SINGAPORE: Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the second quarter ended June 30, 2026.

In the second quarter of 2026, Sea’s GAAP revenue was US$7.8 billion, up 48.1% year-on-year. The Company also achieved gross profit of US$3.5 billion, up 47.3% year-on-year, and net income of US$458.1 million, up 10.6% year-on-year. Adjusted EBITDA1 increased by 10.6% year-on-year to reach US$917.2 million.

“Our strong momentum from the first quarter has continued into the second. Our investments have enabled Shopee and Monee to continue to strengthen our market leadership while improving our user penetration. We will continue to invest prudently in serving more users and serving them better, broadening our foundation for profitable growth into the future,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.

On Shopee, he said, “Shopee has delivered a strong first half of 2026. We again achieved new highs in GMV, gross order volume and revenue in the second quarter. Our improving operational efficiency and growing scale have strengthened our unit economics. With this solid momentum, we are optimistic that Shopee will achieve the milestone of US$1 billion in adjusted EBITDA for the full year.”

On Monee, Mr. Li said, “Monee also delivered another great quarter, with broad-based growth across our products and markets. The advances in our risk capabilities are compounding: each improvement helps us serve more users, serve them better, and reach further beyond Shopee. We are still at an early stage of growth. Only a fraction of the users across our ecosystem are using Monee's financial products today, and credit penetration remains low across our markets. This gives us great confidence in Monee's long-term growth and earnings potential.”

On Garena, Mr. Li said, “Garena delivered another strong quarter across bookings and profitability. Free Fire anchored this strong performance, continuing to draw in over 100 million average daily active users. We continue to work towards diversifying our portfolio with two recently announced mobile games: Palworld Online and Monster Hunter Outlanders, both built on strong, globally recognized IP. We remain committed to delivering the high-quality experiences our players know us for.”

Second Quarter 2026 Business Highlights

• Shopee
  • Gross orders totaled 4.2 billion for the quarter, increasing by 27.5% year-on-year.
  • GMV was US$38.3 billion for the quarter, increasing by 28.4% year-on-year.
  • GAAP revenue was US$5.6 billion, up 48.2% year-on-year.
  • GAAP revenue included US$4.9 billion of GAAP marketplace revenue, which consists of core marketplace revenue and value-added services revenue and increased by 48.9% year-on-year.
    • Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 65.6% year-on-year to US$4.3 billion.
    • Value-added services revenue, mainly consisting of revenues related to logistics services, was down 9.0% year-on-year to US$676.4 million as a result of higher revenue net-off against shipping subsidies.
  • Adjusted EBITDA1 was US$255.4 million, up 12.2% year-on-year.
    /li>
• Monee
  • GAAP revenue was US$1.4 billion, up 58.9% year-on-year.
  • Adjusted EBITDA1 was US$288.0 million, up 12.8% year-on-year.
  • Monee revenue and operating income are primarily attributed to the consumer and SME credit business. As of June 30, 2026, consumer and SME loans principal outstanding was US$11.1 billion, up 62.5% year-on-year. This consists of US$10.0 billion on-book and US$1.1 billion off-book loans principal outstanding2.
  • Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding2, was 1.0%, stable quarter-on-quarter.
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• Garena
  • Bookings3 were US$763.5 million, up 15.5% year-on-year.
  • GAAP revenue was US$746.6 million, up 33.5% year-on-year.
  • Adjusted EBITDA1 was US$429.8 million, up 16.7% year-on-year.
  • Adjusted EBITDA represented 56.3% of bookings for the second quarter of 2026, as compared to 55.7% for the second quarter of 2025.
  • Quarterly active users were 666.3 million, as compared to 664.8 million for the second quarter of 2025.
  • Quarterly paying users were 68.1 million, up 10.2% year-on-year. Paying user ratio was 10.2%, as compared to 9.3% for the second quarter of 2025.
  • Average bookings per user were US$1.15, as compared to US$0.99 for the second quarter of 2025.
  • We currently include the net effect of changes in deferred revenue and its related cost in Adjusted EBITDA. Beginning with our earnings release for the third quarter of 2026, we will exclude this effect from Adjusted EBITDA but continue to disclose it as supplemental information.

Share Repurchase Program

During the second quarter of 2026, pursuant to our US$1.0 billion share repurchase program, we have repurchased 4.7 million shares for an aggregate amount of US$416.8 million.

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

Revenue

Our total GAAP revenue increased by 48.1% to US$7.8 billion in the second quarter of 2026 from US$5.3 billion in the second quarter of 2025. The table below sets forth our revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).

• Shopee: GAAP revenue increased by 48.9% to US$4.9 billion in the second quarter of 2026 from US$3.3 billion in the second quarter of 2025, primarily driven by the growth of GMV and improved monetization.
• Monee: GAAP revenue increased by 58.9% to US$1.4 billion in the second quarter of 2026 from US$882.8 million in the second quarter of 2025, primarily driven by the growth of our credit business as our lending activities increased.
• Garena: GAAP revenue increased by 33.5% to US$746.6 million in the second quarter of 2026 from US$559.1 million in the second quarter of 2025. This increase was primarily due to the increase in our active user base as well as the deepened paying user penetration.
• Sales of goods: GAAP revenue increased by 42.8% to US$657.7 million in the second quarter of 2026 from US$460.6 million in the second quarter of 2025.

