Monee, Sea's digital financial services arm, posted revenue of $1.4 billion, up 58.9% year-over-year. The loan book reached $11.1 billion, a 62.5% increase, while the 90-day non-performing loan ratio held at 1%. Provisions for credit losses, however, jumped 71.5% to $555.2 million, reflecting the pace of credit expansion.
Garena revenue rose 33.5% to $746.6 million, with operating margin expanding 4.9 percentage points to 54.1%. Bookings grew 15.5% to $764 million, though quarterly active users were essentially flat. Management highlighted two new mobile titles โ Palworld Online and Monster Hunter Outlanders โ as diversification beyond Free Fire, which still anchors over 100 million average daily active users.
Sales and marketing expenses leapt 64.5% to $1.66 billion, and total operating expenses rose 50.9% to $2.9 billion. The company ended the quarter with $10.3 billion in gross cash, down slightly from $10.6 billion a year earlier. Management upgraded its full-year Shopee adjusted EBITDA target from at least $880.6 million to $1 billion, signaling confidence that the investment cycle will eventually yield operating leverage.
Insider selling has accompanied the results. President Zhimin Feng sold 30,000 Class A shares for approximately $3.9 million on August 11โ12 under a Rule 10b5-1 plan adopted in March, retaining over 1 million directly held shares. Co-founder Ye Gang sold 60,000 shares for $7.7 million under a plan adopted in September 2025, retaining 21.6 million shares. Garena president Zhao Feng sold 4,000 shares for $513,840 under a December 2025 plan.