Sea Limited combines Shopee’s 55% Southeast Asian GMV share, fast-growing Monee lending, and Garena cash generation into a long-term compounder, though credit losses and competitive spending remain the key risks.
Overview
Sea Limited operates Shopee e-commerce, Monee digital financial services, and Garena digital entertainment across Southeast Asia, Taiwan, Brazil, and other emerging markets. Shopee is the regional leader with 55% platform GMV share; Monee embeds consumer and merchant credit into the commerce ecosystem, while Garena’s Free Fire provides high-margin digital revenue and funding. **Q2 2026 revenue rose 48.1% year over year to $7.8 billion**, beating the $7.09 billion consensus by 9.87%, while net income was $458.1 million and Adjusted EBITDA was $917.2 million. Diluted GAAP EPS of $0.70 nevertheless missed the $0.85 consensus as marketing costs and credit-loss provisions increased. Management reaffirmed approximately 25% full-year Shopee GMV growth and a $1.0 billion Shopee Adjusted EBITDA target, with medium-term margins expected at 2%–3% of GMV. At $80.43 on October 20, 2026, shares traded at 20.5x FY26E non-GAAP earnings and 2.0x trailing sales, below historical sales multiples. Near-term catalysts include delivery of the EBITDA target and sustained Monee credit quality; the report’s five-year probability-weighted target is $251.60.