Key Takeaways
- Sea Limited (SE) shares climbed 5.4% following Q1 revenue of $7.1B, significantly exceeding the $6.45B Wall Street forecast
- EPS of $0.67 fell short of the $0.76 analyst projection
- Shopee achieved record-breaking GMV of $37.3B, representing 30.2% year-over-year growth
- Garena delivered its strongest performance since 2021, with bookings jumping 20.1% to $931.4M
- Monee’s revenue skyrocketed 57.8% to $1.2B, while its loan portfolio expanded 71.3% YoY
Sea Limited (SE) unveiled its first-quarter 2026 financial results on May 12, triggering a 5.4% stock price surge despite falling short on earnings expectations. The positive market response stemmed primarily from revenue figures that substantially exceeded analyst projections.
The company reported quarterly revenue of $7.1 billion, significantly surpassing the $6.45 billion Wall Street forecast. This represents a substantial 46.6% increase compared to the $4.8 billion recorded in Q1 2025. However, adjusted earnings per share reached $0.67, missing the analyst consensus of $0.76 by $0.09.
Net income increased 6.7% to $438.2 million. Adjusted EBITDA across all segments expanded 9.3% year-over-year to reach $1.0 billion.
CEO Forrest Li emphasized that the company continues strategic investments to strengthen its competitive advantages while maintaining rigorous financial discipline.
Shopee Achieves Unprecedented GMV Milestone
Shopee, the company’s e-commerce division, posted its strongest quarterly performance to date. Gross merchandise value reached an all-time high of $37.3 billion, marking a 30.2% year-over-year increase. Segment revenue expanded 44.4% to $4.5 billion.
Core marketplace revenue โ encompassing transaction fees and advertising income โ surged 61.0% to $3.8 billion. This metric serves as a critical indicator of the platform’s long-term monetization capabilities.
Shopee’s adjusted EBITDA decreased to $223.2 million from $264.4 million in the prior-year quarter. Management explained this decline as intentional, reflecting strategic investment initiatives. The company reaffirmed its guidance for approximately 25% annual GMV growth throughout 2026.
Gross orders during the quarter reached 4.0 billion, up 29.3% year-over-year. Li characterized it as another milestone quarter across all key metrics including GMV, order volume, and revenue.
Garena Delivers Strongest Results in Three Years
Garena, the gaming division, demonstrated impressive momentum. Bookings increased 20.1% to $931.4 million, while revenue jumped 40.6% to $696.6 million.
Adjusted EBITDA for the gaming segment expanded 25.2% to $573.6 million. The division’s EBITDA margin reached 61.6% of bookings, improving from 59.1% in Q1 2025.
Free Fire remained the primary revenue driver, with Arena of Valor achieving record-breaking contributions. Quarterly active users totaled 666.5 million, remaining relatively stable year-over-year, while paying users increased 12.4% to 72.6 million.
Monee, the digital financial services division, maintained strong growth momentum. Revenue jumped 57.8% to $1.2 billion, with adjusted EBITDA climbing 14% to $275.2 million. The consumer and SME loan portfolio reached $9.9 billion, reflecting a 71.3% year-over-year expansion.
Non-performing loans remained stable at 1.1% of the total loan portfolio, a key risk metric that management monitors closely as lending operations scale.
Throughout Q1, Sea executed share repurchases of 1.8 million shares for $168.4 million under its $1.0 billion buyback authorization.
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