What are the key drivers behind Monee's strong loan book growth (80% YoY), and what are the expected EBITDA margin trends for 2026?

Monee's growth is driven by new market rollouts (Thailand, Malaysia, Brazil), new product offerings (cash loans, off-platform lending), and deeper penetration among existing users (higher loan limits, differentiated pricing for prime users). While EBITDA margins may fluctuate due to country and product mix, the underlying risk management capabilities are stable, as evidenced by the 1.1% NPL ratio, supported by advanced AI models. “We are seeing very stable risks. If you look at a particular product for a particular market, the risk is very stable for us. You can see this from our NPL number as well.”

How long will Shopee's investment cycle last, what are the implications for 2027 margins, and what are the deliverables from the Google AI partnership?

Investment cycles vary by initiative and market, but the company expects 2026 absolute EBITDA to be no lower than 2025. In the medium-to-long term, a 2% to 3% EBITDA margin for e-commerce is considered achievable. The partnership with Google for AI-powered solutions is still in development, and specific deliverables will be shared once the product is ready. “as a medium-term to long-term trend, I think the 2% to 3% EBITDA margin, I think it's well achievable based on what we see so far.”

What is the outlook for Garena's bookings growth in 2026, and what is the pipeline for IP collaborations?

Garena expects double-digit bookings growth for 2026. The company is extending its NARUTO IP collaboration, with delivery expected around Q3, and is actively working on other potential IP partnerships. Additionally, Garena plans significant football-related promotions during the FIFA World Cup, leveraging the high overlap between football fans and the global gamer community. “at this moment, we still see the double-digit growth for Garena for 2026.”

Sea (SE) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Industrials· Mar 3, 2026

Source: earnings call transcript

Executive summary

Sea Limited Q4 FY25 — Record Revenue and Profit Growth Across All Businesses

Sea Limited delivered a strong Q4 and full year 2025, with all three core businesses—Shopee, Monee, and Garena—exceeding growth expectations and improving profitability. The company plans to continue its operational excellence and strategic investments in logistics, membership programs, and content ecosystems to drive further scale and market leadership, while maintaining financial discipline.

Highlights

Record full year 2025 revenue of $22.9 billion, up 36% YoY, with Q4 GAAP revenue up 38% YoY to $6.9 billion.
Full year net income reached $1.6 billion, a 260% YoY increase, with Q4 net income up 73% YoY to $411 million.
Shopee achieved $127 billion in GMV for FY25 and over $880 million in adjusted EBITDA, with Q4 GMV up 29% YoY to $36.7 billion.
Monee's annual revenue reached $3.8 billion (up 60% YoY) and adjusted EBITDA exceeded $1 billion (up 43% YoY), while maintaining a stable 90-day NPL ratio of 1.1%.
Garena bookings grew 37% YoY to $2.9 billion for FY25, with adjusted EBITDA up 38% YoY to $1.7 billion, driven by Free Fire's sustained growth.

Concerns

Net income tax expense increased to $651 million for FY25, up from $321 million in FY24, and $210 million for Q4 FY25, up from $89 million in Q4 FY24.

