--- title: "SE (Trans): Monee to pursue spin-off listing in 1–3 yrs" type: "Topics" locale: "en" url: "https://longbridge.com/en/dolphin/post/44946942.md" description: "Shopee's Q3 adj. EBITDA reached an all-time high of $269 mn, with the full-year $1 bn target unchanged. However, Monee's 90-day NPL ratio inched up to 1.3%. The company plans to spin off Monee for a standalone listing within 1–3 years and authorized an additional $1 bn share repurchase." datetime: "2026-11-10T14:14:09.000Z" locales: - [en](https://longbridge.com/en/dolphin/post/44946942.md) - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/44946942.md) - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/44946942.md) author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)" generator: "portal-rs" --- # SE (Trans): Monee to pursue spin-off listing in 1–3 yrs **Dolphin Research's compiled Trans for** $Sea(SE.US) **Q3 2026 earnings call** **I. Core financial recap** 1\. Shareholder returns: The $1bn buyback announced a year ago is largely complete. The company plans an additional $1bn repurchase. 2\. Guidance: Shopee reiterates full-year 2026 targets of approx. 25% GMV growth and $1bn Adj. EBITDA. Sea Cloud is not expected to have a material financial impact at this stage. 3\. Key metrics this quarter a. Group: revenue of $8.6bn (+43% YoY) and Adj. EBITDA of $931mn (+29% YoY). Net profit was $502mn (+34% YoY). b. Shopee: GMV of $39.7bn (+23% YoY; ex-FX approx. +26.5%) and orders of 4.5bn (+26% YoY). Core market revenue reached $4.6bn (+51% YoY), with Adj. EBITDA of $269mn (+45% YoY). c. Monee: revenue of $1.6bn (+64% YoY). Adj. EBITDA was $298mn (+15% YoY). d. Garena: bookings of $890mn (+6% YoY) and revenue of $840mn (+29% YoY). Adj. EBITDA came in at $458mn (+46% YoY). 4\. Credit assets and non-operating items a. Monee loan book reached $12.6bn (+60% YoY), including $11.2bn on-balance-sheet and $1.3bn off-balance-sheet. The 90+ day NPL ratio was 1.3%. b. Net non-operating gain was $123mn (vs. $61mn a year ago). Income tax expense was $280mn (vs. $161mn a year ago). **II. Earnings call details** **2.1 Management highlights** 1\. Shopee: users and monetization a. New MAU buyers rose over 50% YoY, while total MAU buyers grew about 20% YoY. The acceleration in new users since Q2 continued into Q3. b. Ads: advertisers running paid ads increased over 35% YoY and ad spend per seller rose 13%. Ad revenue grew over 55%, and ad monetization rate improved by more than 80bps YoY. 2\. Shopee: logistics a. Instant delivery can be as fast as 1 hour, focused on high-frequency categories such as fresh food and pharma. In Indonesia, such orders more than doubled YoY and unit cost fell, with over 12k offline stores onboarded. Bangkok region saw nearly 15% of orders delivered via instant or same-day. b. Low-cost delivery: pickup-point orders exceeded 30% in Singapore and 15% in Malaysia. In Indonesia, economy delivery accounted for over half of orders, with unit cost more than 20% below the platform average, lowering the free-shipping threshold. c. Fulfillment: fulfilled order volume rose about 25% QoQ and Asia FBS unit economics improved QoQ. Next-day and faster parcels grew over 60% YoY, more than double overall order growth. 3\. Shopee: membership and content a. ShopeeVIP surpassed 21mn members, up over 40% QoQ, contributing nearly 25% of GMV. Monthly retention was about 80%, and per-capita spend generally rose by double-digit percentages after subscription. In Sept., ShopeeVIP Plus bundled with Netflix launched in Indonesia, Thailand, and the Philippines. b. Live and short-video orders increased over 45% YoY and accounted for more than 25% of physical orders in SE Asia. Unit economics improved QoQ. c. Off-platform traffic: orders from YouTube more than doubled YoY. Facebook Creator Program orders rose over 90% QoQ. d. Since the Instagram partnership in Apr., over 4mn Reels have tagged Shopee products, up more than 4x QoQ. Shopee became an early connector partner for Meta's Muse AI assistant in Singapore. 