Sea Limited has reported exceptional financial performance for the second quarter of 2026, showcasing robust growth across its core business segments: e-commerce (Shopee), digital financial services (Monee), and digital entertainment (Garena). The company achieved a remarkable 48% year-over-year increase in total revenue, reaching $7.8 billion, alongside a substantial adjusted EBITDA of over $917 million. This success is attributed to strategic investments in user acquisition, operational efficiency, and market expansion. Shopee's continuous momentum, Monee's expanding credit business, and Garena's sustained engagement through fresh content are key drivers of this strong showing, positioning Sea Limited for continued profitable growth.
During the second quarter of 2026, Shopee, Sea Limited's e-commerce arm, maintained its impressive growth trajectory, with Gross Merchandise Value (GMV) increasing by 28% year-over-year. This marked the eighth consecutive quarter of sequential growth, alongside new peaks in gross order volume and revenue. Shopee's adjusted EBITDA surpassed $250 million, reflecting enhanced operational efficiency and economies of scale. The company's efforts in user acquisition, including brand awareness campaigns, content channel expansion, and diverse logistics options, led to a more than 35% year-over-year increase in average monthly new active buyers. Monetization strategies also proved successful, with advertising revenue up over 70% and an improved ad take rate, supported by AI-driven tools for personalized vouchers and enhanced ad performance analysis.
Logistics capabilities played a crucial role in Shopee's service excellence, with instant delivery services now offering as fast as one-hour delivery in urban areas. This has facilitated expansion into high-frequency categories like groceries and pharmacy items. In Indonesia, order volumes for instant delivery services surged by approximately 80% year-over-year, while costs per order decreased by about 20%. The ShopeeVIP membership program also expanded significantly, exceeding 15 million members across Asia and Brazil, contributing 24% of GMV in Asia and demonstrating high engagement and retention rates. Content ecosystem enhancements, particularly in live streaming and short-form video, contributed over 25% of physical goods orders in Southeast Asia, with improved unit economics and strategic partnerships with platforms like Facebook and Instagram further boosting affiliate orders. Brazil emerged as the fastest-scaling market, outperforming overall market GMV growth and onboarding nearly 500 new official brands, with GMV from Shopee Mall sellers more than doubling year-over-year.
Monee, Sea Limited's digital financial services division, also delivered a strong quarter, primarily driven by its credit business. The loan book grew to $11.1 billion by the end of June, a 52% increase year-over-year, with asset quality remaining stable and a 90-day Non-Performing Loan (NPL) ratio of 1.0%. The Philippines became the third market to surpass $1 billion in loan book value. Advances in credit risk capabilities, utilizing AI-based behavioral and transactional data models, improved loan approval rates by approximately 10% while maintaining risk levels. Strategic partnerships with local mobile operators in Indonesia and Open Finance data in Brazil further strengthened risk assessment. Efforts to acquire new users and deepen engagement with existing ones, such as interest-free SPayLater loans and promotional rates for personal cash loans, resulted in 5.3 million new first-time borrowers and over 40 million active credit users, representing 34% year-over-year growth. The stand-alone ShopeePay app is also expanding its reach, with plans for a launch in Brazil.
Garena, the digital entertainment segment, reported robust performance with bookings increasing by 15% year-over-year to $764 million. Free Fire continued its global expansion, maintaining over 100 million average daily active users through continuous content updates and localized experiences, such as the "Undersea Mystery" campaign and "Fire Kickoff" campaign inspired by the World Cup. The company is also diversifying its portfolio with new mobile games like "Palworld Online" (global publishing) and "Monster Hunter Outlanders" (launching in Southeast Asia, Latin America, Taiwan, and potentially the Middle East). These collaborations with Pocketpair and Tencent highlight Garena's commitment to strengthening its development and publishing capabilities and offering high-quality gaming experiences. Despite an increase in credit loss provisions primarily due to a higher mix of loans in high-risk markets like Brazil and off-Shopee SPayLater segments, Sea Limited maintains stable NPL ratios for specific products and countries and anticipates positive returns on assets from these growth initiatives.
Overall, Sea Limited's second quarter of 2026 showcased impressive financial results across all its key segments. The company's strategic focus on strengthening Shopee's logistics and user engagement, expanding Monee's credit offerings through advanced AI-driven risk management, and diversifying Garena's gaming portfolio with new titles has been instrumental in driving significant revenue growth and enhanced profitability. Management's confidence in achieving a full-year adjusted EBITDA target of $1 billion for Shopee underscores its commitment to disciplined investments and operational excellence. The emphasis on sustained market leadership, user penetration, and continuous efficiency improvements positions Sea Limited for long-term profitable expansion in its diverse markets.
