SE — Sea Limited

Sea Limited Q4 and Full Year 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $23 billion for FY 2025, up 36% year-on-year; Q4 revenue was $6.9 billion, up 38% year-on-year.
• Net Income: $1.6 billion for FY 2025, a 260% increase; Q4 net income was $411 million, up 73% year-on-year.
• Adjusted EBITDA: $3.4 billion for FY 2025, up 75%; Q4 adjusted EBITDA was $787 million, up 33%.
• Shopee GMV: $127 billion for FY 2025, up 27%; Q4 GMV was $36.7 billion, up 29%.
• Monee Revenue: $3.8 billion for FY 2025, up 60%; Q4 revenue was $1.1 billion, up 54%.
• Garena Bookings: $2.9 billion for FY 2025, up 37%; Q4 bookings were $672 million, up 24%.

2. Strategic Updates and Business Highlights

• Shopee: Achieved record GMV and revenue, driven by improved product discovery, competitive pricing, and logistics enhancements. Plans to grow GMV by 25% in 2026 while maintaining EBITDA at least flat year-on-year.
• Monee: Expanded its loan book to over $9 billion, with a focus on user acquisition and engagement. Introduced off-Shopee lending, which grew over 300% year-on-year.
• Garena: Continued growth in Free Fire and other titles, with a strong esports presence. Bookings growth driven by high user engagement and successful IP collaborations.
• Logistics and Fulfillment: Significant investments in logistics capabilities, including instant delivery and fulfillment services, particularly in key markets like Brazil and Taiwan.

3. Forward Guidance and Outlook

• Shopee: Targeting 25% GMV growth in 2026 with a focus on operational excellence and financial discipline.
• Monee: Anticipates continued growth in its loan book and plans to expand credit use cases, leveraging improved risk management.
• Garena: Expects double-digit booking growth in 2026, with ongoing IP collaborations and new game launches.

4. Bad News, Challenges, or Points of Concern

• Competitive Landscape: While the competitive environment is currently stable, there are ongoing concerns about maintaining margins amid increased investments in logistics and user acquisition.
• Investment Cycles: Management indicated that investment cycles vary across initiatives, which may impact short-term profitability.
• Market Penetration: In Brazil, while growth is expected, AOV remains significantly lower than market leaders, indicating a need for continued improvement in customer engagement and fulfillment capabilities.

5. Notable Q&A Insights

• Shopee's Growth Strategy: Management emphasized enhancing user experience and expanding fulfillment networks as key drivers for achieving growth targets in 2026.
• Monee's Performance: Growth attributed to a broader user base and improved risk management models, with a stable NPL ratio of 1.1%.
• VIP Membership Program: Retention rates have improved significantly, with VIP members spending 30-40% more than average users. The program is expected to grow further.
• AI Investments: Management highlighted the importance of AI in enhancing e-commerce operations, particularly in search and recommendation systems, which have positively impacted ad revenues.

Overall, Sea Limited demonstrated strong financial performance in 2025, with robust growth across its business segments. The company is focused on strategic investments to sustain growth while navigating competitive pressures and market dynamics.