Sohu.com (SOHU) investor relations material

Executive summary

• Q4 2025 total revenue was $142 million, up 6% year-over-year but down 21% sequentially; full-year 2025 revenue was $584 million, down 2% from 2024.

• Q4 2025 GAAP net income reached $223 million, driven by a $285 million tax reversal; non-GAAP net income was $261 million.

• Full-year 2025 GAAP net income was $394 million, compared to a $100 million loss in 2024; non-GAAP net income was $234 million.

• Online game revenue in Q4 2025 was $120 million, up 10% year-over-year; marketing services revenue was $17 million, down 10% year-over-year.

• Cash, cash equivalents, short-term investments, and long-term time deposits totaled $1.2 billion as of December 31, 2025.

Financial highlights

• Q4 2025 gross margin was 75%, up from 73% in Q4 2024 but down from 81% in Q3 2025.

• Q4 2025 GAAP operating loss was $66 million, compared to a $25 million loss in Q4 2024 and a $14 million profit in Q3 2025.

• Q4 2025 included a $37 million goodwill impairment charge.

• Q4 2025 non-GAAP net income was $261 million; prior year was a $15 million loss.

• Excluding the tax reversal, 2025 non-GAAP net loss was $51 million, a 40% improvement over 2024.

Outlook and guidance

• Q1 2026 marketing services revenue expected at $10–11 million (down 20–27% YoY, down 35–41% QoQ).

• Q1 2026 online game revenue expected at $113–123 million (YoY change: -4% to +5%; QoQ: -6% to +2%).

• Q1 2026 net loss guidance: $10–20 million, narrower than previous quarters.