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Sohu.com (SOHU)
NASDAQ:SOHU
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Sohu
(NASDAQ:SOHU)
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Rating:56Neutral
Price Target:
$14.50
▼(-15.80% Downside)
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
$493.67M
Dividend YieldN/A
Average Volume (3M)38.14K
Price to Earnings (P/E)3.4
Beta (1Y)1.04
Revenue Growth-4.80%
EPS GrowthN/A
CountryUS
Employees4,300
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.33
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 Cap-0.90
Enterprise Value/Revenue-0.81
Enterprise Value/Gross Profit-1.08
Enterprise Value/Ebitda8.38
Forecast
1Y Price Target
$21.00Price Target Upside21.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Nov 17, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance driven by successful game launches and positive net income. However, challenges in marketing services revenue, a challenging macroeconomic environment, and expected declines in gaming revenue for Q4 balanced the positive aspects.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Total revenue for 2025 was $180 million, up 19% year-over-year and 43% quarter over quarter. Online game revenues reached $162 million, up 27% year-over-year and 53% quarter over quarter.
Positive Net Income
GAAP net income attributable to Sohu.com Limited was $9 million, compared with a net loss of $60 million in 2024 and a net loss of $20 million in the second quarter of this year.
Successful Game Launches
The new PC game 'TLBB Return' and content updates for 'TLBB Vantage' exceeded revenue expectations, attracting many former players with reduced grinding and pay-to-win pressure.
Innovative Social Media Engagement
The 2025 Sohu Hip Hop Dancing Festival and other model competitions increased platform vitality and user retention, contributing to a prosperous platform ecosystem.
Share Repurchase Program
Sohu.com Limited repurchased 7.6 million ADS for approximately $97 million, completing two-thirds of the $150 million program.
Negative Updates
Decline in Marketing Services Revenue
Marketing services revenues fell to $14 million, down 27% year-over-year and 13% quarter over quarter.
Challenging Macro Environment
The macroeconomic situation is under pressure, particularly in sectors like auto and IT services, affecting advertising revenue despite innovative campaigns.
Social Media Revenue and Losses
Quarterly revenues for the social media platform were $70 million, slightly down from $73 million in the same quarter last year, with an operating loss of $71 million.
Expected Q4 Revenue Decline in Gaming
Guidance for Q4 indicates a sequential decline in online game revenue, reflecting natural decline post-launch and fewer promotional activities.
Company Guidance
In the third quarter of 2025, Sohu.com Limited reported financial results that exceeded expectations, particularly in its gaming segment. Total revenue reached $180 million, marking a 19% year-over-year and 43% quarter-over-quarter increase. Marketing services revenues, however, declined by 27% year-over-year to $14 million. Online game revenues surged to $162 million, a 27% increase year-over-year and 53% quarter-over-quarter. The company achieved a positive GAAP and non-GAAP net income of $9 million, a significant improvement from the net loss of $60 million in 2024 and $20 million in the second quarter of 2025. Sohu's share repurchase program reported the acquisition of 7.6 million ADS at a cost of approximately $97 million. Looking forward, Sohu expects 2025 marketing service revenues between $50 million and $60 million, indicating a potential annual decrease of 15% to 20%, while online game revenues are projected to be between $130 million and $123 million, reflecting an annual increase of 3% to 12%. The company anticipates both GAAP and non-GAAP net losses between $25 million and $35 million, subject to market uncertainties.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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 549.03M | 598.40M | 600.67M | 733.87M | 835.58M | 749.89M |
| Gross Profit | 410.85M | 432.57M | 454.92M | 542.30M | 630.90M | 532.45M |
| EBITDA | -53.06M | -76.97M | -57.06M | 30.43M | 175.02M | 114.72M |
| Net Income | 124.44M | -100.27M | -30.38M | -17.34M | 927.73M | -86.11M |
Balance Sheet | ||||||
| Total Assets | 1.68B | 1.73B | 1.88B | 1.98B | 2.25B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 826.15M | 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 | 614.44M | 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
Positive
17.22
Price Trends
15.36
Positive
15.35
Positive
13.77
Positive
Market Momentum
0.41
Negative
56.77
Neutral
69.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOHU, the sentiment is Positive. The current price of 17.22 is above the 20-day moving average (MA) of 15.75, above the 50-day MA of 15.36, and above the 200-day MA of 13.77, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOHU.
Sohu Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $85.35B | 17.79 | 24.65% | 2.19% | 5.69% | 32.87% | |
79 Outperform | $446.48M | 3.94 | 12.55% | ― | 1.21% | 0.72% | |
62 Neutral | $11.91B | 123.90 | 5.30% | ― | 16.84% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $493.67M | 3.44 | 14.73% | ― | -4.80% | ― | |
55 Neutral | $271.95M | 6.81 | ― | 18.48% | ― | ― |
* Communication Services Sector Average
SOHU
Sohu
16.38
4.29
35.48%
NTES
NetEase
142.91
49.31
52.68%
NCTY
The9
6.90
-8.18
-54.24%
BILI
Bilibili
31.40
14.75
88.59%
DDI
Doubledown Interactive Co
9.09
-1.67
-15.52%
GDEV
Nexters
16.45
1.06
6.88%
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.