SE — Q1 2026 Earnings Dashboard

Q1 2026 Earnings — Reported May 12, 2026 · Before Market Open · Stock +13% on the Day

Revenue +47% to $7.1B · Adj. EBITDA $1.03B First Time · Shopee GMV +30% · SeaMoney Loans +71%

Sea Limited delivered a landmark Q1 2026 — adjusted EBITDA exceeded $1 billion for the first time, revenue grew 47% to $7.1B beating the $6.45B consensus by 10%, and the stock surged 13% on the day. Shopee posted record GMV of $37.3B (+30% YoY) and record gross orders of 4.0B (+29%). SeaMoney's loan book reached $9.9B (+71% YoY). Garena gaming revenue rose 41% to $697M. GAAP EPS of $0.70 missed the $0.75 estimate, weighted by higher provisioning costs. Non-GAAP EPS of $0.81 beat by 5.1%.

Beats

Total RevenueEst. $6.45B$7.10B (+10.1%)

Non-GAAP EPSEst. $0.77$0.81 (+5.1%)

Adj. EBITDAEst. ~$776M$1.034B (+33.2%)

Shopee RevenueEst. ~$4.4B$5.11B (+16.1%)

SeaMoney Revenue—$1.2B (+57.8% YoY)

Garena Revenue—$697M (+41% YoY)

Concerns

GAAP EPSEst. $0.75$0.70 (−6.8%)

Shopee Adj. EBITDA—$223M (−15.5% YoY)

Loan-loss provisioning—+66.7% YoY · credit cost rise

Gross margin compressionRevenue +47%Gross profit +41% · −3pp mix

Insider selling flagged—Ongoing · negative signal

No formal FY guidance—Management did not guide full year

Shopee — $5.11B (+45%) · E-Commerce

Gross Merchandise Value (GMV)$37.3B (+30.2% YoY) · record

Gross Orders4.0B (+29.3% YoY) · record

Advertising revenue growth+80% YoY · ad take rate +90bps

Ad-paying sellers+35% YoY · avg spend +35%

Indonesia instant delivery+35% YoY · cost/order −20%

Next-day delivery (Asia)>1/3 of parcels in March

Fulfilment order vol. growth+25% QoQ Q1 2026

SeaMoney + Garena

SeaMoney revenue$1.195B (+57.8% YoY)

Consumer + SME loan book$9.9B (+71.3% YoY)

SeaMoney Adj. EBITDA$275M (+14.0% YoY)

Loan-loss provisioning+66.7% YoY · weighing GAAP EPS

Garena revenue$697M (+41.1% YoY)

Free Fire + AoV engagementRecord via Jujutsu Kaisen collab

AI chatbot resolution rate80% of queries · cost −30% YoY

"2026 is a year focused on growth investments aimed at deepening our competitive moat while maintaining financial discipline. The strong revenue growth reflects the effectiveness of these investments, and the economics for some initiatives are already starting to improve. In Shopee, we continue to invest in improving delivery speed and coverage, and in the adoption of our VIP membership program. SeaMoney's loan book growth reflects both the increasing trust users place in us and the strength of our data and technology advantage in credit underwriting across Southeast Asia."

Forrest Li, Chairman & Group CEO · Q1 2026 Earnings Call, May 12, 2026

Positives

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Adjusted EBITDA exceeded $1 billion for the first time in company history at $1.034B — a structural milestone that validates Sea's operating model at scale. The combination of a high-margin Garena business (~77% EBITDA margin) funding Shopee and SeaMoney investments is beginning to produce group-level cash generation.

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Shopee advertising revenue grew 80% YoY with ad take rate up 90bps — the highest-margin revenue stream within e-commerce is accelerating faster than GMV. Ad-paying sellers up 35% and average ad spend per seller up 35% confirms advertiser engagement is expanding, not concentrating.

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SeaMoney loan book of $9.9B (+71.3% YoY) — growing at nearly double the pace of revenue — positions Sea as the dominant digital credit provider across Southeast Asia. AI-driven underwriting using Shopee's proprietary transaction data creates a structural moat that traditional banks cannot replicate.

