Sea Ltd ((SE)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Sea Limited’s recent earnings call exuded a strong positive sentiment, highlighting significant year-on-year growth across all its business segments. The company showcased impressive advancements in e-commerce, digital financial services, and digital entertainment, despite acknowledging competitive pressures in Brazil. Sea Limited’s robust performance and strategic initiatives have positioned it well for continued success.
Shopee’s Growth and Profitability
Shopee, Sea Limited’s e-commerce platform, demonstrated remarkable growth with a 25% year-on-year increase in gross merchandise value (GMV) during the first half of 2025. The second quarter was record-breaking in terms of gross order volume, GMV, and revenue. Notably, Shopee has been EBITDA positive since the second half of the previous year and continues to accumulate cash each quarter as it scales.
Digital Financial Services Expansion
Sea Limited’s digital financial services segment experienced substantial expansion, with its loan book growing over 90% year-on-year to $6.9 billion. The company reported a healthy non-performing loan (NPL) ratio, and both revenue and adjusted EBITDA increased by more than 50% year-on-year. Additionally, over 4 million first-time borrowers were added in the quarter, underscoring the segment’s robust growth.
Garena’s Strong Performance
Garena, Sea Limited’s digital entertainment arm, reported a 23% increase in bookings and a 22% rise in adjusted EBITDA year-on-year. Its flagship game, Free Fire, maintained a massive global user base of over 100 million average daily active users, with multiple key titles achieving double-digit growth.
Overall Financial Growth
Sea Limited’s overall financial performance was impressive, with total GAAP revenue increasing by 38% year-on-year to $5.3 billion in Q2 2025. The company’s total adjusted EBITDA rose significantly to $829 million, up from $448 million in Q2 2024, reflecting strong operational execution and financial health.
Competitive Pressures in Brazil
Despite experiencing exceptional growth in Brazil, Sea Limited acknowledged competitive pressures, particularly from competitors reducing free shipping thresholds. However, Shopee maintains a competitive cost structure and pricing strategy, allowing it to navigate these challenges effectively.
Forward-Looking Guidance
Sea Limited provided optimistic guidance for the future, based on strong performance across its core businesses. Shopee’s GMV is expected to sustain its growth in the third quarter, while Garena’s full-year bookings are projected to increase by over 30% year-on-year. The digital financial services segment also reported a 90% year-on-year growth in its loan book. The company emphasized strategic priorities focusing on growth, profitability, and cost efficiency, with all three businesses now EBITDA positive since the latter half of the previous year.
In summary, Sea Limited’s earnings call painted a picture of robust growth and strategic success across its business segments. The company’s strong financial performance, coupled with optimistic forward-looking guidance, underscores its potential for continued success in the competitive market landscape.