Sea (NYSE:SE) stock gained after it reported fiscal second-quarter results on Tuesday.
The company's quarterly revenue increased 38.2% year-on-year (Y/Y) to $5.26 billion, topping the analyst consensus estimate of $4.98 billion.
EPS of 65 cents missed the analyst consensus estimate of 74 cents.
Also Read: Sea Stock Soars On Robust Q1 Growth In E-Commerce, Fintech
Digital Entertainment revenue increased 28.4% Y/Y to $559.1 million. Bookings improved to $661.3 million, up 23.2% Y/Y.
The segment's adjusted EBITDA was $368.2 million, up 21.6% Y/Y. Quarterly active users were 664.8 million, up 2.6% Y/Y. Average bookings per user were 99 cents versus 83 cents Y/Y.
E-commerce revenue increased 33.7% Y/Y to $3.8 billion. Adjusted EBITDA for the segment was $227.7 million versus a $9.2 million loss a year back.
Core marketplace revenue grew 46.2% Y/Y to $2.6 billion. Gross orders rose 28.6% Y/Y. GMV was $29.8 billion, increasing by 28.2% Y/Y.
Digital Financial Services revenue grew 70.0% Y/Y to $882.8 million. Adjusted EBITDA was $255.3 million, up 55.0% Y/Y.
Sea generated a quarterly operating cash flow of $1.6 billion during the quarter, and held $2.2 billion in cash and equivalents as of June 30, 2025.
Sea's Chairman and CEO Forrest Li said the strong momentum from early 2025 carried into the second quarter, with all three business segments delivering robust growth.
In e-commerce, Li noted Shopee delivered another record-breaking quarter following a record-high first quarter, with GMV rising 25% year over year in the first half and growth momentum expected to continue into the third quarter. He highlighted Shopee's fifth anniversary in Brazil, where it became the market leader by order volume, maintained profitability, and continued to grow rapidly.
In digital financial services, Li said Monee achieved excellent first-half growth, diversified its loan portfolio across markets and products, and maintained high asset quality through prudent risk management. He stressed that the credit business remains in its early stages in many markets.
In digital entertainment, Li reported that Garena delivered a strong first-half performance, with Free Fire sustaining engagement, expanding into more global markets, and positioning itself as an evergreen franchise. He added that Garena is exploring new genres, markets, and AI-driven gaming experiences, and raised full-year guidance, expecting bookings to grow more than 30% in 2025 Y/Y.
The stock gained 64% year-to-date.
Price Action: SE stock is trading up 18.45% to $173.22 at last check Tuesday.
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