Sea Ltd (SE): Financial results for Q3 2026
Sea Ltd (SE) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Sea Limited Reports Third Quarter 2026 Results Singapore, November 10, 2026 – Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the third quarter ended September 30, 2026. In the third quarter of 2026, Sea’s GAAP revenue was US
How this was made
The 30-second read
Why it matters
The earnings beat and expanded buyback program provide fresh material for traders to consider positioning in SE.
Market read
First‑report earnings release with strong growth metrics and a new $1B share repurchase tranche, likely to move the stock.
What to watch
Rising non‑performing loan ratios and higher credit loss provisions could pressure the Monee segment.
Sea Q3 2026 GAAP revenue up 43.4% to US$8.6 billion; net income up 34.0% to US$502.5 million; total adjusted EBITDA up 28.9% to US$931.3 million
Revenue (+43.4%), gross profit (+51.4%), operating income (+39.5%) and net income (+34.0%) all grew strongly, and Shopee, Monee and Garena each grew revenue. Growth in provision for credit losses (+82.3%), sales and marketing (+64.0%) and cost of revenue (+37.2%) outpaced revenue growth in the quarter, and Garena bookings grew only 5.9% against 28.6% revenue growth.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue (Q3 2026)GAAP | $8.58B | – | 43.4% |
| Service revenue (Q3 2026)GAAP | $7.83B | – | 43.3% |
| Sales of goods revenue (Q3 2026)GAAP | $748.6M | – | 44.6% |
| Total cost of revenue (Q3 2026)GAAP | $4.65B | – | 37.2% |
| Cost of service (Q3 2026)GAAP | $3.94B | – | 36.0% |
| Cost of goods sold (Q3 2026)GAAP | $710.4M | – | 44.4% |
| Gross profit (Q3 2026)GAAP | $3.94B | – | 51.4% |
| Other operating income (Q3 2026)GAAP | $23.89M | – | (11.6%) |
| Sales and marketing expenses (Q3 2026)GAAP | $1.89B | – | 64.0% |
| General and administrative expenses (Q3 2026)GAAP | $425.2M | – | 25.1% |
| Provision for credit losses (Q3 2026)GAAP | $681.5M | – | 82.3% |
| Research and development expenses (Q3 2026)GAAP | $301.7M | – | 5.4% |
| Total operating expenses (Q3 2026)GAAP | $3.27B | – | 54.1% |
| Operating income (Q3 2026)GAAP | $664.2M | – | 39.5% |
| Non-operating income, net (Q3 2026)GAAP | $123.3M | – | 101.6% |
| Income tax expense (Q3 2026)GAAP | $280.4M | – | 74.0% |
| Share of results of equity investees (Q3 2026)GAAP | −$4.64M | – | 349.6% |
| Net income (Q3 2026)GAAP | $502.5M | – | 34.0% |
| Basic earnings per share (Q3 2026)GAAP | US$0.81 | – | 28.6% |
| Diluted earnings per share (Q3 2026)GAAP | US$0.78 | – | 32.2% |
| Total adjusted EBITDA (Q3 2026)non-GAAP | $931.3M | – | 28.9% |
| Adjusted EBITDA for Shopee (Q3 2026)non-GAAP | $269.2M | – | 44.7% |
| Adjusted EBITDA for Monee (Q3 2026)non-GAAP | $298.3M | – | 15.5% |
| Adjusted EBITDA for Garena (Q3 2026)non-GAAP | $458.2M | – | 45.9% |
| Adjusted EBITDA for Other Services (Q3 2026)non-GAAP | −$83.88M | – | 233.9% |
| Unallocated expenses within total adjusted EBITDA (Q3 2026)non-GAAP | −$10.43M | – | (4.7%) |
| Change in deferred revenue of Garena (Q3 2026)other | $49.88M | – | (73.4%) |
| Net effect of changes in deferred revenue and related cost, Garena (Q3 2026)non-GAAP | $52.03M | – | – |
| Shopee operating income (Q3 2026)GAAP | $155.4M | – | – |
| Monee operating income (Q3 2026)GAAP | $288.5M | – | – |
| Garena operating income (Q3 2026)GAAP | $453.2M | – | – |
| Shopee gross orders (Q3 2026)other | 4.5B | – | 25.5% |
| Shopee GMV (Q3 2026)other | $39.7B | – | 23.3% |
| Shopee core marketplace revenue (Q3 2026)GAAP | $4.60B | – | 50.6% |
| Shopee value-added services revenue (Q3 2026)GAAP | $724.4M | – | 0.1% |
| Shopee GAAP marketplace revenue (Q3 2026)GAAP | $5.3B | – | 40.9% |
| Monee GAAP revenue (Q3 2026)GAAP | $1.62B | – | 63.9% |
| Consumer and SME loans principal outstanding, Monee (September 30, 2026)other | $12.6B | – | 60.0% |
