Sea Ltd - ADR

Overall results beat and momentum continues (good/surprising) - Sea reported $7.8B revenue (+48% YoY) and $917M adjusted EBITDA (+11% YoY) in 2Q26. - Management emphasized continued momentum from 1Q into 2Q, with improving unit economics and disciplined investment (aimed at profitable growth rather than pure scale).

Shopee e-commerce: strong growth + improving monetization and economics; GMV outlook maintained (good) - Shopee delivered GMV $38.3B (+28% YoY) and gross orders $4.2B (+27% YoY), with eight consecutive quarters of sequential GMV growth and new highs in gross order volume and revenue. - Profitability: Shopee adjusted EBITDA >$250M (reported as $255M, +12% YoY). - Monetization improved: ad revenue +70% YoY and ad take rate +90 bps YoY; ad-paying sellers +45% and avg ad spend/seller +15% YoY. - Management reiterated full-year GMV growth guidance ~25% unchanged, while flagging FX headwinds (weaker local currencies vs USD) and seasonality/base effects in Q3/Q4.

Shopee “moat” investments working: logistics/fulfillment, VIP, and content are scaling (good/opportunities) - Logistics/fulfillment: faster delivery and higher utilization; instant/same-day traction; instant can deliver as fast as 1 hour in urban areas. - Fulfillment quality/impact: in some markets >60% of fulfilled parcels arrive next day; anecdotal uplift noted (e.g., Mindanao). - ShopeeVIP: membership >15M at end-June (+25% QoQ); VIP members ~24% of Asia GMV; retention ~80% monthly. - Content: orders from live streaming + short-form video grew >50% YoY, >25% of physical goods orders in Southeast Asia. - Opportunity/expectation: management sees continued unit-economics improvement across VIP and content as scaling benefits compound.