Sea Limited Reports Third Quarter 2025 Results

SINGAPORE--( BUSINESS WIRE)--Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the third quarter ended September 30, 2025.

“After a very strong first half of the year, our momentum has continued into the third quarter. Our focus remains the same: continuing to deliver high and profitable growth across all three of our businesses. With e-commerce and digital finance penetration in our markets still low but increasing, strong growth lays the best foundation to maximize our long-term profitability,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.

On e-commerce, he said, “Shopee delivered another record-setting quarter, achieving new highs in quarterly GMV, gross order volume, and revenue. We also improved our year-on-year profitability across Asia and Brazil. Our monetization gains, strong growth momentum, and healthy balance sheet have positioned us well to capture even more growth opportunities. With our strong performance year to date, we now expect Shopee’s full-year 2025 GMV growth to be more than 25%.”

On digital financial services, Mr. Li said, “Monee has delivered another very strong quarter, driven by both user growth and product expansion across multiple markets. Our portfolio quality and our unit economics have remained healthy. We are extending SPayLater’s reach beyond e-commerce and embedding it into users’ everyday financial use cases, building a pathway for strong off-Shopee growth for many years to come.”

On digital entertainment, Mr. Li said, “Garena has delivered another stellar quarter. Bookings were up 51% year-on-year, making it our best quarter since 2021. Free Fire anchored this strong performance with two high-impact campaigns: Squid Game and NARUTO SHIPPUDEN Chapter 2. With this very strong quarter, Garena remains on track to achieve more than 30% year-on-year growth in bookings for 2025.”

Third Quarter 2025 Highlights

1 For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures”.

2 Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform.

3 GAAP revenue for the digital entertainment segment plus change in digital entertainment deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to our digital entertainment segment.

Unaudited Summary of Financial Results

(Amounts are expressed in thousands of US dollars “$” except for per share data)

For the Three Months

ended September 30,

2024

2025

YOY%

Revenue

Service revenue

3,910,209

5,468,374

39.8

Sales of goods

418,024

517,650

23.8

4,328,233

5,986,024

38.3

Cost of revenue

Cost of service

(2,083,331

)

(2,894,778

)

38.9

Cost of goods sold

(383,841

)

(491,892

)

28.1

(2,467,172

)

(3,386,670

)

37.3

Gross profit

1,861,061

2,599,354

39.7

Other operating income

40,647

27,018

(33.5

Sales and marketing expenses

(878,557

)

(1,150,299

)

30.9

General and administrative expenses

(306,755

)

(340,027

)

10.8

Provision for credit losses

(211,991

)

(373,825

)

76.3

Research and development expenses

(301,990

)

(286,275

)

(5.2

Total operating expenses

(1,658,646

)

(2,123,408

)

28.0

Operating income

202,415

475,946

135.1

Non-operating income, net

49,536

61,170

23.5

Income tax expense

(92,598

)

(161,096

)

74.0

Share of results of equity investees

(6,029

)

(1,032

)

(82.9

Net income

153,324

374,988

144.6

Earnings per share

attributable to Sea Limited’s ordinary shareholders:

Basic

0.26

0.63

142.3

Diluted

0.24

0.59

145.8

Change in deferred revenue of Digital Entertainment

58,670

187,619

219.8

Adjusted EBITDA for Digital Entertainment (1)

314,428

465,944

48.2

Adjusted EBITDA for E-commerce (1)

34,446

186,055

440.1

Adjusted EBITDA for Digital Financial Services (1)

187,927

258,312

37.5

Adjusted EBITDA for Other Services (1)

(8,555

)

(25,119

)

193.6

Unallocated expenses (2)

(6,909

)

(10,938

)

58.3

Total adjusted EBITDA (1)

521,337

874,254

67.7

(1) For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures”.

(2) Unallocated expenses within total adjusted EBITDA are mainly related to general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the Chief Operating Decision Maker (“CODM”) as part of segment performance.

