SEA (NYSE:SE) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

SEA (NYSE:SE) issued its earnings results on Tuesday. The Internet company based in Singapore reported $0.67 EPS for the quarter, missing the consensus estimate of $0.75 by ($0.08), FiscalAI reports. The firm had revenue of $7.10 billion during the quarter, compared to analyst estimates of $6.46 billion. SEA had a net margin of 6.93% and a return on equity of 15.20%. The firm’s revenue for the quarter was up 46.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.65 EPS.

Here are the key takeaways from SEA’s conference call:

• Sea delivered a very strong Q1 2026, with revenue up 47% year over year to $7.1 billion and adjusted EBITDA topping $1 billion for the first time. Management said it is leaning into growth investments while still maintaining financial discipline.
• Shopee posted record results, with GMV rising 30%, gross orders up 29%, and adjusted EBITDA of $223 million. Monetization improved meaningfully, helped by an 80% jump in ad revenue, faster buyer growth, and stronger engagement from Shopee VIP and content-led shopping.
• Sea is seeing encouraging momentum in logistics and fulfillment, including faster delivery times, lower delivery costs for instant services, and broader adoption of same-day and next-day options. Brazil and Taiwan were highlighted as key areas of expansion, with Brazil remaining profitable while the company continues to build out fulfillment infrastructure.
• SeaMoney continues to scale rapidly, with loan principal outstanding reaching $9.9 billion, up more than 70% year over year, while 90-day NPLs stayed stable at 1.1%. Growth is being driven by deeper penetration with existing users, expansion into off-Shopee use cases, and strong traction in Brazil.
• Garena had its best quarter since 2021, as bookings rose 20% and adjusted EBITDA increased 25% year over year. Free Fire and Arena of Valor both benefited from successful content collaborations and seasonal events, and management said it expects continued strong full-year bookings growth.

SEA Price Performance

SE traded down $0.91 during midday trading on Wednesday, hitting $95.12. The company had a trading volume of 3,633,460 shares, compared to its average volume of 5,365,419. SEA has a twelve month low of $77.05 and a twelve month high of $199.30. The company has a market capitalization of $58.12 billion, a PE ratio of 37.73, a P/E/G ratio of 0.87 and a beta of 1.57. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.57 and a current ratio of 1.58. The firm’s 50-day simple moving average is $85.97 and its 200-day simple moving average is $114.20.

More SEA News

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Sea posted Q1 2026 revenue of $7.1 billion, up 46.6% year over year and above estimates, showing broad-based demand strength across its businesses. Sea Limited Reports First Quarter 2026 Results
• Positive Sentiment: Management highlighted record Shopee gross merchandise value, Garena’s best quarter since 2021, and continued expansion in its financial services business, reinforcing the growth story. Sea (SE) Is Up 13.7% After Broad-Based Q1 Strength And Record Shopee GMV – What’s Changed
• Positive Sentiment: The company also delivered net income of $438.2 million and adjusted EBITDA of $1.0 billion, suggesting improving profitability and operating leverage. Sea Limited Posts Robust Q1 2026 Results as Shopee, Monee and Garena Drive Growth
• Neutral Sentiment: Offsetting the top-line beat, EPS of $0.67 missed the $0.75-$0.77 consensus range, which could limit upside if investors shift back to margins and earnings quality. Sea (NYSE:SE) Delivers Strong Q1 CY2026 Numbers, Stock Soars
• Negative Sentiment: Recent insider sales by executives, including COO Gang Ye and insider Jingye Chen, may create a mild overhang, though the transactions were relatively small. SEC filing

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SE. Barclays reduced their price target on shares of SEA from $226.00 to $120.00 and set an “overweight” rating on the stock in a research report on Thursday, March 5th. Sanford C. Bernstein cut their target price on shares of SEA from $170.00 to $150.00 and set an “outperform” rating for the company in a research note on Wednesday, March 4th. Bank of America reissued a “buy” rating and issued a $125.00 target price on shares of SEA in a report on Monday, March 9th. TD Cowen restated a “hold” rating on shares of SEA in a research report on Wednesday. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of SEA in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $161.66.

Insider Activity

In related news, COO Gang Ye sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $83.67, for a total value of $836,700.00. Following the completion of the sale, the chief operating officer owned 330,000 shares of the company’s stock, valued at $27,611,100. This trade represents a 2.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Yanjun Wang sold 800 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $83.74, for a total transaction of $66,992.00. Following the completion of the transaction, the insider owned 18,000 shares of the company’s stock, valued at $1,507,320. This trade represents a 4.26% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,568,052 shares of company stock valued at $137,823,797 over the last three months. 0.22% of the stock is owned by insiders.

Institutional Investors Weigh In On SEA

Institutional investors and hedge funds have recently made changes to their positions in the company. Advisory Services Network LLC boosted its holdings in SEA by 7.1% in the fourth quarter. Advisory Services Network LLC now owns 3,609 shares of the Internet company based in Singapore’s stock valued at $460,000 after acquiring an additional 239 shares during the last quarter. State of Tennessee Department of Treasury lifted its position in SEA by 5.4% during the 2nd quarter. State of Tennessee Department of Treasury now owns 543,203 shares of the Internet company based in Singapore’s stock valued at $86,880,000 after purchasing an additional 27,964 shares during the period. Woodline Partners LP bought a new position in shares of SEA in the 1st quarter valued at about $4,028,000. Armistice Capital LLC boosted its stake in shares of SEA by 254.8% in the 3rd quarter. Armistice Capital LLC now owns 22,000 shares of the Internet company based in Singapore’s stock valued at $3,932,000 after purchasing an additional 15,800 shares during the last quarter. Finally, Align Financial LLC acquired a new stake in shares of SEA during the 4th quarter worth approximately $2,897,000. Institutional investors own 59.53% of the company’s stock.

SEA Company Profile

Sea Limited (NYSE: SE) is a Singapore-based consumer internet company that operates a trio of interconnected businesses across digital entertainment, e-commerce and digital financial services. Founded in 2009 as Garena and later rebranded as Sea, the company is headquartered in Singapore and listed on the New York Stock Exchange. Sea positions itself as a technology platform focused on enabling online consumers, merchants and developers primarily across Southeast Asia and adjacent markets.

Sea’s digital entertainment arm, Garena, is a game developer and publisher that also organizes esports initiatives and operates online gaming platforms.