| Non-performing loans over 90 days as % of consumer and SME loans principal outstanding, Monee (September 30, 2026)other | 1.3% | – | – |
| Garena GAAP revenue (Q3 2026)GAAP | $840.1M | – | 28.6% |
| Garena bookings (Q3 2026)other | $890M | – | 5.9% |
| Garena quarterly active users (Q3 2026)other | 671.7M | – | – |
| Garena quarterly paying users (Q3 2026)other | 68.6M | – | 4.1% |
| Garena paying user ratio (Q3 2026)other | 10.2% | – | – |
| Garena average bookings per user (Q3 2026)other | US$1.33 | – | – |
| Total revenue (nine months ended September 30, 2026)GAAP | $23.47B | – | – |
| Service revenue (nine months ended September 30, 2026)GAAP | $21.45B | – | – |
| Sales of goods revenue (nine months ended September 30, 2026)GAAP | $2.02B | – | – |
| Total cost of revenue (nine months ended September 30, 2026)GAAP | $12.84B | – | – |
| Gross profit (nine months ended September 30, 2026)GAAP | $10.63B | – | – |
| Sales and marketing expenses (nine months ended September 30, 2026)GAAP | $4.96B | – | – |
| General and administrative expenses (nine months ended September 30, 2026)GAAP | $1.22B | – | – |
| Provision for credit losses (nine months ended September 30, 2026)GAAP | $1.70B | – | – |
| Research and development expenses (nine months ended September 30, 2026)GAAP | $912.5M | – | – |
| Total operating expenses (nine months ended September 30, 2026)GAAP | $8.72B | – | – |
| Operating income (nine months ended September 30, 2026)GAAP | $1.91B | – | – |
| Income tax expense (nine months ended September 30, 2026)GAAP | $745.0M | – | – |
| Net income (nine months ended September 30, 2026)GAAP | $1.40B | – | – |
| Net income attributable to Sea Limited's ordinary shareholders (nine months ended September 30, 2026)GAAP | $1.36B | – | – |
| Basic earnings per share (nine months ended September 30, 2026)GAAP | US$2.23 | – | – |
| Diluted earnings per share (nine months ended September 30, 2026)GAAP | US$2.15 | – | – |
| Net cash generated from operating activities (nine months ended September 30, 2026)GAAP | $4.06B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ShopeeCompany states Shopee GAAP revenue growth was primarily driven by the growth of GMV and improved monetization. Segment operating income was US$155,421 thousand versus US$110,117 thousand. | $6.07B | – | 41.3% |
| MoneeCompany states Monee revenue growth was primarily driven by the growth of its credit business as lending activities increased. Provision for credit losses for Monee was US$678,713 thousand in the segment table versus US$372,283 thousand. | $1.62B | – | 63.9% |
| GarenaCompany states the increase was primarily due to the increase in active user base as well as deepened paying user penetration. Bookings were US$890.0 million, up 5.9%. | $840.1M | – | 28.6% |
| Other ServicesOther Services is a combination of business activities that do not meet the quantitative threshold to be reportable segments. Adjusted EBITDA was US$(83,876) thousand and segment operating loss was US$(90,371) thousand. No driver for the revenue change is stated. | US$47,630 thousand (service revenue line) | – | 1.8% |
| Sales of goods (consolidated product line)Company states sales of goods GAAP revenue increased by 44.6%. Filing defines this as sales of products owned and sold by Sea on the Shopee platform. No further driver is stated. | $748.6M | – | 44.6% |
| Shopee core marketplaceFiling defines core marketplace revenue as consisting mainly of transaction-based fees and fees from advertising services. No further driver is stated. | $4.60B | – | 50.6% |
| Shopee value-added servicesFiling defines value-added services revenue as consisting mainly of fees from logistics and fulfillment services. No further driver is stated. | $724.4M | – | 0.1% |
Capital returns
- Under the US$1.0 billion share repurchase program, as of the release date Sea had repurchased 11.1 million shares for an aggregate amount of US$997.2 million.