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Revenue

Our total GAAP revenue increased by 38.3% to US$6.0 billion in the third quarter of 2025 from US$4.3 billion in the third quarter of 2024. The table below sets forth our revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).

For the Three Months

ended September 30,

2024

2025

YOY%

Service revenue

E-commerce

2,767,163

3,778,680

36.6%

Digital Financial Services

615,711

989,861

60.8%

Digital Entertainment

497,847

653,033

31.2%

Other Services (1)

29,488

46,800

58.7%

Sales of goods

418,024

517,650

23.8%

Total revenue

4,328,233

5,986,024

38.3%

(1) Other services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments.

Cost of Revenue

Our total cost of revenue was US$3.4 billion in the third quarter of 2025, as compared to US$2.5 billion in the third quarter of 2024. The table below sets forth our cost of revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).

For the Three Months

ended September 30,

2024

2025

YOY%

Cost of service

E-commerce

1,826,495

2,535,135

38.8%

Digital Financial Services

91,426

125,669

37.5%

Digital Entertainment

156,043

224,225

43.7%

Other Services (1)

9,367

9,749

4.1%

Cost of goods sold

383,841

491,892

28.1%

Total cost of revenue

2,467,172

3,386,670

37.3%

(1) Other services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments.

Other Operating Income

Our other operating income was US$27.0 million and US$40.6 million in the third quarter of 2025 and 2024, respectively. Other operating income mainly consists of rebates from e-commerce related logistics services providers.

Sales and Marketing Expenses

Our total sales and marketing expenses increased by 30.9% to US$1.2 billion in the third quarter of 2025 from US$878.6 million in the third quarter of 2024. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).

For the Three Months

ended September 30,

2024

2025

YOY%

Sales and Marketing Expenses

E-commerce

763,340

894,670

17.2%

Digital Financial Services

65,632

157,964

140.7%

Digital Entertainment

26,583

51,424

93.4%

General and Administrative Expenses

Our general and administrative expenses increased by 10.8% to US$340.0 million in the third quarter of 2025 from US$306.8 million in the third quarter of 2024.

Provision for Credit Losses

Our provision for credit losses increased by 76.3% to US$373.8 million in the third quarter of 2025 from US$212.0 million in the third quarter of 2024.

Research and Development Expenses

Our research and development expenses decreased by 5.2% to US$286.3 million in the third quarter of 2025 from US$302.0 million in the third quarter of 2024.

Non-operating Income or Losses, Net

Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$61.2 million in the third quarter of 2025, as compared to a net non-operating income of US$49.5 million in the third quarter of 2024. The non-operating income in the third quarter of 2025 was primarily due to interest income of US$81.8 million, offset by interest expense of US$8.9 million and foreign exchange loss of US$8.0 million.

Income Tax Expense

We had a net income tax expense of US$161.1 million and US$92.6 million in the third quarter of 2025 and 2024, respectively.

Net Income or Loss

As a result of the foregoing, we had net income of US$375.0 million in the third quarter of 2025, as compared to net income of US$153.3 million in the third quarter of 2024.

Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited’s Ordinary Shareholders

Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.63 in the third quarter of 2025, compared to basic earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.26 in the third quarter of 2024.

Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.59 in the third quarter of 2025, compared to diluted earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.24 in the third quarter of 2024.

Webcast and Conference Call Information

The Company’s management will host a conference call today to review Sea’s business and financial performance.

Details of the conference call and webcast are as follows:

Date and time:

7:30 AM U.S. Eastern Time on November 11, 2025

8:30 PM Singapore / Hong Kong Time on November 11, 2025

Webcast link:

https://events.q4inc.com/attendee/618885525

A replay of the conference call will be available at the Company’s investor relations website ( www.sea.com/investor/home). An archived webcast will be available at the same link above.

About Sea Limited

Sea Limited (NYSE: SE) is a leading global consumer internet company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across digital entertainment, e-commerce, as well as digital financial services, known as Garena, Shopee and Monee, respectively. Garena is a leading global online games developer and publisher. Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan and has a significant presence in Latin America. Monee is a leading digital financial services provider in Southeast Asia and is growing its presence in Brazil.

Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expect,” “anticipate,” “aim,” “future,” “intend,” “plan,” “believe,” “estimate,” “likely to,” “potential,” “confident,” “guidance,” and similar statements. Among other things, statements that are not historical facts, including statements about Sea’s beliefs and expectations, the business, financial and market outlook, and projections from its management in this announcement, as well as Sea’s strategic and operational plans, contain forward-looking statements. Sea may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Sea’s goals and strategies; its future business development, financial condition, financial results, and results of operations; the expected growth in, and market size of, the digital entertainment, e-commerce and digital financial services industries in the markets where it operates, including segments within those industries; expected changes or guidance in its revenue, costs or expenditures; its ability to continue to source, develop and offer new and attractive online games and to offer other engaging digital entertainment content; the expected growth of its digital entertainment, e-commerce and digital financial services businesses; its expectations regarding growth in its user base, level of engagement, and monetization; its ability to continue to develop new technologies and/or upgrade its existing technologies; growth and trends of its markets and competition in its industries; government policies and regulations relating to its industries, including the effects of any government orders or actions on its businesses; general economic, political, social and business conditions in its markets; and the impact of widespread health developments. Further information regarding these and other risks is included in Sea’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Sea undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to help evaluate our operating performance:

These non-GAAP financial measures have limitations as analytical tools. None of the above financial measures should be considered in isolation or construed as an alternative to revenue, net loss/income, or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to Sea’s data. We compensate for these limitations by reconciling the non-GAAP financial measures to their nearest U.S. GAAP financial measures, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on any single financial measure.

The tables below present selected financial information of our reporting segments, the non-GAAP financial measures that are most directly comparable to GAAP financial measures, and the related reconciliations between the financial measures. Amounts are expressed in thousands of US dollars (“$”) except for number of shares & per share data.

For the Three Months ended September 30, 2025

E-

commerce

Digital

Financial

Services

Digital

Entertainment

Other

Services (1)

Unallocated

expenses (2)

Consolidated

Operating income (loss)

110,117

248,177

309,811

(27,039)

(165,120)

475,946

Net effect of changes in deferred

revenue and its related cost

151,915

Depreciation and Amortization

75,938

10,135

4,218

1,920

92,211

Share-based compensation

154,182

Adjusted EBITDA

186,055

258,312

465,944

(25,119)

(10,938)

874,254

For the Three Months ended September 30, 2024

E-

commerce

Digital

Financial

Services

Digital

Entertainment

Other

Services (1)

Unallocated

expenses (2)

Consolidated

Operating (loss) income

(36,818)

173,942

262,402

(11,001)

(186,110)

202,415

Net effect of changes in deferred

revenue and its related cost

46,712

Depreciation and Amortization

71,264

13,985

5,314

2,446

93,009

Share-based compensation

179,201

Adjusted EBITDA

34,446

187,927

314,428

(8,555)

(6,909)

521,337

(1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.

(2) Unallocated expenses are mainly related to share-based compensation, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Amounts expressed in thousands of US dollars (“$”) except for number of shares & per share data

For the Nine Months

ended September 30,

2024

2025

Revenue

Service revenue

10,782,624

14,701,824

Sales of goods

1,086,806

1,384,777

Total revenue

11,869,430

16,086,601

Cost of revenue

Cost of service

(5,858,678)

(7,543,556)

Cost of goods sold

(1,011,124)

(1,297,688)

Total cost of revenue

(6,869,802)

(8,841,244)

Gross profit

4,999,628

7,245,357

Operating income (expenses)

Other operating income

127,187

93,822

Sales and marketing expenses

(2,422,960)

(3,089,493)

General and administrative expenses

(901,447)

(970,558)

Provision for credit losses

(541,173)

(979,498)

Research and development expenses

(904,834)

(879,561)

