Sea Limited (NYSE:SE) is a prominent player in the digital economy, operating through three main segments: Shopee, SeaMoney, and Garena. Shopee is a leading e-commerce platform, SeaMoney offers digital financial services, and Garena is known for its online gaming offerings. The company competes with other major players like MercadoLibre and TikTok Shop in the e-commerce space.
As Sea Limited prepares to release its third-quarter earnings on November 11, 2025, analysts expect an earnings per share (EPS) of $1.03. This represents a significant 90.7% increase from the previous year. Revenue is projected to reach $5.97 billion, marking a 39.9% year-over-year growth. Shopee's 25% increase in Gross Merchandise Value (GMV) and market leadership in Brazil are key contributors to this growth.
SeaMoney's loan book has expanded by 90%, maintaining stable credit quality, which is likely to enhance Sea Limited's overall performance. This growth in the financial services segment is expected to drive a 60% year-over-year revenue increase. However, the company faces challenges with higher operating costs, which may impact profit margins.
Garena, with its popular gaming titles and a user base exceeding 100 million daily users, continues to contribute to Sea Limited's revenue momentum. Despite this, Garena faces margin pressure and risks related to user stability, primarily due to its reliance on the game Free Fire. Investors will be watching closely to see how these factors play out in the earnings report.
Historically, Sea Limited has missed the Zacks Consensus Estimate in the last four quarters, with an average negative surprise of 12.14%. The consensus EPS estimate has been slightly revised downwards by 1.4% over the past 30 days, reflecting a reevaluation by analysts. This adjustment could influence investor sentiment and the stock's short-term price performance.
