Q2 FY2026
Filed Aug 11, 2026Sea reported Q2 2026 GAAP revenue of US$7.8 billion, up 48.1% year-on-year, while GAAP net income rose 10.6% to US$458.1 million and total adjusted EBITDA increased 10.6% to US$917.2 million.
Revenue growth was broad-based across Shopee, Monee and Garena, with all three reportable segments producing positive operating income and adjusted EBITDA. Profit growth trailed revenue growth as sales and marketing expense, provision for credit losses and income tax expense increased faster than revenue.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | US$7,787,779 thousand | – | 48.1% |
| Service revenueGAAP | US$7,130,053 thousand | – | 48.6% |
| Sales of goodsGAAP | US$657,726 thousand | – | 42.8% |
| Cost of revenueGAAP | US$4,237,893 thousand | – | 48.7% |
| Cost of serviceGAAP | US$3,614,938 thousand | – | 49.5% |
| Cost of goods soldGAAP | US$622,955 thousand | – | 44.2% |
| Gross profitGAAP | US$3,549,886 thousand | – | 47.3% |
| Other operating incomeGAAP | US$24,261 thousand | – | (24.0%) |
| Sales and marketing expensesGAAP | US$1,660,118 thousand | – | 64.5% |
| General and administrative expensesGAAP | US$394,385 thousand | – | 22.0% |
| Provision for credit lossesGAAP | US$555,155 thousand | – | 71.5% |
| Research and development expensesGAAP | US$314,160 thousand | – | 5.6% |
| Total operating expensesGAAP | US$2,899,557 thousand | – | 50.9% |
| Operating incomeGAAP | US$650,329 thousand | – | 33.3% |
| Non-operating income, netGAAP | US$65,537 thousand | – | (21.3%) |
| Income tax expenseGAAP | US$250,604 thousand | – | 74.0% |
| Share of results of equity investeesGAAP | US$(7,146) thousand | – | (44.0%) |
| Net incomeGAAP | US$458,116 thousand | – | 10.6% |
| Basic earnings per share attributable to Sea Limited’s ordinary shareholdersGAAP | US$0.72 | – | 5.9% |
| Diluted earnings per share attributable to Sea Limited’s ordinary shareholdersGAAP | US$0.70 | – | 7.7% |
| Total adjusted EBITDAnon-GAAP | US$917,188 thousand | – | 10.6% |
| Shopee adjusted EBITDAnon-GAAP | US$255,419 thousand | – | 12.2% |
| Monee adjusted EBITDAnon-GAAP | US$287,985 thousand | – | 12.8% |
| Garena adjusted EBITDAnon-GAAP | US$429,756 thousand | – | 16.7% |
| Other Services adjusted EBITDAnon-GAAP | US$(46,225) thousand | – | 235.8% |
| Unallocated expenses within total adjusted EBITDAnon-GAAP | US$(9,747) thousand | – | 19.8% |
| Garena change in deferred revenueother | US$16,919 thousand | – | (83.4%) |
| Six-month total revenueGAAP | US$14,885,268 thousand | – | – |
| Six-month gross profitGAAP | US$6,695,468 thousand | – | – |
| Six-month operating incomeGAAP | US$1,243,316 thousand | – | – |
| Six-month net incomeGAAP | US$896,338 thousand | – | – |
| Six-month diluted earnings per shareGAAP | US$1.37 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ShopeeGAAP revenue growth was primarily driven by GMV growth and improved monetization. Core marketplace revenue was US$4.3 billion, up 65.6% year-on-year, while value-added services revenue was US$676.4 million, down 9.0% year-on-year as a result of higher revenue net-off against shipping subsidies. | US$5,587,577 thousand | – | 48.2% |
| MoneeGrowth was primarily driven by the credit business as lending activities increased. Consumer and SME loans principal outstanding was US$11.1 billion as of June 30, 2026, up 62.5% year-on-year. | US$1,402,830 thousand | – | 58.9% |
| GarenaRevenue growth was primarily due to an increase in the active user base and deepened paying-user penetration. Bookings were US$763.5 million, up 15.5% year-on-year. | US$746,603 thousand | – | 33.5% |
| Other ServicesOther Services comprises business activities that do not meet the quantitative thresholds to qualify as reportable segments. | US$50,769 thousand | – | – |
full year outlook
- NoteShopee adjusted EBITDA: US$1 billion
Capital returns
- During the second quarter of 2026, pursuant to the US$1.0 billion share repurchase program, Sea repurchased 4.7 million shares for an aggregate amount of US$416.8 million.
