Sea Limited (NYSE: SE) recently unveiled its financial results for the third quarter ended September 30, 2025, building on the strong momentum it established in the first half of the year. With consistent growth across its three core business segments—e-commerce, digital financial services, and digital entertainment—the company continues to set new benchmarks in the market.
Sea Ltd Earnings
For the third quarter of 2025, Sea Ltd reported impressive earnings, reflecting both quarter-over-quarter and year-over-year growth. Total GAAP revenue reached $6.0 billion, representing a 38.3% increase compared to the same quarter in 2024. The company's robust performance was supported by significant gains in net income and adjusted EBITDA. Notably, Sea Ltd achieved a total net income of $375.0 million, marking a substantial rise from $153.3 million in the same period last year.
Sea Ltd Results
Below is a table detailing Sea Ltd's key financial metrics for the third quarter of 2025:
| Metric | Q3 2025 | Q3 2024 | Year-over-Year Change |
|---|---|---|---|
| Total GAAP Revenue | $6.0 billion | $4.3 billion | +38.3% |
| Total Net Income | $375.0 million | $153.3 million | +144.6% |
| Total Adjusted EBITDA | $874.3 million | $521.3 million | +67.7% |
| Basic Earnings Per Share | $0.63 | $0.26 | +142.3% |
| Diluted Earnings Per Share | $0.59 | $0.24 | +145.8% |
Revenue Breakdown
The growth Sea Ltd experienced in Q3 2025 was spread across its major business segments. The following table presents a detailed breakdown:
| Segment | Revenue (Q3 2025) | Revenue (Q3 2024) | Year-over-Year Growth |
|---|---|---|---|
| E-commerce | $4.3 billion | $3.2 billion | +34.9% |
| Digital Financial Services | $989.9 million | $615.7 million | +60.8% |
| Digital Entertainment | $653.0 million | $497.8 million | +31.2% |
E-commerce Segment: Shopee, the company's e-commerce platform, continues to lead the charge with substantial growth in gross merchandise value (GMV) and revenue. With gross orders hitting 3.6 billion and GMV skyrocketing to $32.2 billion, year-over-year increases in these figures highlight Shopee's expanding influence in both Asian and Latin American markets.
Digital Financial Services Segment: The Monee platform emerged as a strong growth driver with a 60.8% surge in revenue. This remarkable performance was spurred by increased lending activities and a broadened consumer base. The consumer and SME loans principal outstanding reached $7.9 billion, showcasing the segment’s robust credit business.
Digital Entertainment Segment: Garena maintained a growth trajectory thanks to engaging campaigns, such as those featuring popular themes like "Squid Game" and "NARUTO SHIPPUDEN." Overall, bookings increased by 51.1% to reach $840.7 million, representing a thriving digital entertainment sector.
Key Developments
A significant part of Sea Ltd's success in this quarter was attributable to a few key developments and strategic improvements across various business lines. Shopee expanded its footprint by enhancing monetization gains and increasing operational efficiency across Asia and Brazil. Simultaneously, Monee extended the reach of its SPayLater service, integrating it into everyday financial scenarios beyond e-commerce.
On the digital entertainment front, Garena's continued success was underpinned by proactive engagement through high-impact campaigns, resulting in a substantial uptick in user base and paying user ratio. These developments underscore Sea Ltd's commitment to innovation and responsiveness to market demands.
Comments from Company Officers
Forrest Li, Chairman and CEO of Sea Ltd, praised the company's progress, stating, "After a very strong first half of the year, our momentum has continued into the third quarter. Our focus remains the same: continuing to deliver high and profitable growth across all three of our businesses." He emphasized the pivotal role of Shopee's performance while mentioning increased profitability and strategic growth of Monee and Garena.
Dividends and Share Repurchases
At this juncture, Sea Ltd has not announced any changes to its dividend policy or share repurchase program. The company continues to prioritize reinvestment into its core business sectors to sustain growth and capitalize on emerging opportunities.
Sea Ltd Stock Forecast
Based on Sea Ltd's exceptional performance and growth strategies, stock projections look favorable. Assuming continued operational successes and expanding market penetration, analysts predict potential stock price growth ranges underpinned by these developments. Within six months to a year, projections for Sea Ltd’s stock could be on the higher end around $4.00, with a conservative estimate placing it closer to $3.50. Market dynamics, alongside the company’s strategic initiatives, will heavily influence these outcomes. Given the current market cap of approximately $42.79 billion, Sea Ltd remains a significant player in the market with potential for upward momentum.
In conclusion, Sea Ltd has shown tremendous growth across its business segments in Q3 2025. The strategic decisions and operational advances forge a pathway for sustained success, making its stock an interesting proposition for potential investors. As the company leverages its strong position in key markets and segments, it possesses ample opportunity to continue its growth trajectory into the coming quarters.
