Sea Limited $SE Q2 2025 GMV up 25%, loan book doubles, Garena bookings to grow 30%+ this year

Sea Limited, the Singapore-based technology conglomerate, has demonstrated robust momentum in the first half of 2025, with its second-quarter results underscoring sustained growth across its core segments. The company’s e-commerce arm, Shopee, reported a 25% year-on-year increase in gross merchandise volume (GMV), reflecting stable expansion amid competitive pressures in Southeast Asia and beyond. Meanwhile, its financial services division, known as SeaMoney, nearly doubled its loan book while preserving strong credit quality, signalling effective risk management in a high-growth environment. Adding to this, Garena, the digital entertainment unit, is on track for bookings growth exceeding 30% for the full year, driven by strategic enhancements and user engagement initiatives. These developments highlight Sea’s ability to balance aggressive expansion with operational improvements, positioning it favourably in dynamic markets.

Shopee’s E-Commerce Momentum: Stable GMV Growth

Shopee’s performance in the second quarter of 2025 has been particularly noteworthy, with GMV climbing 25% compared to the same period in 2024. This growth rate, consistent with trends observed in the first half of the year, indicates a maturing platform that continues to capture market share in key regions such as Indonesia, Thailand, and Brazil. Analysts attribute this stability to Shopee’s focus on logistics optimisation and user experience enhancements, which have helped mitigate the impact of intensifying competition from rivals like Lazada and Tokopedia.

From a broader perspective, Shopee’s GMV expansion aligns with the accelerating digitalisation of retail in emerging markets. According to historical data, Southeast Asia’s e-commerce sector has seen compound annual growth rates exceeding 20% over the past five years, fuelled by rising smartphone penetration and improving internet infrastructure. In Q2 2025, Shopee’s gross orders reportedly surged by around 29%, contributing to a quarterly GMV of approximately $29.8 billion. This not only reflects higher transaction volumes but also an increase in average order values, possibly driven by premium product offerings and targeted promotions.

Looking ahead, analyst models suggest Shopee could sustain mid-20% GMV growth through 2026, assuming continued investments in supply chain efficiency. However, risks remain, including regulatory scrutiny in markets like Vietnam and potential macroeconomic headwinds that could dampen consumer spending. Sea’s management has emphasised a disciplined approach to marketing spend, which has helped improve adjusted EBITDA margins in the e-commerce segment, turning them positive in recent quarters.

SeaMoney’s Fintech Expansion: Doubling Down on Loans with Prudent Credit Management

In the fintech arena, SeaMoney has emerged as a standout performer, with its loan book nearly doubling year-on-year in the first half of 2025. This expansion, reaching levels that underscore Sea’s ambition to become a leading digital financial services provider in Southeast Asia, has been achieved without compromising credit quality. Metrics such as non-performing loan ratios have remained solid, hovering at low single-digit percentages, a testament to enhanced underwriting processes and data-driven risk assessment.

Historically, SeaMoney’s growth has been propelled by its integration with Shopee, allowing seamless access to credit for merchants and consumers. Revenue from the fintech unit surged 70% year-on-year in Q2 2025, hitting approximately $883 million, driven by higher lending volumes and diversified product offerings. The loan book’s rapid scaling—nearly twice the size of the previous year—reflects increasing demand for digital credit in underserved markets, where traditional banking penetration is limited.

Credit quality maintenance is crucial here, as rapid loan growth can sometimes lead to asset deterioration. Sea’s ability to keep delinquency rates in check suggests effective use of machine learning models for borrower evaluation, drawing on vast datasets from its ecosystem. Analyst sentiment, as reported by sources like TipRanks, remains positive, with buy ratings emphasising SeaMoney’s potential to contribute significantly to group profitability. Forecasts from investment banks project fintech revenue to grow at a 40–50% compound annual rate over the next three years, supported by regulatory tailwinds in digital banking across the region.

Key Financial Metrics for SeaMoney

This table illustrates the segment’s vigorous growth while highlighting the stability in credit metrics, as of data available on 12 August 2025.

Garena’s Revival: Projecting Over 30% Bookings Growth

Garena, Sea’s digital entertainment powerhouse, is forecasting bookings growth of more than 30% for 2025, a marked improvement from previous years’ challenges. This optimism stems from renewed focus on game development and user retention strategies, particularly for flagship titles like Free Fire. In the first half of 2025, Garena’s bookings have shown sequential improvements, buoyed by esports investments and content updates that have re-engaged players.

Past trends reveal Garena’s volatility; bookings declined sharply in 2022–2023 due to regulatory restrictions in India and shifting gamer preferences. However, 2025’s projected surge indicates a successful pivot towards diversified revenue streams, including in-game purchases and partnerships. Analyst-led models, such as those from Seeking Alpha contributors, anticipate Garena’s adjusted EBITDA to expand significantly, contributing to overall group margins.

The emphasis on growth alongside improvements—such as enhanced monetisation tools and global expansion—positions Garena to capitalise on the booming mobile gaming market, projected to reach $150 billion globally by 2026. Sea’s integrated ecosystem allows cross-promotions with Shopee and SeaMoney, potentially amplifying user lifetime value.

Overall Group Performance and Market Implications

Consolidating these segment strengths, Sea Limited reported total revenue of $5.26 billion in Q2 2025, a 38.2% year-on-year increase, surpassing consensus estimates. Net income rose to $414.2 million, reflecting operational leverage and cost discipline. Gross profit margins expanded to 45.8%, up 4.2 percentage points, driven by efficiencies across the board.

As of 12 August 2025, Sea’s shares traded at $174.85 on the NYSE, marking a 19.57% increase from the previous close of $146.23, with trading volume reaching 15,989,395 shares—well above the 10-day average of 3,981,550. This surge aligns with positive investor sentiment following the earnings release, as evidenced by a forward P/E ratio of 82.87 and a current year EPS estimate of 3.81.

• Strategic Focus: Sea’s dual emphasis on growth and improvements, including margin enhancement and ecosystem synergies, bodes well for long-term value creation.
• Risks to Monitor: Competitive dynamics, regulatory changes, and currency fluctuations in emerging markets could pose challenges.
• Analyst Outlook: With a consensus rating of 1.5 (Buy) from verified sources like Yahoo Finance, Sea appears poised for continued upside, provided execution remains strong.

In summary, Sea Limited’s first half of 2025 exemplifies a resilient growth narrative, with stable GMV increases, prudent fintech scaling, and a revitalised gaming segment. Investors eyeing exposure to Southeast Asia’s digital economy may find Sea’s balanced approach compelling, though vigilance on external risks is advised. All data referenced is as of 12 August 2025 at 18:40:15 UTC.

References

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