- Cash used in repurchase of ordinary shares was US$578 million for the six months ended June 30, 2026.
- Cash used in repurchase of convertible notes was US$54 million for the six months ended June 30, 2026.
What drove it
- Shopee gross orders totaled 4.2 billion, increasing 27.5% year-on-year, and GMV was US$38.3 billion, increasing 28.4% year-on-year.
- Shopee core marketplace revenue was US$4.3 billion, up 65.6% year-on-year, driven mainly by transaction-based fees and advertising revenues.
- Monee consumer and SME loans principal outstanding was US$11.1 billion, consisting of US$10.0 billion on-book and US$1.1 billion off-book loans principal outstanding.
- Monee non-performing loans past due by more than 90 days were 1.0% of consumer and SME loans principal outstanding, stable quarter-on-quarter.
- Garena quarterly active users were 666.3 million, compared with 664.8 million in the second quarter of 2025. Quarterly paying users were 68.1 million, up 10.2% year-on-year.
- Garena paying-user ratio was 10.2%, compared with 9.3% in the second quarter of 2025, and average bookings per user were US$1.15, compared with US$0.99.
Concerns
- Sales and marketing expenses increased 64.5% year-on-year to US$1,660,118 thousand, faster than total revenue growth of 48.1%.
- Provision for credit losses increased 71.5% year-on-year to US$555,155 thousand as Monee lending activities increased.
- Income tax expense increased 74.0% year-on-year to US$250,604 thousand.
- Shopee value-added services revenue declined 9.0% year-on-year to US$676.4 million as a result of higher revenue net-off against shipping subsidies.
- Garena’s change in deferred revenue was US$16,919 thousand, down 83.4% year-on-year. Beginning with the third-quarter 2026 earnings release, Sea will exclude the net effect of changes in deferred revenue and its related cost from Garena adjusted EBITDA.
What to watch
- Execution against Sea’s stated expectation that Shopee will achieve US$1 billion in adjusted EBITDA for the full year.
- The pace of Shopee GMV, gross-order and core marketplace revenue growth, alongside logistics investment and shipping-subsidy net-offs.
- Monee credit growth, provision for credit losses and the non-performing-loan ratio.
- Garena bookings, paying-user penetration and the adjusted EBITDA presentation change beginning with the third-quarter 2026 earnings release.
- Loans receivable growth and the associated funding, investment and operating cash flow requirements.
Balance sheet and cash flow
- Cash and cash equivalents were US$3,529,303 thousand as of June 30, 2026, compared with US$4,158,920 thousand as of December 31, 2025.
- Restricted cash was US$2,409,785 thousand as of June 30, 2026, compared with US$2,216,733 thousand as of December 31, 2025.
- Short-term investments were US$5,569,553 thousand as of June 30, 2026, compared with US$6,413,261 thousand as of December 31, 2025.
- Current borrowings were US$316,165 thousand and non-current borrowings were US$908,151 thousand as of June 30, 2026.
- Convertible notes were US$996,311 thousand as of June 30, 2026.
- Loans receivable, net, were US$8,904,181 thousand in current assets and US$714,594 thousand in non-current assets as of June 30, 2026.
- Net cash generated from operating activities was US$2,563,884 thousand for the six months ended June 30, 2026, compared with US$2,372,666 thousand for the six months ended June 30, 2025.
- Net cash used in investing activities was US$3,528,532 thousand for the six months ended June 30, 2026, compared with US$2,632,202 thousand for the six months ended June 30, 2025.
- Net cash generated from financing activities was US$632,052 thousand for the six months ended June 30, 2026, compared with US$328,616 thousand for the six months ended June 30, 2025.
- Cash, cash equivalents and restricted cash at end of period were US$5,990,834 thousand for the six months ended June 30, 2026, compared with US$4,274,509 thousand for the six months ended June 30, 2025.
