SEA (NYSE:SE) Releases Quarterly Earnings Results, Misses Estimates By $0.10 EPS

SEA (NYSE:SE) released its quarterly earnings data on Tuesday. The Internet company based in Singapore reported $0.67 EPS for the quarter, missing the consensus estimate of $0.77 by ($0.10), FiscalAI reports. The company had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $6.46 billion. SEA had a return on equity of 15.20% and a net margin of 6.93%.The firm’s quarterly revenue 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 Stock Up 12.6%

SEA stock traded up $10.72 during trading hours on Tuesday, hitting $95.59. 9,152,340 shares of the stock traded hands, compared to its average volume of 5,322,442. The firm’s 50-day moving average price is $86.21 and its two-hundred day moving average price is $114.63. The company has a current ratio of 1.58, a quick ratio of 1.57 and a debt-to-equity ratio of 0.04. The company has a market cap of $58.41 billion, a PE ratio of 37.91, a PEG ratio of 0.89 and a beta of 1.57. SEA has a one year low of $77.05 and a one year high of $199.30.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on SE shares. Sanford C. Bernstein decreased their price objective on SEA from $170.00 to $150.00 and set an “outperform” rating on the stock in a report on Wednesday, March 4th. JPMorgan Chase & Co. decreased their price objective on SEA from $170.00 to $168.00 and set an “overweight” rating on the stock in a report on Monday, April 20th. Bank of America reiterated a “buy” rating and issued a $125.00 price objective on shares of SEA in a report on Monday, March 9th. Jefferies Financial Group restated a “buy” rating and set a $150.00 price target on shares of SEA in a report on Tuesday, March 3rd. Finally, Barclays reduced their price target on SEA from $226.00 to $120.00 and set an “overweight” rating on the stock in a report on Thursday, March 5th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $161.66.

Insider Transactions at SEA

In other news, 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 value of $66,992.00. Following the sale, the insider directly owned 18,000 shares of the company’s stock, valued at $1,507,320. The trade was a 4.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Jingye Chen 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 value of $66,992.00. Following the completion of the sale, the insider directly owned 210,400 shares in the company, valued at approximately $17,618,896. This represents a 0.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,568,052 shares of company stock valued at $137,823,797 in the last ninety days. 0.22% of the stock is currently owned by corporate insiders.

Institutional Trading of SEA

A number of hedge funds have recently made changes to their positions in SE. Cloud Capital Management LLC lifted its position in SEA by 8.0% in the 4th quarter. Cloud Capital Management LLC now owns 2,005 shares of the Internet company based in Singapore’s stock valued at $255,000 after acquiring an additional 148 shares in the last quarter. Advisory Services Network LLC lifted its position in SEA by 7.1% in the 4th 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 in the last quarter. Zions Bancorporation National Association UT lifted its position in SEA by 539.6% in the 4th quarter. Zions Bancorporation National Association UT now owns 307 shares of the Internet company based in Singapore’s stock valued at $39,000 after acquiring an additional 259 shares in the last quarter. Arkadios Wealth Advisors lifted its position in SEA by 11.1% in the 4th quarter. Arkadios Wealth Advisors now owns 3,221 shares of the Internet company based in Singapore’s stock valued at $411,000 after acquiring an additional 322 shares in the last quarter. Finally, Brooklyn Investment Group lifted its position in SEA by 7.7% in the 4th quarter. Brooklyn Investment Group now owns 7,966 shares of the Internet company based in Singapore’s stock valued at $1,043,000 after acquiring an additional 567 shares in the last quarter. 59.53% of the stock is owned by institutional investors.

SEA News Roundup

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Sea reported first-quarter revenue of $7.1 billion, topping analyst estimates and showing continued rapid growth across its business. Sea Limited Reports First Quarter 2026 Results
• Positive Sentiment: The company also posted net income of $438.2 million and adjusted EBITDA of about $1.0 billion, reinforcing that growth is still being backed by solid operating performance. Sea Limited Reports First Quarter 2026 Results
• Neutral Sentiment: Sea’s earnings per share missed estimates at $0.67 versus the $0.77 consensus, which tempers an otherwise strong report. Sea (NYSE:SE) Delivers Strong Q1 CY2026 Numbers, Stock Soars
• Neutral Sentiment: Several insider sales were disclosed, including transactions by COO Gang Ye and insiders Jingye Chen and Yanjun Wang, but the sales were relatively small compared with their remaining holdings.
• Negative Sentiment: The EPS miss may limit upside if investors become more focused on profitability execution rather than just top-line growth. Sea Limited shares rise on strong revenue beat

About SEA

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.