Sea ADR Jumps 8.1% on Record $8.6 Billion Revenue

Earnings per share misses Wall Street estimates

Sea Limited reported earnings per share of $0.78 for the third quarter of 2026, which fell below Wall Street estimates. This result missed the $0.99 forecast by approximately 21.2%.

Investing.com India reported that the company's earnings missed analyst expectations by $0.21.

Shopee and Monee drive quarterly growth

Shopee reported revenue of $6.1 billion for the third quarter of 2026, a 41.3 percent increase compared to the previous year. This growth was supported by a 23.3 percent rise in gross merchandise volume and improved monetization.

The segment recorded its most profitable quarter to date with $269 million in adjusted EBITDA and a 23 percent year-over-year increase in gross merchandise volume.

The gaming division, Garena, reported $840 million in revenue, which is a 29 percent increase compared to the previous year.

Forrest Li highlights financial performance

Chief Executive Forrest Li stated, "Sea achieved a new record high of $8.6 billion in revenue, up 43% year-on-year, and over $930 million in adjusted EBITDA, up 29% year-on-year".

Adjusted EBITDA for the quarter rose 29 percent year-over-year to $931 million, while net income increased 34 percent to $502 million.

Management outlines future strategy for Sea Cloud and Monee

Management reaffirmed its full-year 2026 targets of approximately 25 percent gross merchandise volume growth and $1 billion in adjusted EBITDA. Sea introduced a new AI and cloud infrastructure initiative called Sea Cloud, which management described as an early-stage project with no expected near-term financial impact.

This project is currently in the formation stage and will be developed on a project-by-project basis with strict return hurdles, though no enterprise contracts have been signed. Regarding the Monee business, management indicated it has reached the maturity and scale to operate independently.

Chief Executive Forrest Li announced that the company hopes to list the Monee business within one to three years, subject to regulatory and market conditions. For Shopee, management noted that while monetization gains are expected to materialize over time, the company continues to invest in growth because the market opportunity remains significant.

Market volatility and financial health metrics

Sea Limited currently trades at a price-to-earnings ratio of 43.7 and a PEG ratio of 0.89. The stock has a 52-week price range between $71.53 and $159.09.

The stock has a beta of 1.56 and has declined 39% year-to-date, leading InvestingPro to describe the share price as volatile.

Monee reported a 90-day nonperforming loan ratio of 1.3% for its lending business. This specific figure could signal potential risk if economic conditions continue to deteriorate.

Broader US market context

US stock markets declined across the board on November 10, 2026. The S&P 500 dropped 0.7% to 7,497 and the Dow Jones Industrial Average fell 0.4% to 52,168. The Nasdaq 100 index decreased 1.20% to reach 27,571.

US consumer prices rose 0.4% in October, while core CPI increased 0.3%. Federal Reserve Governor Christopher Waller said a rate hike is expected in December. He noted a 0.50% increase is possible due to persistent inflationary pressures.

Recent filings and prior volatility expectations

A Form 4 filing was submitted for Yanjun Wang, who serves as CCO and GC, regarding activity on November 6.

Investors expected Sea shares to move 12% following the November 10 earnings report, according to a report on November 3.