US Global Sea to Sky Cargo ETF

SE 3Q26 First Take: Results were mixed this quarter: top-line growth was solid with all three segments — e-commerce, fintech, and gaming — beating estimates. However, profitability was softer, with GAAP OPM below expectations and down QoQ, and adj. EBITDA also missing. The bigger focus, though, seems to be investment tied to a planned cloud push, which already appears in this quarter.

1) Overall: Revenue Beat, Margins Meh

Total revenue rose 43% YoY, about 6% above consensus. GAAP OPM was ~7.7%, roughly 50bps below expectations and lower QoQ, while adj. EBITDA came in about 6% below consensus.

All three segments beat on revenue growth, with stronger contributions from e-commerce and fintech and a softer print from gaming. On profitability, e-commerce held up, while gaming and fintech weakened. Notably, the 'Other' segment loss nearly doubled QoQ, becoming the key drag on group profit vs. expectations.

2) E-comm: Growth Decelerated as Expected; Lower AOV Drag; Margin Edged Up

GMV grew 23% YoY, in line with consensus and slower than last quarter’s 28.5%. Order volume rose ~25.5%, ahead of expectations, while AOV fell ~1.8% YoY vs. +1% last quarter, likely reflecting FX headwinds from weaker ASEAN currencies.

Take rate continued to climb, with 3P monetization up ~60bps QoQ, driving Shopee revenue to beat. On profitability, adj. EBITDA/GMV was ~0.68%, up slightly QoQ and in line with expectations, indicating a solid showing for this core segment.

3) Gaming: Billings Growth Slowed; User Metrics Soft; Margin Down QoQ

Billings were ~$890mn, up ~6% YoY, a clear slowdown from last quarter’s 15.5%. Both active users and paying users came in slightly below expectations, and adj. EBITDA/billings was ~51.5%, down ~200bps QoQ.

Management cited support from a Free Fire x Naruto Shippuden crossover and the 10th anniversary of Arena of Valor. However, last year’s tie-ins created a high base.

4) Fintech: Still Hypergrowth, but Credit Quality Worsened

Loan balances reached ~$12.6bn, up 60% YoY, driving fintech revenue up 64% YoY, both well ahead of estimates. That said, 90+ day NPLs rose to 1.3% from 1.0% last quarter, and adj. EBITDA margin fell to ~18.4%, below the ~20% expected and down for several consecutive quarters. Growth remains rapid, but markets will worry about rising credit risk.

5) Cloud: Investments Now Showing in CapEx and 'Other'

Q3 CapEx was ~$550mn, already exceeding full-year 2025 spend. The 'Other' segment loss also nearly doubled QoQ, and while management did not explicitly explain these shifts, the risk disclosures added 'AI, cloud and infrastructure initiatives'. These likely reflect compute and team investments related to Sea Cloud, pending confirmation on the call.$Sea(SE.US)

'Little Tencent' Sea 2Q26 First Take: Results remained solid. Core KPIs across the three segments — GMV, loan book, and game bookings — modestly beat estimates, underscoring healthy growth momentum.

Revenue came in over 10% above expectations, reflecting sustained monetization gains. The market-focused e-com margin continued to surprise to the upside, up 0.7ppt QoQ on a GMV basis.

In detail. Key points:

1) E-com: GMV grew 28.5% YoY vs. 26% est. It looks slightly slower QoQ, but the base this quarter was materially higher, so momentum remains strong.

2) Fin. services: The loan book grew 63% YoY this quarter, still decelerating QoQ but beating the 58% est. Growth remains robust despite the slowdown.

3) Games: While less spectacular than last quarter, performance remained solid. Bookings rose 15.5% YoY vs. 14% est.

$Sea(SE.US)

🦎 IGGY CLOSING BRIEF, 21 JULY 2026

🌆 That is a wrap on 21 July 2026. Here is what the session delivered.

SESSION SUMMARY

The Straits Times Index closed at 5,526.7, up 27.8 points or about 0.5 percent, snapping two softer sessions. Beneath the index, risk appetite was firmer than the headline suggests, with several smaller names posting double-digit gains. REITs were mixed to slightly firmer, not showing the yield pressure I was watching for this morning despite rising US Treasury yields.

MACRO INTO TOMORROW

Focus remains on tonight’s US session for direction on yields and any spillover into REIT valuations. Today gave no clean signal. The Iran and oil situation remains unresolved. Priority is identifying what is driving CSE Global’s move before tomorrow’s brief.

After the close, SGX announced Singapore depository receipts for Grab, Sea and SpaceX will begin trading tomorrow. This allows SGD exposure via CDP without a foreign brokerage account. This is access expansion, not a forensic call.

THREE MOVERS IGGY IS WATCHING

👁 Z74 SingTel, +0.45% to $4.42

Second day of small gains. No change to underlying yield quality concerns.

👁 544 CSE Global, +7.44% to $1.30

Up roughly 18 percent over two sessions with no confirmed driver. This has moved beyond noise. I want a verified explanation before commenting further.

👁 5E2 Seatrium, +2.00% to $2.04

Move aligns with broader risk-on tone. Structural concerns remain, with cash flow and interest coverage below threshold.

IGGY'S END OF DAY READ

A firmer session with decent breadth in smaller names, and no visible yield pressure in REITs yet. The key development is CSE Global. Two sessions of unexplained strength is a pattern. That needs answers.

Not financial advice. Iggy’s Forensic Compliance Standards apply.

$Sea(SE.US) Southeast Asian e-commerce and fintech company Sea also dominates its region, much like MercadoLibre. However, its shares have traded down sharply over the past year. The company's margins dipped while it defended its territory through seller incentives and various promotions. While this is a reasonable reaction from the market, I think it has been overdone -- especially as Sea grew sales by 47% in its latest quarter. Best yet, Sea's VIP membership grew by 40% to over 10 million customers, and Brazil remained the fastest-growing market for Shopee. In general, the ecommerce sector is suffering from the macro concerns of inflation & the Middle East war, but long term it should technically recover. @Bridge Buzz SG

$Sea(SE.US) AI is transforming value creation in Southeast Asia’s internet sector, particularly benefiting Sea, as highlighted by Maybank Investment Bank. The shift emphasizes platform capabilities over cost savings, with marketplaces and trusted transaction layers becoming crucial for both human and AI interactions in e-commerce and gaming. While some investors worry that AI may disrupt marketplace advertising, Maybank argues this risk is overstated, suggesting that Shopee's ad business could remain resilient and gain from shifting budgets toward marketplace visibility. Moreover, Maribank is also projected to finally become profitable in about 2 to 3 years time, which could diversify their revenue and improve business resilience. @Bridge Buzz SG

$Sea(SE.US) Sea has set up a dedicated team to scout for new investments in AI, part of a broader effort to accelerate forays into the technology as it hunts for its next growth engine beyond e-commerce. The investment unit sits directly under the president’s office and is one of several initiatives Sea’s established to dedicate capital toward internal and external AI projects. Sea is making structural shifts after chief executive officer Forrest Li declared in 2025 that a trillion-dollar market capitalisation was possible if the company doubled down on AI and “makes the right calls.” Let's hope these new investments into AI can actually benefit and be monetised eventually. @Bridge Buzz SG