Sohu.com Inc ( (SOHU) ) has released its Q2 earnings. Here is a breakdown of the information Sohu.com Inc presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Sohu.com Limited, a prominent Chinese online media and gaming company, has released its financial results for the second quarter of 2025, highlighting its position in the digital entertainment and information sector. The company is known for its comprehensive array of web properties and a strong presence in the online gaming market through its subsidiary, Changyou.
In the second quarter of 2025, Sohu.com reported total revenues of $126 million, marking a 27% decrease year-over-year and a 7% decline quarter-over-quarter. Despite the drop in revenues, the company managed to reduce its GAAP net loss to $20 million, a significant improvement from the $38 million loss recorded in the same period last year.
Key financial metrics indicate that marketing services revenues rose 14% quarter-over-quarter to $16 million, though they were down 21% year-over-year. Online game revenues, a major contributor to Sohu’s income, fell 28% year-over-year to $106 million. The company’s gross margin improved to 78%, up from 67% in the previous year, showcasing effective cost management.
Sohu’s management remains focused on enhancing user engagement and monetization opportunities through product refinement and social network operations. The company is optimistic about its online games segment, driven by new content and game optimizations. Looking ahead, Sohu anticipates online game revenues to range between $107 million and $117 million in the third quarter of 2025, with a projected net loss between $25 million and $35 million.
Overall, Sohu.com is navigating a challenging market environment with strategic initiatives aimed at sustaining its brand influence and financial stability, while continuing to engage its extensive user base across its media and gaming platforms.