Guidance & targets

Category	Target	Timeline	Confidence
Shopee annual GMV growth	around 25% year-on-year high materiality	FY26 · 2026	High
Shopee full year adjusted EBITDA	no lower than 2025 in absolute dollars high materiality	FY26 · 2026	High
Garena bookings growth	double-digit growth medium materiality	FY26 · 2026	High
Shopee fulfillment order penetration	double our fulfillment order penetration medium materiality	end of 2026	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Sea Overall Sea Limited achieved record revenue and profit growth across all businesses in 2025, exceeding initial expectations. Full Year 2025 GAAP Revenue: $22.9 billionFull Year 2025 GAAP Revenue Growth: 36% year-on-yearQ4 2025 Adjusted EBITDA: $787 millionQ4 2025 Adjusted EBITDA Growth: 33% year-on-yearFull Year 2025 Adjusted EBITDA: $3.4 billionFull Year 2025 Adjusted EBITDA Growth: 75% year-on-yearQ4 2025 Net Income: $411 millionQ4 2025 Net Income Growth: 73% year-on-yearFull Year 2025 Net Income: $1.6 billionFull Year 2024 Net Income: $448 millionFull Year 2025 Net Income Growth: 260% year-on-year	$6.9 billion	38%	—	—
Shopee Shopee achieved record GMV and strong profit improvement, driven by enhanced monetization, logistics capabilities, and the successful VIP membership program. Brazil and Taiwan showed robust growth and market share gains. Full Year 2025 GMV: $127 billionFull Year 2025 GMV Growth: 27% year-on-yearQ4 2025 GMV: $36.7 billionQ4 2025 GMV Growth: 29% year-on-yearQ4 2025 Gross Orders: $4 billionQ4 2025 Gross Orders Growth: 30% year-on-yearFull Year 2025 GAAP Revenue: $17 billionQ4 2025 GAAP Marketplace Revenue: $4.3 billionQ4 2025 GAAP Marketplace Revenue Growth: 36% year-on-yearFull Year 2025 GAAP Marketplace Revenue: $15 billionFull Year 2025 GAAP Marketplace Revenue Growth: 34% year-on-yearQ4 2025 Core Marketplace Revenue: $3.6 billionQ4 2025 Core Marketplace Revenue Growth: 50% year-on-yearQ4 2025 Value-added Services Revenue: $0.7 billionQ4 2025 GAAP Product Revenue: $0.6 billionFull Year 2025 GAAP Product Revenue: $2 billionFull Year 2025 Adjusted EBITDA: $881 millionQ4 2025 Adjusted EBITDA: $202 millionQ4 2025 Adjusted EBITDA Growth: 33% year-on-yearFull Year 2024 Adjusted EBITDA: $156 millionActive Buyers (FY25): 400 millionSellers (FY25): 20 millionAd-paying sellers increase: >20% year-on-yearAverage ad spend increase: >45% year-on-yearAd revenue growth: >70% year-on-yearAd take rate increase: >80 basis points year-on-yearMonthly active buyers increase: 15% year-on-yearAverage monthly purchase frequency increase: 10% year-on-yearSPX Express parcels processed: >30 million dailyInstant and same-day delivery share of order volume: double-digit in greater metropolitan areasBuyers using instant/same-day delivery spend: 15% more on averageEconomical shipping orders in Indonesia: doubled year-on-year in Q4Fulfillment order penetration: double-digit in some marketsShopee VIP subscribers (end of FY25): >7 millionShopee VIP subscribers growth: more than double from a quarter agoVIP members spending uplift (Indonesia): 30% to 40% moreVIP members contribution to total GMV (Q4): >15% in some marketsTaiwan GMV growth (FY25): double digitsTaiwan collection points network: >2,800 locationsBrazil buyer waiting time improved: 1.5 days year-on-year (Q4)New brands onboarded to Shopping Mall (Brazil, Q4): >300Shopping Mall GMV growth (Brazil, Q4): doubled year-on-year	$5 billion	—	—	—
Monee Monee achieved significant growth in revenue and adjusted EBITDA, driven by credit business expansion, new user acquisition, and increased engagement with existing users. Risk profile remained stable due to improved underwriting capabilities. Full Year 2025 GAAP Revenue: $3.8 billionFull Year 2025 GAAP Revenue Growth: 60% year-on-yearQ4 2025 Adjusted EBITDA: $263 millionQ4 2025 Adjusted EBITDA Growth: 25% year-on-yearFull Year 2025 Adjusted EBITDA: $1 billionFull Year 2025 Adjusted EBITDA Growth: 43% year-on-yearUnique first-time borrowers (FY25): >20 millionUnique first-time borrowers (Q4): 5.8 millionLoan book (FY25): >$9 billionActive credit users (end of Q4): >37 millionActive credit users growth: >40% year-on-yearAverage loan outstanding per user: ~$240Average loan outstanding per user growth: 27% year-on-yearOff-Shopee SPayLater loans growth: >300% year-on-yearOff-Shopee SPayLater share of total SPayLater portfolio: >15%Off-Shopee SPayLater usage in Malaysia: ~30%Consumer and SME loans principal outstanding (end of December): $9.2 billionConsumer and SME loans principal outstanding growth: 80% year-on-yearOn-book loans principal outstanding: $8.2 billionOff-book loans principal outstanding: $1 billion90-day NPL ratio (end of Q4): 1.1%	$1.1 billion	54%	—	—
Garena Garena had a blockbuster year with strong bookings and adjusted EBITDA growth, primarily driven by Free Fire's sustained popularity and successful content collaborations. New titles like EA Sports FC Mobile also showed strong early performance. Q4 2025 Bookings: $672 millionQ4 2025 Bookings Growth: 24% year-on-yearFull Year 2025 Bookings: $2.9 billionFull Year 2025 Bookings Growth: 37% year-on-yearFull Year 2025 GAAP Revenue: $2.4 billionFull Year 2025 GAAP Revenue Growth: 26% year-on-yearQ4 2025 Adjusted EBITDA: $364 millionQ4 2025 Adjusted EBITDA Growth: 26% year-on-yearFull Year 2025 Adjusted EBITDA: $1.7 billionFull Year 2025 Adjusted EBITDA Growth: 38% year-on-yearAverage daily active users (FY25): >100 millionFree Fire bookings growth: >30% for two consecutive yearsFree Fire 2025 bookings: nearly double 2023 levelFree Fire World Series Global Finals competitors: >600,000 playersFC Pro Festival 2025 online viewers: 18 million	$701 million	35%	—	—