Cost of Revenue

Our total cost of revenue increased by 48.7% to US$4.2 billion in the second quarter of 2026 from US$2.8 billion in the second quarter of 2025. The table below sets forth our cost of revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).

(1) Other services are a combination of multiple business activities that do not meet the quantitative threshold to qualify as reportable segments.

• Shopee: Cost of revenue increased by 51.9% to US$3.2 billion in the second quarter of 2026 from US$2.1 billion in the second quarter of 2025, primarily driven by an increase in logistics costs as orders volume grew, as well as investment in our logistics capabilities for better user experience.

• Monee: Cost of revenue increased by 36.4% to US$158.1 million in the second quarter of 2026 from US$115.9 million in the second quarter of 2025, primarily driven by costs associated with our credit business, which include funding costs, collection expenses and bank transaction fees, as well as server and hosting expenses.

• Garena: Cost of revenue increased by 22.3% to US$210.3 million in the second quarter of 2026 from US$171.9 million in the second quarter of 2025, primarily from third-party payment channel costs, which was largely in line with the increase in Garena revenue, as well as an increase in royalty payments to game developers.

• Cost of goods sold: Cost of goods sold increased by 44.2% to US$623.0 million in the second quarter of 2026 from US$432.0 million in the second quarter of 2025.

Other Operating Income

Our other operating income was US$24.3 million and US$31.9 million in the second quarter of 2026 and 2025, respectively. Other operating income mainly consists of rebates from our logistics services providers.

Sales and Marketing Expenses

Our total sales and marketing expenses increased by 64.5% to US$1.7 billion in the second quarter of 2026 from US$1.0 billion in the second quarter of 2025. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).

General and Administrative Expenses

Our general and administrative expenses increased by 22.0% to US$394.4 million in the second quarter of 2026 from US$323.3 million in the second quarter of 2025.

Provision for Credit Losses

Our provision for credit losses increased by 71.5% to US$555.2 million in the second quarter of 2026 from US$323.7 million in the second quarter of 2025.

Research and Development Expenses

Our research and development expenses increased by 5.6% to US$314.2 million in the second quarter of 2026 from US$297.4 million in the second quarter of 2025.

Non-operating Income or Losses, Net

Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$65.5 million in the second quarter of 2026, as compared to a net non-operating income of US$83.3 million in the second quarter of 2025. The non-operating income in the second quarter of 2026 was primarily due to interest income of US$68.6 million.

Income Tax Expense

We had a net income tax expense of US$250.6 million and US$144.1 million in the second quarter of 2026 and 2025, respectively.

Net Income or Loss

As a result of the foregoing, our net income increased by 10.6% to US$458.1 million in the second quarter of 2026 from US$414.2 million in the second quarter of 2025.

Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited’s Ordinary Shareholders

Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.72 in the second quarter of 2026, compared to basic earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.68 in the second quarter of 2025.

Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.70 in the second quarter of 2026, compared to diluted earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.65 in the second quarter of 2025.

Webcast and Conference Call Information

The Company’s management will host a conference call today to review Sea’s business and financial performance.

Details of the conference call and webcast are as follows:

A replay of the conference call will be available at the Company’s investor relations website (www.sea.com/investor/home). An archived webcast will be available at the same link above.

About Sea Limited

Sea Limited (NYSE: SE) is a global technology company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across e-commerce, digital financial services, and digital entertainment, known as Shopee, Monee, and Garena respectively. Shopee is the largest e-commerce platform in Southeast Asia and Taiwan and is a leading e-commerce platform in Brazil. Monee is a leading digital financial services provider in Southeast Asia with a growing presence in Latin America. Garena is a leading global online games developer and publisher.

Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expect,” “anticipate,” “aim,” “future,” “intend,” “plan,” “believe,” “estimate,” “likely to,” “potential,” “confident,” “guidance,” and similar statements. Among other things, statements that are not historical facts, including statements about Sea’s beliefs and expectations, the business, financial and market outlook, and projections from its management in this announcement, as well as Sea’s strategic and operational plans, contain forward-looking statements. Sea may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Sea’s goals and strategies; its future business development, financial condition, financial results, and results of operations; the expected growth in, and market size of, the e-commerce, digital financial services, and digital entertainment industries in the markets where it operates, including segments within those industries; expected changes or guidance in its revenue, costs or expenditures; its ability to continue to source, develop and offer new and attractive online games and to offer other engaging Garena content; the expected growth of its Shopee, Monee and Garena businesses; its expectations regarding growth in its user base, level of engagement, and monetization; its ability to continue to develop new technologies and/or upgrade its existing technologies; growth and trends of its markets and competition in its industries; government policies and regulations relating to its industries, including the effects of any government orders or actions on its businesses; general economic, political, social and business conditions in its markets; and the impact of widespread health developments. Further information regarding these and other risks is included in Sea’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Sea undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to help evaluate our operating performance:

• “Adjusted EBITDA” for our Shopee segment, Monee segment and other services segment represents operating income (loss) plus depreciation and amortization expenses. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.
• “Adjusted EBITDA” for our Garena segment represents operating income (loss) plus (a) depreciation and amortization expenses, and (b) the net effect of changes in deferred revenue and its related cost for our Garena segment. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects. Beginning with our earnings release for the third quarter of 2026, we will exclude (b) from Adjusted EBITDA for our Garena segment but continue to disclose it as supplemental information.
• “Total adjusted EBITDA” represents the