Sea Ltd. announced impressive financial results for the second quarter of fiscal year 2025, demonstrating substantial growth across its diverse business portfolio. The company's revenue surged by an impressive 38.2% year-over-year, reaching $5.26 billion, comfortably exceeding the consensus analyst projections of $4.98 billion. This robust performance was primarily fueled by strong contributions from its e-commerce, digital entertainment, and financial services divisions. Although the reported Earnings Per Share (EPS) of 65 cents fell short of the 74 cents analyst estimate, the overall financial health remains strong, supported by a healthy operating cash flow of $1.6 billion and a solid cash reserve of $2.2 billion as of June 30, 2025.
Drilling down into the segment-specific achievements, the digital entertainment arm saw its revenue climb by 28.4% annually to $559.1 million, with bookings improving by 23.2% to $661.3 million. This segment’s adjusted EBITDA reached $368.2 million, a 21.6% increase from the previous year. Quarterly active users for digital entertainment stood at 664.8 million, marking a 2.6% rise, and average bookings per user improved from 83 cents to 99 cents. Meanwhile, the e-commerce sector experienced a 33.7% revenue growth, hitting $3.8 billion, with a notable shift from a $9.2 million loss to an adjusted EBITDA of $227.7 million. Core marketplace revenue alone expanded by 46.2% to $2.6 billion, and gross merchandise volume (GMV) rose by 28.2% to $29.8 billion. The digital financial services segment showcased the most dramatic increase, with revenue skyrocketing by 70.0% year-over-year to $882.8 million, and adjusted EBITDA growing by 55.0% to $255.3 million.
According to Forrest Li, Sea's Chairman and CEO, the company’s excellent momentum from earlier in the year continued into the second quarter, with all three core segments delivering substantial increases. He emphasized Shopee's record-breaking performance in e-commerce, particularly its fifth anniversary in Brazil where it has become the market leader in order volume while maintaining profitability. In digital financial services, the Monee platform demonstrated exceptional half-year growth, diversifying its loan products and maintaining high asset quality. For digital entertainment, Garena's Free Fire continued to engage users and expand globally, with the company exploring new game genres, markets, and AI-powered experiences, leading to an upward revision of the full-year guidance, projecting over 30% growth in bookings for 2025. This strong financial and operational performance has been well-received by the market, with Sea's stock price already climbing 64% year-to-date, reflecting investor confidence in its strategic direction and future prospects.
The impressive achievements of Sea Ltd. in the second quarter serve as a powerful reminder of the potential that lies in strategic diversification and relentless innovation. By nurturing a portfolio of interconnected businesses, the company has not only weathered economic shifts but has also managed to capture significant market share and deliver substantial value. This success story inspires us to pursue excellence and adapt to an ever-changing landscape, demonstrating that with vision and execution, remarkable growth and positive impact are always within reach.