Should You Invest in Sea Limited (SE) Based on Bullish Wall Street Views?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Sea Limited Sponsored ADR (SE).
Sea Limited currently has an average brokerage recommendation (ABR) of 1.52, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.52 approximates between Strong Buy and Buy.
Of the 22 recommendations that derive the current ABR, 15 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 68.2% and 9.1% of all recommendations.
Check price target & stock forecast for Sea Limited here>>>
The ABR suggests buying Sea Limited, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
In terms of earnings estimate revisions for Sea Limited, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.23.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Sea Limited. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Sea Limited.
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SINGAPORE, August 12, 2025--(BUSINESS WIRE)--Sea Limited (NYSE: SE) ("Sea" or the "Company") today announced its financial results for the second quarter ended June 30, 2025. "The momentum from our strong start to 2025 has continued into the second quarter. All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year," said Forrest Li, Sea's Chairman and Chief Executive Officer. "Given the high potential of our markets and the stage we are at in our business now, we will continue to prioritize growth, which will pave the way for us to maximize our long-term profitability. At the same time, our company has reached a stage where we can pursue growth opportunities while improving profitability." On e-commerce, he said, "After a record-high Q1, Shopee has delivered another record-breaking Q2. GMV grew 25% year-on-year in the first half, and we expect this growth momentum to carry into Q3." On Brazil, he added, "This quarter, we celebrated Shopee's 5-year anniversary in Brazil, and I am very proud of what the team has achieved: we have become the market leader by order volume, we continue to grow fast, and we are operating profitably. We remain committed to delivering strong, profitable growth while reinforcing our market leadership across Asia and Brazil." On digital financial services, Mr. Li said, "Monee has delivered excellent growth throughout the first half of the year, diversified its loan portfolio across markets and products, and maintained high asset quality through prudent risk management. It is exciting that our credit business is still in the early stages in many of our markets, reinforcing our strong conviction in Monee's long-term growth and earnings potential." On digital entertainment, Mr. Li said, "Garena has delivered a very strong performance in the first half of this year. We believe Free Fire has established itself as an evergreen franchise, both sustaining its user engagement and growing its appeal in more markets globally. We are also committed to trying out new genres and new markets, and testing the boundaries of future game experiences by embracing AI. Given all of this, we are raising our full-year guidance for Garena, and expect bookings to grow more than 30% in 2025, year-on-year." Second Quarter 2025 Highlights Group Total GAAP revenue was US$5.3 billion, up 38.2% year-on-year. Total gross profit was US$2.4 billion, up 52.1% year-on-year. Total net income was US$414.2 million, as compared to total net income of US$79.9 million for the second quarter of 2024. Total adjusted EBITDA1 was US$829.2 million, as compared to US$448.5 million for the second quarter of 2024. E-commerce Gross orders totaled 3.3 billion for the quarter, increasing by 28.6% year-on-year. GMV was US$29.8 billion for the quarter, increasing by 28.2% year-on-year. GAAP revenue was US$3.8 billion, up 33.7% year-on-year. GAAP revenue included US$3.3 billion of GAAP marketplace revenue, which consists of core marketplace revenue and value-added services revenue and increased by 33.6% year-on-year. Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 46.2% year-on-year to US$2.6 billion. Value-added services revenue, mainly consisting of revenues related to logistics services, was up 2.9% year-on-year to US$743.0 million. Adjusted EBITDA1 was US$227.7 million, as compared to US$(9.2) million for the second quarter of 2024. Digital Financial Services GAAP revenue was US$882.8 million, up 70.0% year-on-year. Adjusted EBITDA1 was US$255.3 million, up 55.0% year-on-year. Digital financial services revenue and operating income are primarily attributed to the consumer and SME credit business. As of June 30, 2025, consumer and SME loans principal outstanding was US$6.9 billion, up 94.0% year-on-year. This consists of US$5.9 billion on-book and US$0.9 billion off-book loans principal outstanding2. Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding2, was 1.0%, relatively stable quarter-on-quarter. Digital Entertainment Bookings3 were US$661.3 million, up 23.2% year-on-year. GAAP revenue was US$559.1 million, up 28.4% year-on-year. Adjusted EBITDA1 was US$368.2 million, up 21.6% year-on-year. Adjusted EBITDA represented 55.7% of bookings for the second quarter of 2025, as compared to 56.4% for the second quarter of 2024. Quarterly active users were 664.8 million, up 2.6% year-on-year. Quarterly paying users were 61.8 million, up 17.8% year-on-year. Paying user ratio was 9.3%, as compared to 8.1% for the second quarter of 2024. Average bookings per user were US$0.99, as compared to US$0.83 for the second quarter of 2024. 1 For a discussion of the use of non-GAAP financial measures, see "Non-GAAP Financial Measures". 2 Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform. 3 GAAP revenue for the digital entertainment segment plus change in digital entertainment deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to our digital entertainment segment. Unaudited Summary of Financial Results (Amounts are expressed in thousands of US dollars "$" except for per share data) For the Three Monthsended June 30, 2024 2025 $ $ YOY% Revenue Service revenue 3,464,276 4,798,913 38.5 % Sales of goods 342,592 460,564 34.4 % 3,806,868 5,259,477 38.2 % Cost of revenue Cost of service (1,904,316 ) (2,417,660 ) 27.0 % Cost of goods sold (317,735 ) (432,007 ) 36.0 % (2,222,051 ) (2,849,667 ) 28.2 % Gross profit 1,584,817 2,409,810 52.1 % Other operating income 42,563 31,903 (25.0 %) Sales and marketing expenses (774,768 ) (1,009,495 ) 30.3 % General and administrative expenses (303,838 ) (323,342 ) 6.4 % Provision for credit losses (167,415 ) (323,729 ) 93.4 % Research and development expenses (298,465 ) (297,428 ) (0.3 %) Total operating expenses (1,501,923 ) (1,922,091 ) 28.0 % Operating income 82,894 487,719 488.4 % Non-operating income, net 56,414 83,299 47.7 % Income tax expense (60,612 ) (144,056 ) 137.7 % Share of results of equity investees 1,215 (12,758 ) (1,150.0 %) Net income 79,911 414,204 418.3 % Earnings per share attributable to Sea Limited's ordinary shareholders: Basic 0.14 0.68 385.7 % Diluted 0.14 0.65 364.3 % Change in deferred revenue of Digital Entertainment 101,258 102,159 0.9 % Adjusted EBITDA for Digital Entertainment (1) 302,800 368,190 21.6 % Adjusted EBITDA for E-commerce (1) (9,180 ) 227,694 (2,580.3 %) Adjusted EBITDA for Digital Financial Services (1) 164,678 255,263 55.0 % Adjusted EBITDA for Other Services (1) (5,958 ) (13,766 ) 131.1 % Unallocated expenses (2) (3,867 ) (8,137 ) 110.4 % Total adjusted EBITDA (1) 448,473 829,244 84.9 % (1) For a discussion of the use of non-GAAP financial measures, see "Non-GAAP Financial Measures". (2) Unallocated expenses within total adjusted EBITDA are mainly related to general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the Chief Operating Decision Maker ("CODM") as part of segment performance. Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024 Revenue Our total GAAP revenue increased by 38.2% to US$5.3 billion in the second quarter of 2025 from US$3.8 billion in the second quarter of 2024. The table below sets forth our revenue breakdown. Amounts are expressed in thousands of US dollars ("$"). For the Three Monthsended June 30, 2024 2025 YOY% $ $ Service revenue E-commerce 2,479,830 3,312,155 33.6% Digital Financial Services 519,338 882,808 70.0% Digital Entertainment 435,559 559,118 28.4% Other Services(1) 29,549 44,832 51.7% Sales of goods 342,592 460,564 34.4% Total revenue 3,806,868 5,259,477 38.2% (1) Other services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments. E-commerce: Our e-commerce service GAAP revenue increased by 33.6% to US$3.3 billion in the second quarter of 2025 from US$2.5 billion in the second quarter of 2024, primarily driven by the growth of GMV. Digital Financial Services: Our digital financial services GAAP revenue increased by 70.0% to US$882.8 million