- On November 9, 2026 the board of directors approved an additional US$1.0 billion to the share repurchase authorization, without expiration. The timing, amount and method will be determined based on market conditions and other considerations.
- Nine-month cash flow statement shows repurchase of ordinary shares of US$743 million, per the company's cash flow commentary.
- Treasury stock was US$(635,584) thousand at September 30, 2026 versus US$(14,527) thousand at December 31, 2025.
What drove it
- Company states Shopee revenue growth was primarily driven by growth of GMV and improved monetization.
- Company states Shopee cost of revenue increased primarily due to higher logistics costs as orders volume grew, and investment in logistics capabilities for better user experience.
- Company states Monee revenue growth was primarily driven by the credit business as lending activities increased. Monee cost of revenue growth was attributed by the company to higher interest expenses reflecting growth in customer deposits, payment network costs, higher funding costs, collection expenses, bank transaction fees, and server and hosting expenses.
- Company states Garena revenue growth was primarily due to the increase in active user base and deepened paying user penetration. Company states Garena cost of revenue growth was primarily from third-party payment channel costs.
- Company states the non-operating income of US$123.3 million was primarily due to investment gain of US$65.2 million and interest income of US$62.2 million.
- Company states that, as previously disclosed, the net effect of changes in Garena deferred revenue and its related cost is excluded from Garena adjusted EBITDA but disclosed as supplemental information. It was US$52.0 million versus US$151.9 million in Q3 2025.
- Company states Other operating income mainly consists of rebates from logistics service providers.
Concerns
- Provision for credit losses rose 82.3% to US$681.5 million, against total revenue growth of 43.4%. Nine-month provision was US$1,702,178 thousand versus US$979,498 thousand.
- Sales and marketing expenses rose 64.0% to US$1.9 billion, and total operating expenses rose 54.1%, both faster than revenue.
- Monee non-performing loans over 90 days were 1.3% of consumer and SME loans principal outstanding, compared with 1.1% for Q3 2025.
- Garena bookings grew 5.9% while Garena GAAP revenue grew 28.6%. Garena change in deferred revenue fell 73.4% to US$49,878 thousand.
- Other Services adjusted EBITDA loss widened to US$(83,876) thousand from US$(25,119) thousand, and its segment operating loss was US$(90,371) thousand versus US$(27,039) thousand.
- Nine-month investing outflow was US$(5,628,573) thousand, driven in the company's explanation by growth in credit loans receivable, and cash and cash equivalents fell to US$2,905,303 thousand from US$4,158,920 thousand at December 31, 2025.
- Shopee sales and marketing expenses rose to US$1,431,592 thousand from US$894,670 thousand, and Monee sales and marketing expenses rose to US$334,630 thousand from US$157,964 thousand.
What to watch
- Provision for credit losses and the non-performing loan ratio for Monee, given provision growth of 82.3% and NPL increase to 1.3% from 1.1%.
- Garena bookings growth of 5.9% compared with revenue growth of 28.6%, and the trend of the deferred revenue change.
- Execution of the US$1.0 billion repurchase authorization approved on November 9, 2026, with US$997.2 million already used under the prior program.
- Sales and marketing expense growth relative to Shopee and Monee revenue growth.
- Other Services adjusted EBITDA loss, which widened to US$(83,876) thousand.
- Logistics costs at Shopee, which the company links to order volume growth and logistics investment.