SE operating KPIs by quarter

SE operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	This call Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Gross merchandise value Shopee	$28.6B On e-commerce, Shopee's gross orders grew 20% year-on-year to $3 billion in the fourth quarter of 2024, and GMV increased by 23% year-on-year to $28.6 billion in the fourth quarter of 2024. Source: earnings call transcript	$28.6B On e-commerce, Shopee's gross orders grew 20% year-on-year to 3.1 billion in the first quarter of 2025 and GMV increased by 22% year-on-year to $28.6 billion in the first quarter of 2025. Source: earnings call transcript	$29.8B On e-commerce, Shopee's gross orders grew 29% year-on-year to $3.3 billion in the second quarter of 2025, and GMV increased by 28% year-on-year to $29.8 billion in the second quarter of 2025. Source: earnings call transcript	$32.2B On e-commerce, Shopee's gross orders increased 28% year-on-year to $3.6 billion in the third quarter of 2025, and GMV increased by 28% year-on-year to $32.2 billion in the third quarter of 2025. Source: earnings call transcript	$36.7B On Shopee, gross orders increased 30% year-on-year to $4 billion in the fourth quarter of 2025 and GMV increased by 29% year-on-year to $36.7 billion in the fourth quarter of 2025. Source: earnings call transcript	$37.3B On Shopee, gross orders increased 29% year-on-year to $4 billion in the first quarter of 2026, and GMV increased by 30% year-on-year to $37.3 billion in the first quarter of 2026. Source: earnings call transcript	—	+1.6%
Orders Shopee	3B On e-commerce, Shopee's gross orders grew 20% year-on-year to $3 billion in the fourth quarter of 2024, and GMV increased by 23% year-on-year to $28.6 billion in the fourth quarter of 2024. Source: earnings call transcript	3.1B On e-commerce, Shopee's gross orders grew 20% year-on-year to 3.1 billion in the first quarter of 2025 and GMV increased by 22% year-on-year to $28.6 billion in the first quarter of 2025. Source: earnings call transcript	3.3B On e-commerce, Shopee's gross orders grew 29% year-on-year to $3.3 billion in the second quarter of 2025, and GMV increased by 28% year-on-year to $29.8 billion in the second quarter of 2025. Source: earnings call transcript	3.6B On e-commerce, Shopee's gross orders increased 28% year-on-year to $3.6 billion in the third quarter of 2025, and GMV increased by 28% year-on-year to $32.2 billion in the third quarter of 2025. Source: earnings call transcript	—	4B On Shopee, gross orders increased 29% year-on-year to $4 billion in the first quarter of 2026, and GMV increased by 30% year-on-year to $37.3 billion in the first quarter of 2026. Source: earnings call transcript	—	—
Bookings Digital Entertainment	$543M Digital entertainment bookings were $543 million in the fourth quarter up 19% year-on-year and $2.1 billion for the full year of 2024, up 19% year-on-year. Source: earnings call transcript	$775M Digital entertainment bookings were $775 million in the first quarter, up 51% year-on-year. Source: earnings call transcript	$661M Digital entertainment bookings grew 23% year-on-year to $661 million. Source: earnings call transcript	$841M Digital entertainment bookings grew 51% year-on-year to $841 million. Source: earnings call transcript	$672M Garena bookings grew 24% year-on-year to $672 million in the fourth quarter and grew 37% year-on-year to $2.9 billion for the full year of 2025. Source: earnings call transcript	$931M Garena bookings grew 20% year-on-year to $931 million. Source: earnings call transcript	—	+38.5%
First-time borrowers added SeaMoney	~5M In the fourth quarter, we added approximately 5 million first-time borrowers, and we saw 50% year-on-year growth in our active users, which have now grown to more than $26 million. Source: earnings call transcript	4M+ In the first quarter, we added over 4 million first-time borrowers, and we see new user cohorts continuing to generate positive profit over time as we scale. Source: earnings call transcript	4M+ We added over 4 million first-time borrowers during the quarter, and our newer cohorts are scaling well with positive unit economics. Source: earnings call transcript	5M+ Moving to this all can apply approach enabled us to add more than 5 million first-time borrowers in the third quarter. Source: earnings call transcript	5.8M In the fourth quarter, we added 5.8 million unique first-time borrowers. Source: earnings call transcript	4.9M In the first quarter, we added 4.9 million first-time borrowers -- our active credit users crossed 38 million at the end of the quarter, an increase of more than 35% year-on-year. Source: earnings call transcript	~5.3M We added around 5.3 million uniques per time borrowers and our active credit users grew around 34% year-on-year to over $40 million at the end of the quarter. Source: earnings call transcript	—
