Sea Limited’s Q3 2025 Earnings Call Highlights

Sea Ltd ((SE)) has held its Q3 earnings call. Read on for the main highlights of the call.

In the recent earnings call, Sea Limited conveyed a predominantly positive sentiment, highlighting substantial growth across its core businesses. The company showcased significant advancements in logistics and AI integration, alongside a strong financial performance. However, challenges persist with e-commerce margins and strategic adjustments are necessary in certain Latin American markets.

Impressive Revenue Growth

Sea Limited reported a remarkable total revenue of $6 billion for the third quarter of 2025, marking a 38% increase compared to the previous year. This impressive growth underscores the company’s robust business model and its ability to capitalize on market opportunities.

Strong Adjusted EBITDA

The company’s adjusted EBITDA reached $874 million, reflecting a 58% year-on-year increase. This substantial rise in EBITDA indicates improved operational efficiency and cost management, contributing to Sea Limited’s overall financial health.

Significant Growth in E-commerce

Shopee, Sea’s e-commerce platform, experienced a notable growth in Gross Merchandise Value (GMV) by over 28% year over year. Additionally, ad revenue surged by more than 70%, with the ad take rate rising by over 80 basis points, highlighting the platform’s growing influence and profitability.

Digital Financial Services Expansion

Sea’s digital financial services, under the brand Money, saw a significant expansion with the loan book growing by 70% year on year to $7.9 billion. Revenue from this segment increased by 51%, showcasing the company’s successful penetration in the financial services market.

Garena’s Best Quarter Since 2021

Garena, Sea’s digital entertainment division, delivered its best quarter since 2021, with a 51% increase in bookings. This success was driven by popular campaigns such as Free Fire’s Naruto Shippuden, reflecting strong user engagement and content strategy.

Logistics and Fulfillment Advancements

Enhancements in logistics and fulfillment capabilities have led to improved operational efficiency and customer satisfaction for Sea Limited. These advancements have resulted in significant cost reductions and faster delivery times, strengthening the company’s competitive edge.

User Engagement and AI Integration

Shopee’s VIP membership grew by 75% from the previous quarter, illustrating increased user engagement. The integration of AI tools has improved purchase conversion rates by 10% year on year, demonstrating the company’s commitment to leveraging technology for enhanced customer experiences.

Decreased Margin in E-commerce

Despite a higher take rate, the e-commerce margin trend decreased to 0.6% in the quarter. This decline is attributed to investments in logistics and fulfillment, indicating a strategic focus on long-term growth over short-term profitability.

Market Challenges in Latin America

Sea Limited faced strategic challenges in Latin America, leading to the closure of cross-border operations in Chile and Colombia. This move reflects the company’s decision to focus resources on more promising markets, acknowledging the difficulties in these regions.

Forward-Looking Guidance

Looking ahead, Sea Limited has revised its full-year 2025 GMV growth expectations for Shopee to over 25%. This forecast is driven by strategic investments in logistics and AI advancements aimed at enhancing user engagement and operational efficiency. The company remains optimistic about its growth trajectory, supported by its robust financial performance and strategic initiatives.

In summary, Sea Limited’s earnings call highlighted a positive outlook with impressive growth across its core segments. While challenges remain in certain areas, the company’s strategic focus on technology and market expansion positions it well for future success. Investors and market enthusiasts can look forward to Sea Limited’s continued growth and innovation in the coming quarters.