Balance sheet and cash flow
- Cash and cash equivalents: US$2,905,303 thousand at September 30, 2026 versus US$4,158,920 thousand at December 31, 2025.
- Restricted cash (current): US$2,279,002 thousand at September 30, 2026 versus US$2,216,733 thousand at December 31, 2025.
- Short-term investments: US$5,112,821 thousand at September 30, 2026 versus US$6,413,261 thousand at December 31, 2025.
- Loans receivable, current, net: US$9,813,986 thousand at September 30, 2026 versus US$7,405,741 thousand at December 31, 2025.
- Long-term investments: US$3,272,907 thousand at September 30, 2026 versus US$1,888,829 thousand at December 31, 2025.
- Total assets: US$33,201,286 thousand at September 30, 2026 versus US$29,370,979 thousand at December 31, 2025.
- Deposits payable: US$5,358,453 thousand at September 30, 2026 versus US$3,798,250 thousand at December 31, 2025.
- Convertible notes (current): nil at September 30, 2026 (shown as '-') versus US$1,050,071 thousand at December 31, 2025. Company states redemption of convertible notes was US$1,051 million in the nine months.
- Borrowings: current US$454,233 thousand and non-current US$762,263 thousand at September 30, 2026; current US$283,181 thousand and non-current US$510,396 thousand at December 31, 2025.
- Total liabilities: US$19,747,135 thousand at September 30, 2026 versus US$16,722,651 thousand at December 31, 2025.
- Total Sea Limited shareholders' equity: US$13,303,994 thousand at September 30, 2026 versus US$12,526,503 thousand at December 31, 2025. Total shareholders' equity: US$13,454,151 thousand versus US$12,648,328 thousand.
- Nine-month cash flows: operating US$4,064,730 thousand (prior US$3,548,113 thousand); investing US$(5,628,573) thousand (prior US$(3,255,062) thousand); financing US$482,812 thousand (prior US$617,560 thousand).
- Company states nine-month investing outflows were primarily attributable to an increase in loans receivable of its credit business of US$4,446 million, purchase of property and equipment of US$1,042 million, and net purchases of investments of US$134 million.
- Company states nine-month financing inflows were primarily attributable to an increase in bank deposits of US$1,823 million and net proceeds from other funding sources related to the credit business of US$436 million, offset by redemption of convertible notes of US$1,051 million and repurchase of ordinary shares of US$743 million.
- Cash, cash equivalents and restricted cash at end of nine-month period: US$5,232,494 thousand versus US$5,066,829 thousand a year earlier.
Analysis
Sea reported Q3 2026 GAAP revenue of US$8,582,284 thousand, up 43.4% from US$5,986,024 thousand, with gross profit of US$3,935,441 thousand, up 51.4%. Net income was US$502,458 thousand, up 34.0%, and diluted EPS was US$0.78 against US$0.59. Growth was spread across the three core businesses: Shopee revenue rose 41.3% to US$6,070,168 thousand, Monee rose 63.9% to US$1,621,938 thousand, and Garena rose 28.6% to US$840,105 thousand. Within Shopee, core marketplace revenue rose 50.6% to US$4,599,637 thousand while value-added services were essentially flat at US$724,383 thousand against US$723,560 thousand. The company reports 4.5 billion gross orders (up 25.5%) and GMV of US$39.7 billion (up 23.3%).
Cost growth ran ahead of revenue growth in several lines. Cost of revenue rose 37.2% to US$4,646,843 thousand, sales and marketing rose 64.0% to US$1,886,748 thousand, and the provision for credit losses rose 82.3% to US$681,519 thousand. Operating income still grew 39.5% to US$664,171 thousand, and operating income for Shopee, Monee and Garena each increased in the segment table. Other operating income was US$23,889 thousand, down 11.6%. Non-operating income of US$123,313 thousand, up 101.6%, was attributed by the company to an investment gain of US$65.2 million and interest income of US$62.2 million. Income tax expense rose 74.0% to US$280,386 thousand.
