Sea Ltd’s net profit rose 10.6% year-on-year in the second quarter of 2026, as its three core businesses remained profitable even as higher marketing spend and credit costs weighed on earnings growth.
The Singapore-based tech group posted a net income of $458.1 million for the three months ended June, compared with $414.2 million a year earlier.
Operating income rose at a faster 33.3% to $650.3 million, while adjusted EBITDA increased 10.6% to $917.2 million.
Revenue, meanwhile, surged 48.1% to $7.79 billion, while gross profit climbed 47.3% to $3.55 billion.
The gap between Sea Ltd’s topline and profit growth came as expenses continued to rise.
Sales and marketing expenses jumped 64.5% to $1.66 billion, while provisions for credit losses surged 71.5% to $555.2 million as the group expanded its lending business.
Total operating expenses rose 50.9% to $2.9 billion. Gross cash position also slightly weakened to $10.3 billion during the quarter, from $10.6 billion a year ago.
Shopee on $1b track
Shopee posted $255.4 million in adjusted EBITDA in the second quarter, up 12.2% year-on-year.
“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,” Forrest Li, Sea Ltd’s Chairman and Chief Executive Officer, said.
“With this solid momentum, we are optimistic that Shopee will achieve the milestone of $1 billion in adjusted EBITDA for the full year,” he added.
Shopee’s gross merchandise value grew 28.4% to $38.3 billion during the quarter, while gross orders rose 27.5% to 4.2 billion.
Revenue jumped 48.2% to $5.6 billion.
Core marketplace revenue, which mainly includes transaction fees and advertising, grew even faster at 65.6% to $4.3 billion, signalling higher monetisation of transactions on the platform.
Value-added services revenue, largely from logistics, declined 9% to $676.4 million due to higher shipping subsidies being netted against revenue.
Monee loans hit $11.1b
Monee remained Sea’s fastest-growing major business by revenue, although the rapid expansion of its loan book was accompanied by a sharp increase in credit-loss provisions at the group level.
Revenue at the digital financial services arm rose 58.9% year-on-year to $1.4 billion, while adjusted EBITDA grew 12.8% to $288 million.
Consumer and SME loans outstanding reached $11.1 billion as of end-June, up 62.5% from a year earlier.
Loans more than 90 days past due date remained at 1% of outstanding principal, unchanged quarter-on-quarter.
The credit expansion has increasingly made Monee a bigger earnings contributor to Sea Ltd, but also a larger source of balance-sheet risk. The group’s provision for credit losses rose to $555.2 million during the quarter from $323.7 million a year earlier.
Li said only a fraction of Sea Ltd’s users currently use Monee’s financial products, giving the company “confidence in Monee’s long-term growth and earnings potential.”
Garena earnings rise 17%
Garena also delivered higher earnings during the quarter, with adjusted EBITDA rising 16.7% to $429.8 million.
Bookings increased 15.5% to $763.5 million, while revenue rose 33.5% to $746.6 million.
Adjusted EBITDA represented 56.3% of bookings, up from 55.7% a year earlier.
Quarterly paying users rose 10.2% to 68.1 million, while the paying user ratio improved to 10.2% from 9.3%.
Average bookings per user increased to $1.15 from $0.99.
Quarterly active users, however, were largely flat at 666.3 million, versus 664.8 million in the same period last year.
Free Fire continued to anchor the gaming business, attracting more than 100 million average daily active users, while Sea Ltd is looking to broaden Garena’s portfolio with Palworld Online and Monster Hunter Outlanders.
“Our strong momentum from the first quarter has continued into the second… We will continue to invest prudently in serving more users and serving them better, broadening our foundation for profitable growth into the future,” Li said.
