Sea (SE) Q3 2026 Earnings Call Transcript

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DATE

Tuesday, Nov. 10, 2026

CALL PARTICIPANTS

• Investor Relations – Elson Choi
• Chairman and Chief Executive Officer – Forrest Li
• President – Chris Feng
• Chief Financial Officer – Tony Hou

TAKEAWAYS

• Revenue — $8.6 billion, up 43% year over year driven primarily by growth in the Shopee and SeaMoney segments.
• Adjusted EBITDA — $931 million, representing a 29% increase year over year.
• Net Income — $502 million, growing 34% year over year despite a net income tax expense of $280 million.
• Shopee Adjusted EBITDA — $269 million, representing a 45% increase year over year and the segment’s highest quarterly profit ever.
• Shopee GMV — $39.7 billion, up 23% year over year while gross orders rose 26% to 4.5 billion.
• Shopee Ad Revenue — grew more than 55% year over year, supported by a 35% increase in ad-paying sellers and an 80 basis point improvement in ad take-rate.
• Shopee Active Buyers — total average monthly active buyers increased 20% year over year, while new average monthly active buyers grew more than 50%.
• SeaMoney Revenue — $1.6 billion, a 64% increase year over year driven by expansion in credit and mobile wallet services.
• SeaMoney Loan Book — $12.6 billion, growing 60% year over year with off-Shopee SPayLater representing nearly 25% of the entire portfolio.
• SeaMoney Active Credit Users — reached nearly 44 million, up 28% year over year as the company added nearly 6 million first-time borrowers.
• NPL Ratio — 1.3%, reflecting a modest uptick from 90-day nonperforming loans due to evolving credit environments in Thailand and Brazil.
• Garena Bookings — $890 million, up 6% year over year driven by deeper paying user penetration and active user base growth.
• Garena Adjusted EBITDA — $458 million, representing 46% year-over-year growth.
• ShopeeVIP Membership — exceeded 21 million members at the end of September, growing more than 40% quarter over quarter and contributing close to 25% of total segment GMV.
• Shopee Content Ecosystem — orders from live streaming and short-form video grew more than 45% year over year, accounting for more than 25% of physical goods orders in Southeast Asia.
• Shopee Indonesia Shipping — economical shipping options accounted for more than half of total orders, with costs more than 20% lower than the platform average.
• Shopee Next-Day Delivery — parcel volume delivered by the next day or sooner grew over 16% year over year, more than twice the rate of overall order growth.
• Shopee Fulfillment — volumes accelerated to approximately 25% quarter over quarter, with unit economics in Asia improving sequentially.
• Shopee Brazil Performance — Mall seller GMV increased nearly 2.5 times year over year, while automotive and home improvement categories grew more than 80%.
• Shopee Brazil Delivery — Shopee Turbo instant delivery service now provides delivery in under four hours from more than 7,000 partner stores.
• SeaMoney SPayLater — off-Shopee portfolio more than doubled year over year, reaching nearly 40% of the total SPayLater portfolio in Malaysia.
• Share Repurchase Program — management nearly completed the previous $1 billion program and announced a plan to repurchase an additional $1 billion in shares.
• Consolidated Guidance — management remains on track to deliver Shopee GMV growth of approximately 25% and an adjusted EBITDA of $1 billion for the full year of 2026.

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RISKS

• Li stated, “The modest uptick primarily reflects an evolving credit environment, especially in Thailand and Brazil as well as market and product mix,” when discussing the increase in the 90-day nonperforming loan ratio to 1.3%.
• Li noted that management proactively adjusted underwriting criteria for selected customer segments at “early signs of softness to maintain disciplined growth” in the credit portfolio.

SUMMARY

Sea Limited (SE -0.82%) reported record total revenue and reached new top-line and bottom-line highs for its e-commerce segment during the third quarter. Management announced plans to explore a potential stand-alone listing for its financial services division within one to three years, aimed at providing the segment with its own capital base for long-term expansion. The company also introduced a new enterprise cloud initiative to externalize internal artificial intelligence capabilities across infrastructure, models, and software layers. Leadership emphasized continued gains in logistics efficiency and the expansion of high-frequency shopping categories such as groceries and pharmaceuticals through new instant delivery services.

• Management intends to list SeaMoney as an independent entity, with CEO Li stating, “A stand-alone listing would give Monee the dedicated capital base it needs to build this ecosystem and let it invest for growth while managing risk with discipline.”
• Shopee is deepening its social commerce integration, including a partnership with Meta’s Muse AI assistant in Singapore to help users research and compare products through an agentic personal assistant.
• The content ecosystem is becoming a larger driver of engagement, with Shopee affiliate orders generated by Facebook-linked creators growing more than 90% quarter over quarter.
• Sea Cloud will focus on software and customer orchestration, with Li noting that the company intends to focus on helping organizations “put AI to work, running models reliably and securely” rather than owning large amounts of physical capacity.
• Garena continues to leverage its core franchises, celebrating the 10th anniversary of Arena of Valor with its largest-ever real-world event at the Taipei Dome, which drew 30,000 fans.
• Logistics improvements in Brazil are shortening delivery times, with approximately 40% of parcels in Greater Sao Paulo now arriving by the next day.

INDUSTRY GLOSSARY

• Adjusted EBITDA: A non-GAAP financial measure that typically excludes interest, taxes, depreciation, and amortization to assess core operating performance.
• GMV (Gross Merchandise Volume): The total value of merchandise sold through an e-commerce platform over a specific period.
• NPL (Nonperforming Loan): A loan that is in default or close to default, specifically those past due by 90 days or more in this context.
• SeaMoney: The digital financial services division of Sea Limited, encompassing payments, credit, and digital banking (referred to as “Monee” in the transcript).
• ShopeeVIP: A loyalty subscription program on the Shopee platform that offers members enhanced benefits and discounts.
• SPayLater: A buy-now-pay-later credit product offered through SeaMoney that allows users to pay for purchases in installments.
• Sea Cloud: A newly announced business segment providing cloud infrastructure and artificial intelligence software services to external organizations.

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