Sohu.com (SOHU) Q2 2025 earnings summary

Executive summary

• Total revenues for Q2 2025 were $126 million, down 27% year-over-year and 7% quarter-over-quarter.

• Marketing services revenues rose 14% quarter-over-quarter but fell 21% year-over-year; online game revenues dropped 28% year-over-year and 10% quarter-over-quarter.

• GAAP net loss was $20 million, improved from a $38 million loss in Q2 2024 and compared to $182 million net income in Q1 2025 (which included a one-time tax benefit).

• User engagement and brand influence increased through differentiated events, product enhancements, and social features.

• Online games delivered solid results, supported by new content and continuous optimization.

Financial highlights

• Gross margin was 78%, up from 67% in Q2 2024 and 76% in Q1 2025.

• GAAP operating loss was $22 million, improved from $44 million in Q2 2024 and $19 million in Q1 2025.

• Non-GAAP net loss was $20 million, compared to $34 million in Q2 2024 and $16 million in Q1 2025.

• Cash, cash equivalents, short-term investments, and long-term time deposits totaled $1.2 billion as of June 30, 2025.

• Basic and diluted net loss per share/ADS was $0.69 for Q2 2025.

Outlook and guidance

• Q3 2025 marketing services revenues expected between $14–$15 million, down 20–25% year-over-year and 4–10% sequentially.

• Online game revenues projected at $107–$117 million, down 8–16% year-over-year but up 1–10% sequentially.

• Both GAAP and non-GAAP net loss forecasted between $25–$35 million for Q3 2025.

• Guidance based on an exchange rate of RMB7.15 = $1.00.