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

“The momentum from our strong start to 2025 has continued into the second quarter. All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year,” said Forrest Li, Sea’s Chairman and Chief Executive Officer. “Given the high potential of our markets and the stage we are at in our business now, we will continue to prioritize growth, which will pave the way for us to maximize our long-term profitability. At the same time, our company has reached a stage where we can pursue growth opportunities while improving profitability.”

On e-commerce, he said, “After a record-high Q1, Shopee has delivered another record-breaking Q2. GMV grew 25% year-on-year in the first half, and we expect this growth momentum to carry into Q3.” On Brazil, he added, “This quarter, we celebrated Shopee’s 5-year anniversary in Brazil, and I am very proud of what the team has achieved: we have become the market leader by order volume, we continue to grow fast, and we are operating profitably. We remain committed to delivering strong, profitable growth while reinforcing our market leadership across Asia and Brazil.”

On digital financial services, Mr. Li said, “Monee has delivered excellent growth throughout the first half of the year, diversified its loan portfolio across markets and products, and maintained high asset quality through prudent risk management. It is exciting that our credit business is still in the early stages in many of our markets, reinforcing our strong conviction in Monee’s long-term growth and earnings potential.”

On digital entertainment, Mr. Li said, “Garena has delivered a very strong performance in the first half of this year. We believe Free Fire has established itself as an evergreen franchise, both sustaining its user engagement and growing its appeal in more markets globally. We are also committed to trying out new genres and new markets, and testing the boundaries of future game experiences by embracing AI. Given all of this, we are raising our full-year guidance for Garena, and expect bookings to grow more than 30% in 2025, year-on-year.”

Second Quarter 2025 Highlights

• Group
  • Total GAAP revenue was US$5.3 billion, up 38.2% year-on-year.
  • Total gross profit was US$2.4 billion, up 52.1% year-on-year.
  • Total net income was US$414.2 million, as compared to total net income of US$79.9 million for the second quarter of 2024.
  • Total adjusted EBITDA1 was US$829.2 million, as compared to US$448.5 million for the second quarter of 2024.
    

• E-commerce
  • Gross orders totaled 3.3 billion for the quarter, increasing by 28.6% year-on-year.
  • GMV was US$29.8 billion for the quarter, increasing by 28.2% year-on-year.
  • GAAP revenue was US$3.8 billion, up 33.7% year-on-year.
  • GAAP revenue included US$3.3 billion of GAAP marketplace revenue, which consists of core marketplace revenue and value-added services revenue and increased by 33.6% year-on-year.
    • Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 46.2% year-on-year to US$2.6 billion.
    • Value-added services revenue, mainly consisting of revenues related to logistics services, was up 2.9% year-on-year to US$743.0 million.
  • Adjusted EBITDA1 was US$227.7 million, as compared to US$(9.2) million for the second quarter of 2024.
    

• Digital Financial Services
  • GAAP revenue was US$882.8 million, up 70.0% year-on-year.
  • Adjusted EBITDA1 was US$255.3 million, up 55.0% year-on-year.
  • Digital financial services revenue and operating income are primarily attributed to the consumer and SME credit business. As of June 30, 2025, consumer and SME loans principal outstanding was US$6.9 billion, up 94.0% year-on-year. This consists of US$5.9 billion on-book and US$0.9 billion off-book loans principal outstanding2.
  • Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding2, was 1.0%, relatively stable quarter-on-quarter.
    

• Digital Entertainment
  • Bookings3 were US$661.3 million, up 23.2% year-on-year.
  • GAAP revenue was US$559.1 million, up 28.4% year-on-year.
  • Adjusted EBITDA1 was US$368.2 million, up 21.6% year-on-year.
  • Adjusted EBITDA represented 55.7% of bookings for the second quarter of 2025, as compared to 56.4% for the second quarter of 2024.
  • Quarterly active users were 664.8 million, up 2.6% year-on-year.
  • Quarterly paying users were 61.8 million, up 17.8% year-on-year. Paying user ratio was 9.3%, as compared to 8.1% for the second quarter of 2024.
  • Average bookings per user were US$0.99, as compared to US$0.83 for the second quarter of 2024.

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

Revenue

Our total GAAP revenue increased by 38.2% to US$5.3 billion in the second quarter of 2025 from US$3.8 billion in the second quarter of 2024. The table below sets forth our revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).

• E-commerce: Our e-commerce service GAAP revenue increased by 33.6% to US$3.3 billion in the second quarter of 2025 from US$2.5 billion in the second quarter of 2024, primarily driven by the growth of GMV.

