Sohu.com (SOHU) Q3 2025 earnings summary

Executive summary

• Total revenues reached $180 million in Q3 2025, up 19% year-over-year and 43% quarter-over-quarter, driven by strong online game performance and successful launches, with net income turning positive at $9 million after prior losses.

• Online game revenues surged 27% year-over-year and 53% quarter-over-quarter, mainly due to TLBB Return and TLBB Vintage, while marketing services revenues declined.

• The Sohu Media platform focused on product optimization, premium content, and user engagement through events and original IP, supporting platform vitality.

Financial highlights

• Online game revenues were $162 million, up 27% year-over-year and 53% quarter-over-quarter.

• Marketing services revenues were $14 million, down 27% year-over-year and 13% quarter-over-quarter.

• GAAP and non-GAAP net income was $9 million, compared to net losses of $16 million and $12 million, respectively, in Q3 2024.

• GAAP and non-GAAP gross margin improved to 81%, up from 74% a year ago and 78% last quarter.

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

Outlook and guidance

• Q4 2025 marketing services revenues expected between $15–16 million, an annual decrease of 15–20% but a sequential increase of 10–18%.

• Online game revenues expected between $113–130 million, an annual increase of 3–12% but a sequential decrease of 24–30%.

• Both GAAP and non-GAAP net loss forecasted between $25–35 million for Q4 2025.