Sea Limited’s Monee digital financial services business continued its rapid expansion during the second quarter of 2026, with consumer and small and medium-sized enterprise loans outstanding increasing 62.5% year-over-year to $11.1 billion while the percentage of loans more than 90 days past due remained stable at 1%.
The $11.1 billion loan portfolio consisted of $10 billion of loans held on Monee’s balance sheet and another $1.1 billion of off-book loans. Sea defines the off-book portion primarily as lending provided by other financial institutions through channeling arrangements on its platform.
Monee’s financial growth remained strong alongside the increase in credit exposure. Q2 GAAP revenue surged 58.9% year-over-year to $1.4 billion from $882.8 million, primarily reflecting expansion of the consumer and SME credit business as lending activity increased.
Adjusted EBITDA increased 12.8% to approximately $288 million from $255.3 million a year earlier. Monee’s revenue and operating income remain primarily attributable to its consumer and SME credit operations.
Management believes the business remains relatively early in its potential growth cycle despite the rapid expansion. Sea said only a fraction of users across its broader ecosystem currently use Monee financial products, while credit penetration remains low across the markets in which it operates.
Sea is using improvements in risk management capabilities to extend Monee beyond its relationship with Shopee. Management said each improvement in its risk infrastructure enables Monee to serve more users and expand farther outside the company’s core e-commerce ecosystem.
The expansion is requiring substantially greater investment. Monee sales and marketing expenses increased 139.8% year-over-year to approximately $293.9 million from $122.6 million. Across Sea as a whole, sales and marketing expenses increased 64.5% to approximately $1.66 billion.
Credit-loss provisions also increased faster than the loan portfolio. Sea’s consolidated provision for credit losses increased 71.5% to $555.2 million from $323.7 million a year earlier. The company nevertheless reported that its 90-day-plus non-performing loan ratio for Monee remained at 1%, unchanged sequentially.
Monee’s growth contributed to another strong quarter across Sea’s broader platform. Consolidated Q2 revenue increased 48.1% to $7.79 billion from $5.26 billion, while gross profit increased 47.3% to $3.55 billion. Operating income increased 33.3% to approximately $650.3 million.
Net income increased 10.6% to $458.1 million from $414.2 million. Total Adjusted EBITDA reached $917.2 million, also up 10.6% year-over-year. Monee contributed $288 million of that total, while Shopee generated $255.4 million and Garena contributed $429.8 million.
Shopee continued to expand the ecosystem from which Monee can acquire users. Q2 Shopee gross merchandise value increased 28.4% to $38.3 billion, while gross orders increased 27.5% to 4.2 billion. Shopee revenue increased 48.2% to $5.6 billion.
Sea also continued returning capital to shareholders while investing in growth. The company repurchased 4.7 million shares for approximately $416.8 million during Q2 under its $1 billion share repurchase program.
The combination of 62.5% loan growth and a stable reported 90-day delinquency ratio underscores the importance of credit performance to Monee’s next phase. The business is already generating more than $1 billion of quarterly revenue, but management sees substantial remaining penetration opportunities across Sea’s large e-commerce and digital ecosystem.
KEY QUOTES:
“Monee also delivered another great quarter, with broad-based growth across our products and markets. The advances in our risk capabilities are compounding: each improvement helps us serve more users, serve them better, and reach further beyond Shopee.”
“We are still at an early stage of growth. Only a fraction of the users across our ecosystem are using Monee’s financial products today, and credit penetration remains low across our markets. This gives us great confidence in Monee’s long-term growth and earnings potential.”
Forrest Li, Chairman And Chief Executive Officer Of Sea Limited
