Sea Limited's First Quarter Delivers Record Revenue Growth, Led by Shopee, Monee, and Garena
Revenue Growth Remains Robust Across Core Business Segments
Sea Limited (NYSE:SE) started 2026 with strong momentum, as revenue for the first quarter jumped 46.6% year-on-year to $7.10 billion. All major business lines posted double-digit increases, underscoring the company’s expanding competitive moat and ongoing investments in core markets. Gross profit rose 40.7% to $3.15 billion, and net income reached $438.2 million—up 6.7% from the prior year period.
| Segment | Q1 2026 Revenue ($M) | YoY Growth (%) |
|---|---|---|
| Shopee | 4,503 | 44.4 |
| Monee | 1,242 | 57.8 |
| Garena | 697 | 40.6 |
| Sales of goods | 612 | 50.6 |
| Total | 7,097 | 46.6 |
Shopee Sets New Records with Order and Revenue Expansion
Shopee’s performance was among the quarter’s highlights. The platform processed 4.0 billion orders (up 29.3%) and delivered $37.3 billion in GMV, marking a 30.2% increase from last year. Revenue for Shopee climbed to $4.5 billion. Meanwhile, the ecosystem’s focus on scale hasn’t come at the expense of profitability: Shopee’s adjusted EBITDA stood at $223.2 million, albeit slightly lower than Q1 2025, reflecting reinvestment into logistics and long-term user engagement.
Monee Grows Lending Business and Keeps Asset Quality Stable
Monee reported a 57.8% surge in revenue to $1.24 billion, largely due to a sharp increase in its consumer and SME credit business. Outstanding loan principal leaped 71.3% to $9.9 billion. Importantly, non-performing loans (90+ days past due) held steady at 1.1%, highlighting disciplined asset quality even as Monee’s presence grows in new markets like Brazil. The segment’s adjusted EBITDA rose 14% to $275.2 million for the quarter.
Garena Delivers Its Best Quarter Since 2021
Garena’s stellar quarter saw bookings rise 20.1% to $931.4 million and revenue climb 40.6% to $696.6 million. The digital entertainment arm recorded its highest adjusted EBITDA in years at $573.6 million, supported by a jump in both active and paying users. Notably, paying user ratio improved to 10.9% from 9.8% last year, and average bookings per user increased to $1.40.
| Key Garena Metrics | Q1 2025 | Q1 2026 | YoY Change (%) |
|---|---|---|---|
| Bookings ($M) | 775.6 | 931.4 | 20.1 |
| Revenue ($M) | 495.6 | 696.6 | 40.6 |
| Active Users (M) | 661.8 | 666.5 | 0.7 |
| Paying Users (M) | 64.6 | 72.6 | 12.4 |
| Average Bookings/User ($) | 1.17 | 1.40 | 19.7 |
Cost Increases Reflect Growth Investments and Market Expansion
Total cost of revenue rose 51.7% year-on-year to $3.95 billion, driven by expanding logistics at Shopee, scaling loan business at Monee, and content spend at Garena. Sales and marketing expenses surged 52.1% to $1.41 billion, with the largest increase from Monee. Despite this, Sea’s net income improved, showing that growth investments were offset by gains in scale and operating leverage.
Disciplined Capital Management Through Share Buybacks
Sea continued its $1 billion share repurchase program during the first quarter, buying back 1.8 million shares for $168.4 million. This signals management’s confidence in the company’s long-term value and ability to balance growth and shareholder returns.
Key Takeaways: Strategic Growth with Quality and Scale
Sea’s Q1 results highlight the benefits of its strategy: revenue and user KPIs are expanding rapidly while maintaining financial discipline and improving unit economics in key business lines. As the company invests heavily for future growth, particularly in e-commerce and digital finance, it keeps asset quality and operating margins in focus. The use of AI and practical tech deployment were also highlighted by management as levers for future efficiency and opportunity.
Investors will want to watch upcoming quarters for progress on Shopee’s GMV and profitability targets, the evolving risk profile of Monee’s credit expansion, and Garena’s ability to sustain user engagement. With Sea affirming confidence in its full-year guidance, the company’s balancing act between ambition and discipline appears firmly on track.
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