Analysis
Sea delivered broad-based Q2 2026 expansion. GAAP revenue increased 48.1% year-on-year to US$7.8 billion and gross profit increased 47.3% to US$3.5 billion. Shopee was the largest contributor, with revenue of US$5.6 billion, supported by 28.4% GMV growth to US$38.3 billion, 27.5% gross-order growth to 4.2 billion, and 65.6% growth in core marketplace revenue to US$4.3 billion. Monee revenue increased 58.9% to US$1.4 billion and Garena revenue increased 33.5% to US$746.6 million.
Profitability remained positive in each reportable segment. Shopee adjusted EBITDA was US$255.4 million, Monee adjusted EBITDA was US$288.0 million, and Garena adjusted EBITDA was US$429.8 million. Consolidated GAAP operating income increased 33.3% to US$650.3 million and net income increased 10.6% to US$458.1 million. The difference between revenue growth and net-income growth reflected faster increases in sales and marketing expense, credit-loss provisions, and income tax expense.
Monee continued to scale its credit business, with consumer and SME loans principal outstanding reaching US$11.1 billion, up 62.5% year-on-year. The reported non-performing-loan ratio for loans past due more than 90 days was 1.0%, stable quarter-on-quarter. At the same time, provision for credit losses rose 71.5% to US$555.2 million. The balance sheet showed current and non-current loans receivable of US$8,904,181 thousand and US$714,594 thousand, respectively, while six-month investing cash outflows included a US$2,855 million increase in loans receivable.
Garena combined revenue growth with higher monetization indicators. Bookings increased 15.5% to US$763.5 million, quarterly paying users increased 10.2% to 68.1 million, and the paying-user ratio rose to 10.2% from 9.3%. Garena adjusted EBITDA represented 56.3% of bookings compared with 55.7% in the second quarter of 2025. Comparability of Garena adjusted EBITDA will change beginning with the third-quarter 2026 release, when Sea will exclude the net effect of deferred-revenue changes and related cost from that non-GAAP measure.
Capital allocation included US$416.8 million of second-quarter share repurchases under the US$1.0 billion program. For the six months ended June 30, 2026, operating cash generation was US$2,563,884 thousand, while investing cash use was US$3,528,532 thousand and was primarily attributed to loan growth, property and equipment purchases, and net investment purchases. Management’s quantified outlook was its expectation that Shopee will achieve US$1 billion in adjusted EBITDA for the full year; the release provided no revenue, gross-margin, operating-expense, or tax-rate guidance.
Management, verbatim
Our strong momentum from the first quarter has continued into the second. Our investments have enabled Shopee and Monee to continue to strengthen our market leadership while improving our user penetration. We will continue to invest prudently in serving more users and serving them better, broadening our foundation for profitable growth into the future.
Forrest Li, Chairman and Chief Executive Officer
Shopee has delivered a strong first half of 2026. We again achieved new highs in GMV, gross order volume and revenue in the second quarter. Our improving operational efficiency and growing scale have strengthened our unit economics. With this solid momentum, we are optimistic that Shopee will achieve the milestone of US$1 billion in adjusted EBITDA for the full year.
Forrest Li, Chairman and Chief Executive Officer
Monee also delivered another great quarter, with broad-based growth across our products and markets. The advances in our risk capabilities are compounding: each improvement helps us serve more users, serve them better, and reach further beyond Shopee. We are still at an early stage of growth. Only a fraction of the users across our ecosystem are using Monee’s financial products today, and credit penetration remains low across our markets. This gives us great confidence in Monee’s long-term growth and earnings potential.
Forrest Li, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for Q2 2026 revenue, profitability, segment revenue, adjusted EBITDA and operating metrics were not reported.
- Q2 2026 operating cash flow, investing cash flow, financing cash flow and free cash flow were not reported. Cash flow was reported only for the six months ended June 30, 2026.
- Free cash flow was not reported.
- A total debt figure was not reported.
- A gross margin figure was not reported.
- A tax rate figure was not reported.
- Dividend information was not reported.
- Formal forward guidance for revenue, gross margin, operating expenses and tax rate was not reported.
- Previous-release outlook was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.