in the second quarter of 2025 from US$519.3 million in the second quarter of 2024, primarily driven by the growth of our credit business as our lending activities increased. Digital Entertainment: Our digital entertainment GAAP revenue increased by 28.4% to US$559.1 million in the second quarter of 2025 from US$435.6 million in the second quarter of 2024. This increase was primarily due to the increase in our active user base as well as the deepened paying user penetration. Sales of goods: GAAP revenue increased by 34.4% to US$460.6 million in the second quarter of 2025 from US$342.6 million in the second quarter of 2024. Cost of Revenue Our total cost of revenue was US$2.8 billion in the second quarter of 2025, as compared to US$2.2 billion in the second quarter of 2024. The table below sets forth our cost of revenue breakdown. Amounts are expressed in thousands of US dollars ("$"). For the Three Monthsended June 30, 2024 2025 YOY% $ $ Cost of service E-commerce 1,676,782 2,120,088 26.4% Digital Financial Services 78,927 115,899 46.8% Digital Entertainment 139,501 171,922 23.2% Other Services(1) 9,106 9,751 7.1% Cost of goods sold 317,735 432,007 36.0% Total cost of revenue 2,222,051 2,849,667 28.2% (1) Other services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments. E-commerce: Cost of revenue was US$2.1 billion in the second quarter of 2025, as compared to US$1.7 billion in the second quarter of 2024, primarily driven by an increase in logistics costs as orders volume grew. Digital Financial Services: Cost of revenue was US$115.9 million in the second quarter of 2025, as compared to US$78.9 million in the second quarter of 2024, primarily driven by server and hosting expenses, interest expenses due to the growth in customer deposits under our banking business, and other costs associated with our credit business. Digital Entertainment: Cost of revenue was US$171.9 million in the second quarter of 2025, as compared to US$139.5 million in the second quarter of 2024, primarily from payment channel costs, which was largely in line with the increase in our digital entertainment revenue. Cost of goods sold: Cost of goods sold increased by 36.0% to US$432.0 million in the second quarter of 2025 from US$317.7 million in the second quarter of 2024. Other Operating Income Our other operating income was US$31.9 million and US$42.6 million in the second quarter of 2025 and 2024, respectively. Other operating income mainly consists of rebates from e-commerce related logistics services providers. Sales and Marketing Expenses Our total sales and marketing expenses increased by 30.3% to US$1.0 billion in the second quarter of 2025 from US$774.8 million in the second quarter of 2024. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars ("$"). For the Three Monthsended June 30, 2024 2025 YOY% Sales and Marketing Expenses $ $ E-commerce 672,944 803,431 19.4% Digital Financial Services 54,950 122,554 123.0% Digital Entertainment 27,069 43,103 59.2% General and Administrative Expenses Our general and administrative expenses increased by 6.4% to US$323.3 million in the second quarter of 2025 from US$303.8 million in the second quarter of 2024. Provision for Credit Losses Our provision for credit losses increased by 93.4% to US$323.7 million in the second quarter of 2025 from US$167.4 million in the second quarter of 2024. Research and Development Expenses Our research and development expenses were US$297.4 million in the second quarter of 2025, as compared to US$298.5 million in the second quarter of 2024, relatively flat year-on-year. Non-operating Income or Losses, Net Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$83.3 million in the second quarter of 2025, as compared to a net non-operating income of US$56.4 million in the second quarter of 2024. The non-operating income in the second quarter of 2025 was primarily due to interest income of US$90.3 million, partially offset by interest expense of US$9.0 million. Income Tax Expense We had a net income tax expense of US$144.1 million and US$60.6 million in the second quarter of 2025 and 2024, respectively. Net Income or Loss As a result of the foregoing, we had net income of US$414.2 million in the second quarter of 2025, as compared to net income of US$79.9 million in the second quarter of 2024. Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited's Ordinary Shareholders Basic earnings per share attributable to Sea Limited's ordinary shareholders was US$0.68 in the second quarter of 2025, compared to basic earnings per share attributable to Sea Limited's ordinary shareholders of US$0.14 in the second quarter of 2024. Diluted earnings per share attributable to Sea Limited's ordinary shareholders was US$0.65 in the second quarter of 2025, compared to diluted earnings per share attributable to Sea Limited's ordinary shareholders of US$0.14 in the second quarter of 2024. Webcast and Conference Call Information The Company's management will host a conference call today to review Sea's business and financial performance. Details of the conference call and webcast are as follows: Date and time: 7:30 AM U.S. Eastern Time on August 12, 20257:30 PM Singapore / Hong Kong Time on August 12, 2025 Webcast link: A replay of the conference call will be available at the Company's investor relations website ( An archived webcast will be available at the same link above. About Sea Limited Sea Limited (NYSE: SE) is a leading global consumer internet company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across digital entertainment, e-commerce, as well as digital financial services, known as Garena, Shopee and Monee, respectively. Garena is a leading global online games developer and publisher. Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan and has a significant presence in Latin America. Monee is a leading digital financial services provider in Southeast Asia and is growing its presence in Brazil. Forward-Looking Statements This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "could," "will," "expect," "anticipate," "aim," "future," "intend," "plan," "believe," "estimate," "likely to," "potential," "confident," "guidance," and similar statements. Among other things, statements that are not historical facts, including statements about Sea's beliefs and expectations, the business, financial and market outlook, and projections from its management in this announcement, as well as Sea's strategic and operational plans, contain forward-looking statements. Sea may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases, and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Sea's goals and strategies; its future business development, financial condition, financial results, and results of operations; the expected growth in, and market size of, the digital entertainment, e-commerce and digital financial services industries in the markets where it operates, including segments within those industries; expected changes or guidance in its revenue, costs or expenditures; its ability to continue to source, develop and offer new and attractive online games and to offer other engaging digital entertainment content; the expected growth of its digital entertainment, e-commerce and digital financial services businesses; its expectations regarding growth in its user base, level of engagement, and monetization; its ability to continue to develop new technologies and/or upgrade its existing technologies; growth and trends of its markets and competition in its industries; government policies and regulations relating to its industries, including the effects of any government orders or actions on its businesses; general economic, political, social and business conditions in its markets; and the impact of widespread health developments. Further information regarding these and other risks is included in Sea's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Sea undertakes no obligation to update any forward-looking statement, except as required under applicable law. Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to help evaluate our operating performance: "Adjusted EBITDA" for our digital entertainment segment represents operating income (loss) plus (a) depreciation and amortization expenses, and (b) the net effect of changes in deferred revenue and its related cost for our digital entertainment segment. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects. "Adjusted EBITDA" for our e-commerce segment, digital financial services segment and other services segment represents operating income (loss) plus depreciation and amortization expenses. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects. "Total adjusted EBITDA" represents the sum of adjusted EBITDA of all our segments combined, plus unallocated expenses. We believe that the total adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects. These non-GAAP financial measures have limitations as analytical tools. None of the above financial measures should be considered in isolation or construed as an alternative to revenue, net loss/income, or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to Sea's data. We compensate for these limitations by reconciling the non-GAAP financial measures to their nearest U.S. GAAP financial measures, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on any single financial measure. The tables below present selected financial information of our reporting segments, the non-GAAP financial measures that are most directly comparable to GAAP financial measures, and the related reconciliations between the financial measures. Amounts are expressed in thousands of US dollars ("$") except for number of shares & per share data. For the Three Months ended June 30, 2025 E-commerce DigitalFinancialServices DigitalEntertainment OtherServices(1) Unallocatedexpenses(2) Consolidated $ $ $ $ $ $ Operating income (loss) 154,851 243,115 275,465 (15,683 ) (170,029 ) 487,719 Net effect of changes in deferred revenue and its related cost - - 88,344 - - 88,344 Depreciation and Amortization 72,843 12,148 4,381 1,917 - 91,289 Share-based compensation - - - - 161,892 161,892 Adjusted EBITDA 227,694 255,263 368,190 (13,766 ) (8,137 ) 829,244 For the Three Months ended June 30, 2024 E-commerce DigitalFinancialServices DigitalEntertainment OtherServices(1) Unallocatedexpenses(2) Consolidated $ $ $ $ $ $ Operating (loss) income (84,762 ) 151,261 210,078 (9,003 ) (184,680 ) 82,894 Net effect of changes in deferred revenue and its related cost - - 86,546 - - 86,546 Depreciation and Amortization 75,582 13,417 6,176 3,045 - 98,220 Share-based compensation - - - - 180,813 180,813 Adjusted EBITDA (9,180 ) 164,678 302,800 (5,958 ) (3,867 ) 448,473 (1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as "Other Services". (2) Unallocated expenses are mainly related to share-based compensation, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Amounts expressed in thousands of US dollars ("$") except for number of shares & per share data For the Six Monthsended June 30, 2024 2025 $ $ Revenue Service revenue 6,872,415 9,233,450 Sales of goods 668,782 867,127 Total revenue 7,541,197 10,100,577 Cost of revenue Cost of service (3,775,347 ) (4,648,778 ) Cost of goods sold (627,283 ) (805,796 ) Total cost of revenue (4,402,630 ) (5,454,574 ) Gross profit 3,138,567 4,646,003 Operating income (expenses) Other operating income 86,540 66,804 Sales and marketing expenses (1,544,403 ) (1,939,194 ) General and administrative expenses (594,692 ) (630,531 ) Provision for credit losses (329,182 ) (605,673 ) Research and development expenses (602,844 ) (593,286 ) Total operating expenses (2,984,581 ) (3,701,880 ) Operating income 153,986 944,123 Interest income 178,500 179,082 Interest expense (19,406 ) (18,055 ) Investment loss, net (125,352 ) (1,237 ) Net gain on debt extinguishment 32,009 15,688 Foreign exchange loss (26,878 ) (2,971 ) Income before income tax and share of results of equity investees 192,859 1,116,630 Income tax expense (139,372 ) (280,371 ) Share of results of equity investees 3,424 (11,230 ) Net income 56,911 825,029 Net loss (income) attributable to non-controlling interests 1,290 (16,007 ) Net income attributable to Sea Limited's ordinary shareholders 58,201 809,022 Earnings per share: Basic 0.10 1.37 Diluted 0.10 1.30 Weighted average shares used in earnings per share computation: Basic 571,968,378 591,566,401 Diluted 599,898,424 636,229,639 UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS Amounts expressed in thousands of US dollars ("$") As ofDecember 31, As ofJune 30, 2024 2025 $ $ ASSETS Current assets Cash and cash equivalents 2,405,153 2,165,809 Restricted cash 1,655,171 2,075,266 Accounts receivable, net of allowance for credit losses of $5,089 and $13,057, as of December 31, 2024 and June 30, 2025 respectively 306,657 322,357 Prepaid expenses and other assets 1,661,373 1,817,004 Loans receivable, net of allowance for credit losses of $443,555 and $595,102, as of December 31, 2024 and June 30, 2025 respectively 4,052,215 5,589,750 Inventories, net 143,246 169,298 Short-term investments 6,215,423 7,244,913 Amounts due from related parties 418,430 355,937 Total