Sea Shares Rise 14.56% After Second-Quarter Results and Higher Shopee Profit Outlook

Market reaction and quarterly results

Sea ADS rose $16.71, or 14.56%, to $131.51 on August 11 after Sea released second-quarter 2026 results before the U.S. market opened. The shares traded near their $131.94 session high, and volume reached 15.18 million shares, about 2.48 times the August 10 volume, according to StockAnalysis market data.

Contemporaneous Reuters reporting linked the move to the earnings release and revenue exceeding reported analyst expectations. Market data cannot isolate the respective effect of the revenue beat, segment operating performance, Shopee monetization, and the revised profit outlook disclosed together.

Sea reported $7.8 billion in GAAP revenue for the quarter ended June 30, up 48.1% from a year earlier. Gross profit rose 47.3% to $3.5 billion, adjusted EBITDA increased 10.6% to $917.2 million, and net income increased 10.6% to $458.1 million, according to the company’s quarterly release.

Shopee growth and revised earnings target

Shopee generated $38.3 billion in gross merchandise value, up 28.4%, and processed 4.2 billion orders, up 27.5%. Its revenue rose 48.2% to $5.6 billion, while adjusted EBITDA increased 12.2% to $255.4 million. Shopee supplied most of Sea’s revenue during the quarter.

Core marketplace revenue increased 65.6% to $4.3 billion, a faster rate than Shopee GMV growth. This supports the inference that monetization contributed materially to revenue growth. Management said on the earnings call that advertising revenue grew more than 70%, advertising take rate increased by more than 90 basis points, monthly active buyers grew 18%, and purchase frequency rose 8%.

Sea retained its approximately 25% full-year Shopee GMV-growth target. It also said Shopee should produce more than $1 billion of 2026 adjusted EBITDA, replacing its prior target of no less than Shopee’s more-than-$880 million 2025 result. Based on first-half results, exceeding $1 billion requires more than approximately $522 million of second-half Shopee adjusted EBITDA, at least about 9% above the first-half total.

Management identified weaker local currencies against the U.S. dollar and a tougher fourth-quarter GMV comparison as risks to the full-year Shopee target. The outlook also depends on sustaining growth amid competitive pricing, shipping subsidies, and investment, according to management’s call comments.

Monee credit and Garena earnings

Monee revenue rose 58.9% to $1.4 billion and adjusted EBITDA rose 12.8% to $288 million. Loans outstanding reached $11.1 billion, up 62.5% year over year. Loans more than 90 days past due remained 1.0% of outstanding principal from the prior quarter.

The expanding loan book increases Monee’s potential earnings contribution and its exposure to underwriting and funding conditions. Analysts asked about higher credit-loss provisions during the call. CFO Tony Hou said the increase reflected a larger mix of off-Shopee SPayLater loans and Brazilian loans, which carry higher risk. The reported delinquency ratio supports management’s assessment of credit quality at quarter-end, while further expansion into Brazil, off-Shopee purchases, and new borrower groups remains an uncertainty.

Garena bookings increased 15.5% to $763.5 million, revenue increased 33.5% to $746.6 million, and adjusted EBITDA increased 16.7% to $429.8 million. Garena was Sea’s largest segment-level adjusted-EBITDA contributor, and Free Fire continued to attract more than 100 million average daily active users. Sea’s results therefore included growth in Shopee, Monee, and Garena.

Beginning with third-quarter 2026 reporting, Sea will exclude changes in Garena deferred revenue and related costs from adjusted EBITDA. The change may complicate sequential and year-over-year adjusted-EBITDA comparisons. Management also discussed Palworld Online, Monster Hunter Outlanders, and a planned standalone Brazilian Monee app, but their timing and commercial performance remain unverified.

MacroShed Markets is informational analysis, not investment advice.