Sohu.com (SOHU) Q1 2025 earnings summary

Executive summary

• Total revenues reached $136M, down 3% year-over-year but up 1% quarter-over-quarter.

• Online game revenues were $117M, flat year-over-year and up 7% quarter-over-quarter.

• GAAP net income was $182M, reversing a net loss of $25M a year ago, due to a $199M one-time tax benefit.

• Non-GAAP net loss was $16M, improved from $22M loss a year ago.

• Social media platform enhancements and unique events drove user engagement and content generation.

Financial highlights

• Marketing services revenues were $14M, down 15% year-over-year and 27% quarter-over-quarter.

• GAAP operating expenses were $122M, down 9% year-over-year and 1% sequentially.

• Both GAAP and non-GAAP operating loss were $19M, improved from $27M loss a year ago.

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

• Gross margin was 76%, slightly down from 77% a year ago but up from 73% last quarter.

Outlook and guidance

• Q2 2025 marketing services revenues expected at $16M–$17M, down 14%–19% year-over-year, up 17%–24% sequentially.

• Q2 2025 online game revenues expected at $96M–$106M, down 28%–35% year-over-year, down 10%–18% sequentially.

• Q2 2025 net loss (GAAP and non-GAAP) projected at $20M–$30M.

• Management notes substantial uncertainty in guidance.