Sea Doubles Profits But Market Skeptical on Sustainability; Stock Plunges
Sea Limited reported full-year 2025 net profits of $1.6 billion, nearly tripling from $447.8 million in 2024, as the Southeast Asian tech giant posted $22.9 billion in revenue—a 36.4% increase year-over-year. Yet the earnings beat failed to reassure investors; shares fell into their worst two-year decline on profitability concerns.
Fintech division Monee drove growth with 60% expansion over 2025, becoming the company's fastest-growing segment. CEO Forrest Li signaled aggressive expansion plans during the earnings call, targeting digital banking and insurance products within Monee while strengthening e-commerce penetration in Taiwan and fulfillment capabilities in Brazil, which emerged as the company's fastest-growing market last year.
Sea onboarded 300 local Brazilian brands onto Shopee Mall in Q4 and reduced buyer waiting time by 1.5 days. The company is also accelerating AI deployment through a new partnership with Google to develop agentic AI shopping agents for e-commerce, AI-powered payments for Monee, and AI-enhanced game development for gaming division Garena.
What's next: Investors will watch whether Sea can sustain profitability gains amid aggressive expansion spending in new markets.
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