Investing.com -- Sea Limited (NYSE: SE) shares dropped premarket on Tuesday after it reported fourth quarter earnings below analyst consensus expectations.

Adjusted earnings per share came in at $0.63, missing analyst estimates of $0.80, despite revenue beating expectations at $6.9 billion compared to the consensus of $6.49 billion. Revenue increased 38.4% YoY from $5.0 billion in the prior year period.

The company posted net income of $410.9 million for the quarter, up 72.9% YoY, while adjusted EBITDA rose 33.2% to $787.1 million. However, the earnings shortfall triggered a sharp 15% decline in the stock.

"2025 has been a great year for Sea. All our businesses scaled well, exceeding our initial growth expectations," said Forrest Li, Chairman and Chief Executive Officer. "We were successful in 2025 because we chose the right set of strategies and we executed them well. 2026 will be a continuation of this approach."

For fiscal 2026, Sea provided guidance for its Shopee e-commerce platform, targeting GMV growth of around 25% YoY with full year adjusted EBITDA no lower than 2025’s level in absolute dollar terms. The company’s 2025 adjusted EBITDA for Shopee was $880.6 million.

Shopee revenue increased 35.8% YoY to $4.3 billion in the fourth quarter, driven by GMV growth of 28.6% to $36.7 billion. Gross orders totaled 4.0 billion, up 30.5% YoY. The segment’s adjusted EBITDA reached $202.5 million, up 33.0% YoY.

Monee, the company’s fintech arm, reported revenue of $1.1 billion, up 54.3% YoY, with adjusted EBITDA of $263.1 million, up 24.7%. Garena gaming revenue rose 35.1% to $701.0 million, with adjusted EBITDA increasing 25.6% to $363.8 million.

For the full year 2025, Sea reported revenue of $22.9 billion, up 36.4% YoY, with net income reaching $1.6 billion compared to $447.8 million in 2024.