Total operating expenses

(4,643,227)

(5,825,288)

Operating income

356,401

1,420,069

Interest income

271,847

260,872

Interest expense

(29,060)

(26,951)

Investment loss, net

(189,543)

(6,527)

Net gain on debt extinguishment

34,415

17,289

Foreign exchange gain/(loss)

750

(11,006)

Income before income tax and share of results of equity investees

444,810

1,653,746

Income tax expense

(231,970)

(441,467)

Share of results of equity investees

(2,605)

(12,262)

Net income

210,235

1,200,017

Net income attributable to non-controlling interests

(3,222)

(18,967)

Net income attributable to Sea Limited’s ordinary shareholders

207,013

1,181,050

Earnings per share:

Basic

0.36

1.99

Diluted

0.34

1.89

Weighted average shares used in earnings per share computation:

Basic

573,260,590

592,592,032

Diluted

602,720,046

638,092,129

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

Amounts expressed in thousands of US dollars (“$”)

As of

December 31,

As of

September 30,

2024

2025

ASSETS

Current assets

Cash and cash equivalents

2,405,153

3,067,819

Restricted cash

1,655,171

1,963,218

Accounts receivable, net of allowance for credit losses of

$5,089 and $12,244, as of December 31, 2024 and

September 30, 2025 respectively

306,657

349,415

Prepaid expenses and other assets

1,661,373

1,832,583

Loans receivable, net of allowance for credit losses of

$443,555 and $697,688, as of December 31, 2024 and

September 30, 2025 respectively

4,052,215

6,413,832

Inventories, net

143,246

209,285

Short-term investments

6,215,423

6,834,186

Amounts due from related parties

418,430

412,431

Total current assets

16,857,668

21,082,769

Non-current assets

Property and equipment, net

1,097,699

1,189,733

Operating lease right-of-use assets, net

1,054,785

1,328,315

Intangible assets, net

27,310

15,754

Long-term investments

2,694,305

1,827,968

Prepaid expenses and other assets

138,839

214,540

Loans receivable, net of allowance for credit losses of

$5,780 and $17,848, as of December 31, 2024 and

September 30, 2025 respectively

108,594

345,074

Restricted cash

21,261

35,792

Deferred tax assets

517,383

606,589

Goodwill

107,625

104,768

Total non-current assets

5,767,801

5,668,533

Total assets

22,625,469

26,751,302

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

Amounts expressed in thousands of US dollars (“$”)

As of

December 31,

As of

September 30,

2024

2025

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

350,021

480,395

Accrued expenses and other payables

2,380,371

2,630,808

Deposits payable

2,711,693

3,484,208

Escrow payables and advances from customers

2,498,094

2,775,667

Amounts due to related parties

255,896

253,051

Borrowings

130,615

224,750

Operating lease liabilities

300,274

340,783

Convertible notes

1,147,984

2,336,500

Deferred revenue

1,405,785

1,976,647

Income tax payable

115,419

188,250

Total current liabilities

11,296,152

14,691,059

Non-current liabilities

Accrued expenses and other payables

71,678

92,440

Borrowings

249,474

294,634

Operating lease liabilities

803,502

1,047,097

Deferred revenue

109,895

159,612

Convertible notes

1,478,784

Deferred tax liabilities

408

30,551

Unrecognized tax benefits

138,000

132,100

Total non-current liabilities

2,851,741

1,756,434

Total liabilities

14,147,893

16,447,493

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

Amounts expressed in thousands of US dollars (“$”)

As of

December 31,

As of

September 30,

2024

2025

Shareholders’ equity

Class A Ordinary shares

272

275

Class B Ordinary shares

Additional paid-in capital

16,703,192

17,214,773

Accumulated other comprehensive loss

(193,148

)

(62,401

)

Statutory reserves

17,260

Accumulated deficit

(8,155,264

)

(6,974,214

)