• Digital Financial Services: Our digital financial services GAAP revenue increased by 70.0% to US$882.8 million in the second quarter of 2025 from US$519.3 million in the second quarter of 2024, primarily driven by the growth of our credit business as our lending activities increased.

• Digital Entertainment: Our digital entertainment GAAP revenue increased by 28.4% to US$559.1 million in the second quarter of 2025 from US$435.6 million in the second quarter of 2024. This increase was primarily due to the increase in our active user base as well as the deepened paying user penetration.

• Sales of goods: GAAP revenue increased by 34.4% to US$460.6 million in the second quarter of 2025 from US$342.6 million in the second quarter of 2024.

Cost of Revenue

Our total cost of revenue was US$2.8 billion in the second quarter of 2025, as compared to US$2.2 billion in the second quarter of 2024. The table below sets forth our cost of revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).

• E-commerce: Cost of revenue was US$2.1 billion in the second quarter of 2025, as compared to US$1.7 billion in the second quarter of 2024, primarily driven by an increase in logistics costs as orders volume grew.

• Digital Financial Services: Cost of revenue was US$115.9 million in the second quarter of 2025, as compared to US$78.9 million in the second quarter of 2024, primarily driven by server and hosting expenses, interest expenses due to the growth in customer deposits under our banking business, and other costs associated with our credit business.

• Digital Entertainment: Cost of revenue was US$171.9 million in the second quarter of 2025, as compared to US$139.5 million in the second quarter of 2024, primarily from payment channel costs, which was largely in line with the increase in our digital entertainment revenue.

• Cost of goods sold: Cost of goods sold increased by 36.0% to US$432.0 million in the second quarter of 2025 from US$317.7 million in the second quarter of 2024.

Other Operating Income

Our other operating income was US$31.9 million and US$42.6 million in the second 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 30.3% to US$1.0 billion in the second quarter of 2025 from US$774.8 million in the second quarter of 2024. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).

General and Administrative Expenses

Our general and administrative expenses increased by 6.4% to US$323.3 million in the second quarter of 2025 from US$303.8 million in the second quarter of 2024.

Provision for Credit Losses

Our provision for credit losses increased by 93.4% to US$323.7 million in the second quarter of 2025 from US$167.4 million in the second quarter of 2024.

Research and Development Expenses

Our research and development expenses were US$297.4 million in the second quarter of 2025, as compared to US$298.5 million in the second quarter of 2024, relatively flat year-on-year.

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$83.3 million in the second quarter of 2025, as compared to a net non-operating income of US$56.4 million in the second quarter of 2024. The non-operating income in the second quarter of 2025 was primarily due to interest income of US$90.3 million, partially offset by interest expense of US$9.0 million.

Income Tax Expense

We had a net income tax expense of US$144.1 million and US$60.6 million in the second quarter of 2025 and 2024, respectively.

Net Income or Loss

As a result of the foregoing, we had net income of US$414.2 million in the second quarter of 2025, as compared to net income of US$79.9 million in the second 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$0.68 in the second quarter of 2025, compared to basic earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.14 in the second quarter of 2024.

Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.65 in the second quarter of 2025, compared to diluted earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.14 in the second 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:

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:

• “Adjusted EBITDA” for our digital entertainment segment represents operating income (loss) plus (a) depreciation and amortization expenses, and (b) the net effect of changes in deferred revenue and its related cost for our digital entertainment segment. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.

• “Adjusted EBITDA” for our e-commerce segment, digital financial services segment and other services segment represents operating income (loss) plus depreciation and amortization expenses. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.

• “Total adjusted EBITDA” represents the sum of adjusted EBITDA of all our segments combined, plus unallocated expenses. We believe that the total adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.

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.

Net cash used in investing activities amounted to US$2,632 million for the six months ended June 30, 2025. This was primarily attributable to increase in loans receivable of our credit business of US$2,044 million, net placement of US$363 million in securities purchased under agreements to resell, time deposits and liquid investment products, for better cash yield management, and purchase of property and equipment of US$216 million to support the existing operations. Net cash generated from financing activities amounted to US$329 million for the six months ended June 30, 2025. This was primarily attributable to an increase in bank deposits of US$445 million as well as net proceeds from other funding sources related to credit business of US$118 million, offset by the cash used in repurchase of convertible notes of US$233 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 (“$”).

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Source: Sea Limited