Sea Limited misses earnings estimates but revenue beats forecasts

Sea Limited, the Singapore-based conglomerate behind Shopee and Garena, reported third-quarter results that fell short of earnings per share (EPS) expectations but exceeded revenue forecasts, prompting a rise in its U.S.-listed shares.

The company posted adjusted net loss per American Depositary Share (ADS) of $0.12, missing the $0.08 loss forecast from Refinitiv IBES. Revenue, however, climbed 8% year-over-year to $3.3 billion, outpacing the $3.1 billion consensus estimate.

Gross merchandise volume (GMV) on its e-commerce platform Shopee grew 18% to $25.7 billion, driven by strong performance in Southeast Asia. Garena, its gaming segment, reported revenue of $590 million, a 3% decline from the prior year, reflecting softer demand for its mobile titles.

Operating expenses rose 13% to $1.2 billion, primarily due to increased marketing and personnel costs. Cash and cash equivalents totaled $5.8 billion as of September 30, providing a buffer for ongoing investments in growth initiatives.

Sea’s shares were up 4% in extended trading following the results, recovering from earlier losses. The company’s outlook remains focused on expanding its e-commerce dominance and monetizing its user base through digital payments and financial services.

Analysts noted that while profitability remains a challenge, revenue growth signals resilience in its core markets.