Sea Limited Prepares to Announce Q4 Results: What Can Investors Expect?

Sea Limited Set to Announce Q4 2025 Earnings

Sea Limited (SE) is scheduled to release its financial results for the fourth quarter of 2025 on March 3. Current analyst consensus places the company’s quarterly earnings at $0.90 per share, a slight decrease of $0.01 compared to estimates from 30 days ago. In the same period last year, Sea Limited posted earnings of $0.62 per share.

Revenue for the quarter is projected at $6.78 billion, which would represent a 36.28% increase year-over-year. However, Sea Limited has not met earnings expectations in any of the last four quarters, with an average miss of 16.09%.

Sea Limited Sponsored ADR: Price and EPS Surprises

What to Watch for in Sea Limited’s Q4 Results

Sea Limited’s rapid expansion in its credit business has created short-term profitability challenges. In the third quarter of 2025, provisions for credit losses surged by 76.3% year-over-year, outpacing revenue growth, as the company’s loan portfolio expanded to $7.9 billion—a 69.8% increase. The addition of over 5 million new borrowers increased the company’s exposure to early-stage credit risk. Although the 90-day non-performing loan ratio remained steady, the larger loan book and associated risks likely kept credit costs elevated, which may have weighed on fourth-quarter earnings.

Operating expenses also rose significantly, with total cost of revenues up 37.3% year-over-year in Q3 2025. This was largely driven by a 38.8% increase in e-commerce costs, primarily due to higher logistics expenses as order volumes climbed. Digital entertainment costs jumped 43.7%, reflecting greater payment channel fees and higher royalties for third-party intellectual property. With seasonal shopping increases and ongoing investments in content, these higher costs likely persisted into the fourth quarter, putting further pressure on profitability.

Tax and currency challenges have also intensified. Income tax expenses grew 74% year-over-year in the previous quarter, and the company recorded an $8 million foreign exchange loss. Given Sea Limited’s significant presence in Southeast Asia and Brazil, ongoing currency volatility and higher tax obligations likely continued to impact net income in the fourth quarter.

On a positive note, Shopee, Sea Limited’s e-commerce platform, continued to perform strongly. In Q3 2025, gross merchandise value (GMV) increased 28.4% year-over-year, with gross orders rising at the same rate. Management highlighted record GMV and improved profitability in both Asia and Brazil, raising the company’s full-year growth outlook to over 25%. This momentum is expected to have supported fourth-quarter results.

Model Outlook for Sea Limited Stock

Our analysis does not indicate a clear likelihood of Sea Limited surpassing earnings expectations this quarter. According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) increases the probability of an earnings beat. However, Sea Limited currently holds an Earnings ESP of +4.83% but is rated Zacks Rank #5 (Strong Sell), which does not meet the criteria for a likely beat. Investors can use the Earnings ESP Filter to identify stocks with better odds of outperforming expectations.

Stocks with Potential for Earnings Surprises

• Credo Technology Group (CRDO): Earnings ESP of +3.54% and Zacks Rank #1. Shares have soared 97.1% over the past year. The company will announce Q3 fiscal 2026 results on March 2.
• ServiceTitan (TTAN): Earnings ESP of +13.21% and Zacks Rank #2. Shares have declined 31.2% in the past year. Q4 fiscal 2026 results are due March 12.
• Rubrik (RBRK): Earnings ESP of +15.29% and Zacks Rank #3. Shares are down 22.5% over the last 12 months. Q4 fiscal 2026 results will be released March 12.

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