Shopee Reports Profit of Rp9.76 Trillion Thanks to Logistics Transformation and Instant Delivery
Singapore-based technology company Sea has begun generating profit from its core e-commerce business, Shopee, for the first time. Sea has attributed this profit to substantial investment in the logistics sector.
However, the company’s annual earnings failed to meet market expectations, causing its stock price to plummet 16.5% on Tuesday.
“The strong results in 2025 represent a validation of the effectiveness of our strategic choices for Shopee,” said Forrest Li, chairman and chief executive of Sea, at a press conference on Tuesday, according to Nikkei Asia.
Shopee recorded operating profit of US$581 million (Rp9.76 trillion) in 2025, reversing an operating loss of US$139 million in 2024. According to QUICK FactSet data, this marks its first annual profit since Sea began disclosing segment-level financial results.
Garena, Sea’s gaming division, recorded operating profit of US$1.18 billion, up 21% from 2024, whilst its financial services business Monee saw operating profit surge 38% to US$973 million.
Sea reported net profit of US$397 million for the October-December quarter, up 67% from the same period the previous year, as revenue rose 38% to US$6.8 billion.
The e-commerce platform’s expansion has been supported by a growing customer base. Annual gross merchandise value (GMV) reached US$127.4 billion in 2025, up 27% from the previous year. For 2026, the company is targeting annual GMV growth for Shopee of approximately 25%.
GMV represents the value of goods sold on the e-commerce platform during a given period, before deductions for costs, expenses, and returns. SPX Express, Shopee’s dedicated logistics service operating across Southeast Asia, Taiwan, and Brazil, now processes over 30 million packages per day.
“In densely populated urban areas, we are expanding instant delivery and same-day delivery services for buyers who value speed and convenience,” said Li.
According to TMO Group, a digital commerce agency, Shopee continues to outperform other players in Southeast Asia based on website visitor numbers between January and March. The company holds 79% market share in Vietnam, 61% in Malaysia, and 63% in Thailand.
However, the company’s spending on logistics and digital services has weighed on profitability. Quarterly earnings per share reached US$0.63, below the average analyst estimate of US$0.75, according to QUICK FactSet data, triggering the share price decline.
Tuesday’s closing price of US$87.82 represented a fall from approximately US$190 in October, despite the company announcing its first share buyback programme of up to US$1 billion in November.
Maybank Securities Singapore analyst Hussaini Saifee stated that Sea recorded strong growth in the fourth quarter of 2025. However, he added: “Margins have weakened due to fulfilment investments driven by upfront operating costs.”
He characterised the weaker-than-expected profit as “short-term pain for long-term gain.”