May 12, 2026 · SE · Gojo

Sea Limited Q1 2026 — Three Engines Firing, First $1B EBITDA Quarter

Revenue +46.6%, Monee +57.8%, Shopee GMV record $37.3B. The diversification thesis finally printed — and the LEAP trade is already paid out.

Headline Numbers — Clean Across-the-Board Beat

  • Revenue: $7.1B, +46.6% YoY
  • Gross profit: $3.1B, +40.7% YoY
  • Net income: $438.2M, +6.7% YoY
  • Adjusted EBITDA: $1.0B, +9.3% YoY — first time crossing $1B
  • Quarterly active users: 666.5M across the ecosystem
  • Buybacks: 1.8M shares for $168.4M in the quarter

Segment Breakdown — All Three Engines Firing

Shopee (e-commerce — the core)

  • Revenue: $5.1B, +45.1% YoY
  • GMV: $37.3B record, +30.2% YoY
  • Revenue outpacing GMV = monetization deepening (ad tools, seller services, logistics)

Garena (gaming)

  • Bookings: $931.4M, +20.1%
  • Revenue: $696.6M, +40.6% — strongest quarter since 2021
  • Free Fire recovery is real and durable

Monee (fintech)

  • Revenue: $1.2B, +57.8% — fastest-growing segment
  • 90-day NPL ratio: 1.1% (credit quality holding up at scale)

The Bull Thesis Playing Out

SE is no longer a one-legged stool. E-commerce, gaming, and fintech all contributing — that's the diversification story finally materializing on the print. Monee at +58% growth with disciplined credit is the sleeper that re-rates this name long-term.

The Tension

Net income +6.7% vs revenue +46.6% — operating leverage is muted by ongoing investment in logistics and product. Bears will point at this; bulls will say it's the right capital allocation given the runway.

The LEAP Trade — Close It Today

The print is clean enough to justify the run on the LEAP position. The $120 May 29 calls at +2,800% should be closed today into the post-earnings move regardless of direction.

  • IV crush after earnings collapses the extrinsic premium immediately
  • 17 days left means theta decay is now the dominant force
  • Even if SE keeps grinding higher, the trade has already paid out

Don't get cute on a position that's already won. Take the money, redeploy the capital, look for the next setup.

Takeaway

Q1 2026 is the print that confirms the multi-engine thesis. Shopee monetizing, Garena re-accelerating, Monee compounding at scale with clean credit. The only thing standing between SE and a re-rate is whether management widens the EBITDA bridge in coming quarters. Watch the FY26 guide on the call.