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Sea Limited Gears Up to Report Q2 Earnings: What's in Store?

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Key Takeaways

  • SE to report Q2 2025 earnings on Aug. 12, with EPS estimate of 99 cents and revenues of $5.12B.
  • Competitive pressure and high logistics costs may have weighed on SE's e-commerce margins.
  • Shopee's GMV growth and surging ad revenues are expected to have boosted SE's Q2 performance.

Sea Limited (SE - Free Report) is set to report second-quarter 2025 results on Aug. 12.

The Zacks Consensus Estimate for SE’s second-quarter earnings is pegged at 99 cents per share, down four cents over the past 30 days. Sea Limited reported earnings of 46 cents per share in the year-ago quarter.

The consensus estimate for revenues is pegged at $5.12 billion, suggesting year-over-year growth of 31.07%.

Sea Limited’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 14.11%.

Sea Limited Sponsored ADR Price and EPS Surprise

Sea Limited Sponsored ADR Price and EPS Surprise

Sea Limited Sponsored ADR price-eps-surprise | Sea Limited Sponsored ADR Quote

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of SE’s Q2 Results

Sea Limited is experiencing intensifying competitive headwinds in core markets, particularly across Southeast Asia and Brazil, as aggressive entrants such as TikTok Shop and well-capitalized regional rivals ramp up seller incentives, advertising discounts and short-form commerce features. This intensifying rivalry may force the company to increase promotional spending and reduce take rates, potentially compressing margins and affecting profitability in its core e-commerce business. Sea Limited is expected to have suffered in the second quarter of 2025 as these actions weighed on margins and reduced earnings in its core e-commerce segment.

Sea Limited heavily relies on shipping subsidies to drive e-commerce growth. Therefore, rising global logistics costs and ongoing supply-chain disruptions are anticipated to have pressured its margins. In the second quarter of 2025, elevated freight rates and sustained subsidy levels are expected to have weighed on profitability, raising concerns over the sustainability of the company’s margin profile.

However, Shopee’s first-quarter 2025 performance set new records, with Gross Merchandise Value (GMV) advancing 22% year on year to $28.6 billion and gross orders increasing 20% to 3.1 billion. Sea Limited is expected to have benefited from resilient GMV growth and increased buyer spending, boosting its e-commerce revenues and margins.

Shopee achieved strong ad monetization in the first quarter, with ad revenues rising more than 50% year over year, backed by a 22% uptick in seller ad adoption and 28% higher average spend per seller. As ad-tech products such as GMV Max and Shopee Live Ads continue scaling, Sea Limited is expected to have benefited in the second quarter from rising advertising revenue and margin leverage in its marketplace business.

What Our Model Says About Sea Limited Stock

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Sea Limited currently has an Earnings ESP of -3.86% and a Zacks Rank #4 (Sell). You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Fabrinet (FN - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fabrinet shares have risen 52.4% in the year-to-date period. FN is set to report fourth-quarter fiscal 2025 results on Aug. 18.

Lumentum (LITE - Free Report) has an Earnings ESP of +5.12% and a Zacks Rank of 2 at present.

Lumentum shares have risen 32.3% in the year-to-date period. LITE is set to report its fourth-quarter fiscal 2025 results on Aug. 12.

BILL Holdings (BILL - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank of 3.

BILL Holdings shares have declined 51% in the year-to-date period. BILL Holdings is scheduled to release fourth-quarter fiscal 2025 results on Aug. 27.

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