Sea Q4 earnings up 72.9% at US$410.9 million; targets 25% GMV growth in Shopee

[SINGAPORE] Technology company Sea on Tuesday (Mar 3) posted a net profit of US$410.9 million for its fourth quarter ended Dec 31, 2025, up 72.9 per cent from the US$237.6 million posted for the year-ago period.

Revenue stood at US$6.9 billion, a 38.4 per cent year-on-year increase from US$5 billion in Q4 FY2024.

The increase in net profit was driven by a strong performance by Sea’s e-commerce platform Shopee and its digital financial-services arm Monee.

Gross orders in Shopee totalled four billion in Q4, increasing 30.5 per cent year on year from that in the year-ago period.

Gross merchandise value (GMV) rose 28.6 per cent to US$36.7 billion in the quarter.

Q4’s core marketplace revenue – consisting mainly of transaction-based fees and advertising revenue – was up 50.2 per cent to US$3.6 billion, compared to the previous corresponding period.

Shopee’s value-added service revenue in Q4, which is heavily-tied to logistics services revenue, was down 7.5 per cent year on year to US$735 million. Sea attributed this dip to a higher revenue net-off against shipping subsidies.

On a full-year basis, Shopee’s revenue stood at US$16.6 billion, from US$12.4 billion the year-ago period.

Impressive showing

Forrest Li, chairman and chief executive officer of the Singapore-headquartered, New York-listed group, said: “The strong set of 2025 results is a validation of the effectiveness of our strategic choices for Shopee.”

He noted that in 2025, Shopee served around 400 million active buyers and 20 million sellers.

Sea’s digital financial services provider Monee also had a strong financial showing in Q4. Its revenue rose 54.3 per cent to US$1.1 billion, and operating income stood at US$252.8 million.

The consumer and credit business drove the growth in revenue and operating income, said Sea.

It noted that the outstanding principal for loans to consumers and small and medium-sized enterprises spiked by 80.4 per cent or US$9.2 billion from the figure in the year-ago period.

In addition, Sea noted that Monee gained over 20 million unique first-time borrowers.

“We are very proud of the progress Monee has made in both growth and profit,” said Li in an earnings call on Tuesday (Mar 3).

Garena, the company’s digital entertainment arm which serves more than 100 million players daily, saw bookings grow 23.8 per cent in Q4 to US$672.4 million.

Its revenue was up 35.1 per cent to US$701 million.

More growth to come

Li said that Sea will “prioritise growth while upholding financial discipline” for Shopee; the aim is to grow the e-commerce platform’s GMV by about 25 per cent year on year in 2026. “We believe this is the right strategy to optimise Shopee’s long-term profitability,” he added.

Sea aims to scale up its continued efforts in the Shopee VIP membership programme – which gives subscribers daily vouchers, exclusive discounts and free shipping – and expand on its content ecosystem.

“(The VIP programme) has consistently produced double-digit spending uplift by members after they join,” he said, noting that total number of subscribers surpassed seven million at the end of 2025, more than double that in the preceding quarter.

Li added that Sea hopes to continue its effort to grow Monee’s products and services beyond credit, into fields such as digital banking and insurance. “We believe Monee will be a significant long-term profit contributor for us.”

For the full year, Sea’s net profit surged to US$1.6 billion from US$447.8 million in the preceding financial year.

Its full-year revenue rose 36.4 per cent year on year to US$22.9 billion, from US$16.8 billion.

“As we enter 2026, we see exciting opportunities across our businesses and markets. Our excellent performance in 2025 has strengthened our conviction in our operational strategies,” Li said.