Sea Ltd (NYSE:SE) stock rose 1.06% (As on August 13, 11:15:07 AM UTC-4, Source: Google Finance) after the company reported second-quarter revenue that significantly exceeded analyst expectations, despite an earnings miss. Net income reached $414.2 million, a dramatic improvement from $79.9 million in the same period last year. Sea’s e-commerce platform Shopee continued its strong performance with gross merchandise value (GMV) increasing 28.2% year-over-year to $29.8 billion, while gross orders grew 28.6% to 3.3 billion. The digital financial services segment saw revenue jump 70% to $882.8 million, while digital entertainment bookings rose 23.2% to $661.3 million. The company’s digital financial services arm reported consumer and SME loans principal outstanding of $6.9 billion, up 94% YoY, while maintaining a low non-performing loan ratio of 1.0%. Meanwhile, the digital entertainment segment saw quarterly active users increase 2.6% to 664.8 million, with paying users rising 17.8% to 61.8 million. Total adjusted EBITDA reached $829.2 million, representing an 84.9% increase from $448.5 million in the second quarter of 2024. The e-commerce segment achieved a significant turnaround, generating adjusted EBITDA of $227.7 million compared to a loss of $9.2 million in the same period last year.

SE in the second quarter of FY25 has reported the adjusted earnings per share of 65 cents, missing the analysts’ estimates for the adjusted earnings per share of 77 cents. The company had reported the adjusted revenue growth of 38.2 percent to $5.3 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $4.55 billion. Total gross profit was US$2.4 billion, up 52.1% year-on-year. Other operating income was US$31.9 million and US$42.6 million in the second quarter of 2025 and 2024, respectively. Other operating income mainly consists of rebates from e-commerce related logistics services providers. Sales of goods GAAP revenue increased by 34.4% to US$460.6 million in the second quarter of 2025 from US$342.6 million in the second quarter of 2024

Sea’s net income is on track to quadruple in 2025, on growth across all three segments. Shopee’s GMV gain could exceed guidance of 20%, supported by solid 1H momentum and continued strength in 3Q. Take rate could rise further, driven by improved ad tech that boosts both the number of sellers advertising and their average spend. Scale benefits, especially in Brazil, could lower cost-per-order and enhance overall e-commerce profitability. First-party logistics remain a competitive edge.