Singapore's Sea Q2 revenue beats estimates on Shopee growth

Sea

11/08/2026 11:44

Overview
Singapore tech conglomerate's Q2 revenue rose 48% yr/yr, beating analyst expectations
Net income for Q2 increased 10.6% yr/yr to $458 mln
Company repurchased $417 mln in shares under buyback program

Outlook
Sea expects Shopee to achieve $1 bln in adjusted EBITDA for full-year 2026
Company plans to continue investing prudently to broaden foundation for profitable growth
Sea sees long-term growth potential in Monee due to low credit penetration in its markets

Result Drivers
SHOPEE GROWTH - Shopee revenue rose 48.9% yr/yr, driven by higher GMV and improved monetization, per CEO Forrest Li
MONEE CREDIT EXPANSION - Monee revenue rose 58.9% yr/yr, mainly due to growth in consumer and SME credit business
GARENA USER AND PAYING PENETRATION - Garena revenue rose 33.5% yr/yr, attributed to increased active user base and deeper paying user penetration

Company press release: ID:nBw1GTr8fa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$7.80 bln
$7.06 bln (6 Analysts)
Q2 EPS
 
$0.70
 
Q2 Net Income
 
$458.10 mln
 
Q2 Adjusted EBITDA
 
$917.20 mln
 
Q2 Gross Profit
 
$3.50 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 27 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Sea Limited is $140.00, about 22% above its August 10 closing price of $114.80
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads
Aug 11 - China's Tencent Music Q2 revenue rises on increased concert, merchandise sales
Aug 10 - China's Sohu.com Q2 revenue rises on growth in online gaming
Aug 11 - China's HUYA Q2 revenue rises as game services grow

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)