Sea Limited’s digital finance arm recorded a dramatic jump in credit loss provisions during the first three quarters of 2025, rising by 85% year-over-year to reach $480 million. This increase was driven by higher delinquencies on merchant loans and buy-now-pay-later facilities, as the company extended longer-term credit to small and medium-sized sellers on its e-commerce platform. The provisioning ratio climbed to 6.2% of finance receivables, compared with 3.5% a year earlier, squeezing operating margins and prompting management to earmark additional reserves for potential defaults in the coming quarters.

Despite the mounting credit costs in its finance division, Sea Limited’s e-commerce business sustained healthy momentum. Through the first three quarters of 2025, its Shopee platform processed over 10 billion orders, representing a 28% increase in order volume and total Gross Merchandise Value of $90.6 billion, up 32% year-over-year. Revenue from marketplace commissions and logistics services rose by 34%, contributing 62% of consolidated revenues. Strong year-end sales promotions in Indonesia and Thailand delivered sequential sales growth of 15% in Q3, helping to partially mitigate margin pressure from elevated fulfillment costs.

Sea Limited’s gaming arm, Garena, maintained user engagement with an average of 180 million monthly active users across its titles, up 12% year-over-year. Revenue from in-game purchases climbed by 22% to $2.8 billion in the first nine months of 2025, underpinned by successful launches of seasonal events for flagship titles. Operating profit for the segment expanded by 8% despite higher marketing spend to support new game releases. Management highlighted that the gaming division’s strong cash-flow generation will be critical to funding digital finance expansion and covering elevated provisioning requirements.