SEA (NYSE:SE) Posts Quarterly Earnings Results, Misses Estimates By $0.26 EPS

SEA (NYSE:SE) released its earnings results on Tuesday. The Internet company based in Singapore reported $0.78 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.04 by ($0.26), FiscalAI reports. SEA had a return on equity of 13.54% and a net margin of 5.98%. The business had revenue of $8.58 billion for the quarter, compared to analysts’ expectations of $8.08 billion. During the same period in the previous year, the company earned $0.59 EPS. SEA’s quarterly revenue was up 43.7% compared to the same quarter last year.

Here are the key takeaways from SEA’s conference call:

• Sea reported $8.6 billion in third-quarter revenue, $931 million in adjusted EBITDA and $502 million in net income; management also plans an additional $1 billion share repurchase after nearly completing its prior program.
• Shopee posted 23% GMV growth and 26% order growth, with adjusted EBITDA rising 45% to $269 million, its highest quarterly result. Sea reaffirmed its 2026 targets of around 25% GMV growth and $1 billion in adjusted EBITDA, while noting that investment continues to absorb some monetization gains.
• Monee’s loan book grew 60% to $12.6 billion, serving nearly 44 million active credit users, and Sea is considering a standalone listing in one to three years. Its 90-day NPL ratio was 1.3%, a modest increase that management attributed partly to market and product mix, prompting tighter underwriting in selected segments.
• Garena bookings increased 6% to $890 million and adjusted EBITDA rose 46% to $458 million, supported by Free Fire and Arena of Valor engagement.
• Sea Cloud is an early-stage AI initiative intended to sell the company’s internal capabilities to external organizations, but it has not secured enterprise contracts. Management described it as a long-term opportunity and said investments will be selective, tied to customer commitments and attractive returns.

SEA Trading Up 2.1%

Shares of SEA stock traded up $1.63 during trading hours on Tuesday, reaching $79.59. 10,295,845 shares of the company’s stock were exchanged, compared to its average volume of 5,120,915. The company has a fifty day moving average of $94.01 and a 200-day moving average of $97.61. The company has a current ratio of 1.49, a quick ratio of 1.48 and a debt-to-equity ratio of 0.07. SEA has a 52-week low of $71.53 and a 52-week high of $159.09. The firm has a market capitalization of $48.63 billion, a price-to-earnings ratio of 30.81, a price-to-earnings-growth ratio of 0.83 and a beta of 1.58.

Insider Activity at SEA

In related news, insider Jingye Chen sold 30,000 shares of SEA stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $108.87, for a total transaction of $3,266,100.00. Following the transaction, the insider owned 270,000 shares in the company, valued at approximately $29,394,900. The trade was a 10.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Feng Zhao sold 40,000 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $95.02, for a total value of $3,800,800.00. Following the completion of the sale, the insider owned 93,580 shares of the company’s stock, valued at approximately $8,891,971.60. This trade represents a 29.94% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 876,036 shares of company stock worth $97,506,130. Company insiders own 0.22% of the company’s stock.

Analysts Set New Price Targets

SE has been the topic of several recent analyst reports. TD Cowen reaffirmed a “hold” rating and issued a $115.00 price target (up from $100.00) on shares of SEA in a research note on Monday, August 17th. Barclays raised their price target on shares of SEA from $122.00 to $156.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Wall Street Zen cut shares of SEA from a “buy” rating to a “hold” rating in a report on Sunday, November 1st. Royal Bank Of Canada raised shares of SEA from a “sector perform” rating to a “buy” rating in a research report on Tuesday, September 8th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of SEA in a report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $137.73.

More SEA News

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Q3 revenue rose 43.4% year over year to $8.6 billion, above the $8.08 billion consensus. Net income increased 34% to $502.5 million, gross profit rose 51.4% to $3.9 billion, and adjusted EBITDA grew 28.9% to $931.3 million. Sea Limited Q3 results
• Positive Sentiment: Shopee continued to drive growth, with gross merchandise value up 23.3% to $39.7 billion; Monee revenue grew 63.9%, and Garena EBITDA increased 45.9%. Sea Limited growth and quarterly profit
• Neutral Sentiment: An insider sold 800 shares in each of two disclosed transactions. The sales were small relative to the insider’s remaining holdings and may have limited significance for the investment outlook. SEC insider transaction filing
• Negative Sentiment: GAAP EPS was $0.78, below the $1.04 analyst consensus. Higher credit-loss provisions at Monee—up 82.3%—also raise concerns about lending risk and could help explain the negative reaction reported in premarket trading despite revenue growth. Sea Q3 expectations and stock reaction

About SEA

Sea Limited is a Singapore-based technology company operating digital entertainment, e-commerce and digital financial services businesses. Founded in 2009 as Garena, the company adopted the name Sea Limited in 2017. Its digital entertainment business, Garena, publishes and develops online games and also provides a platform for users to access games and connect with other players. Shopee, Sea’s e-commerce platform, serves consumers and merchants in Southeast Asia and other markets, including Taiwan and parts of Latin America.