Shopee and Garena Strength Drive Sea’s Revenue Surge

SE Stock Climbs as Growth Accelerates Across Core Businesses

Sea Limited (SE) shares moved sharply higher after the Singapore-based technology company delivered stronger-than-expected first-quarter revenue driven by broad-based growth across e-commerce, gaming, and digital financial services.

The company reported first-quarter revenue of $7.1 billion, up as much as 46.6% year over year and ahead of analyst expectations. Adjusted earnings per share came in below consensus estimates, but investors largely focused on accelerating transaction activity, improving monetization, and continued expansion across Sea’s ecosystem.

Strength across Shopee, Garena, and Monee helped reinforce investor confidence that Sea’s investments into growth and competitive positioning are continuing to gain traction.

Key Points

• Sea (SE) reported first-quarter revenue of $7.1 billion, exceeding Wall Street expectations as growth accelerated across Shopee, Garena, and Monee.
• Shopee delivered record gross merchandise volume and order growth, while Garena posted its strongest quarter since 2021.
• Investors focused on strong revenue momentum and expanding user monetization despite an earnings miss and narrower gross margins.

What Drove Sea’s Revenue Growth?

Sea delivered broad-based expansion across all three of its major business segments during the quarter.

Shopee, the company’s e-commerce platform, generated revenue growth of more than 44% year over year as gross merchandise volume climbed 30.2% to a record $37.3 billion. Gross orders increased 29.3% to 4 billion, while core marketplace revenue — including transaction fees and advertising — surged 61%.

The digital financial services division, Monee, also expanded rapidly. Revenue rose 57.8% year over year to $1.2 billion as loans outstanding increased more than 71% to $9.9 billion. Non-performing loans remained stable at 1.1%, helping ease concerns around asset quality as the lending platform scaled.

Garena, Sea’s gaming division, delivered its strongest quarter since 2021. Revenue increased 40.6% while bookings rose 20.1% to $931.4 million, supported by continued strength in Free Fire and record contribution from Arena of Valor.

Total adjusted EBITDA reached approximately $1 billion during the quarter, well above analyst expectations.

Why Did Investors Overlook the Earnings Miss?

Although earnings per share of $0.67 came in below analyst estimates, investor reaction remained positive because revenue growth and operating trends significantly exceeded expectations.

Sea’s revenue outperformance was especially notable given competitive pressure in e-commerce and ongoing concerns about profitability across consumer internet businesses.

Management emphasized that the company is continuing to invest aggressively to deepen competitive advantages while maintaining financial discipline. Those investments contributed to higher costs during the quarter, with gross margins narrowing as sales and marketing expenses increased.

Shopee’s adjusted EBITDA declined year over year despite record transaction activity, reflecting the company’s continued spending on growth initiatives and customer engagement.

However, investors appeared encouraged by management’s reaffirmed expectations for approximately 25% annual Shopee GMV growth and guidance that adjusted EBITDA for the business would remain at least in line with 2025 levels.

How Is Sea Expanding User Monetization?

One of the strongest trends in the quarter was Sea’s continued ability to grow monetization alongside user engagement.

Paying users increased to 72.6 million, up by roughly 8 million from a year earlier. At the same time, average revenue per user climbed more than 23%, outpacing overall user growth.

The company’s ecosystem approach continues to connect e-commerce, gaming, payments, and lending services across its platforms, helping increase transaction frequency and monetization opportunities.

Sea also highlighted expansion into additional financial services segments and geographic markets, including Brazil, as Monee scales beyond Shopee-related activity.

During the quarter, the company repurchased approximately 1.8 million shares as part of its broader $1 billion buyback program.

What It Means for Investors

Sea’s latest earnings report showed that investors are continuing to prioritize revenue acceleration, user monetization, and ecosystem expansion over near-term earnings volatility.

The company’s strongest growth came from businesses tied to transaction activity and digital commerce, reinforcing the importance of scale across its integrated platform strategy.

Markets also reacted positively to signs that Shopee remains competitive despite pressure from platforms such as TikTok Shop, while Garena’s rebound provided additional diversification across the company’s business mix.

At the same time, rising operating expenses and narrowing margins highlighted the ongoing balance between growth investment and profitability as Sea expands across multiple markets.

Conclusion

Sea (SE) shares climbed after the company reported stronger-than-expected first-quarter revenue growth fueled by record Shopee activity, accelerating financial services expansion, and a rebound in gaming performance.

Although earnings missed Wall Street expectations, investors focused on broad-based momentum across the company’s ecosystem and continued improvement in monetization trends.

The quarter reinforced Sea’s position as a major player across Southeast Asia’s e-commerce, gaming, and digital financial services markets as the company continues investing for long-term expansion.

FAQs

Why did Sea stock rise after earnings?

Sea (SE) moved higher because revenue growth across Shopee, Garena, and Monee exceeded Wall Street expectations despite an earnings miss.

What were Sea’s key first-quarter results?

Sea reported first-quarter revenue of $7.1 billion and adjusted earnings per share of $0.67. Revenue beat analyst expectations while EPS came in below consensus estimates.

How did Shopee perform during the quarter?

Shopee delivered record gross merchandise volume of $37.3 billion, while gross orders increased 29.3% year over year.

Why was Garena important to Sea’s results?

Garena posted its strongest quarter since 2021, with bookings rising 20.1% and adjusted EBITDA increasing 25.2%.

What is driving growth in Sea’s financial services business?

Monee continued expanding through growth in consumer and SME lending, rising transaction activity, and expansion into additional markets and user segments.

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