Sea’s second quarter reflected robust operational momentum, with revenue growth well above market expectations, supported by strength in e-commerce and fintech. Management highlighted Shopee’s accelerated user acquisition and engagement, with market share gains in core regions and operational improvements in logistics and fulfillment. Forrest Li, CEO, credited “improving operational efficiency and growing scale” as key factors, while also noting continued progress in monetizing advertising and content channels across the platform.
Is now the time to buy SE? Find out in our full research report (it’s free for active Edge members).
Sea (SE) Q2 CY2026 Highlights:
- Revenue: $7.81 billion vs analyst estimates of $7.21 billion (45.7% year-on-year growth, 8.3% beat)
- Adjusted EPS: $0.84 vs analyst expectations of $0.86 (2.9% miss)
- Adjusted EBITDA: $917.2 million vs analyst estimates of $874 million (11.7% margin, 4.9% beat)
- Operating Margin: 8.3%, in line with the same quarter last year
- Paying Users: 68.1 million, up 6.3 million year on year
- Market Capitalization: $73.16 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Sea’s Q2 Earnings Call
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Piyush Choudhary (HSBC) asked about Shopee’s GMV outlook and AI initiatives; CFO Tony Hou described continued strong growth trends and highlighted improvements in unit economics from AI-driven advertising and buyer conversion, with a focus on maintaining investment discipline.
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Alicia Yap (Citigroup) inquired about Shopee’s outperformance and profitability trends in Brazil and Asia; CEO Forrest Li noted stable competition and market share gains, while emphasizing ongoing fulfillment investments and the gradual maturation of logistics capabilities.
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Divya Kothiyal (Morgan Stanley) questioned the sustainability of commission increases and fintech margin stabilization; Hou explained that take rate increases are being reinvested in ecosystem growth, and that Monee’s margin profile reflects intentional expansion into new markets and user segments with stable credit quality.
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John Choi (Daiwa) sought details on ad take rate upside and Monee’s Brazil strategy; Li described AI-powered ad tools and analytics as key levers for future growth, and outlined plans to localize financial services in Brazil, leveraging Shopee’s user base and data.
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Navin Killa (UBS) asked about the path to higher e-commerce margins and credit risk from larger loans; Li reiterated their target margin range is within reach as investments mature, and confirmed that average loan size increases do not correlate with higher credit risk, due to enhanced underwriting models.
Catalysts in Upcoming Quarters
As we look ahead, our analyst team will be monitoring (1) continued adoption and monetization of new AI-powered tools in Shopee, (2) the rollout and performance of Monee’s standalone fintech app in Brazil and other markets, and (3) the impact of logistics and fulfillment investments on both buyer experience and margin trends. Progress in new game launches and further integration of AI across Sea’s platforms will also be critical signposts.
Sea currently trades at $118.90, down from $131.51 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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