4\. Shopee: Brazil (fastest-growing and outperforming the market) a. Avg. buyer wait time fell 12% YoY, with new air routes covering the North and Northeast. In Greater São Paulo, about 40% of parcels were next-day and nearly 50% were two-day. b. Instant delivery 'Shopee Turbo' now covers 7k+ partner stores with delivery within 4 hours. In-house large-parcel delivery was launched, and fulfilled order volume more than doubled YoY. c. Auto and home improvement categories grew over 80% YoY. ShopeeMall sellers' GMV was about 2.5x last year, with AOV nearly 3x the platform average. 5\. Monee a. Spin-off: profitable for three consecutive fiscal years, with a plan to list independently in 1–3 years, subject to market, macro, and regulatory conditions. A standalone listing would give Monee a dedicated capital base to build a full financial ecosystem, expanding from unsecured lending into secured lending, insurance, and wealth management. Payments and user acquisition synergies with Shopee remain unchanged. b. Scale: active credit users reached nearly 44mn (+~28% YoY), with almost 6mn new first-loan users added this quarter. Cash loans and off-platform loans accounted for about 60% of the loan book, while monthly transacting users on the standalone app more than doubled YoY. c. Depth: avg. loan balance per user rose 23% YoY, and over 40% of active credit users used two or more products. Off-platform SPayLater more than doubled YoY, accounting for nearly 25% of SPayLater, and nearly 40% in Malaysia. d. In Thailand, ShopeePay Unlimited Card (on the Mastercard network) saw monthly transacting users in Sept. rise over 60% vs. a quarter ago. The product will roll out to Malaysia within the year. e. Risk: NPLs edged up, mainly due to credit conditions in Thailand and Brazil, and mix shifts from faster growth in Brazil and off-platform SPayLater. Credit standards and limits have been tightened in advance for certain cohorts. 6\. Garena a. Free Fire bookings grew strongly. The Naruto Shippuden collaboration returned by popular demand, with related content amassing over 6.5bn social views; the Chapter Two collaboration won the 2026 Pocket Gamer Mobile Games Award for Best Use of IP. b. For the 10th anniversary of 'Arena of Valor', a concert was held at the Taipei Dome with about 30k fans attending. It topped social trending charts in Taiwan, China. 7\. Sea Cloud a. The company is externalizing its AI capabilities across infra, models, and Agent applications, shifting AI from a cost center to a profit center. Management expects structurally lower token prices to broaden AI adoption. b. Focus areas are compute efficiency, Agents and orchestration software, and customer relationships, rather than owning large amounts of physical compute. Dedicated compute will be deployed only with clear customer commitments and returns, funded mainly by partners and customer prepayments. c. Sea is already investing in these AI capabilities for its own businesses; serving external customers on top of that base spreads fixed costs and earns attractive incremental returns on capital, mirroring how Monee began as internal payment infrastructure. Sea Cloud is set up as a startup so it can stay nimble and respond quickly to market demand. **2.2 Q&A** **Q: How should we think about ROI for Sea Cloud? What demand drivers could make it a meaningful biz.?** A: **No clear ROI view yet, with strict financial discipline at the project level.** Management believes all organizations will undergo AI transformation, and better models/Agents plus lower token costs will accelerate adoption, driving very large demand. Segments, customer types, and business models are still being explored, and capex will be highly frugal, with each project required to deliver attractive returns. The three existing businesses took a decade to build, and Sea Cloud is a long-term bet. **Q: What milestones remain for Monee to become an independent financial platform? Pros/cons of staying within Sea vs. independence?** A: **Monee is self-sustaining; an independent listing gives it more room, planned within 1–3 years without haste.** Deep integration with Sea has been key to its success, and going forward it will not rely solely on Sea's ecosystem. Close coordination with Shopee remains, and Sea's accumulated AI capabilities will continue to empower Monee. Once the process starts, management will compare different paths and keep investors updated. **Q: Shopee monetization improved, but EBITDA as a % of GMV held flat QoQ at ~68bps. Where did the gains go, and when does operating leverage kick in? Any profitability differences between SE Asia vs. Brazil, and content vs. shelf?