Sea Limited (NYSE: SE) shares dropped more than 23% intra-day Tuesday after the company reported fourth-quarter earnings below analyst expectations, despite revenue exceeding forecasts.
Adjusted earnings per share were $0.63, missing the $0.80 consensus estimate. Revenue reached $6.9 billion, above the $6.49 billion forecast and up 38.4% year over year from $5.0 billion.
Net income rose 72.9% year over year to $410.9 million, while adjusted EBITDA increased 33.2% to $787.1 million. However, the earnings miss led to a sharp selloff.
For fiscal 2026, Sea provided guidance for its Shopee platform, targeting gross merchandise value growth of approximately 25% year over year and full-year adjusted EBITDA no lower than 2025 levels in absolute dollar terms. Shopee’s adjusted EBITDA for 2025 totaled $880.6 million.
Shopee revenue increased 35.8% year over year to $4.3 billion in the fourth quarter, driven by GMV growth of 28.6% to $36.7 billion. Gross orders rose 30.5% to 4.0 billion. Adjusted EBITDA for the segment reached $202.5 million, up 33.0% year over year.
The fintech segment, Monee, reported revenue of $1.1 billion, up 54.3% year over year, with adjusted EBITDA rising 24.7% to $263.1 million. Garena gaming revenue increased 35.1% to $701.0 million, while adjusted EBITDA climbed 25.6% to $363.8 million.
For full-year 2025, Sea generated revenue of $22.9 billion, up 36.4% year over year, with net income of $1.6 billion compared to $447.8 million in 2024.
