Sea : 2026 Q1 Presentation

Published: 2026-05-12 06:44:10 ET SE

Published on 05/12/2026 at 06:44 am EDT

First Quarter 2026 Results

May 2026

First Quarter 2026 Results Overview

A Strong Start to the Year Across All Businesses

Shopee GAAP Revenue

Monee

Loans Principal Outstanding1

Garena Bookings2

US$ Billions

YoY: +45.1%

QoQ: +2.8%

US$ Billions

YoY: +71.3%

QoQ: +7.5%

US$ Millions

YoY: +20.1%

QoQ: +38.5%

5.0

5.1

3.5

9.9

9.2

5.8

931.4

775.4

672.4

Note: Financial figures are unaudited.

Consumer and SME loans principal outstanding including both on-book and off-book loans. Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform.

GAAP revenue for Garena plus change in Garena's deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to Garena.

1Q 2026 Financial Performance

GAAP

Revenue

Gross Profit

Operating Income

Net Income

US$ Billions

US$ Millions

6.9

7.1

4.8

3.0

3.1

2.2

565.2

593.0

456.4

410.8

410.9

438.2

Note: Financial figures are unaudited.

1Q 2026 Profitability and Gross Cash Position

Adjusted EBITDA

Gross Cash Position1

US$ Millions US$ Billions

11.1

10.3

946.5

1,034.3

787.1

1Q 2025

4Q 2025 1Q 2026

Shopee

264.4

202.5 223.2

Monee

241.4

263.1 275.2

Garena

458.2

363.8 573.6

Note: Financial figures are unaudited. Please refer to the appendix for details on reconciliation between GAAP and non-GAAP figures.

Cash, cash equivalents, short-term and other treasury investments. Other treasury investments currently consist of group treasury related investments, such as available-for-sale sovereign bonds and corporate bonds, classified as part of long-term investments and securities purchased under agreements to resell relating to our banking operations.

1Q 2026 Segmental Breakdown

US$ Millions

Shopee

Monee

Garena

Other Services

Unallocated

Expenses1

Consolidated

Revenue

5,113.6

1,241.8

696.6

45.5

7,097.5

Operating income/(loss)

138.9

265.6

363.6

(32.3)

(142.9)

593.0

Adjusted EBITDA

223.2

275.2

573.6

(28.1)

(9.6)

1,034.3

Note: Financial figures are unaudited. Please refer to the appendix for details on reconciliation between GAAP and non-GAAP figures.

Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.

First Quarter 2026 Business Highlights

Strong growth with financial discipline

1Q 2026 another record-setting quarter across GMV, gross order volume, and revenue

Generated adjusted EBITDA of

> $220 million in 1Q 2026

1Q 2026 monthly active buyers up 16% YoY; monthly average purchase frequency grew around 12% YoY

Monetization strengthened further in 1Q 2026; ad revenue grew 80% and ad take-rate up > 90bps YoY

Brazil: Our fastest growing market and continued to be profitable in 1Q 2026

We are on track to grow Shopee's 2026 annual GMV by around 25% YoY, with its full year adjusted EBITDA no lower than that of 2025 in absolute dollar terms

Deepening our structural moats

Logistics a key differentiator:

In Indonesia, our instant delivery order volumes grew > 35% YoY, with cost per order reducing by ~20% YoY in 1Q 2026

Fulfilment order volumes grew ~25% QoQ in 1Q 2026. In Asia, over one third of parcels fulfilled by us were delivered within the next day in Mar

ShopeeVIP membership program:

ShopeeVIP members > 10 million, up

> 40% QoQ, with program retention

averaging > 80%

ShopeeVIP members consistently demonstrated double-digit spending uplift after subscribing, by as much as 30-40% in some markets

ShopeeVIP members now contribute

~20% of GMV across Asia

Growing role of AI

AI-powered enhancements to our search and recommendation algorithms and AI-generated content tools for sellers supported a 14% improvement in purchase conversion rate YoY in 1Q 2026

AI-driven personalization and targeting helped contribute to the strong YoY ad revenue growth in 1Q 2026

~80% of customer queries are now handled by our AI chatbots. AI usage helped reduce customer service cost-per-contact by ~30% YoY

Exploring agentic AI experiences

Testing an AI shopping assistant for buyers and an AI virtual business advisor for sellers, with plans to roll them out more widely over time

GMV and Gross Orders

Billions

-1

-2

-3

Gross Orders

4.0

3.6

4.0

3.1

3.3

36.7

37.3

28.6

29.8

32.2

GAAP Revenue & Take Rate1

US$ Billions

12.3% 12.6%

3.5 3.8

13.3% 13.5% 13.7%

0.7

0.6

5.0 5.1

4.3

3.8

Note: Financial figures are unaudited.

1. GAAP revenue as a percentage of GMV.

Adjusted EBITDA

US$ Millions

400

350

300

250

200

150

100

0.9%

0.8%

0.6% 0.6% 0.6%

264.4

227.7 223.2

186.1 202.5

Note: Financial figures are unaudited. Please refer to the appendix for details on reconciliation between GAAP and non-GAAP figures.

