Sea Limited Third Quarter 2025 Results

Key insights

6 takeaways

01
Sea Limited reported $6.0 billion in Q3 2025 consolidated GAAP revenue, with adjusted EBITDA rising to $874.3 million from $521.3 million in the prior-year period.See it on page 21
02
Shopee’s e-commerce segment achieved $3.8 billion in GAAP revenue, a 34.9% year-over-year increase, while shifting from an operating loss in Q3 2024 to $110.1 million in operating income.See it on page 11
03
Garena’s digital entertainment segment recorded its strongest performance since 2021, with bookings growing 51.1% year-over-year driven by IP collaborations like Squid Game and NARUTO SHIPPUDEN.See it on page 16
04
The digital financial services arm grew its loan principal outstanding by 69.8% year-over-year to $7.9 billion while maintaining a stable non-performing loan ratio of 1.1%.See it on page 4
05
Shopee’s e-commerce profitability was supported by a 13.3% take rate and a 70% year-over-year increase in advertising revenue.See it on page 11
06
Sea Limited maintains a strong liquidity position with $10.5 billion in cash, cash equivalents, and short-term investments as of the end of Q3 2025.See it on page 6

Summary

Sea Limited’s third-quarter 2025 results demonstrate robust financial and operational growth across its three primary business segments: e-commerce, digital financial services, and digital entertainment. The company reported a consolidated GAAP revenue of $6.0 billion for the quarter, reflecting strong momentum in user engagement and monetization strategies. Total adjusted EBITDA reached $874.3 million, a significant increase from $521.3 million in the same period of the previous year, underscoring the company’s improved profitability and operational efficiency.

The e-commerce segment, led by Shopee, achieved record-setting performance in gross merchandise value (GMV), order volume, and revenue. GAAP revenue for this segment grew 34.9% year-over-year to $3.8 billion, supported by a 13.3% take rate and a 70% increase in advertising revenue. Profitability improved as the segment transitioned from an operating loss in the third quarter of 2024 to an operating income of $110.1 million in the third quarter of 2025. Strategic initiatives, including AI-driven search enhancements and expanded logistics capabilities in markets like Brazil and Indonesia, contributed to higher buyer engagement and purchase frequency.

Digital financial services and digital entertainment also reported substantial gains. The financial services arm expanded its loan principal outstanding to $7.9 billion, a 69.8% year-over-year increase, while maintaining a stable non-performing loan ratio of 1.1%. Simultaneously, the digital entertainment segment, Garena, experienced its strongest quarter since 2021, with bookings rising 51.1% year-over-year. This growth was driven by high-impact content campaigns and IP collaborations, such as those featuring Squid Game and NARUTO SHIPPUDEN, which bolstered user acquisition and retention.

The company maintains a strong liquidity position, reporting $10.5 billion in cash, cash equivalents, and short-term investments as of the end of the third quarter. These results reflect a successful execution of core operational priorities, including enhanced monetization effectiveness and sustained growth across diverse geographic markets. The company continues to focus on long-term scalability through technological investment and strategic partnerships, positioning itself for continued expansion in its core digital sectors.