’s AI Screener to quickly filter stocks by technical patterns, fundamentals, and AI-driven signals. It helps me identify relevant setups for names like SE and monitor shifting conditions without spending hours on manual screens. This kind of tool fits naturally into a broader research workflow when evaluating earnings reports and competitive trends.
Disclaimer
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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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