Sea (SE) Q2 FY2026 Earnings Call | Earnings Call Intelligence

Bottom line

The sleeper story here is that consolidated adjusted EBITDA declined YoY to $917M even though Shopee, Money, and Garena all posted double-digit segment EBITDA growth, a bridge gap management never addressed and no analyst asked about. The obvious headline, 48% revenue growth and a new $1B Shopee EBITDA target, is real but sits on top of quietly decelerating engines: ad revenue growth (80%→70% YoY), purchase frequency (12%→8% YoY), and Garena bookings (20%→15% YoY), partly papered over by a brand-new, denominator-light 'new active buyers +35%' metric. The binding constraint isn't demand, it's disclosure discipline: management gave us a specific Shopee margin bridge (0.67% to 2-3%) but went silent on the buyer AI assistant when asked directly, pivoting instead to seller-side tools. As Tony Ho's own words described total adjusted EBITDA as having been 'cut by 11% year-on-year' against a backdrop of 'strong momentum', that's a phrase that should have triggered a question and didn't. My view changes if next quarter's call explicitly reconciles the corporate/other EBITDA drag and discloses CFFO; until then, I'd treat the headline beat with real skepticism on earnings quality.

The 30-second version

Total company adjusted EBITDA fell YoY while every single segment grew double digits, and nobody on the call asked why.
48% revenue growth and a new $1B Shopee EBITDA target are the headline, but the underlying growth engine is quietly decelerating.
The buyer-facing AI shopping assistant quietly vanished from management's answer, and Money's risk narrative flipped without explanation.

What changed this quarter

Metric	Q1'26	Q2'26	Change
Total Revenue (YoY)	$7.1B, +47% YoY	$7.8B, +48% YoY	Slight acceleration
Total Adjusted EBITDA (YoY)	>$1.0B, +9% YoY	$917M, 'cut by 11%' YoY	Reversal from growth to decline despite segment strength
Net Income (YoY)	$438M, +7% YoY	$458M, +11% YoY	Modest acceleration
Shopee GMV (YoY)	$37.3B, +30% YoY	$38.3B, +28% YoY	Deceleration, 2pts
Shopee Adjusted EBITDA (YoY)	$223M vs $464M prior-year base	$255M, +12% YoY	Return to YoY growth off easier base
Money Loan Book (YoY)	$9.9B, +70%/71% YoY	$11.1B, +62% YoY	Growth rate decelerating
Money NPL Ratio (90-day)	1.1%	1.0%	Improved 10bps
Money Adjusted EBITDA (YoY)	$275M, +14% YoY	$288M, +13% YoY	Flattish growth rate
Garena Bookings (YoY)	$931M, +20% YoY	$764M, +15% YoY	Deceleration plus lower absolute $
Garena Adjusted EBITDA (YoY)	$574M, +25% YoY	$430M, +17% YoY	Deceleration

Accountability tracked

4 new promises made5 narrative shifts flagged5 prior promises scored

Inside the full report

The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.

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Sea (SE)

The 30-second version

What changed this quarter

Accountability tracked

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