Total Sea Limited shareholders’ equity

8,372,335

10,195,716

Non-controlling interests

105,241

108,093

Total shareholders’ equity

8,477,576

10,303,809

Total liabilities and shareholders’ equity

22,625,469

26,751,302

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Amounts expressed in thousands of US dollars (“$”)

For the Nine Months ended

September 30,

2024

2025

Net cash generated from operating activities

2,256,438

3,548,113

Net cash used in investing activities

(3,279,780)

(3,255,062)

Net cash generated from financing activities

984,283

617,560

Effect of foreign exchange rate changes on cash, cash

equivalents and restricted cash

61,654

74,633

Net increase in cash, cash equivalents and restricted cash

22,595

985,244

Cash, cash equivalents and restricted cash at beginning of the

period

4,243,657

4,081,585

Cash, cash equivalents and restricted cash at end of the period

4,266,252

5,066,829

Net cash used in investing activities amounted to US$3,255 million for the nine months ended September 30, 2025. This was primarily attributable to an increase in loans receivable of our credit business of US$3,355 million and purchase of property and equipment of US$351 million to support the existing operations, offset by net proceeds of US$508 million from securities purchased under agreements to resell, time deposits and liquid investment products. Net cash generated from financing activities amounted to US$618 million for the nine months ended September 30, 2025. This was primarily attributable to an increase in bank deposits of US$753 million as well as net proceeds from other funding sources related to credit business of US$122 million, offset by the cash used in repurchase of convertible notes of US$276 million.

UNAUDITED SEGMENT INFORMATION

The Company has three reportable segments, namely e-commerce, digital financial services and digital entertainment. The Chief Operating Decision Maker (“CODM”), comprising our senior management team, evaluates each segment's financial performance by reviewing revenue, significant operating expenses, and segment operating income or loss. To allocate resources for each segment, the CODM evaluates these results, along with certain key operating metrics of each segment. This assessment is done regularly by monitoring each segment's actual financial and operating performance against projections as part of the Company's business planning and budgeting process. Amounts are expressed in thousands of US dollars (“$”).

For the Three Months ended September 30, 2025

E-commerce

Digital

Financial

Services

Digital

Entertainment

Other

Services (1)

Total

Revenue

4,294,756

989,861

653,033

48,374

5,986,024

Less (2)

Cost of revenue

(3,025,725)

(125,669)

(224,225)

Sales and marketing expenses

(894,670)

(157,964)

(51,424)

Provision for credit losses

(372,283)

Other operating expenses (3)

(264,244)

(85,768)

(67,573)

(75,413)

Operating segment income (loss)

110,117

248,177

309,811

(27,039)

641,066

Unallocated expenses (4)

(165,120)

Operating income

475,946

Non-operating income, net

61,170

Income tax expense

(161,096)

Share of results of equity investees

(1,032)

Net income

374,988

For the Three Months ended September 30, 2024

E-commerce

Digital

Financial

Services

Digital

Entertainment

Other

Services (1)

Total

Revenue

3,183,558

615,711

497,847

31,117

4,328,233

Less (2)

Cost of revenue

(2,209,057)

(91,426)

(156,043)

Sales and marketing expenses

(763,340)

(65,632)

(26,583)

Provision for credit losses

(210,206)

Other operating expenses (3)

(247,979)

(74,505)

(52,819)

(42,118)

Operating segment (loss) income

(36,818)

173,942

262,402

(11,001)

388,525

Unallocated expenses (4)

(186,110)

Operating income

202,415

Non-operating income, net

49,536

Income tax expense

(92,598)

Share of results of equity investees

(6,029)

Net income

153,324

(1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.

(2) The significant expenses categories and other income amounts align with the segmental-level information that is regularly provided to the CODM.

(3) Other operating expenses for E-commerce and Digital Entertainment include general and administrative expenses, research and development expenses and provision for credit losses, net of other operating income. Other operating expenses for Digital Financial Services include general and administrative expenses and research and development expenses, net of other operating income.

(4) Unallocated expenses are mainly related to share-based compensation, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.