Sohu.com Reports Impressive Third Quarter 2025 Financial Results Amidst Increased Online Game Revenues
Sohu.com Limited (NASDAQ: SOHU), a prominent player in China's online media and gaming industry, has recently released its financial results for the third quarter of 2025, ending September 30. The numbers reflect a strong recovery, highlighting a remarkable 19% increase in total revenues year-over-year, totaling $180 million. This marks an impressive 43% increase compared to the second quarter of 2025.
In this reporting period, Sohu's revenue from online games surged to $162 million, up 27% year-over-year and 53% quarter-over-quarter. This growth is primarily attributed to the successful launch of the new PC game, Tian Long Ba Bu (TLBB) Return, which debuted in July 2025, alongside a boost in revenue from established titles due to ongoing content updates and in-game promotional activities.
Interestingly, while online game revenues soared, marketing services faced declines. The marketing services segment recorded revenues of $14 million, which is a significant drop of 27% year-over-year and down 13% from the previous quarter. Despite this slump, Sohu’s overall business performance has been bolstered by the strong uptake of its gaming offerings.
Dr. Charles Zhang, Chairman and CEO of Sohu, commented on the results, stating, "Our marketing services revenues were in line with our guidance, while our online game revenues and our bottom-line performance exceeded our expectations. We achieved positive net income this quarter due to strategic efforts in enhancing our gaming initiatives."
For the third quarter, Sohu reported a GAAP net income attributable to Sohu.com Limited of $9 million, recovering from losses of $16 million in Q3 2024 and $20 million in the second quarter of 2025. This turnaround is noteworthy, demonstrating Sohu's resilience amidst challenging market conditions.
The company's gross margin saw an uptick to 81%, compared to 74% in the third quarter of 2024 and 78% in the preceding quarter, indicating a solid operational performance. In terms of operating expenses, these were $132 million, which represents a minor annual increase of 5%. Both GAAP and non-GAAP operating profits stood at $14 million, reversing last year’s operating losses.
To bolster liquidity, Sohu had approximately $1.2 billion in cash, short-term investments, and cash equivalents as of September 30, 2025. This liquidity positions the company favorably for future investments and operational initiatives.
Looking ahead, Sohu's management projects Q4 2025 marketing services revenues to fall between $15 million and $16 million, translating to an annual decline of 15% to 20%. However, online game revenues are estimated to be between $113 million and $123 million, marking a modest annual increase. The company anticipates reporting a net loss attributable to Sohu.com Limited ranging from $25 million to $35 million.
These projections come with an air of caution, especially regarding exchange rate volatility and market conditions that impact China's economy. Nonetheless, Sohu remains focused on refining its product offerings and enhancing user experience across its platforms, aiming to sustain the momentum seen in its online gaming segment. With investments in high-quality content and user engagement strategies firmly in place, Sohu appears poised to continue its growth trajectory in the coming quarters.
In summary, Sohu.com Limited has showcased resilience and recovery in its third quarter results with robust growth in online games, despite challenges in the marketing segment. The upcoming quarters will be critical as the company strives to innovate and meet the evolving demands of its user base while navigating the complexities of the current economic landscape.
In this reporting period, Sohu's revenue from online games surged to $162 million, up 27% year-over-year and 53% quarter-over-quarter. This growth is primarily attributed to the successful launch of the new PC game, Tian Long Ba Bu (TLBB) Return, which debuted in July 2025, alongside a boost in revenue from established titles due to ongoing content updates and in-game promotional activities.
Interestingly, while online game revenues soared, marketing services faced declines. The marketing services segment recorded revenues of $14 million, which is a significant drop of 27% year-over-year and down 13% from the previous quarter. Despite this slump, Sohu’s overall business performance has been bolstered by the strong uptake of its gaming offerings.
Dr. Charles Zhang, Chairman and CEO of Sohu, commented on the results, stating, "Our marketing services revenues were in line with our guidance, while our online game revenues and our bottom-line performance exceeded our expectations. We achieved positive net income this quarter due to strategic efforts in enhancing our gaming initiatives."
For the third quarter, Sohu reported a GAAP net income attributable to Sohu.com Limited of $9 million, recovering from losses of $16 million in Q3 2024 and $20 million in the second quarter of 2025. This turnaround is noteworthy, demonstrating Sohu's resilience amidst challenging market conditions.
The company's gross margin saw an uptick to 81%, compared to 74% in the third quarter of 2024 and 78% in the preceding quarter, indicating a solid operational performance. In terms of operating expenses, these were $132 million, which represents a minor annual increase of 5%. Both GAAP and non-GAAP operating profits stood at $14 million, reversing last year’s operating losses.
To bolster liquidity, Sohu had approximately $1.2 billion in cash, short-term investments, and cash equivalents as of September 30, 2025. This liquidity positions the company favorably for future investments and operational initiatives.
Looking ahead, Sohu's management projects Q4 2025 marketing services revenues to fall between $15 million and $16 million, translating to an annual decline of 15% to 20%. However, online game revenues are estimated to be between $113 million and $123 million, marking a modest annual increase. The company anticipates reporting a net loss attributable to Sohu.com Limited ranging from $25 million to $35 million.
These projections come with an air of caution, especially regarding exchange rate volatility and market conditions that impact China's economy. Nonetheless, Sohu remains focused on refining its product offerings and enhancing user experience across its platforms, aiming to sustain the momentum seen in its online gaming segment. With investments in high-quality content and user engagement strategies firmly in place, Sohu appears poised to continue its growth trajectory in the coming quarters.
In summary, Sohu.com Limited has showcased resilience and recovery in its third quarter results with robust growth in online games, despite challenges in the marketing segment. The upcoming quarters will be critical as the company strives to innovate and meet the evolving demands of its user base while navigating the complexities of the current economic landscape.
Topics Entertainment & Media）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.