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Sea Limited Delivers Record 2025 Results with $1.6B Net Income (SE Q4 2025 Earnings Call)

By Dr. Graph | Updated on Apr 29, 2026 | earnings

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Sea Limited concluded fiscal 2025 on a high note, posting a record $23 billion in total GAAP revenue—a 36% year-over-year acceleration—and achieving a remarkable $1.6 billion in net income, up 260% from the previous year. The Southeast Asian tech giant generated $3.4 billion in adjusted EBITDA across its three core pillars: Shopee, SeaMoney, and Garena. Emphasizing a strategy of profitable growth and operational excellence, management guided for continued strong momentum into 2026, targeting approximately 25% GMV growth for its e-commerce segment while maintaining firm financial discipline.

Shopee Surges with Improved Monetization and Logistics

Shopee remained the primary growth engine for Sea Limited, generating $127 billion in gross merchandise value (GMV) for the full year, a 27% increase year-over-year. In Q4 alone, GMV climbed 29% to $36.7 billion. Most notably, the e-commerce arm delivered over $880 million in full-year adjusted EBITDA, a massive leap from the $156 million recorded in 2024. This profitability inflection was driven by enhanced monetization—ad revenue surged over 70% as the ad take rate increased by more than 80 basis points—and structural improvements in its logistics network. SPX Express now processes over 30 million parcels daily, driving faster delivery times and lower costs to serve, particularly in key markets like Taiwan and Brazil. Looking to 2026, Shopee plans to double down on its fulfillment network and expand its successful VIP membership program, which has already surpassed 7 million subscribers and consistently drives double-digit spending uplifts.

SeaMoney Drives Sustainable High-Margin Growth

Sea's digital financial services arm, SeaMoney, delivered an outstanding 2025, reaching $3.8 billion in annual revenue (up 60% year-over-year) and generating over $1 billion in adjusted EBITDA. The segment successfully scaled its credit business by transitioning to a broader "all-can-apply" model, adding over 20 million unique first-time borrowers and expanding its consumer and SME loan book to $9.2 billion. Crucially, SeaMoney expanded its off-Shopee SPayLater use cases, seamlessly integrating with national QR payment systems and pushing into higher-ticket offline categories. Despite this rapid expansion, the company's advanced AI-driven risk underwriting models kept asset quality stable, with the 90-day non-performing loan (NPL) ratio holding steady at a healthy 1.1% at year-end.

Garena Stays Evergreen Amidst Content Innovation

Garena capped off a blockbuster year with 2025 bookings growing 37% year-over-year to $2.9 billion, and full-year adjusted EBITDA rising 38% to $1.7 billion. Defying industry trends for a franchise of its vintage, Free Fire achieved its second consecutive year of booking growth exceeding 30%. This enduring popularity was fueled by an aggressive cadence of high-impact content, including massive in-game collaborations like NARUTO SHIPPUDEN and Squid Game. Furthermore, Garena hosted the Free Fire World Series Global Finals in Jakarta, which set a Guinness World Record for the Largest Mobile Team-Based Esports Tournament. Looking ahead to 2026, management anticipates continued double-digit growth for Garena, bolstered by a strong pipeline of new IP collaborations and promotional activities aligned with the upcoming FIFA World Cup for its EA SPORTS FC Mobile title.

A Vision for 2026 and Beyond

With 2025's exceptional performance solidifying the effectiveness of Sea's strategic choices, management is entering 2026 with deep conviction. The company is leaning heavily into AI investments to optimize e-commerce search, recommendation, and advertising systems, while deploying AI chatbots to improve seller efficiency. Across Shopee, SeaMoney, and Garena, Sea Limited is prioritizing long-term structural moats—such as unified logistics, expanded credit use cases, and localized gaming communities—that differentiate it from competitors and set the stage for sustained, multi-year profitable growth.

Disclaimer: This report is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research or consult a qualified professional before investing. Past performance is not indicative of future results.

Frequently Asked Questions

What were Sea Limited's full-year 2025 financial results?
Sea Limited generated a record $23 billion in total GAAP revenue (up 36% year-over-year) and achieved a net income of $1.6 billion, representing a 260% increase. Total adjusted EBITDA reached $3.4 billion.
How did Shopee perform in 2025 and what is the outlook for 2026?
Shopee achieved $127 billion in GMV (up 27% year-over-year) and over $880 million in adjusted EBITDA. For 2026, management targets around 25% year-over-year GMV growth while ensuring adjusted EBITDA remains no lower than 2025 levels in absolute dollars.
What drove SeaMoney's growth in 2025?
SeaMoney's revenue grew 60% to $3.8 billion, driven by an expanding credit business. The company added over 20 million first-time borrowers, grew its loan book to $9.2 billion, and successfully expanded its off-Shopee SPayLater usage, all while maintaining a stable 90-day NPL ratio of 1.1%.