Equity Snap: Sea Ltd (SE US) 1Q26 reaffirms growth outlook led by investments

Research evidence excerpt

Equity Snap: Sea Ltd (SE US) 1Q26 reaffirms growth outlook led by investments

12 May 2026

Equity Snap: Sea Ltd (SE US) Equities Internet Software & Services

1Q26 reaffirms growth outlook led by investments Singapore

◆ 1Q results beat led by Shopee and Garena; Shopee EBITDA Piyush Choudhary*, CFA

margin came higher than our and street estimates HeadThe Hongkongof Asia Telecomsand Shanghai Banking Corporation

Limited, Singapore Branch

piyush.choudhary@hsbc.com.sg

Sea Ltd (SE US, USD84.87, Buy, TP USD185.00) +65 6658 0607

(Priced as of 11 May 2026) Rishabh Dhancholia*

Analyst, TMT

SE US 1Q results: 1Q26 consolidated adjusted EBITDA grew 9.3% y/y to USD1bn. It HSBC Securities and Capital Markets (India) Private

came 24% above HSBCe of USD832m (+14% against Visible Alpha consensus of Limited rishabh.dhancholia@hsbc.co.in

USD904m). EBITDA beat was led by better-than-expected margins in Shopee and +91 80 30012841

stronger than expected bookings for Garena. GAAP revenue grew 46.6% y/y to Abhishek Jhanwar*

Associate

USD7.1bn (3% ahead of HSBCe of USD6.9bn), led by GMV growth (all y/y) of 30.2%, Bangalore

loan book growth of 71.3%, and digital bookings growth of 20.1%.

Segment commentary: (1) Shopee GMV stood at USD37.3bn (in-line with HSBCe) * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

and Shopee adj. EBITDA stood at USD223.2m, implying margins of 0.6% of GMV.

EBITDA margin came ahead of HSBCe 0.51% of GMV (vs. Visible Alpha consensus

estimate of 0.55% of GMV). Shopee monetisation improved as advertising revenue up

80% y/y. Shopee VIP members grew more than 40% q/q to more than 10m. Shopee

VIP members now contribute c20% of GMV across Asia. (2) In Garena, adj. EBITDA