Sea doubles annual earnings, yet profitability worries drag shares down in worst drop in 2 years | Fortune
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Sea doubles annual earnings, yet profitability worries drag shares down in worst drop in 2 years | Fortune
"Net profits also rose by almost 260%, from $447.8 million to $1.6 billion. Fintech division Monee was the company's fastest-growing division, posting 60% growth over 2025. During the earnings call, Li added that Sea wants to continue expanding the division's suite of products, foraying into areas like digital banking and insurance."
"Sea is also trying to grow its AI use. Last month, the firm signed a partnership with Google to develop AI tools to its three business segments, specifically agentic AI shopping agents for e-commerce platform Shopee, AI-powered payments for its fintech division Monee, and AI-enhanced game development for its gaming wing Garena."
"Revenue at Shopee, Sea's e-commerce division, grew by 35.8% last quarter, yet the division's cost of revenue rose by 43.2% over the same period; Sea blamed 'an increase in logistics costs as orders volume grew.'"
Sea, a Southeast Asian tech giant, achieved significant financial growth in 2025 with full-year revenue reaching $22.9 billion and net profits nearly tripling to $1.6 billion. The fintech division Monee led growth at 60%, while the company expanded into new markets including Brazil and Taiwan. Sea partnered with Google to integrate AI tools across its e-commerce, fintech, and gaming divisions. However, despite strong revenue performance, disappointing quarterly profits of $410.9 million caused shares to drop 16.5%, marking the worst decline in two years. Rising logistics costs in the e-commerce division, which grew 43.2% while revenue increased 35.8%, pressured profitability and investor confidence.
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