Active borrowers SeaMoney	—	28M+ By the end of the quarter, active users for our consumer and SME loan products exceeded 28 million, representing more than 50% growth year-on-year. Source: earnings call transcript	30M+ At the end of the quarter, active users for our consumer and SME loan products exceeded 30 million for the first time, representing more than 45% year-on-year growth. Source: earnings call transcript	—	37M+ Our active credit users crossed 37 million at the end of the quarter, up more than 40% year-on-year. Source: earnings call transcript	38M+ In the first quarter, we added 4.9 million first-time borrowers -- our active credit users crossed 38 million at the end of the quarter, an increase of more than 35% year-on-year. Source: earnings call transcript	40M+ We added around 5.3 million uniques per time borrowers and our active credit users grew around 34% year-on-year to over $40 million at the end of the quarter. Source: earnings call transcript	—
90-day NPL ratio SeaMoney	1.2% Nonperforming loans past due by more than 90 days, as a percentage of total consumer and SME loans was 1.2% at the end of the quarter. Source: earnings call transcript	1.1% At the same time, our overall portfolio quality remained healthy, with our 90-day NPL ratio staying relatively stable at 1.1%. Source: earnings call transcript	1% Our loan portfolio remains healthy with the 90-day NPL ratio staying stable at 1.0%. Source: earnings call transcript	1.1% Monee has delivered another very strong quarter with revenue growing by 61% and adjusted EBITDA growing more than 35% year-on-year, while our 90-day NPL ratio remained stable at 1.1%. Source: earnings call transcript	1.1% Our 90-day NPL ratio held steady at 1.1% as of the end of the fourth quarter. Source: earnings call transcript	1.1% Our 90-day NPL ratio remained stable at 1.1% at the end of the quarter. Source: earnings call transcript	1% Asset quality remained stable with our 90-day NPL ratio at 1.0%. Source: earnings call transcript	-0.1 pt
Paid subscription members Shopee VIP	—	1M+ Adoption has been encouraging, with more than 1 million users subscribing as of the end of March. Source: earnings call transcript	2M At the end of June, total VIP subscribers in the market reached 2 million. Source: earnings call transcript	3.5M+ By the end of September, VIP members across Indonesia, Thailand, Vietnam surpassed 3.5 million, up more than 75% from the previous quarter. Source: earnings call transcript	7M+ Total subscribers surpassed 7 million at the end of the year, more than double the number from a quarter ago. Source: earnings call transcript	10M+ By the end of March, total subscribers across our Asian market surpassed 10 million up more than 40% from the previous quarter, with strong program retention averaging above 80%. Source: earnings call transcript	15M+ Now life across Asia and Brazil, total membership exceeded $15 million at the end of June, up 25% from the previous quarter. Source: earnings call transcript	—
Stores Taiwan	—	—	—	2,500+ So we expanded our automated locker store network to over 2,500 locations in less than 3 years, making us the only e-commerce player in Taiwan with a locker network at such scale. Source: earnings call transcript	2,800+ By the end of the year, our network has grown to over 2,800 locations. Source: earnings call transcript	—	—	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
NARUTO SHIPPUDEN Chapter 1	launch	Q1 2025
Solara	launch	Q2 2025
Squid Game collaboration	launch	Q3 2025
NARUTO SHIPPUDEN Chapter 2	launch	Q3 2025
EA SPORTS FC Mobile	launch	October 2025
Free Fire 10th anniversary	roadmap	2027
NARUTO IP collaboration extension	roadmap	around Q3 2026

Deals & partnerships

YouTube Partnership

Collaboration to strengthen Shopee's content and affiliate ecosystem, making discovery more engaging and supporting higher purchase conversion.

Meta Partnership

Collaboration to strengthen Shopee's content and affiliate ecosystem, extending ecosystem coverage across multiple channels.

EA Partnership long-standing

Partnership for mobile gaming, demonstrated by the success of EA Sports FC Mobile and localization efforts for global franchises.

