Sea Limited Q3 2026: Revenue Rises 43%, Credit Costs Bite EPS
As seen on the 24/7 Wall St. homepage on November 10, 2026.
Credit-loss provisions jumped 82.3% to $681.5 million as Monee's loan book expanded, leaving earnings short of expectations by nearly 20% despite revenue growth of 43% year over year. The board countered with a fresh $1 billion buyback authorization after nearly exhausting the last one.
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Sea Limited's third-quarter 2026 revenue rose 43% from a year earlier to $8.58 billion, clearing consensus, with Shopee, Monee, and Garena all contributing to the expansion.
The earnings shortfall traced primarily to Monee's rapidly expanding loan book, where provisions for credit losses jumped 82.3% as Monee extended credit into more everyday spending scenarios. That spending drove GAAP diluted EPS to $0.78, missing expectations.
Shopee remained the largest revenue contributor at $6.07 billion, up 41.3% year over year, with core marketplace revenue growing even faster. Sales and marketing spending climbed 60% to support that growth, adding further pressure to the profit line alongside new investments in artificial intelligence, cloud, and infrastructure.
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The board moved quickly to signal confidence in the stock's value, approving a fresh $1 billion share repurchase authorization on November 9, 2026 as the prior program was essentially exhausted. Total adjusted EBITDA rose 28.9%, trailing the pace of revenue growth and underscoring how heavily Sea is reinvesting at this stage.
The EPS miss extends a pattern visible across recent quarters: Sea has fallen short of earnings expectations in five of the past eight periods, while revenue has generally held up. For investors, the question is whether Monee's credit expansion generates returns that justify the provisioning costs, or whether the loan book's rapid growth introduces risk the current numbers only partially reflect.
Mentioned: SE