Sea reports Q2 earnings miss, revenue beats forecasts

Singapore-based Sea Ltd. posted second-quarter earnings that missed analyst forecasts by $0.13 per share, while revenue surpassed estimates, according to preliminary figures released on Wednesday.

The company, which operates digital entertainment and e-commerce platforms including Garena and Shopee, reported adjusted earnings per share of $0.32, compared with the $0.45 consensus estimate compiled by Refinitiv. Revenue totaled $3.65 billion, exceeding the $3.52 billion forecast.

Sea attributed the earnings miss to higher-than-expected investments in its e-commerce and digital financial services segments. The company’s gross merchandise volume (GMV) for Shopee, its flagship e-commerce platform, rose 23% year-over-year to $20.9 billion, reflecting strong user engagement despite macroeconomic headwinds.

Operating expenses climbed 17% to $2.87 billion, driven by marketing and technology investments. Sea’s digital entertainment segment, which includes the Free Fire gaming platform, reported revenue of $1.12 billion, up 12% from the prior year.

Analysts noted that while revenue growth remained robust, the earnings shortfall underscored the company’s ongoing focus on scaling operations amid competitive pressures. Sea’s shares were indicated lower in pre-market trading following the results.

The company is scheduled to hold an earnings call on August 15 to provide further details on its financial performance and outlook.