Q&A highlights

How will Shopee achieve its 2026 growth target while maintaining EBITDA, considering the competitive landscape and investment areas?

Shopee's growth strategy for 2026 focuses on increasing core user wallet share through enhanced logistics (instant/same-day delivery, fulfillment network), expanding the VIP program (including a Brazil launch and improved payment retention via Monee), and growing the content ecosystem through partnerships. It also aims to increase the buyer base by serving more users profitably due to improved unit economics. The competitive landscape is stable, and investments have clear, finite cycles.

“I think the business is I think, is in a shape that we are very confident that there are things we can do to drive the business growth and the things are within our control and the things we are doing has a clear investment cycles that we can drive over time.”

asked by Pang Vittayaamnuaykoon · answered by Hou Tianyu

3 min read 8 chapters

Detailed narrative

Shopee Strategic Investments and User Engagement

Shopee is focusing on enhancing user experience through logistics improvements like instant and same-day delivery, which now account for a double-digit share of order volume in major metropolitan areas and drive 15% higher average spend. The company is also expanding its fulfillment network, aiming to double order penetration by year-end 2026, and growing its content ecosystem through partnerships with YouTube and Meta.

These efforts are designed to serve more users and engage them better, building structural moats.

Shopee VIP Membership Program Success and Expansion

The Shopee VIP membership program, rolled out across Asian markets, has surpassed 7 million subscribers by the end of 2025, more than doubling from the previous quarter. Members show a double-digit spending uplift, with Indonesian VIP members spending 30% to 40% more than before joining.

The program already contributed over 15% of total GMV in some markets in Q4. Leveraging improved payment retention rates (40% to 70% in Indonesia) through collaboration with Monee, the program is slated for launch in Brazil in the coming months.

Brazil and Taiwan Market Leadership and Growth

Shopee delivered robust GMV growth and market share gains in Brazil, improving buyer waiting time by 1.5 days year-on-year in Q4. Over 300 new brands were onboarded to Shopping Mall in Brazil, doubling its GMV year-on-year in Q4. In Taiwan, GMV growth accelerated to double digits in 2025, supported by a large-scale network of over 2,800 collection points.

Both markets are targeted for accelerated fulfillment capability rollout and brand onboarding to attract higher-value categories and improve average basket size.

Monee Credit Business Expansion and Product Diversification

Monee expanded its credit business by acquiring new users through an 'all-can-apply' approach, adding 5.8 million unique first-time borrowers in Q4, and growing active credit users to over 37 million (up over 40% YoY). Average loan outstanding per user increased 27% YoY to $240.

Off-Shopee SPayLater loans grew over 300% YoY, accounting for over 15% of the total SPayLater portfolio, with 30% usage off-Shopee in Malaysia. Monee is also progressing with products beyond credit, including digital banking and insurance.

Monee Risk Management and AI Advancements

Monee maintained a stable 90-day NPL ratio of 1.1% as of the end of Q4 by enhancing risk underwriting capabilities using rich ecosystem data and advancements in AI. The company is experimenting with new AI models, including transformer structures, to better understand user behavior, assess individual repayment capacity, and dynamically adjust credit limits.

These improvements enable rapid, prudent scaling of the loan book while maintaining a stable risk profile.

Garena's Free Fire Sustained Growth and Global Franchise Status

Free Fire achieved two consecutive years of bookings growth exceeding 30%, with 2025 bookings nearly double 2023 levels, and average daily active users continuing to grow year-on-year. Key content collaborations like NARUTO SHIPPUDEN (Chapter 1 in Q1, Chapter 2 in Q3) and Squid Game (Q3), along with the Guinness World Records-setting Free Fire World Series Global Finals, underscore its status as a global franchise spanning gameplay, social engagement, and real-world experiences.

Garena's Broader Portfolio and Esports Engagement

Beyond Free Fire, Garena saw strong early performance from EA Sports FC Mobile, which became the most downloaded mobile game in Vietnam after its October launch. The FC Pro Festival 2025 in Ho Chi Minh City reached 18 million online viewers, featuring global football icons. This demonstrates Garena's ability to localize global franchises and deeply engage fan communities, strengthening its long-standing partnership with EA.

Cross-Business AI Investment and Synergies

Sea Limited is investing in AI across its businesses. In Shopee, AI enhances search, recommendation, and ad systems, contributing to an uplift in ad take rate, and provides tools for sellers like chatbots and content creation. In Monee, AI is crucial for risk management, leveraging e-commerce data for precise credit assessments.

Synergies include Monee using Shopee data for risk assessment, Monee supporting game payments, and Shopee/Gaming collaborating on merchandising and user acquisition.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.