Sohu.com Limited Reports Q2 2025 Financial Highlights

Author: Logan Wright Updated: 08-04-2025 01:12 AM

Sohu.com Limited's Financial Performance Overview

Sohu.com Limited (NASDAQ: SOHU), a prominent online media platform, has shared its financial results for the second quarter of 2025. The company's total revenues amounted to $126 million, reflecting a 27% decrease year-over-year and a 7% decline from the previous quarter.

Revenue Breakdown by Segment

The marketing services segment generated revenues of $16 million, down from previous periods, yet showed an impressive 14% growth compared to the previous quarter. In contrast, online game revenues reported were $106 million, marking a decline of 28% year-over-year and 10% quarter-over-quarter.

Net Income and Financial Adjustments

Sohu.com Limited faced a GAAP net loss of $20 million in the latest quarter. When compared to last year's loss of $38 million, this indicates an improvement in the company's bottom line. It is important to note that in the first quarter of 2025, the company achieved significant net income of $182 million, driven largely by accounting adjustments related to tax evaluations.

Gross Margins and Operating Expenses

Despite fluctuations in revenue, both GAAP and non-GAAP gross margins stood at 78%, a notable rise from 67% in the second quarter of 2024. Operating expenses dropped to $120 million, a decrease of 25% from the same quarter in the previous year, demonstrating the company's efforts to manage costs more effectively.

Strategic Overview

Dr. Charles Zhang, Sohu's Chairman and CEO, expressed optimism regarding the company's efforts to enhance the media platform's features and maintain user engagement through innovative content and community-building initiatives. The focus remains on leveraging social interactions to boost monetization strategies effectively.

Future Business Outlook

Looking ahead, Sohu has set guidance for its third quarter of 2025, estimating marketing services revenues between $14 million and $15 million, accompanied by online game revenues anticipated between $107 million and $117 million. The company expects both GAAP and non-GAAP net loss to fall in the range of $25 million to $35 million.

Liquidity Position

As of June 30, 2025, Sohu's total liquidity, which includes cash, cash equivalents, short-term investments, and time deposits, is approximately $1.2 billion. Such resources will play a crucial role in supporting the company's strategic initiatives and operational growth.

Investor Relations

For further investor inquiries, Ms. Pu Huang can be reached at Sohu.com Limited, while media inquiries can be directed to Ms. Linda Bergkamp at Christensen.

Frequently Asked Questions

What are the key financial highlights from Sohu.com Limited's Q2 2025 report?

Sohu reported total revenues of $126 million, a GAAP net loss of $20 million, and maintained a gross margin of 78%.

How did Sohu's revenue segments perform?

Marketing services revenues reached $16 million while online game revenues were $106 million, indicating a strategic focus on user engagement.

What is the company’s outlook for Q3 2025?

Sohu projects marketing services revenues between $14 million and $15 million, and online game revenues from $107 million to $117 million.

Who can I contact for media inquiries at Sohu?

Media inquiries can be directed to Ms. Linda Bergkamp at Christensen.

What is Sohu's liquidity position as of mid-2025?

Sohu has approximately $1.2 billion in liquidity available, ensuring operational flexibility for future initiatives.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

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