NEW YORK, August 11, 2026, 15:48 EDT
- Sea’s stock climbed 13.75% to $130.59 as of 3:45 p.m. EDT.
- Revenue for the second quarter surpassed the LSEG consensus estimate by approximately $728 million.
- Shopee must generate about $521 million in adjusted EBITDA during the second half to achieve its updated full-year target.
Shares of Sea Limited NYSE:SE surged 13.75% on Tuesday following quarterly revenue that exceeded forecasts. The stock was at $130.59 as of 3:45 p.m. EDT. Revenue totaled $7.79 billion, surpassing the $7.06 billion consensus estimate from LSEG.
The beat was significant. Sea surpassed consensus by approximately $728 million, or 10.3%. Growth was mainly led by Shopee and Monee.
Investors continue to contend with slimmer profitability. Revenue increased by 48.1%, while both adjusted EBITDA and net income climbed 10.6%. Sea is making substantial investments to protect its market share and grow its credit segment.
| Second-quarter metric | 2025 | 2026 | Year-on-year |
|---|---|---|---|
| Revenue | $5.26 billion | $7.79 billion | up 48.1% |
| Gross profit | $2.41 billion | $3.55 billion | increase of 47.3% |
| Net income | $414.2 million | $458.1 million | growth of 10.6% |
| Adjusted EBITDA | $829.2 million | $917.2 million | rising 10.6% |
| Diluted EPS | $0.65 | $0.70 | up 7.7% |
According to Sea’s filing, operating income increased by 33.3% to reach $650.3 million. Gross profit growth was close to the rise in revenue, while operating expenses jumped 50.9%.
Shopee achieved all-time highs in gross merchandise value, orders, and revenue. GMV reached $38.3 billion, marking a 28.4% increase, while gross orders climbed 27.5% to 4.2 billion.
| Business | Q2 2026 revenue | Revenue growth | Adjusted EBITDA | EBITDA growth |
|---|---|---|---|---|
| Shopee | $4.93 billion | +48.9% | $255.4 million | +12.2% |
| Monee | $1.40 billion | +58.9% | $288.0 million | +12.8% |
| Garena | $746.6 million | +33.5% | $429.8 million | +16.7% |
The combination is still uncommon. Garena delivered the highest adjusted EBITDA, even though it is the smallest core division by revenue. Monee also reported higher adjusted EBITDA than Shopee.
Sea’s chairman and CEO, Forrest Li, expressed greater confidence in Shopee’s earnings, stating: “With this solid momentum, we are optimistic that Shopee will achieve the milestone of US$1 billion in adjusted EBITDA for the full year.” Sea second-quarter results
| Shopee adjusted EBITDA timeline | Amount |
|---|---|
| First quarter | $223.2 million |
| Second quarter | $255.4 million |
| First half total | $478.6 million |
| Full-year target | $1.00 billion |
| Amount needed in second half | $521.4 million |
The target appears attainable, though not guaranteed. Shopee needs to raise adjusted EBITDA in the second half by around 8.9% compared to the first half. The quarterly average needed stands at approximately $260.7 million.
On the other side, expenses are rising. Sales and marketing expenses climbed 64.5% to $1.66 billion, while credit-loss reserves jumped 71.5% to $555.2 million.
Monee reported loans totaling $11.1 billion, marking a 62.5% increase. The proportion of loans over 90 days overdue remained steady at 1.0% of principal, the same as in March. The consistent rate is notable as the overall loan portfolio grows.
| Analyst or consensus source | View | Price target | Date |
|---|---|---|---|
| UBS | Buy | $130 | July 10, 2026 |
| Bernstein SocGen | Outperform | $150 | July 20, 2026 |
| JPMorgan | Buy | $162 | July 1, 2026 |
| Citi | Buy | $162 | June 29, 2026 |
| S&P Global poll | Strong Buy | $142.26 average | July 29, 2026 snapshot |
Most target prices were set ahead of Tuesday’s earnings. Sea’s rally took shares just above the $130 price target from UBS. The average consensus target stands at $142.26, indicating around 8.9% potential upside from the $130.59 level.
Risks: Outlays on marketing are increasing at a quicker pace than revenue. Provisions for credit losses are climbing even more rapidly. Softer consumer demand, intensified competition in commerce or escalating loan defaults may further constrain profitability.
The following step is execution. Sea must generate approximately $521 million in Shopee adjusted EBITDA during the second half to meet its latest target.
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