Sea Limited reported a strong financial performance for the second quarter of 2025, with total GAAP revenue reaching US$5.3 billion, a 38.2% increase year-on-year.

Gross profit surged 52.1% to US$2.4 billion, while net income soared to US$414.2 million compared to US$79.9 million in Q2 2024.

Adjusted EBITDA also rose significantly, hitting US$829.2 million, up from US$448.5 million the previous year.

E-commerce Segment Shoots Ahead with Market Leadership and Volume Growth

The company’s e-commerce platform, Shopee, marked a milestone with its 5-year anniversary in Brazil, where it became the leader by order volume.

Shopee’s GAAP revenue grew 33.7% year-on-year to US$3.8 billion.

Gross merchandise volume (GMV) expanded by 25% in the first half of 2025, while gross orders climbed 28.6% to 3.3 billion, highlighting strong demand and customer engagement.

Digital Financial Services Achieve Strong Expansion with Controlled Risk

Sea Limited’s digital financial arm, Monee, delivered exceptional results with GAAP revenue rising 70.0% year-on-year to US$882.8 million.

The principal outstanding loans to consumers and SMEs nearly doubled, growing 94.0% to US$6.9 billion.

Despite rapid growth, non-performing loans past due over 90 days remained steady at 1.0%, reflecting solid credit risk management.

Digital Entertainment Segment Driven by Free Fire Franchise Success

Garena, the digital entertainment division, posted robust growth as bookings rose 23.2% to US$661.3 million. GAAP revenue increased 28.4% to US$559.1 million.

The segment attracted 664.8 million quarterly active users, with paying users up 17.8% to 61.8 million, underscoring the franchise’s ongoing popularity.

Financial and Operational Metrics Reflect Business Strength and Strategic Alignment

Sea Limited’s total adjusted EBITDA for Q2 2025 grew 84.9% year-on-year to US$829.2 million.

Basic earnings per share increased substantially to US$0.68 from US$0.14 in the same period last year.

Total cost of revenue rose 28.2% to US$2.8 billion, and sales and marketing expenses climbed 30.3% to US$1.0 billion, reflecting investments in growth and market expansion.

Operating expenses are aligned with segment reporting, with administrative, research and development, and credit loss provisions spread across e-commerce, digital entertainment, and digital financial services.

Unallocated expenses mainly consist of share-based compensation and corporate costs, which are excluded from segment performance reviews to maintain clarity for the Chief Operating Decision Maker (CODM).

PHOTO: SEA LIMITED

This article was created with AI assistance.