Sea Limited (NYSE:SE) reported fiscal first-quarter 2026 results on Tuesday, posting strong revenue growth but missing Wall Street earnings expectations.

The company reported quarterly revenue of $7.10 billion, up 46.6% year over year and ahead of the analyst consensus estimate of $6.41 billion. Earnings came in at 67 cents per share, below expectations of 70 cents per share.

Shopee Drives E-Commerce Growth

Sea generates revenue through three main businesses: Garena, Shopee and Monee. Garena generates revenue from in-game purchases and advertising, Shopee earns from transaction fees, seller services and advertising, while Monee generates income through transaction fees and financial products, including loans and insurance.

Shopee revenue rose 45.1% year over year to $5.1 billion, driven mainly by higher gross merchandise volume (GMV). Gross orders increased 29.3% to 4.0 billion, while GMV climbed 30.2% to $37.3 billion. Adjusted EBITDA declined 15.6% year over year to $223.2 million.

Chief Executive Officer Forrest Li said Shopee delivered record GMV, order volume and revenue growth during the quarter, supported by stronger monetization, advertising revenue and higher buyer and seller engagement.

Li said Shopee expanded instant and same-day delivery services, increased fulfillment operations and strengthened partnerships with convenience stores and pharmacies in Indonesia. He added that ...