Sea Limited (NYSE:SE) shares surged 18% intra-day on Tuesday after the Southeast Asian tech group posted second-quarter revenue well above expectations, even though earnings missed estimates.

For the quarter ended June 30, 2025, revenue rose 38.2% year-over-year to $5.3 billion, surpassing the $4.55 billion consensus. Adjusted earnings were $0.65 per share, short of analysts’ $0.77 estimate. Net income totaled $414.2 million, up sharply from $79.9 million in the same quarter last year.

The company’s e-commerce platform Shopee saw gross merchandise value climb 28.2% to $29.8 billion, while gross orders increased 28.6% to 3.3 billion. Revenue from digital financial services jumped 70% to $882.8 million, and digital entertainment bookings rose 23.2% to $661.3 million.

Sea’s financial services arm reported outstanding consumer and SME loans of $6.9 billion, a 94% annual increase, with a non-performing loan ratio of 1.0%. The digital entertainment segment saw quarterly active users rise 2.6% to 664.8 million, with paying users growing 17.8% to 61.8 million.