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Garena gaming achieved 41% revenue growth — a dramatic reversal from the post-COVID contraction years. Free Fire's Jujutsu Kaisen collaboration and Arena of Valor's record engagement demonstrate that the gaming segment can generate high-margin cash flows that fund Sea's broader platform investments.

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AI integration is producing measurable operational leverage: 80% of customer service queries handled by AI chatbots, customer service costs reduced 30% YoY, and purchase conversion rates improved via AI-driven product discovery. The $11.1B cash position gives Sea the runway to invest aggressively without capital constraints.

Concerns

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GAAP EPS of $0.70 missed the $0.75 consensus by 6.8% — driven by a 66.7% YoY surge in loan-loss provisioning costs from SeaMoney's rapid credit expansion. As the $9.9B loan book continues to grow, provisioning requirements will remain a structural drag on GAAP earnings until credit quality data matures.

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Shopee adjusted EBITDA declined 15.5% YoY to $223M — despite 45% revenue growth. The e-commerce segment is absorbing heavy investment in logistics speed (instant delivery), VIP membership programs, and new market penetration in Brazil and LatAm, compressing near-term margins in the core business.

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Gross margin compressed 190bps to 44.3% — revenue grew 47% but gross profit grew only 41%, indicating the incremental revenue is coming at a slightly lower gross margin level, likely reflecting SeaMoney's provisioning and Shopee's logistics investment mix.

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Ongoing insider selling flagged by analysts — while not quantified in the press release, the pattern of insider stock sales has been noted in multiple analyst reports and creates an overhang on investor confidence, particularly given Sea's premium valuation at a $58B+ market cap.

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No formal full-year 2026 revenue or earnings guidance issued. While management guided 25% GMV growth for Shopee and double-digit Garena bookings growth at the Q4 2025 call, the absence of consolidated guidance makes modeling difficult and leaves the stock more vulnerable to earnings-day repricing.

Wall Street Ratings — Post May 12, 2026

Firm	Rating	Action	Note
Barclays	Overweight	PT raised post Q1	Revenue beat + first $1B+ EBITDA validates growth investment thesis
Jefferies	Buy	PT raised post Q1	Shopee ad revenue +80% the key alpha driver; SEA monetization accelerating
TD Cowen	Buy	PT raised post Q1	SeaMoney loan book + Garena recovery = underappreciated earnings power
JPMorgan	Neutral	PT cut post Q1	GAAP EPS miss + provisioning costs + insider selling raise caution
BofA	Neutral	PT cut post Q1	Shopee EBITDA decline vs. revenue growth — margin recovery timeline uncertain
Simply Wall St consensus	20 Buy · 3 Hold · 1 Sell	+13% on day	Fair value est. $140 · stock ~$94 · implied upside ~49%

Earnings Verdict

First $1B EBITDA Quarter — Shopee Ads & SeaMoney the Structural Growth Engines

Sea Limited's Q1 2026 marked a genuine inflection point: adjusted EBITDA exceeded $1 billion for the first time, revenue surged 47% to $7.1B beating estimates by 10%, and Shopee's advertising revenue growing 80% YoY signals that the platform is transitioning from a volume-led to a monetization-led growth model. The SeaMoney loan book at $9.9B (+71% YoY) and Garena's 41% revenue growth confirm that all three business segments are simultaneously growing — an unusual combination for a company at this scale. The GAAP EPS miss ($0.70 vs $0.75) is real but explicable: 66.7% growth in loan-loss provisions is the cost of rapidly scaling a $9.9B credit book. The 13% single-day stock surge reflects the market recognizing that the revenue beat and EBITDA milestone outweigh the provisioning headwind. At ~$94 vs a consensus fair value of ~$140 (49% implied upside), Sea trades at a significant discount to fundamental estimates. The key risks — provisioning costs, Shopee margin investment, insider selling, and no formal guidance — are manageable if GMV and ad monetization continue at this pace. Next earnings August 18, 2026.

Revenue Beat

+10.1%

Adj. EBITDA

$1.03B First

Shopee GMV

$37.3B +30%

Loan Book

$9.9B +71%

Consensus PT

~$140

Next Earnings

Aug 18, 2026