Sea Limited Gears Up to Report Q4 Earnings: What's in the Offing?

Sea Limited SE is slated to report fourth-quarter 2025 results on March 3.

The Zacks Consensus Estimate for SE’s fourth-quarter earnings is pegged at 90 cents per share, down by one cent over the past 30 days. The company reported earnings of 62 cents per share in the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $6.78 billion, suggesting year-over-year growth of 36.28%.

Sea Limited’s earnings missed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average negative surprise of 16.09%.

Sea Limited Sponsored ADR Price and EPS Surprise

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Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of SE’s Q4 Results

Sea Limited’s accelerating credit expansion appears to have introduced near-term profitability headwinds. Provisions for credit losses rose 76.3% year over year in the third quarter of 2025, outpacing top-line growth, as the company expanded its loan portfolio to US$7.9 billion, up 69.8%. The onboarding of more than 5 million first-time borrowers heightened exposure to early-stage credit risk. Despite a stable 90-day NPL ratio, the enlarged loan base and seasoning risks likely drove sustained credit costs, which are expected to have hurt earnings performance in the fourth quarter of 2025.

The company’s rising operating intensity is expected to have weighed on its fourth-quarter 2025 performance. Its cost structure expanded meaningfully in the third quarter of 2025, with total cost of revenues rising 37.3% year over year, driven by a 38.8% increase in e-commerce costs primarily from higher logistics expenses as order volumes grew. Digital entertainment costs climbed 43.7% year over year, largely due to higher payment channel fees and increased royalties tied to third-party intellectual properties. Given the seasonal spike in shopping activity and continued IP-driven content strategies, these elevated costs likely extended into the fourth quarter, which is expected to have constrained profitability.

Sea Limited’s tax and currency-related headwinds are likely to have intensified entering the fourth quarter of 2025. In the previous quarter, income tax expense climbed 74% year over year, highlighting rising bottom-line cost pressures. The company also incurred foreign exchange losses, including an $8.0 million FX loss recorded under non-operating items. Considering SE’s significant exposure to Southeast Asia and Brazil and ongoing currency fluctuations, elevated tax obligations and FX volatility probably persisted into the fourth quarter of 2025, which is expected to have pressured net income.

Sea Limited’s e-commerce arm, Shopee’s robust marketplace performance, is expected to have strengthened the company’s fourth-quarter 2025 outcome. During the third quarter of 2025, GMV rose 28.4% year over year, with gross orders increasing at the same rate, signaling continued platform scale and consumer demand. Management cited record quarterly GMV and improving profitability across Asia and Brazil while raising its full-year growth outlook to above 25%. Building on this sequential momentum, Shopee is likely to have contributed positively in the quarter under review.

What Our Model Says About Sea Limited Stock

Our proven model does not conclusively predict an earnings beat for SE this time around. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Sea Limited currently has an Earnings ESP of +4.83% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

Credo Technology Group CRDO currently has an Earnings ESP of +3.54% and sports a Zacks Rank #1. CRDO shares have surged 97.1% in the trailing 12 months. CRDO is set to report its third-quarter fiscal year 2026 results on March 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

ServiceTitan TTAN presently has an Earnings ESP of +13.21% and a Zacks Rank #2. TTAN shares have declined 31.2% in the trailing 12 months. TTAN is set to report its fourth-quarter fiscal 2026 results on March 12.

Rubrik RBRK has an Earnings ESP of +15.29% and a Zacks Rank #3 at present. RBRK shares have fallen 22.5% in the trailing 12 months. RBRK is set to report its fourth-quarter fiscal 2026 results on March 12.

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