Quick jump links#
- Key developments & market reaction
- Q2 financial highlights
- Segment synthesis: Shopee, Garena, Monee
- Financial position & analyst estimates
- [Why did SE surge after Q2 results?](#why-did-se-stock-surge-after-q2-results)
- What this means for investors
- Key takeaways
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Sea Limited revenue growth and cross‑segment profitability produced a material market re‑rating: shares of SE jumped +19.02% intraday after the print, driven by a combination of top‑line beats and outsized Adjusted EBITDA expansion. The quarter represented a simultaneous scale and margin inflection across Shopee, Garena and Monee.
The immediate market reaction reflected a shift in investor focus from headline EPS to cash‑flow and operating leverage. While headline EPS reporting showed variance across sources (see below), the persistent theme in corporate materials and the investor response was sustained revenue growth with improving unit economics.
Key developments & market reaction#
Sea reported a total GAAP revenue of $5.30 billion (+38.20% YoY) and total Adjusted EBITDA of $829 million (+84.90%), results that were central to the stock move. These company disclosures are summarized in Sea’s Q2 press materials and investor presentation. Sea press release (BusinessWire) and the Sea Q2 2025 investor presentation provide the segment detail behind the consolidated numbers.
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Intraday price action recorded a move of +19.02% to a last trade near $174.04 (change +$27.81) in Monexa AI’s quote snapshot; market coverage flagged the rally as a reaction to the revenue beat and cross‑segment margin improvement rather than the reported EPS variance. See the market coverage on the post‑release move for context: GuruFocus and Nasdaq coverage.
A data discrepancy requires attention: some media summaries referenced a different headline EPS figure than other datasets. Monexa AI’s earnings log shows an EPS result of $0.904 (actual) vs estimate $0.99 on the release date, while some narrative summaries cited alternate EPS values. Where conflicts exist we prioritize Sea’s official investor materials and the consolidated disclosure in the investor presentation; Monexa AI is used to reconcile intraday quote and historical fundamentals.
Q2 financial highlights#
Sea’s quarter was driven by broad‑based strength. From company slides and the press release: Shopee led GMV and marketplace monetization, Garena produced steady bookings and margin, and Monee delivered rapid loan‑book expansion with controlled credit metrics. The consolidated beat was credible because it was visible in each revenue engine rather than a single outlier segment. Sea investor presentation.
| Metric | Q2 2025 (reported) | YoY |
|---|---|---|
| Total GAAP revenue | $5.30B | +38.20% |
| Total Adjusted EBITDA | $829M | +84.90% |
| Shopee GAAP revenue | $3.80B | +33.70% |
| Shopee GMV | $29.80B | +28.20% |
| Garena bookings | $661.3M | +23.20% |
| Garena GAAP revenue | $559.1M | +28.40% |
| Monee GAAP revenue | $882.8M | +70.00% |
| Monee loan book | $6.90B | +94.00% |
Source: Sea Q2 2025 investor presentation and company press release (BusinessWire.
Segment synthesis: Shopee, Garena, Monee#
Shopee: the e‑commerce engine produced $3.80B in GAAP revenue (+33.70%) on $29.80B GMV (+28.20%). Management cited marketplace monetization and ad take‑rate improvements as the drivers of the margin inflection that produced a positive Adjusted EBITDA contribution for the segment in the quarter (company materials). Sea investor presentation.
Garena: bookings of $661.3M (+23.20%) converted into GAAP revenue of $559.1M (+28.40%) with sustained Adjusted EBITDA expansion. The combination of evergreen franchise cash‑generation and disciplined live‑ops spending produced stable margin performance in the quarter (company presentation).
Monee: the financial‑services arm posted $882.8M in revenue (+70.00%) and expanded the loan book to $6.90B (+94.00%) while keeping the reported 90‑day NPL at 1.00%. That profile — rapid balance‑sheet growth with low near‑term delinquency — supports the narrative of profitable scale in consumer and SME credit (Sea investor presentation).
Financial position & analyst estimates#
Sea’s FY2024 consolidated figures show a revenue base of $16.81B and net income of $444.04M; cash and short‑term investments were $8.62B with total debt of $4.12B and net debt $1.72B at year‑end, per company filings summarized by Monexa AI. These items underpin a current liquidity cushion while the company converts operating gains into free cash flow (FY2024 free cash flow: $2.96B) Monexa AI.
Key ratios from Monexa AI include a TTM P/E around 117.36x, return on equity 10.90%, and net debt to EBITDA ~1.38x, which together describe a growth company moving toward stronger cash generation while still trading at premium multiples relative to mature peers. Monexa AI
| Metric (FY2024 / TTM) | Value |
|---|---|
| Revenue (FY2024) | $16.81B |
| Net income (FY2024) | $444.04M |
| Cash & short term investments | $8.62B |
| Free cash flow (FY2024) | $2.96B |
| Net debt | $1.72B |
| P/E (TTM) | 117.36x |
| Net debt / EBITDA (TTM) | 1.38x |
Source: Monexa AI.
Why did SE stock surge after Q2 results?#
Sea’s shares rallied because the company delivered a broad revenue beat (+38.20%) and outsized Adjusted EBITDA growth (+84.90%), showing that scale across Shopee, Garena and Monee was translating into cash‑flow improvement — a combination investors have been waiting to see. (45 words)
Supporting detail: investors rewarded the evidence of profitable growth and the clear improvement in free cash flow for the quarter. Market commentary emphasized the revenue beat and cross‑segment margin gains as the primary re‑rating catalysts rather than the headline EPS variance. See coverage: GuruFocus.
| Segment | Q2 2025 YoY revenue growth |
|---|---|
| Shopee | +33.70% |
| Garena | +28.40% |
| Monee | +70.00% |
Source: Sea Q2 investor presentation.
What this means for investors#
Capital allocation: Sea’s mix of investments (R&D ~$1.20B in FY2024; R&D / revenue TTM 6.68%) versus the clear free cash flow generation suggests management is balancing growth initiatives with profitability targets. The company’s ability to convert scale into cash changes the investment case from ‘growth‑at‑all‑costs’ to ‘growth with improving returns’ (Monexa AI).
Risk profile: rapid loan book expansion in Monee necessitates continued focus on underwriting and provisioning even though the reported 90‑day NPL was 1.00% in Q2. The balance sheet (cash + short‑term investments $8.62B vs total debt $4.12B) gives Sea room to fund strategic priorities without immediate capital raising.
Catalysts to watch: sustained Shopee monetization (ad take rates and marketplace service penetration), Monee asset quality and margin, and Garena bookings trajectory. Analysts’ forward EPS and revenue estimates (Monexa AI) will adjust to continued evidence of durable margin improvement.
Key takeaways#
Sea’s Q2 print combined revenue scale (+38.20%) with meaningful Adjusted EBITDA expansion (+84.90%), producing a +19.02% intraday price reaction that prioritized cash‑flow signals over headline EPS mismatch.
- Shopee: profitable GMV growth and improved monetization (+33.70% revenue; +28.20% GMV).
- Garena: durable bookings and margin recovery (+28.40% revenue).
- Monee: rapid loan book growth (+94.00%) with stable 90‑day NPL (1.00%).
Investors should track execution on monetization levers and Monee’s asset‑quality metrics as primary indicators of whether this quarter represents a durable strategic inflection or a transitory improvement. Sources: Sea press release, Sea investor presentation and Monexa AI.