Shopee and Monee Growth Drive Sea Higher Despite Earnings Miss

Broad-Based Growth Across Sea’s Three Core Businesses

Sea Limited (SE) reported second-quarter revenue of approximately $7.8 billion, up 48.1% year over year and comfortably above analyst expectations of roughly $7.1 billion.

Adjusted earnings per share of $0.70 fell below expectations ranging from $0.83 to $0.86 in the provided reports, but investors focused instead on strong operating momentum across Shopee, Monee, and Garena. SE shares rose more than 13% during Tuesday trading after advancing sharply in premarket activity.

Key Points

• Sea’s second-quarter revenue rose 48.1% year over year to about $7.8 billion, exceeding Wall Street expectations despite adjusted EPS coming in below consensus.
• Shopee GMV increased 28.4% to $38.3 billion, while Monee revenue surged 58.9% and its loan portfolio expanded 62.5%.
• Garena also contributed to the broad-based growth, with revenue rising 33.5%, bookings increasing 15.5%, and adjusted EBITDA climbing 16.7%.

Shopee Remains Sea’s Largest Growth Engine

Shopee continued to anchor Sea’s expansion during the second quarter, delivering strong growth across revenue, transaction volume, and orders.

Gross merchandise volume, or GMV, increased 28.4% year over year to $38.3 billion. GMV measures the total value of goods sold through the platform before accounting for fees and other revenue earned by Shopee.

Gross orders increased 27.5% to 4.2 billion.

Shopee revenue was reported at approximately $5.6 billion, up 48.2% year over year. Core marketplace revenue, which primarily includes transaction fees and advertising, increased 65.6% to $4.3 billion.

Adjusted EBITDA reached $255.4 million, representing growth of 12.2%.

Chief Executive Officer Forrest Li said investments in the business have allowed Shopee and Monee to strengthen their market leadership while improving user penetration. He also said Sea is optimistic that Shopee can reach $1 billion in adjusted EBITDA for the full year.

Shopee has increasingly integrated AI into areas such as product recommendations, seller tools, and customer service operations, while its broad logistics network and shopping features continue to support marketplace activity.

Why Did SE Stock Rise Despite the Earnings Miss?

The market reaction reflected a clear emphasis on Sea’s accelerating revenue growth and operating performance rather than the adjusted earnings shortfall.

Adjusted EPS of $0.70 came below analyst expectations, but revenue exceeded consensus by a wide margin. The company generated $7.79 billion in quarterly revenue compared with analyst estimates of approximately $7.06 billion to $7.09 billion.

Net income reached $458.1 million, up 10.6% year over year, while companywide adjusted EBITDA rose 10.6% to $917.2 million.

More importantly, growth was not concentrated in one business.

Shopee expanded GMV and orders at high-double-digit rates. Monee delivered the fastest revenue growth among Sea’s major divisions. Garena increased bookings, revenue, paying users, and adjusted EBITDA.

That combination helped shift the earnings reaction toward the strength of Sea’s overall growth profile, sending its U.S.-listed shares sharply higher.

Monee and Garena Broaden Sea’s Growth Base

Monee, Sea’s digital financial services business, was the company’s fastest-growing major division in the quarter.

Revenue increased 58.9% year over year to $1.4 billion, while adjusted EBITDA rose 12.8% to $288 million.

The consumer and small-business loan portfolio reached $11.1 billion, representing growth of 62.5%. Despite that rapid expansion, non-performing loans remained stable at 1% of outstanding loans.

Li said only a fraction of users across Sea’s broader ecosystem currently use Monee’s financial products and that credit penetration remains low across its markets.

Garena also strengthened during the period.

The digital entertainment business generated $746.6 million in revenue, up 33.5% year over year. Bookings increased 15.5% to $763.5 million, and adjusted EBITDA climbed 16.7% to $429.8 million.

Quarterly active users were relatively stable at 666.3 million, while quarterly paying users increased 10.2% to 68.1 million.

Free Fire remained a major contributor, maintaining more than 100 million average daily active users. Garena is also seeking to expand its game portfolio with Palworld Online and Monster Hunter Outlanders.

What It Means for Investors

Sea’s second-quarter results showed increasingly broad participation across its three core businesses.

Shopee remains the largest contributor and continues to expand both transaction volume and revenue rapidly. GMV rose 28.4%, orders increased 27.5%, and revenue grew more than 48%.

Monee adds a second high-growth platform. Revenue increased nearly 59%, while its loan portfolio expanded more than 60%. The stability of non-performing loans at 1% provides an additional operating metric as the financial-services business scales.

Garena provides another source of earnings and cash generation, with adjusted EBITDA of $429.8 million and continued growth in bookings and paying users.

The earnings miss remains part of the quarter’s picture, but the strong stock reaction indicates that investors placed greater weight on Sea’s revenue acceleration and broad-based operating growth.

The next areas of attention are whether Shopee can reach management’s $1 billion full-year adjusted EBITDA milestone, whether Monee can continue expanding credit while maintaining stable loan quality, and whether Garena can sustain engagement while expanding beyond its established gaming franchises.

Conclusion

Sea Limited’s second-quarter results showed strong growth across e-commerce, financial services, and gaming.

Revenue increased 48.1% to approximately $7.8 billion, well above expectations. Shopee GMV reached $38.3 billion, Monee revenue climbed nearly 59%, and Garena increased both bookings and adjusted EBITDA.

Adjusted earnings per share fell short of Wall Street expectations, but that weakness was outweighed by strong top-line performance and continued expansion across all three major businesses.

The resulting rise in SE stock reflects a market response centered on the breadth and pace of Sea’s operating growth rather than the quarterly EPS shortfall.

FAQs

Why did SE stock rise after second-quarter earnings?

SE stock rose because Sea Limited reported revenue well above analyst expectations and delivered strong growth across Shopee, Monee, and Garena, outweighing an adjusted earnings-per-share miss.

How did Shopee perform in the second quarter?

Shopee’s gross merchandise volume increased 28.4% year over year to $38.3 billion, gross orders rose 27.5% to 4.2 billion, and revenue increased 48.2% to approximately $5.6 billion.

How fast is Monee growing?

Monee revenue increased 58.9% year over year to $1.4 billion, while its loan portfolio expanded 62.5% to $11.1 billion and adjusted EBITDA rose 12.8% to $288 million.

How did Garena perform during the quarter?

Garena revenue increased 33.5% year over year to $746.6 million, bookings rose 15.5% to $763.5 million, and adjusted EBITDA increased 16.7% to $429.8 million.

What profitability milestone is Sea targeting for Shopee?

Sea said it is optimistic that Shopee will achieve $1 billion in adjusted EBITDA for the full year.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

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