Table of Contents
a. Key Points
Strong demand trends across the board.
Margin pressure from ongoing investments that look to be working.
Stable credit health.
Reiterated annual Shopee (e-commerce platform) growth expectations.
b. Demand
Beat revenue estimate by 7%.
Shopee (e-commerce) revenue beat by 8.6%.
Monee (financial services) revenue beat by 7.6%.
Garena (entertainment) revenue beat by 8.1%.
Beat e-comm gross merchandise value (GMV) estimate by 2.5%.
c. Profits & Margins
Beat EBITDA estimate by 15%.
Beat Shopee EBITDA estimate by 2.4%. Shopee EBITDA margin was 4.2% vs. 7.5% Y/Y due to aggressive investments to fortify its value proposition in 2026.
Beat Garena EBITDA estimate by 33%.
Missed Monee EBITDA estimate by 6.6%.
Beat GAAP EBIT estimate by 16%.
Missed GAAP $0.70 EPS estimate by $0.03.
Lower Y/Y non-operating income & a higher tax rate both hurt EPS.
d. Balance Sheet
$4.04B cash & equivalents.
$264M borrowings. $1B convertible notes.
0.2% Y/Y dilution.
e. Guidance & Valuation
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