Sea Limited First Quarter 2025 Results

Key insights

6 takeaways

01
Sea Limited reported Q1 2025 consolidated revenue of $4.84 billion and adjusted EBITDA of $946.5 million, more than doubling the $401.1 million EBITDA reported in Q1 2024.See it on page 21
02
The e-commerce segment (Shopee) reached $3.52 billion in revenue and $264.4 million in adjusted EBITDA, reversing a $21.7 million loss from the same period last year.See it on page 12
03
Garena’s digital entertainment segment achieved its strongest performance since 2021, with a 51% year-over-year increase in bookings driven by Free Fire and the launch of Delta Force Mobile.See it on page 16
04
Operational efficiency in e-commerce improved significantly, with per-order costs decreasing by 6% in Asia and 21% in Brazil.See it on page 9
05
The digital financial services division expanded its loans principal outstanding by over 75% year-over-year to $5.8 billion while maintaining a stable non-performing loan ratio of 1.1%.See it on page 4
06
Sea Limited projects continued momentum for the remainder of 2025, targeting approximately 20% growth in e-commerce gross merchandise value and double-digit growth in its gaming user base.See it on page 2

Summary

Sea Limited’s first-quarter 2025 results demonstrate strong financial performance across its three primary business segments: e-commerce, digital financial services, and digital entertainment. The company achieved a consolidated GAAP revenue of $4.84 billion and a total adjusted EBITDA of $946.5 million, marking a significant improvement from the $401.1 million reported in the same period of the previous year. This growth is underpinned by sustained market leadership in e-commerce, expansion in digital financial services, and a resurgence in digital entertainment engagement.

The e-commerce segment, led by Shopee, reported $3.52 billion in revenue and an adjusted EBITDA of $264.4 million, a notable turnaround from the $21.7 million loss in the first quarter of 2024. This segment benefited from enhanced monetization through advertising and improved logistics efficiency, with per-order costs decreasing by 6% in Asia and 21% in Brazil. Simultaneously, the digital financial services division saw its loans principal outstanding grow by over 75% year-over-year to $5.8 billion, while maintaining a stable non-performing loan ratio of 1.1%.

The digital entertainment segment, Garena, experienced its strongest quarterly performance since 2021, with bookings growing 51% year-over-year. The success of the mobile game Free Fire, which remains one of the world’s most downloaded titles, was a primary driver, alongside the introduction of new titles like Delta Force Mobile. The company maintains a positive outlook for the remainder of 2025, projecting continued double-digit growth in its gaming user base and bookings, alongside a target of approximately 20% growth in e-commerce gross merchandise value. These results reflect the company's strategic focus on operational efficiency, localized content, and diversified financial product offerings across its core markets in Asia and Latin America.