Sea Limited Q4 FY2025 earnings call

2025 was a great year for C Limited. All businesses scaled well, exceeding initial growth expectations. Shopee achieved record GMV, profit improvements, with ad paying sellers and ad spend increasing. Logistics capabilities scaled, Shopee VIP Membership Program rolled out, content ecosystem strengthened. Money made progress in growth and profit while maintaining healthy risk profile, acquired new users, deepened engagement, expanded credit use cases. Garena had a blockbuster year, Free Fire expanded reach, esports ecosystem grew, new titles like EA Sports FC Mobile had strong performance

In 2025, C Limited generated a record $23 billion in revenue, 36% year - on - year growth. Full - year net income reached $1.6 billion, adjusted EBITDA reached $3.4 billion. Shopee: 2025 full - year GMV grew 27% year - on - year, full - year adjusted EBITDA over $818 million. Fourth quarter growth orders increased 30% year - on - year to $4 billion, GMV increased by 29% year - on - year to $36.7 billion. Money: Annual revenue reached $3.8 billion, 60% year - on - year growth, adjusted EBITDA exceeded $1 billion, 43% year - on - year growth. As of the end of December, consumer and SME loans principal outstanding reached $9.2 billion, up 80% year - on - year. Non - performing loans passed due by more than 90 days as a percentage of total consumer and SME loans was 1.1% at the end of the quarter. Garena: Bookings grew 37% year on year, adjusted EBITDA grew 38% year on year. Fourth quarter Bookings grew 24% year on year to $672 million, cap revenue was up by 35% year on year to $701 million. Garena adjusted EBITDA was up by 26% year - on - year to $364 million in the fourth quarter and up by 38% year - on - year to $1.7 billion for the full year of 2025

2026 will continue the approach. For Shopee, aim to grow annual GMB by around 25% year - on - year, full - year adjusted EBITDA no lower than 2025 in absolute dollars. Plan to expand fulfillment further across all markets and double fulfillment order penetration by end of 2026, launch Shopee VIP in Brazil. For money, many initiatives still in early stage with huge opportunities. For Garena, keep delivering high - quality content and experiences to global gaming community

Q: On Shopee, provide more details on how to achieve 2026 growth target, reason for maintaining at least flat EBITDA, assumptions on competitive landscape, key investment areas and their duration; on money, elaborate on loan book growth drivers and EBITDA margin trend.

A: For Shopee, invest in logistics, VIP programs, content side, increase buyer base. Competitive landscape relatively stable. Investment cycles vary. For money, growth drivers include different market phases, products. Margins influenced by country, product mix and risk management.

Q: On Shopee, elaborate on investment cycle duration for 2027 margins, partnership with Google; on Garena, outlook for 2026 booking growth and IP collaboration pipeline.

A: Investment cycle varies, medium - long term EBITDA margin achievable. Partnership with Google product still in development. Garena sees double - digit growth in 2026, extending Naruto IP collaboration in Q3, working on other IPs and FIFA World Cup promotion.

Q: On Shopee VIP member program, insights on retentions, renewal rate, influence on purchasing frequencies and product categories, differences across countries; on AI, investment priority and synergy between core businesses.

A: Shopee VIP retention and renewal good, VIP members spend more. Tailor offerings per market. AI investment in e - commerce for search recommendation, ad systems, seller tools, with positive ROI. Synergy between e - commerce and financial services, and with gaming business.

Q: On Brazil, comment on GMV growth acceleration, impact on AOVs, Shopee Pay later penetration; on content ecosystem in ASEAN, plateauing and unit economics.

A: Brazil GMV growth to continue, AOV to grow. Escalator penetration in Brazil early. Shopee Pay later penetration in early stage. Content ecosystem in ASEAN not plateauing yet, unit economics improving