Sea Limited Rallies 8% Despite Q1 Miss as Profit and Growth Momentum Impress

Sea Limited (NYSE:SE) delivered a mixed first-quarter report, missing top-line and earnings expectations, but strong growth across all business segments and a sharp improvement in profitability fueled an 8% jump intra-day today.

The company posted adjusted earnings of $0.65 per share, falling short of the $0.79 analyst consensus. Revenue came in at $4.84 billion, rising nearly 30% year-over-year but narrowly missing the $5.02 billion forecast.

Despite the headline miss, operational metrics told a stronger story. Shopee, the company’s e-commerce arm, hit a record $28.6 billion in gross merchandise value, up 21.5% from the prior year. Digital financial services revenue surged 57.6% to $787.1 million, while digital entertainment bookings climbed 51.4% to $775.4 million.

Adjusted EBITDA more than doubled year-over-year to $946.5 million, while net income swung to a profit of $410.8 million, reversing a loss of $23 million in the same quarter last year.

The combination of accelerating growth and expanding profitability across all three segments—e-commerce, fintech, and gaming—offset the earnings shortfall and strengthened confidence in the company’s full-year trajectory.