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Sohu.com (SOHU)
NASDAQ:SOHU
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Sohu
(NASDAQ:SOHU)
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Rating:56Neutral
Price Target:
$17.50
▲(8.70% Upside)
Action:ReiteratedDate:11/17/25
Sohu's overall score reflects financial challenges and bearish technical indicators, offset by strong earnings performance in gaming and an attractive valuation. The company's ability to maintain positive net income and manage market uncertainties will be crucial for future performance.
Positive Factors
Strong Gaming Segment
The strong performance in the gaming segment indicates a robust product offering and effective market penetration, contributing significantly to revenue growth and enhancing Sohu's competitive position in the gaming industry.
Positive Net Income
Achieving positive net income after previous losses demonstrates improved operational efficiency and financial management, potentially leading to increased investor confidence and financial stability.
Low Leverage
A low leverage position provides Sohu with greater financial flexibility, reducing risk and allowing for strategic investments and expansion opportunities without significant debt burden.
Negative Factors
Declining Revenue Growth
The declining revenue trend highlights challenges in maintaining market share and competitiveness, potentially impacting long-term growth and profitability if not addressed.
Negative Cash Flow
Negative cash flow indicates operational inefficiencies and challenges in generating sufficient cash to fund operations and growth, which could constrain future strategic initiatives.
Decline in Marketing Services Revenue
A significant decline in marketing services revenue suggests weakening demand or competitive pressures in this segment, potentially affecting overall revenue diversification and growth prospects.
Sohu (SOHU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$494.58M
Dividend YieldN/A
Average Volume (3M)38.14K
Price to Earnings (P/E)1.1
Beta (1Y)1.09
Revenue Growth-4.80%
EPS GrowthN/A
CountryUS
Employees4,300
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)9.77
Shares Outstanding30,065,400
10 Day Avg. Volume37,935
30 Day Avg. Volume38,142
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.46
Price to Sales (P/S)0.71
P/FCF Ratio-6.21
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit0.83
Enterprise Value/Ebitda-16.46
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-3.04
Revenue Forecast (FY)$575.40M
Sohu Business Overview & Revenue Model
Company DescriptionSohu.com Limited provides online media, video, and game products and services on PCs and mobile devices in China. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, and ifox, a PC video application. The company is also involved in the development, operation, and licensing of online games for PCs and mobile devices, which include massive multiplayer online role-playing games, and casual and strategy games. In addition, it operates focus.cn, which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. Further, the company provides paid subscription services, interactive broadcasting services, and sub-licensing of purchased video content to third parties. Sohu.com Limited was incorporated in 1996 and is headquartered in Beijing, China.
How the Company Makes MoneySohu generates revenue through multiple streams, primarily focusing on online advertising, online gaming, and subscriptions. The advertising segment includes display ads and search engine marketing, which are supported by its popular web portal and search engine, Sogou. The online gaming division contributes significantly to revenue by offering various games, both developed in-house and through partnerships with other developers. Furthermore, Sohu earns subscriptions from its online video services, where users pay for premium content. Strategic partnerships with other tech companies and advertisers also enhance its revenue potential, allowing Sohu to leverage its content and user base effectively.
Sohu Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong headline profitability for 2025 driven largely by a one-time $285 million withholding tax reversal and solid performance/operating profit at Changyou, plus active share repurchases and ongoing product and content initiatives. Offsetting these positives are meaningful declines in marketing services, sustained and material operating losses in the social media segment, sequential revenue volatility, and conservative near-term guidance (Q1 2026 net loss guidance). The results show operational improvements in the gaming business and engagement efforts on the platform, but core advertising and social media monetization remain challenged and the full-year profitability improvement is substantially influenced by the tax reversal.Q4-2025 Updates
Positive Updates
Quarterly Revenue and Growth (Q4 2025)
Total Q4 revenue of $142 million, up 6% year-over-year but down 21% sequentially; marketing services $17 million (down 10% y/y, up 25% q/q); online games $120 million (up 10% y/y, down 26% q/q).
