Shopee: Q1 GMV Hits $37.3 Billion, Brazil Leads Growth, AI Agent in the Works

【Ebrun Original】Recently, SEA (Sea Limited), the parent company of Southeast Asian cross-border e-commerce platform Shopee, released its financial results for the first quarter of 2026.

During the reporting period, the company's GAAP (Generally Accepted Accounting Principles) total revenue increased by 46.6% year-over-year to $7.1 billion; total gross profit reached $3.1 billion, a significant increase of 40.7% year-over-year; net profit grew by 6.7% year-over-year to $438.2 million; and adjusted EBITDA was $1.00 billion, up 9.3% compared to the same period in 2025.

The company's revenue exceeded expectations by approximately 9-10%. On the day of the earnings release, the company's stock price surged over 14% intraday, closing at $96.02, representing a single-day gain of about 13.14%.

"2026 is the year we step up growth investments to deepen our competitive moats, while maintaining financial discipline." said Sea founder Forrest Li regarding the group's performance. "(During the reporting period) Shopee delivered another record quarter, achieving new highs in GMV, total orders, and revenue."

Rapid development of on-demand retail, monetization capabilities steadily improving

Looking specifically at the e-commerce business—Shopee—its GAAP marketplace revenue, which includes core marketplace revenue and value-added services revenue, increased by 44.4% year-over-year to $4.5 billion.

Core marketplace revenue, primarily comprising transaction-based fees and advertising revenue, surged 61.00% year-over-year to $3.8 billion. Value-added services revenue, mainly consisting of logistics service-related revenue, decreased by 8.1% year-over-year to $700 million, remaining flat for the third consecutive quarter.

In terms of data, Shopee's total orders for the quarter reached 4.0 billion, up 29.3% year-over-year; Gross Merchandise Volume (GMV) was $37.3 billion, an increase of 30.2% year-over-year; adjusted EBITDA was $223.2 million, showing a year-over-year decline.

In the first quarter, the platform's monetization capabilities further strengthened: advertising revenue grew by 80%, the advertising take rate increased by over 90 basis points year-over-year, and the number of sellers placing ads and their average ad spend both grew by approximately 35% year-over-year.

Meanwhile, as monetization improved, Shopee's buyer base continued to expand: monthly active buyers grew by 16% year-over-year, and buyer purchase frequency increased by about 12% year-over-year. Another particularly notable highlight is Shopee's rapidly growing on-demand retail business.

Another particularly notable highlight is Shopee's rapidly growing on-demand retail business.

Management revealed that in Q1, on-demand delivery order volume surged 35% year-over-year, with cost per order decreasing by 20% year-over-year. The platform has integrated over 7,000 convenience stores and pharmacies. In markets like Indonesia, its on-demand delivery service in urban areas can now fulfill orders in as little as two hours.

Some analysts point out that on-demand retail currently accounts for a single-digit percentage of Shopee's total GMV. Driven by Shopee, the market size for on-demand retail in Southeast Asia has already surpassed the previously hotter fresh grocery on-demand delivery segment.

This represents a "business gap" that its biggest competitor, TikTok Shop, finds difficult to overcome or replicate in the short term—as the latter lacks a well-established local warehousing and delivery network, rider network, and merchant base at the individual store level.

"(On-demand retail) will drive more offline purchasing behavior to shift online and into the Shopee ecosystem. Buyers using on-demand delivery enjoy greater convenience, and we see these buyers spending more on Shopee with better retention rates," noted Forrest Li.

Furthermore, alongside the rapid development of the on-demand delivery business is its continued leadership in cost control. On the earnings call, the platform stated that, due to greater economies of scale, the delivery cost per order for express delivery has decreased compared to last year.

"We have started to see improvements in our platform's unit economics through some operational initiatives; given our significant remaining growth runway, we believe this is the right approach to maximize long-term value," Forrest Li commented.

Focusing on three growth drivers: Logistics development, membership system, content ecosystem

Specifically at the platform strategy level, logistics capability building, VIP membership system promotion, and content ecosystem construction are Shopee's current three key operational focuses.

