Sea Limited, a prominent force in the global consumer internet space, has continued to demonstrate exceptional growth across its business segments in the second quarter of 2025. Based in Singapore, the company operates three major segments: Garena for digital entertainment, Shopee for e-commerce, and Monee for digital financial services, marking impressive performances even amid challenging market conditions.
Sea Ltd Earnings
The second quarter of 2025 proved to be significantly successful for Sea Limited. The company reported total GAAP revenue of USD 5.3 billion, a remarkable 38.2% increase from the same period in 2024. The gross profit soared by 52.1% year-over-year to USD 2.4 billion. Furthermore, net income leaped to USD 414.2 million, showcasing an impressive increase compared to USD 79.9 million a year prior.
Sea Ltd Financial Results
| Financial Metric | Q2 2025 (USD) | Q2 2024 (USD) | % Change YoY |
|---|---|---|---|
| Total GAAP Revenue | 5.3 billion | 3.8 billion | +38.2% |
| Gross Profit | 2.4 billion | N/A | +52.1% |
| Net Income | 414.2 million | 79.9 million | +418.6% |
| Total Adjusted EBITDA | 829.2 million | 448.5 million | +84.9% |
Revenue Breakdown
Sea's success spans across its differentiated segments, with each showing promising growth figures.
Revenue Performance by Segment
| Segment | Q2 2025 Revenue (USD) | Q2 2024 Revenue (USD) | % Change YoY |
|---|---|---|---|
| E-commerce | 3.8 billion | 2.5 billion | +33.7% |
| Digital Financial Services | 882.8 million | 519.3 million | +70.0% |
| Digital Entertainment | 559.1 million | 435.6 million | +28.4% |
| Sales of Goods | 460.6 million | 342.6 million | +34.4% |
Segment Analysis
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E-commerce : Shopee, Sea's e-commerce division, continued its momentum with a 33.7% revenue increase. Gross Merchandise Value (GMV) was USD 29.8 billion, climbing 28.2% year-over-year. The strength in both core marketplace and value-added services drove this growth.
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Digital Financial Services : Monee experienced an exceptional uplift, driven by its diverse loan portfolio and prudent risk management policies, resulting in a 70% revenue hike. The outstanding loans, both on-book and off-book, reflected this flourishing trajectory.
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Digital Entertainment : Garena showcased its resilience, with revenues increasing by 28.4%. The sustained engagement from Free Fire and strategic exploration of new game categories underline its robust performance.
Key Developments
The quarter was not only marked by impressive financials but also significant operational milestones. Shopee celebrated its fifth anniversary in Brazil, marking its leadership in order volume. Garena’s Free Fire continued to mark its presence globally, establishing itself as an evergreen franchise. Monee diversified its credit services, reinforcing its potential for long-term growth.
Comments from Company Officers
Forrest Li, the Chairman and CEO of Sea, emphasized the company's worldwide growth prospects: "The momentum from our strong start to 2025 has continued into the second quarter. All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year." Mr. Li's comments underscored Sea's commitment to balancing profitability with growth aspirations across their dominant sectors.
Dividends and Share Repurchases
While Sea Limited's report did not specify any updates regarding dividends or share repurchase programs, the financial stability and growth pattern bolster potential future shareholder returns.
Sea Ltd Stock Forecast
With Sea's continuous revenue growth across all three segments, and considering its market capitalization of approximately USD 42.8 billion, the stock's future appears promising. However, the recent price change after their earnings announcement, with a slight decrease of 0.93%, suggests the need for cautious optimism.
Stock forecasts for Sea Ltd. should take into account the qualitative advancements in their businesses alongside the quantitative fiscal accomplishments. Based on the current performance, strategic endeavors, and market position, analysts might project a high target price of USD 85 per share within the next year, with a conservative lower range around USD 70 per share.
Sea Limited's Q2 2025 earnings report presents a picture of a company deeply intertwined in three high-growth industries, persistently seeking expansion and market capitalization. The impressive financial results and solid operational execution serve to affirm Sea’s enduring potential in the global market landscape. As the company prioritizes growth with improved profitability, stakeholders can anticipate Sea's continual emergence as a formidable digital and e-commerce powerhouse.
