Sea Limited (NYSE:SE) shares tumbled more than 5% in premarket trading on Tuesday after the Southeast Asian technology conglomerate reported third-quarter 2025 earnings that missed forecasts, despite strong revenue expansion across all its business divisions.
The company posted adjusted earnings of $0.59 per share, falling short of analysts’ expectations of $1.02 per share by 43 cents. However, revenue climbed to $6 billion, surpassing projections of $5.69 billion and marking a 38.3% year-over-year increase. The earnings miss overshadowed what was otherwise a strong top-line performance.
Sea’s e-commerce arm, Shopee, achieved record quarterly results, with gross merchandise value (GMV) rising 28.4% YoY to $32.2 billion. The digital financial services segment reported revenue growth of 60.8% YoY to $989.9 million, while Garena, its digital entertainment unit, saw revenue jump 31.2% YoY to $653 million, with bookings up 51.1%.
“After a very strong first half of the year, our momentum has continued into the third quarter. Our focus remains the same: continuing to deliver high and profitable growth across all three of our businesses,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
The company’s net income surged 144.6% to $375 million, up from $153.3 million a year earlier, but still came in below market expectations — a key factor behind the stock’s decline.
Sea also reported a 76.3% increase in its provision for credit losses to $373.8 million, prompting some concerns about the health of its loan portfolio, though management noted that non-performing loans remained stable at 1.1%.
Looking ahead, Sea raised its full-year 2025 GMV growth forecast for Shopee to above 25%, while Garena is expected to deliver over 30% growth in annual bookings, according to company guidance.