On the non-GAAP side, total adjusted EBITDA rose 28.9% to US$931,283 thousand. Garena adjusted EBITDA rose 45.9% to US$458,161 thousand and Shopee adjusted EBITDA rose 44.7% to US$269,171 thousand, while Monee adjusted EBITDA rose 15.5% to US$298,256 thousand. The loss in Other Services widened to US$(83,876) thousand. The company continues to exclude the net effect of Garena deferred revenue changes from adjusted EBITDA; that net effect was US$52,030 thousand against US$151,915 thousand a year earlier, and Garena bookings were US$890.0 million, up 5.9%. Garena bookings growth therefore trailed the revenue growth in the quarter, and the document does not explain the gap beyond the defined bookings metric.
Credit is the largest area of balance sheet change. Consumer and SME loans principal outstanding reached US$12.6 billion, up 60.0%, of which US$11.2 billion is on-book and US$1.3 billion off-book. The non-performing loan ratio over 90 days rose to 1.3% from 1.1%. For the nine months, the company reports operating cash flow of US$4,064,730 thousand (prior US$3,548,113 thousand), investing outflows of US$(5,628,573) thousand that it attributes mainly to growth in credit loans receivable, and financing inflows of US$482,812 thousand. Cash and cash equivalents fell to US$2,905,303 thousand at September 30, 2026 from US$4,158,920 thousand at December 31, 2025, while total assets rose to US$33,201,286 thousand from US$29,370,979 thousand. Shareholders are receiving capital returns through buybacks: US$997.2 million has been repurchased under the US$1.0 billion program, and the board approved an additional US$1.0 billion on November 9, 2026. The filing contains no forward guidance, so the read on the outlook is limited to the reported results and capital allocation.
Management, verbatim
Our strong momentum from the first half of the year has continued into the third quarter. We are pleased with this solid performance, and will continue to focus on executing our priorities with discipline.
Forrest Li, Chairman and Chief Executive Officer
Shopee delivered another strong quarter, again achieving new record highs in both top- and bottom-line metrics.
Forrest Li, Chairman and Chief Executive Officer
Monee also delivered another quarter of healthy growth while staying disciplined in how we manage risk and how we invest.
Forrest Li, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward guidance for Q4 2026 or full-year 2026 (no outlook section in the filing; no prior outlook supplied).
- Gross margin percentage (not printed; not computed).
- Operating margin, net margin and adjusted EBITDA margin percentages (not printed).
- Quarter-on-quarter (Q2 2026) comparatives for any metric (not printed in this filing).
- Prior-year figures for Shopee gross orders, Shopee GMV, Shopee GAAP marketplace revenue, Garena bookings, Garena paying users and Monee loans principal outstanding (not printed).
- Prior-year percentage changes for nine-month line items (not printed).
- Prior-year figure for Monee non-performing loan ratio is printed; prior-year figure for Garena quarterly active users change in percent is not printed.
- Free cash flow (not printed).
- Nine-month prior-year and current-year segment revenue and segment operating income (not printed).
- Quarter-end cash balance at June 30, 2026 and other quarter-end balance sheet comparatives (not printed).
- Share price reaction and analyst consensus estimates (not in the document).
- Monee and Garena nine-month percentage changes and Garena nine-month bookings (not printed).
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sea Ltd (NYSE: SE) operates Shopee, Garena and Monee, reporting its quarterly results via a Form 6‑K filing.
Ticker impact
Sea Ltd reported Q3 2026 earnings with 43% revenue growth, $502.5M net income and a $1B share repurchase authorization.
upward pressure as investors price in robust earnings and expanded buyback.
Revenue and profit beat expectations, and the additional $1B repurchase tranche signals confidence, which typically lifts the stock.
Market effects
Positive for e‑commerce and digital payments sectors, reinforcing growth outlook for marketplace and fintech peers.
Boosts sentiment for Asian‑focused growth stocks listed in the U.S.
Adds to the broader narrative of strong digital economy performance in 2026.
Counterpoint
If the market has already priced in the growth, the stock may face a short‑term pullback on profit‑taking.
Key entities
- companySea Ltd
Parent company of Shopee, Garena and Monee.
- executiveForrest Li
Chairman and CEO who commented on the results.
