Second Quarter 2025 Results

Key insights

6 takeaways

01
Sea Limited reported Q2 2025 consolidated GAAP revenue of US$4.8 billion, a 33.7% year-over-year increase, with adjusted EBITDA rising 90% to US$829 million.See it on page 5
02
Digital Financial Services (DFS) revenue surged 94% year-over-year to US$3.8 billion, fueled by a 90% increase in loans principal outstanding and a stable non-performing loan ratio of 1.0%.See it on page 4
03
E-commerce revenue reached US$3.5 billion, a 7% quarter-over-quarter increase driven by higher gross merchandise volume and improved ad take rates.See it on page 11
04
Digital entertainment revenue grew 23% year-over-year to US$5.8 billion, supported by the Free Fire title maintaining a global active user base of over 100 million.See it on page 16
05
The company expanded its financial footprint in Southeast Asia and Brazil, with On-Shopee loans reaching US$6.9 billion and the Malaysian loan book surpassing US$1 billion.See it on page 13
06
The three core segments of e-commerce, digital financial services, and digital entertainment collectively accounted for 79% of the company's total revenue growth.See it on page 4

Summary

Sea Limited reports record-breaking performance for the second quarter of 2025, with consolidated GAAP revenue rising 33.7% year-over-year to US$4.8 billion and adjusted EBITDA reaching US$829 million, a 90% increase from the same period in 2024. The company’s three core segments—e-commerce, digital financial services (DFS), and digital entertainment—contributed 79% of revenue growth. E-commerce revenue grew 7% quarter-over-quarter to US$3.5 billion, driven by higher gross merchandise volume (GMV) and improved ad take rates; DFS revenue surged 94% YoY to US$3.8 billion, supported by a 90% rise in loans principal outstanding and a stable non-performing loan ratio of 1.0%; digital entertainment revenue increased 23% YoY to US$5.8 billion, with bookings up 23% and adjusted EBITDA up 22%.

Geographically, the company continues to expand in Southeast Asia and Brazil. On-Shopee loans reached US$6.9 billion, with new borrowers adding over 4 million first-time users and a loan book surpassing US$1 billion in Malaysia. Digital entertainment saw sustained user engagement, with Free Fire maintaining a global active base of over 100 million and achieving double-digit growth across key titles.

Methodologically, figures are unaudited and include non-GAAP measures such as adjusted EBITDA. The presentation highlights forward-looking statements, risk factors, and reconciliations between GAAP and non-GAAP metrics. Overall, Sea Limited demonstrates robust growth across its segments while maintaining a stable risk profile and improving profitability metrics.