Shopee Beats Expectations in Q2 2026: Revenue Approaches $5 Billion
Singapore-based Sea Limited reported revenue above market expectations in the second quarter of 2026, driven by growth in its e-commerce platform Shopee and digital financial services. The company’s revenue for the quarter ended June 30 rose 48.1 percent year-on-year to $7.79 billion. According to LSEG data, analysts’ average estimate was $7.06 billion. Sea’s net profit increased 10.6 percent to $458.1 million.
Shopee’s GMV Reaches $38.3 Billion
Revenue from Sea’s e-commerce unit, Shopee, increased 48.9 percent year-on-year to $4.93 billion. Gross merchandise value (GMV), which represents the total value of sales on the platform, rose 28.4 percent to $38.3 billion. The company continues to expand its operations across Southeast Asia through discount campaigns, gamified shopping features, and an extensive logistics network. Artificial intelligence is also being used in product recommendations, seller tools, and customer service.
E-Commerce Profit Target Raised to $1 Billion
Sea raised its 2026 adjusted EBITDA forecast for Shopee to $1 billion, up from its previously announced target of at least $880.6 million. Analysts’ average estimate stood at $980.7 million. In the second quarter, the unit’s adjusted EBITDA increased 12.2 percent to $255.4 million. The company’s shares rose between 7.6 percent and approximately 10 percent in premarket trading at different points following the announcement.
Advertising Revenue Rises 70 Percent
Sea has increased its focus on advertising as part of efforts to raise the share of revenue it generates from e-commerce sales. Advertising revenue rose by approximately 70 percent year-on-year in the second quarter. CEO Forrest Li said higher fees charged to sellers also contributed to growth, adding that the company still sees opportunities to increase its take rate.
Sea is expanding its operations in Brazil while competing with TikTok, Lazada, and Temu. The company is also facing potential regulatory hurdles in Indonesia and higher costs stemming from developments in the Middle East.
Artificial Intelligence Investments Expand
Sea has rolled out its generative AI-powered digital assistant, “Migoo,” in several markets, including the United States. Forrest Li said the company expects its artificial intelligence investments to support its next phase of growth. In June, hundreds of positions were also eliminated, representing approximately 8 percent of global developer roles within the e-commerce unit.
Revenue from Sea’s digital financial services unit, operating under the “Monee” brand, increased 58.9 percent to $1.40 billion. The unit provides payment processing, digital wallet, and lending services.