1G·

Siuuuuuu Limited Q3

Dirty30 · 2026-11-10T14:24:32.887427Z

$SE 🟢Pro Strong revenue growth: Total revenue rose year-over-year by +43.4% to $8.58 billion (compared to the expected $8.08 billion). Improved profitability: Adjusted EBITDA grew by +28.9% to $931.3 million. Gross profit rose disproportionately by +51.4% to $3.94 billion, representing a stable gross margin of approximately 46%. Shopee’s growth: The e-commerce segment saw revenue grow by +41.3% to 6.07 billion USD. Gross merchandise volume (GMV) rose by +23.3% to 39.7 billion USD, with positive adjusted EBITDA of 269.2 million USD. Digital Bank (SeaMoney) Growth: Revenue in the fintech segment increased by +63.9% to $1.62 billion. The loan portfolio grew by +60.0% to $12.6 billion. Capital Repayment: The existing $1 billion share buyback program was nearly fully implemented. In addition, a new buyback program for an additional $1.0 billion with no expiration date. Operating cash flow for the first 9 months was a solid 4.06 billion USD. 🔴Cons Rising loan loss provisions: Provisions for credit losses in the fintech sector increased year-over-year by +82.3% year-over-year to $681.5 million . This dampened net income (EPS of $0.78 was slightly below consensus estimates of $0.99). Slight increase in loan defaults: The 90-day-plus delinquency ratio in the lending segment rose moderately from 1.1% in the prior year to 1.3%. Higher operating costs: Total operating expenses rose by +54.1% to $3.27 billion, driven by higher logistics costs at Shopee and increased refinancing and transaction fees in the banking business. Cyclical dependence: Although the Garena gaming segment posted solid revenue growth of +28.6% to USD 840.1 million, bookings growth, at +5.9% to $890 million, was significantly below the revenue growth rate, indicating a normalization of growth.

$SE (+0%)

🟢Pro

Strong revenue growth: Total revenue rose year-over-year by +43.4% to $8.58 billion (compared to the expected $8.08 billion).
Improved profitability: Adjusted EBITDA grew by +28.9% to $931.3 million. Gross profit rose disproportionately by +51.4% to $3.94 billion, representing a stable gross margin of approximately 46%.
Shopee’s growth: The e-commerce segment saw revenue grow by +41.3% to 6.07 billion USD. Gross merchandise volume (GMV) rose by +23.3% to 39.7 billion USD, with positive adjusted EBITDA of 269.2 million USD.
Digital Bank (SeaMoney) Growth: Revenue in the fintech segment increased by +63.9% to $1.62 billion. The loan portfolio grew by +60.0% to $12.6 billion.
Capital Repayment: The existing $1 billion share buyback program was nearly fully implemented. In addition, a new buyback program for an additional $1.0 billion with no expiration date. Operating cash flow for the first 9 months was a solid 4.06 billion USD.

🔴Cons

Rising loan loss provisions: Provisions for credit losses in the fintech sector increased year-over-year by +82.3% year-over-year to $681.5 million . This dampened net income (EPS of $0.78 was slightly below consensus estimates of $0.99).
Slight increase in loan defaults: The 90-day-plus delinquency ratio in the lending segment rose moderately from 1.1% in the prior year to 1.3%.
Higher operating costs: Total operating expenses rose by +54.1% to $3.27 billion, driven by higher logistics costs at Shopee and increased refinancing and transaction fees in the banking business.
Cyclical dependence: Although the Garena gaming segment posted solid revenue growth of +28.6% to USD 840.1 million, bookings growth, at +5.9% to $890 million, was significantly below the revenue growth rate, indicating a normalization of growth.

7 Commenti

Der K.@DerKlene

I've been in this for the long haul

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Dirty30@Dirty30

@market_mastermind_3655 Here's to consistently good returns 🔥

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Der K.@DerKlene

Are you in this for the long haul?

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Dirty30@Dirty30

@market_mastermind_3655 It is a long-term position, yes.

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Raketentoni@Raketentoni

Hey @Dirty30, Shopee gets a **Siuuuuu!** As for the consolidated margin, I’d have the goal celebration reviewed by VAR again. 😏

**1. “Stable gross margin” is actually too pessimistic here.** The gross margin rose from **43.4% to 45.9%**. Further down in the income statement, the picture changes. Although adjusted EBITDA grew by **28.9%**, its margin fell from **12.1% to 10.9%**. The operating margin also declined slightly, from **8.0% to 7.7%**. Sea is earning more in absolute terms. However, a smaller proportion of the additional revenue is retained at the operating level.

**2. Regarding costs, you’ve placed logistics in the wrong line item.** The **+54.1%** increase in operating expenses is correct. However, Sea’s higher logistics and refinancing costs are listed under *cost of sales*. The bulk of the increase in operating expenses is attributable to approximately **$736 million in additional marketing** and **$308 million in additional credit loss provisions**. So, for once, the packages are not to blame. 📦

**3. I’d take a closer look at Monee.** Revenue is up **64%**, the loan portfolio is up **60%**, and group-wide loan loss provisions—which are almost entirely attributable to Monee—are up **82%**. At the same time, the ratio of problem loans more than 90 days past due is rising from **1.1% to 1.3%**. That’s still a low ratio. But with such a rapidly growing loan portfolio, I want to see how well the newer loans are being repaid. Meanwhile, Monee’s adjusted EBITDA grew by only **15.5%**. The margin fell from **26.1% to 18.4%**. It seems “scaling” is outpacing profits.

**4. “Slightly below consensus” is putting it mildly.** **$0.78 instead of $0.99** is about **21% below the stated expectations**. At the same time, net income rose by **34%** compared to the previous year. So Sea earned more but still clearly missed expectations. Both facts belong in the same paragraph.

**5. When it comes to cash flow, the other half of the story is missing.** The **$4.06 billion in operating cash flow** over nine months is correct. However, the investing cash flow includes **$4.45 billion for building up loan receivables** and **$1.04 billion for capital expenditures**. Anyone celebrating the nearly completed billion-dollar buyback should also take note of the capital requirements of the lending business. The next billion is, for now, just the authorization for the buyback.

**Shopee is, in my view, the strongest point in your post.** Trading volume is growing by **23%**, revenue from the core marketplace by **51%**, and adjusted EBITDA by **45%**. Regarding Garena, your take on the bookings is spot on. The **+5.9%** shows that current player spending is growing significantly slower than reported revenue. With Monee, on the other hand, I want to see in the next quarter whether loan growth will once again have a stronger impact on earnings.

Best regards,
Raketentoni 🚀

[Sea Limited – Q3 Report from November 10, 2026](https://www.businesswire.com/news/home/20261109862081/en/) · [Investing.com – EPS Consensus](https://www.investing.com/news/earnings/sea-adr-earnings-missed-by-021-revenue-topped-estimates-5014911)

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Dirty30@Dirty30

@Raketentoni That's where Video Keller in Cologne comes in—and rightly so 😁

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Dirty30@Dirty30

@Raketentoni Regarding point 4, it was explained here why the figure ended up being only 0.78. I agree with Shopee—GMV is one of the most important metrics for me.

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