SEA (NYSE:SE) Releases Quarterly Earnings Results, Misses Expectations By $0.16 EPS

SEA (NYSE:SE) released its quarterly earnings data on Tuesday. The Internet company based in Singapore reported $0.70 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.16), Briefing.com reports. SEA had a net margin of 6.41% and a return on equity of 14.12%. The firm’s revenue was up 48.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.65 EPS.

Here are the key takeaways from SEA’s conference call:

• Sea reported strong second-quarter growth, with revenue up 48% year over year to $7.8 billion and adjusted EBITDA up 11% to $917 million; net income rose 11% to $458 million despite a substantially higher tax expense.
• Shopee’s GMV increased 28% to $38.3 billion, while new active buyers, engagement, advertising, VIP membership, and content-driven orders all accelerated. Management maintained its approximately 25% full-year GMV growth outlook and expects Shopee to exceed $1 billion in adjusted EBITDA in 2026.
• Monee continued rapid expansion, with its loan book up 62% to $11.1 billion, revenue up 59%, and adjusted EBITDA reaching $288 million; active credit users surpassed 40 million while the 90-day NPL ratio remained stable at 1.0%.
• Garena bookings grew 15% and adjusted EBITDA rose 17%, supported by Free Fire’s more than 100 million average daily active users. New titles Palworld Online and Monster Hunter Outlanders are expected to broaden the gaming portfolio, with Monster Hunter Outlanders targeted for launch this year in selected markets.
• Monee’s higher loan growth is also producing increased credit-loss provisions, primarily due to the growing mix of off-Shopee lending and Brazil, which management describes as a higher-interest, higher-risk market. Shopee also flagged potential foreign-exchange headwinds and continued investment needs in fulfillment and logistics, even as unit economics improve.

SEA Price Performance

SEA stock traded up $13.98 on Tuesday, reaching $128.78. The company’s stock had a trading volume of 5,079,085 shares, compared to its average volume of 4,932,563. The business’s fifty day moving average price is $99.67 and its 200 day moving average price is $96.63. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.56 and a current ratio of 1.58. The company has a market cap of $78.69 billion, a price-to-earnings ratio of 50.78, a PEG ratio of 1.09 and a beta of 1.54. SEA has a twelve month low of $77.05 and a twelve month high of $199.30.

Insiders Place Their Bets

In other SEA news, insider Yanjun Wang sold 1,500 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $114.58, for a total value of $171,870.00. Following the completion of the sale, the insider owned 10,000 shares in the company, valued at approximately $1,145,800. This trade represents a 13.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Gang Ye sold 20,000 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $114.59, for a total transaction of $2,291,800.00. Following the completion of the sale, the chief operating officer owned 460,000 shares of the company’s stock, valued at $52,711,400. The trade was a 4.17% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 541,100 shares of company stock valued at $54,277,980. 0.22% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Zions Bancorporation National Association UT raised its position in shares of SEA by 539.6% during the fourth quarter. Zions Bancorporation National Association UT now owns 307 shares of the Internet company based in Singapore’s stock worth $39,000 after acquiring an additional 259 shares during the last quarter. Cloud Capital Management LLC boosted its holdings in SEA by 8.0% in the fourth quarter. Cloud Capital Management LLC now owns 2,005 shares of the Internet company based in Singapore’s stock valued at $255,000 after acquiring an additional 148 shares during the last quarter. Oarsman Capital Inc. boosted its holdings in SEA by 89.0% in the fourth quarter. Oarsman Capital Inc. now owns 2,124 shares of the Internet company based in Singapore’s stock valued at $271,000 after acquiring an additional 1,000 shares during the last quarter. Gen Wealth Partners Inc increased its position in SEA by 328.6% in the fourth quarter. Gen Wealth Partners Inc now owns 2,829 shares of the Internet company based in Singapore’s stock worth $361,000 after purchasing an additional 2,169 shares during the period. Finally, Arkadios Wealth Advisors increased its position in SEA by 11.1% in the fourth quarter. Arkadios Wealth Advisors now owns 3,221 shares of the Internet company based in Singapore’s stock worth $411,000 after purchasing an additional 322 shares during the period. Institutional investors own 59.53% of the company’s stock.

Wall Street Analyst Weigh In

SE has been the subject of a number of analyst reports. Zacks Research raised shares of SEA from a “strong sell” rating to a “hold” rating in a report on Monday, June 1st. Sanford C. Bernstein reissued an “outperform” rating on shares of SEA in a research note on Monday, July 20th. TD Cowen dropped their price target on shares of SEA from $108.00 to $100.00 and set a “hold” rating for the company in a research report on Tuesday, August 4th. Barclays raised their price target on shares of SEA from $120.00 to $122.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of SEA in a report on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, SEA presently has a consensus rating of “Moderate Buy” and an average target price of $154.81.

SEA News Roundup

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Revenue significantly beat expectations: Second-quarter GAAP revenue reached $7.8 billion, up 48.1% year over year. Gross profit rose 47.3% to $3.5 billion, while net income increased 10.6% to $458.1 million and adjusted EBITDA climbed 10.6% to $917.2 million. Sea Limited Reports Second Quarter 2026 Results
• Positive Sentiment: Strong revenue growth outweighed the profit shortfall: Sea reported quarterly EPS of $0.70, below the $0.86 consensus estimate, but revenue exceeded expectations. The favorable market reaction suggests investors are prioritizing the company’s accelerating top-line growth and operating momentum. Sea Limited misses EPS but revenue beat pushes shares higher
• Positive Sentiment: OpenAI partnership may strengthen Shopee: Sea’s artificial-intelligence initiatives could improve product discovery, seller tools and automation, potentially supporting customer engagement and efficiency over time. Sea’s AI Push With OpenAI Could Deepen Shopee’s Competitive Edge Now
• Neutral Sentiment: Analysts note that growth is broad-based across e-commerce, fintech and gaming, but Sea’s recent rally has lifted valuation while increased investment and credit provisions may limit near-term upside. Is Sea Stock a Buy Now as Growth Accelerates but Margins Tighten?
• Negative Sentiment: EPS missed expectations: Reported earnings of $0.70 per share were $0.16 below consensus, highlighting pressure on profitability despite sharply higher revenue.
• Negative Sentiment: Insiders sold shares: COO Gang Ye sold 40,000 shares across two transactions, while Yanjun Wang sold 3,000 shares. The sales were disclosed in SEC filings and modestly reduced their holdings, potentially adding a cautionary signal for investors.

About SEA

Sea Limited (NYSE: SE) is a Singapore-based consumer internet company that operates a trio of interconnected businesses across digital entertainment, e-commerce and digital financial services. Founded in 2009 as Garena and later rebranded as Sea, the company is headquartered in Singapore and listed on the New York Stock Exchange. Sea positions itself as a technology platform focused on enabling online consumers, merchants and developers primarily across Southeast Asia and adjacent markets.

Sea’s digital entertainment arm, Garena, is a game developer and publisher that also organizes esports initiatives and operates online gaming platforms.