** A: **Monetization gains were partly taken to profit and partly reinvested; the full-year EBITDA target remains unchanged.** Q3 GMV grew 23% YoY, or about 26.5% ex-FX, and e-comm penetration in SE Asia and Brazil still has room to rise, so the $1bn+ full-year EBITDA remains the benchmark. Further monetization will be driven primarily by ads rather than commissions. Profitability in Brazil and SE Asia was relatively stable QoQ with no material trend differences, while live and short video turned positive on a contribution margin basis this quarter. **Q: If product discovery shifts to external AI Agents, what happens to Shopee's ad revenue and profits? Can customer relationships and data be preserved?** A: **Checkout and buyer/seller relationships remain on-platform, with no near-term substantive impact.** The company has partnered with multiple Agent platforms such as ChatGPT and Muse, similar to alliances with YouTube and Meta. These channels have consistently brought new users and traffic for years and are already reflected in current economics. Management does not expect a fundamental structural change. **Q: When will investments in ShopeeVIP, instant delivery, and fulfillment peak? Has the content ecosystem turned positive on EBITDA? How is fulfillment progressing in Asia vs. Brazil?** A: **No peak timing provided; management emphasized EBITDA will continue to improve YoY after all investments.** Rollout phases differ by country, making it hard to call an overall peak. Content economics are not broken out on an EBITDA basis due to shared costs, but contribution margin is positive, and scaling content should accrete profits. Fulfillment started earlier in SE Asia than Brazil with slightly higher penetration, and both will continue to rise, with unit costs falling in both regions due to scale, automation, and better inbound selection and inventory turns. **Q: Has Sea Cloud signed enterprise contracts? Will you build your own data centers/GPU or stay asset-light via leasing? Any cap on investment?** A: **No enterprise contracts yet; no explicit investment cap, with deal-by-deal approvals as guardrails.** GPUs will be invested in regardless of Sea Cloud, mainly for internal use cases. There is limited overall interest in building data centers, though self-build may occur where there is a specific need, e.g., Monee data residency in Singapore due to regulation. Early Sea Cloud projects will proceed on a per-deal basis with clear customer commitments and acceptable returns, leveraging partners and customer prepayments to minimize cash flow and balance sheet impact. **Q: What share could Sea Cloud contribute to revenue and profit in 3–5 years?** A: **No specific timeline; management has no clear view on whether impact shows in 3 or 5 years.** They remain long-term bullish on Sea Cloud, expecting large demand, and aim to build a durable business that ultimately contributes meaningful revenue and profit. **Q: With macro uncertainties such as oil prices, will GMV growth slow sharply or only moderately?** A: **No signs of a sharp slowdown; ex-FX growth in Q3 was similar to Q2.** Consumers are more value-conscious in this macro, but overall demand remains resilient. Long-tail supply, price advantages, and a GMV mix skewed to essentials make the platform more defensive. E-comm penetration in the region remains low with ample runway, and the company will closely monitor market developments. \ **Risk disclosure and statement:**[**Dolphin Research Disclaimer and General Disclosure**](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [MA.US](https://longbridge.com/en/quote/MA.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [SE.US](https://longbridge.com/en/quote/SE.US.md) - [SEA.US](https://longbridge.com/en/quote/SEA.US.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [METAM.US](https://longbridge.com/en/quote/METAM.US.md) - [UGGD.SG](https://longbridge.com/en/quote/UGGD.SG.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**