E-commerce and gaming company Sea (NYSE: SE) beat Wall Street’s revenue expectations in Q3 2026, with revenue up 39% year on year to $8.58 billion. Its GAAP profit of $0.78 per share was 1.6% below analysts’ consensus estimates.
For more on Sea, read our free full research report.
Sea (SE) Q3 2026 highlights:
- Revenue $8.58 billion vs. S&P consensus estimates of $8.11 billion (39% year-on-year growth, 5.8% beat)
- EPS (GAAP) $0.78 vs. analysts' consensus estimates of $0.79 (1.6% miss)
- Adjusted EBITDA $931.3 million vs. analysts' consensus estimates of $974.5 million (10.9% margin, 4.4% miss)
- Operating margin 7.7%, in line with the same quarter last year
- Paying users 68.6 million, up 2.7 million year on year
- Market capitalization $47.75 billion
On Shopee, he said, “Shopee delivered another strong quarter, again achieving new record highs in both top- and bottom-line metrics. Our strategies have proven effective at strengthening our fundamentals, giving us a growing buyer base, stronger monetization, and improving unit economics.”
Revenue growth
A company’s long-term revenue performance can indicate its overall quality. Any business can report a good quarter or two, but many enduring ones grow for years. Over the last three years, Sea grew its revenue at a strong 35.7% compounded annual growth rate. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers.
This quarter, Sea reported strong year-on-year revenue growth of 39%, and its $8.58 billion of revenue exceeded Wall Street’s consensus estimates by 5.8%.
Looking ahead, sell-side analysts expect revenue to grow 21.2% over the next 12 months, according to S&P, a deceleration versus the last three years. Its growth trajectory remains attractive given its scale and suggests the market sees success for its products and services.
Paying users
User growth
As an online marketplace, Sea generates revenue growth by increasing both the number of users on its platform and the average order size in dollars.
Over the last two years, Sea’s paying users, a key performance metric for the company, increased by 18.7% annually to 68.6 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. 
In Q3, Sea added 2.7 million paying users, leading to 4.1% year-on-year growth. The quarterly growth rate was lower than its two-year result, suggesting its new initiatives aren’t accelerating user growth just yet.
Revenue per user
Average revenue per user, or ARPU, is a critical metric to track because it measures how much the company earns in transaction fees from each user. ARPU also offers insight into a user’s average order size and Sea’s take rate, or “cut”, on each order.
Sea’s ARPU growth has been strong over the last two years, averaging 18.2%. Its ability to increase monetization while rapidly growing its paying users reflects the strength of its platform, as its users are spending significantly more than last year. 
This quarter, Sea’s ARPU was $125.11. It grew by 33.5% year on year, faster than its paying users.
Key takeaways from Sea’s Q3 results
Sea’s revenue beat analysts’ consensus estimates, but the EBITDA miss made this a weaker quarter overall. Shares tumbled 8.2% to $71.94 immediately after the report.
Sea’s earnings report left more to be desired. The question is whether the stock is a buy at its current price. The latest quarter is only one piece of the longer-term business quality picture. Quality, when combined with valuation, can help determine if the stock is a buy. For more on those factors, read the full research report here (it’s free).