Full-Year Profitability Boosted by Tax Reversal
GAAP net income attributable to Sohu for full-year 2025 was $394 million vs. a $100 million loss in 2024, driven primarily by a reversal of previously accrued withholding income tax (~$285 million). Non-GAAP net income was $234 million vs. a non-GAAP loss of $83 million in 2024.
Changyou (Games) Stable Performance
Changyou Q4 revenues of $121 million (up from $111 million y/y) and quarterly operating profit of $45 million (slightly below prior-year $48 million). Full-year Changyou revenues $509 million (up modestly from $506 million) and operating profit improved to $238 million from $196 million.
Active Share Repurchase Program
Share repurchase progress: 8.1 million ADS repurchased for approximately $150 million as of Feb 5, 2026, with roughly one-third of the authorized program remaining — a meaningful capital return to shareholders.
Product, Content and Engagement Initiatives on Social Media Platform
Multiple high-profile events (K‑Pop Dancing Award, Sohu Video awards, fashion and finance forums), expanded content library including U.S. dramas and original series, and heavy educational/celebrity IP activity (e.g., Sohu anniversary physics class with 270 live broadcasts) driven to boost user engagement and advertiser integration.
Gaming Product Improvements and Pipeline
Operational updates: level cap increase and new character system for TLBB PC/Vantage, TLBB Return refinements, mobile classic content updates improving engagement and willingness-to-pay. Pipeline includes a card-based RPG mobile title expected in 2026–early 2027 and several mini-program games in development.
Negative Updates
Marketing Services Revenue Decline
Full-year 2025 marketing services revenues fell to $60 million, down 18% vs. 2024; Q1 2026 guidance calls for marketing revenue of $10–$11 million implying a 20%–27% annual decline and a steep sequential decline of 35%–41% due to seasonality and softer ad demand.
Social Media Segment Revenue Drop and Large Operating Losses
Social media quarterly revenue declined to $21 million from $24 million y/y; quarterly operating loss widened to $72 million vs. $69 million prior-year. Full-year social media revenues fell to $75 million from $91 million with a full-year operating loss of $283 million (vs. $287 million prior year) — indicating continued structural losses.
Quarterly Sequential Declines in Overall Revenue
Company-wide Q4 sequential pressure: total revenue down 21% q/q; online games down 26% q/q — signaling near-term volatility and seasonality impacts.
Earnings Heavily Influenced by One-Time Tax Reversal
The large GAAP and non-GAAP profit swing in 2025 was materially driven by a ~$285 million withholding tax reversal; excluding this, 2025 would be a $51 million loss (though a 40% improvement vs. 2024), highlighting one-time nature of much of the improvement.
Near-Term Guidance Includes Continued Losses
Management guided Q1 2026 to both GAAP and non-GAAP net losses of $10–$20 million, and gaming guidance included only a modest range (online games $123–$130 million) with upside/downside depending on content performance — reflecting uncertainty for upcoming quarters.