Logistics capability has now become a significant competitive moat for Shopee. Its subsidiary, SPX Express, has become one of the largest e-commerce logistics solution providers in the Southeast Asian market, handling over 30 million parcels daily on average.

In Q1, Shopee's fulfilled order volume grew by approximately 25% quarter-over-quarter. The core highlight of its business development is "speed."

According to disclosures, the delivery speed of its official logistics service consistently outpaces the platform average: in Southeast Asia, over one-third of parcels fulfilled by SPX Express in March were delivered the next day.

Another focus in its logistics domain is the continuous expansion of its "last-mile" pickup and delivery network.

For example, in Taiwan, by the end of Q1, Shopee's pickup point network had expanded to over 3,100 locations, an increase of nearly 50% compared to a year ago; innovative services like direct delivery to parcel lockers without additional packaging are also gradually being rolled out locally, effectively driving speed improvements and cost reduction—average buyer wait time improved by 12% year-over-year in Q1.

On another front, to deepen engagement with core, high-frequency users, Shopee is actively building its own subscription membership system—the Shopee VIP program.

As of the end of March, the total number of Shopee VIP subscribers across Southeast Asian markets exceeded 10 million, growing over 40% quarter-over-quarter, with average program retention rates consistently staying above 80%. Across all markets, VIP members have shown sustained double-digit spending growth after subscribing, reaching as high as 30-40% in specific markets.

It is reported that Shopee VIP members currently contribute approximately 20% of GMV in the Asian region. Building on this, Shopee recently introduced the membership system to the Brazilian market as well.

In terms of the content ecosystem, Shopee remains committed to strengthening partnerships with long-form video and social media platforms.

In Q1, orders originating from livestreams and short videos grew over 50% year-over-year. These orders account for over 25% of physical goods orders in Southeast Asia. Orders driven by YouTube also grew over 100% year-over-year.

Shopee's collaboration with Meta is also progressing smoothly, with Facebook as the main platform. Its affiliate marketing partners now exceed 4.5 million, a nearly 30% increase quarter-over-quarter. In Indonesia, the platform's collaboration with Meta has further extended to supporting seamless product promotion and checkout on Instagram.

Brazil market growth tops the list, AI strategy pragmatic and cautious, AI Agent being developed

Finally, Forrest Li emphasized Shopee's new progress in the Brazilian market.

Brazil has become the platform's fastest-growing market in Q1—and is already profitable.

"Driven by continuous growth in active buyers, purchase frequency, and average basket size, Shopee's GMV growth rate remains leading in the Brazilian market," Forrest Li stated. "This is thanks to our competitive pricing, wide product selection, and structural logistics cost advantages."

Locally, Shopee's average delivery time in Q1 was shortened by more than a day compared to the same period last year. This is undoubtedly closely related to Shopee's continued investment in local logistics infrastructure: the platform currently operates five large fulfillment hubs in Brazil.

Better fulfillment experiences have also attracted more premium sellers and high-spending buyers to Shopee. In Q1, GMV from Shopee Mall brand sellers more than doubled year-over-year, contributing approximately 15% of the site's GMV.

During the earnings call, Shopee also disclosed its practical progress in AI application, noting that "regarding AI, Shopee adopts a pragmatic, results-oriented approach."

AI has already had a significant impact on the platform's actual business.

AI-driven improvements to search and recommendation algorithms have led to more efficient product push mechanisms; AI-generated content tools help sellers create more attractive listings.

Empowered by AI technology, Shopee's purchase conversion rate increased by 14% year-over-year during the reporting period. On the cost side, approximately 80% of customer inquiries are now handled by AI chatbots, with the cost per customer service contact decreasing by about 30% year-over-year, while maintaining high satisfaction.

Forrest Li stated that looking ahead, for consumers, Shopee is testing an AI shopping assistant that leverages purchase history and preferences to provide personalized recommendations and optimize promotional offers; for sellers, the platform is building an AI Agent to serve as a virtual business advisor, providing diagnostics on store performance and actionable suggestions.

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