current assets 16,857,668 19,740,334 Non-current assets Property and equipment, net 1,097,699 1,137,765 Operating lease right-of-use assets, net 1,054,785 1,233,437 Intangible assets, net 27,310 15,315 Long-term investments 2,694,305 2,121,897 Prepaid expenses and other assets 138,839 209,507 Loans receivable, net of allowance for credit losses of $5,780 and $13,833, as of December 31, 2024 and June 30, 2025 respectively 108,594 239,169 Restricted cash 21,261 33,434 Deferred tax assets 517,383 601,921 Goodwill 107,625 107,631 Total non-current assets 5,767,801 5,700,076 Total assets 22,625,469 25,440,410 UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS Amounts expressed in thousands of US dollars ("$") As ofDecember 31, As ofJune 30, 2024 2025 $ $ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable 350,021 359,092 Accrued expenses and other payables 2,380,371 2,420,402 Deposits payable 2,711,693 3,413,955 Escrow payables and advances from customers 2,498,094 2,793,949 Amounts due to related parties 255,896 109,991 Borrowings 130,615 209,420 Operating lease liabilities 300,274 328,085 Convertible notes 1,147,984 1,148,803 Deferred revenue 1,405,785 1,770,249 Income tax payable 115,419 176,217 Total current liabilities 11,296,152 12,730,163 Non-current liabilities Accrued expenses and other payables 71,678 90,636 Borrowings 249,474 306,933 Operating lease liabilities 803,502 967,781 Deferred revenue 109,895 178,360 Convertible notes 1,478,784 1,231,131 Deferred tax liabilities 408 19,403 Unrecognized tax benefits 138,000 132,100 Total non-current liabilities 2,851,741 2,926,344 Total liabilities 14,147,893 15,656,507 UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS Amounts expressed in thousands of US dollars ("$") As ofDecember 31, As ofJune 30, 2024 2025 $ $ Shareholders' equity Class A Ordinary shares 272 274 Class B Ordinary shares 23 23 Additional paid-in capital 16,703,192 17,041,224 Accumulated other comprehensive loss (193,148 ) (35,693 ) Statutory reserves 17,260 17,260 Accumulated deficit (8,155,264 ) (7,346,242 ) Total Sea Limited shareholders' equity 8,372,335 9,676,846 Non-controlling interests 105,241 107,057 Total shareholders' equity 8,477,576 9,783,903 Total liabilities and shareholders' equity 22,625,469 25,440,410 UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Amounts expressed in thousands of US dollars ("$") For the Six Months endedJune 30, 2024 2025 $ $ Net cash generated from operating activities 1,086,362 2,372,666 Net cash used in investing activities (1,563,708 ) (2,632,202 ) Net cash generated from financing activities 426,438 328,616 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (117,636 ) 123,844 Net (decrease) increase in cash, cash equivalents and restricted cash (168,544 ) 192,924 Cash, cash equivalents and restricted cash at beginning of the period 4,243,657 4,081,585 Cash, cash equivalents and restricted cash at end of the period 4,075,113 4,274,509 Net cash used in investing activities amounted to US$2,632 million for the six months ended June 30, 2025. This was primarily attributable to increase in loans receivable of our credit business of US$2,044 million, net placement of US$363 million in securities purchased under agreements to resell, time deposits and liquid investment products, for better cash yield management, and purchase of property and equipment of US$216 million to support the existing operations. Net cash generated from financing activities amounted to US$329 million for the six months ended June 30, 2025. This was primarily attributable to an increase in bank deposits of US$445 million as well as net proceeds from other funding sources related to credit business of US$118 million, offset by the cash used in repurchase of convertible notes of US$233 million. UNAUDITED SEGMENT INFORMATION The Company has three reportable segments, namely e-commerce, digital financial services and digital entertainment. The Chief Operating Decision Maker ("CODM"), comprising our senior management team, evaluates each segment's financial performance by reviewing revenue, significant operating expenses, and segment operating income or loss. To allocate resources for each segment, the CODM evaluates these results, along with certain key operating metrics of each segment. This assessment is done regularly by monitoring each segment's actual financial and operating performance