Strong Growth while Maintaining Stable Asset Quality

Robust growth while maintaining stable risk profile

Expanding credit business across multiple fronts

Loans principal outstanding reached $9.9 billion at the end of Mar; NPL 90+ ratio1 stable at 1.1% in 1Q 2026

We added 4.9 million first-time borrowers in 1Q 2026. At the end of 1Q 2026, active credit users2 crossed 38 million, up more than 35% YoY

Average loan outstanding per user grew to ~$250 at the end of 1Q 2026, a 25% increase YoY

Strong growth momentum in Brazil

In 1Q 2026, Brazil has become our fourth market to cross

$1 billion in loan book size, growing > 250% YoY

SPayLater GMV penetration on Shopee is ~10% in Brazil in

1Q 2026, well below our more mature markets

Obtained SCFI license which allows us to broaden scope of financial services we can offer in Brazil

Deepening user relationship and acquiring new users

Deepen existing user relationships by offering them more credit as we get to know them and their repayment behavior better

Acquiring new users, especially in segments with better risk scores and greater affluence. Our campaigns to attract such new users are showing early signs of success

Expanding credit use cases beyond Shopee

Following strong momentum in Malaysia, also seeing good traction in Thailand & Indonesia: Off-Shopee SPayLater loans in both markets exceeded 20% of SPayLater portfolio as of end-Mar

Seeing strong growth in higher-value categories such as electronics and two-wheelers in Indonesia, where installment credit plays a meaningful role in enabling such purchases

Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding.

Users with loans outstanding as of the end of the quarter.

Loans Principal Outstanding1 and NPL90+ Ratio2

1.1%

1.0%

1.1%

US$ Billions

On-book

Off-book3

NPL90+ Ratio2

9.2

9.9

7.9

6.9

5.8

8.8

1.1

Consumer and SME loans principal outstanding.

Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding.

Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform.

GAAP Revenue and Adjusted EBITDA

US$ Millions

1,400

1,200

1,000

800

600

400

200

258.3

275.2

263.1

255.3

241.4

787.1

882.8

989.9

1,131.9

1,241.8

Adjusted EBITDA

Note: Financial figures are unaudited. Please refer to the appendix for details on reconciliation between GAAP and non-GAAP figures.

Strong performance for Garena driven by Free Fire and Arena of Valor

Leveraging localization strength into global growth

1Q 2026 was the strongest quarter since 2021:

In 1Q 2026, bookings rose 20% YoY while adjusted EBITDA grew 25% YoY

Very strong player response to Free Fire's collaboration with Jujutsu Kaisen - generated > 700 million official content views, making it one of our most successful IP partnerships to date

Together with the highly successful NARUTO SHIPPUDEN collaboration last year, we have demonstrated our ability to consistently execute high-impact partnerships with global IP owners

Arena of Valor delivered record high quarterly bookings in 1Q 2026, its tenth year of operation

Sustained success of Free Fire and Arena of Valor demonstrates our unique ability to operate games well -across genres, markets, and over long periods of time

Globalize highly localized content campaigns:

Leveraging hyper-localization strength into global content, to pool resources, elevate content quality, and deliver more frequent and distinctive player experiences

Scaled Ramadan campaign into a global event under "Lost Treasure" theme

Players from markets celebrating Ramadan recognized this as a festive event catering to them, while players from other markets saw it as a desert-themed campaign that was new, interesting, and fun to play

Highly interactive campaign was a success: global social media platform impressions exceeded 120 billion, up

~70% compared to last year's Ramadan campaign

Quarterly Active Users, Quarterly Paying User Ratio and ARPPU1

Millions

1,000

800

600

400

200

9.8%

9.3%

9.8%

9.2%

Quarterly Paying User Ratio

10.9%

661.8

664.8

670.8

633.3

666.5

ARPPU1

(US$)

12.0

10.7

12.8

11.6

12.8

1. Average bookings per quarterly paying user.

Bookings1, GAAP Revenue and Adjusted EBITDA

US$ Millions

0.6

0.5

0.4

0.3

0.2

0.1

1,200

1,000

800

600

400

200

59.1%

61.6%

55.7%

55.4%

54.1%

931

775

841

661

653

672

701

697

574

496

559

458

466

368 364

Note: Financial figures are unaudited. Please refer to the appendix for details on reconciliation between GAAP and non-GAAP figures.

1. GAAP revenue for Garena plus change in Garena's deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to Garena.

Appendix

GAAP Operating Income and Non-GAAP EBITDA Reconciliation

US$ Thousands

1Q 2025

1Q 2026

Shopee

Operating income / (loss)

195,002

138,904

Depreciation and amortization

69,415

84,270

Shopee Adjusted EBITDA

264,417

223,174

Monee

Operating income / (loss)

228,612

265,614

Depreciation and amortization

12,827

9,629

Monee Adjusted EBITDA

241,439

275,243

Garena

Operating income / (loss)

220,031

363,636

Net effect of changes in deferred revenue & its related cost

233,436

205,983

Depreciation and amortization

4,739

3,947

Garena Adjusted EBITDA

458,206

573,566

Note: Financial figures are unaudited.

Disclaimer

Sea Ltd. published this content on May 12, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2026 at 10:43 UTC.