Company Guidance
Management guided 1Q/2026 marketing services revenues of $10–$11 million (implying an annual decline of 20%–27% and a sequential drop of 35%–41%), online game revenues of $123–$130 million (implying an annual range of -4% to +5% and a sequential range of -6% to +2%), and both GAAP and non‑GAAP net loss attributable to Sohu.com Limited of $10–$20 million; management emphasized the guidance is preliminary and subject to substantial uncertainty, citing seasonality (a later Chinese New Year) as a key factor behind softer near‑term ad revenue.Sohu Financial Statement Overview
Summary
Sohu faces financial challenges with declining revenues and persistent net losses. Despite a strong equity position with low leverage, negative cash flows and returns on equity present significant hurdles.Income Statement
Sohu has faced declining revenue with a decrease from $600.7M to $598.4M in 2024, representing a slight contraction. The company struggles with profitability, as evidenced by a consistent negative net income and EBIT over recent years. The gross profit margin remains strong at 72.29% for 2024, but the net profit margin is negative at -16.76%, indicating inefficiencies and high operational costs.45
Neutral
Balance Sheet
Sohu's balance sheet shows a relatively strong equity position, with a debt-to-equity ratio of 0.04, suggesting low leverage. The equity ratio stands at 53.16%, indicating a solid equity buffer. However, the return on equity is negative at -10.87% for 2024, highlighting challenges in generating returns for shareholders.60
Neutral
Cash Flow
The cash flow statement reveals a declining trend in free cash flow, with a fall from -$43.98M in 2023 to -$67.94M in 2024. Operating cash flow also turned negative, indicating cash flow challenges. The operating cash flow to net income ratio is 0.48, reflecting issues in converting profits into cash flow.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 577.44M | 598.40M | 600.67M | 733.87M | 835.58M | 749.89M |
| Gross Profit | 443.96M | 432.57M | 454.92M | 542.30M | 630.90M | 532.45M |
| EBITDA | -22.25M | -76.97M | -57.06M | 30.43M | 175.02M | 114.72M |
| Net Income | 149.46M | -100.27M | -30.38M | -17.34M | 927.73M | -86.11M |
Balance Sheet | ||||||
| Total Assets | 1.69B | 1.73B | 1.88B | 1.98B | 2.25B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 874.57M | 904.42M | 960.27M | 1.17B | 1.40B | 648.59M |
| Total Debt | 0.00 | 37.51M | 41.36M | 36.50M | 36.12M | 442.78M |
| Total Liabilities | 633.93M | 811.98M | 822.82M | 867.07M | 953.60M | 1.79B |
| Stockholders Equity | 1.06B | 922.34M | 1.06B | 1.11B | 1.29B | 347.37M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -67.94M | -43.98M | 8.40M | -104.48M | 61.43M |
| Operating Cash Flow | 0.00 | -48.02M | -25.57M | 32.24M | -62.28M | 95.21M |
| Investing Cash Flow | 0.00 | -113.36M | -291.67M | -232.79M | 516.73M | 419.77M |
| Financing Cash Flow | 0.00 | -40.88M | -6.56M | -82.14M | -434.10M | 93.59M |
Sohu Technical Analysis
Neutral
16.10
Price Trends
16.31
Positive
15.61
Positive
14.76
Positive
Market Momentum
0.07
Negative
50.58
Neutral
56.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOHU, the sentiment is Neutral. The current price of 16.1 is below the 20-day moving average (MA) of 16.34, below the 50-day MA of 16.31, and above the 200-day MA of 14.76, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 56.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SOHU.
Sohu Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $452.92M | 4.17 | 11.19% | ― | 1.21% | 0.72% | |
74 Outperform | $70.61B | 24.95 | 22.36% | 2.19% | 5.69% | 32.87% | |
65 Neutral | $11.28B | 44.38 | 5.30% | ― | 16.84% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $274.67M | 5.18 | ― | 18.48% | ― | ― | |
56 Neutral | $494.58M | 1.12 | 14.73% | ― | -4.80% | ― |
* Communication Services Sector Average
SOHU
Sohu
16.45
2.95
21.85%
NTES
NetEase
117.08
16.53
16.43%
NCTY
The9
6.45
-5.67
-46.78%
BILI
Bilibili
27.50
5.39
24.38%
DDI
Doubledown Interactive Co
9.14
-0.64
-6.54%
GDEV
Nexters
15.15
-0.16
-1.05%
Sohu Corporate Events
Sohu.com Reports Strong Q3 2025 Financial Results
Nov 17, 2025
On November 17, 2025, Sohu.com Limited announced its unaudited financial results for the third quarter ending September 30, 2025, reporting a significant financial turnaround. The company achieved total revenues of $180 million, marking a 19% increase year-over-year and a 43% rise quarter-over-quarter. This growth was driven by a 27% increase in online game revenues, primarily due to the success of their new PC game, TLBB: Return. Sohu recorded a GAAP net income of $9 million, a notable improvement from the net losses in previous quarters, highlighting the company’s strengthened market position and operational efficiency.
The most recent analyst rating on (SOHU) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Sohu stock, see the SOHU Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.