against projections as part of the Company's business planning and budgeting process. Amounts are expressed in thousands of US dollars ("$"). For the Three Months ended June 30, 2025 E-commerce Digital Financial Services Digital Entertainment Other Services(1) Total $ $ $ $ $ Revenue 3,771,076 882,808 559,118 46,475 5,259,477 Less(2) Cost of revenue (2,550,913) (115,899) (171,922) - Sales and marketing expenses (803,431) (122,554) (43,103) - Provision for credit losses - (315,610) - - Other operating expenses(3) (261,881) (85,630) (68,628) (62,158) Operating segment income (loss) 154,851 243,115 275,465 (15,683) 657,748 Unallocated expenses(4) (170,029) Operating income 487,719 Non-operating income, net 83,299 Income tax expense (144,056) Share of results of equity investees (12,758) Net income 414,204 For the Three Months ended June 30, 2024 E-commerce Digital Financial Services Digital Entertainment Other Services(1) Total $ $ $ $ $ Revenue 2,821,269 519,338 435,559 30,702 3,806,868 Less(2) Cost of revenue (1,993,767) (78,927) (139,501) - Sales and marketing expenses (672,944) (54,950) (27,069) - Provision for credit losses - (167,212) - - Other operating expenses(3) (239,320) (66,988) (58,911) (39,705) Operating segment (loss) income (84,762) 151,261 210,078 (9,003) 267,574 Unallocated expenses(4) (184,680) Operating income 82,894 Non-operating income, net 56,414 Income tax expense (60,612) Share of results of equity investees 1,215 Net income 79,911 (1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as "Other Services". (2) The significant expenses categories and other income amounts align with the segmental-level information that is regularly provided to the CODM. (3) Other operating expenses for E-commerce and Digital Entertainment include general and administrative expenses, research and development expenses and provision for credit losses, net of other operating income. Other operating expenses for Digital Financial Services include general and administrative expenses and research and development expenses, net of other operating income. (4) Unallocated expenses are mainly related to share-based compensation, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. View source version on Contacts For enquiries, please contact: Investors / analysts: ir@ Media: media@
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12 hours ago
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Sea Limited Q2 2025 Preview: Another Test for the Comeback Story
Sea Limited (NYSE:SE) is set to report its Q2 2025 results before the market opens on Tuesday, August 12. Analysts are anticipating a strong performance, with Wall Street estimating revenue of $4.96 billion, up 30% YoY and an adjusted EPS of $0.80, up 74% YoY. While the stock is still far below its October 2021 peak of $372, investors are looking for a turnaround story, with shares up 40% year to date and 140% over the past 12 months. Shopee remains the group's growth engine. Following a period of intense competition from rivals like TikTok Shop, the market wants confirmation that Shopee is not just defending its position but gaining ground. Investors will want to see a strong print from Gross Merchandise Value (GMV) and ad revenue growth. Take rates, which dipped slightly quarter-on-quarter in Q1, will be in focus, as will Brazil's performance, where Shopee has grown into a major e-commerce player. Garena's ARPU and paying user ratio will also be closely watched. After a strong jump in bookings last quarter, investors will be keen to see if this momentum can be sustained. Updates on the user base, bookings, and the performance of the flagship title "Free Fire" will offer clarity into the segment's long-term health. SeaMoney continues to grow its loan book and payment volumes, targeting profitability through disciplined credit underwriting. Loan quality metrics and non-performing loan ratios will be closely monitored, to ensure this growth is not coming at the expense of higher credit risk. Lastly, the company's profitability and guidance could be the key drivers for the stock's next move. Sea's strong cash position gives it flexibility, but persistent competitive pressure could squeeze margins. Management needs to show it can keep costs in check and turn core-business growth into a clear, sustainable path to long-term profitability. This article first appeared on GuruFocus.
