0001193125-26-102990
SEC filingSohu.com Limited reported total revenues of $584.3 million for FY 2025, a 2% decrease from $598.4 million in 2024. Marketing services revenues declined 18% to $60.0 million, representing 10% of total revenues, due to macroeconomic challenges and supply-demand imbalance in China. Online game revenues grew 1% to $505.7 million (87% of total), driven by PC games at $412.7 million (up from $359.3 million), led by TLBB PC contributing $306.9 million (53% of group revenues). Other revenues fell 17% to $18.6 million. Gross profit rose to $452.8 million (77% margin) from $432.6 million (72% margin), reflecting cost efficiencies. Operating loss narrowed to $93.8 million from $109.4 million. A $443.6 million tax benefit, mainly from reversing $285.5 million withholding tax on Changyou dividends and $199 million U.S. Toll Charge benefit, drove net income from continuing operations to $394.1 million (up from $100.2 million loss). Diluted EPS was $14.00. Cash and equivalents stood at $128.3 million, with $1.05 billion in liquid assets. Strong liquidity supports operations amid competitive pressures.
Sohu.com Limited's FY 2025 revenues totaled $584.3 million, down 2% from $598.4 million in 2024, reflecting challenges in marketing services offset by online games growth. Gross profit improved to $452.8 million (77.5% margin) from $432.6 million (72.4%), driven by cost controls. Operating loss narrowed to $93.8 million from $109.4 million. A $443.6 million tax benefit—primarily $285.5 million reversal of Changyou withholding tax and $199 million U.S. Toll Charge benefit—swung net income from continuing operations to $394.1 million profit from $100.2 million loss. Diluted EPS was $14. Cash position remained strong at $128.3 million cash equivalents plus $702.4 million short-term investments and $350.7 million long-term time deposits.
Marketing services revenues fell 18% to $60.0 million (10% of total), impacted by macroeconomic weakness and supply-demand imbalance. Sohu contributed $56.8 million (down from $69.7 million), Changyou's 17173.com $3.2 million (down from $3.8 million). Online games rose 1% to $505.7 million (87% of total), with PC games surging to $412.7 million from $359.3 million, led by TLBB PC at $306.9 million (53% group total). Mobile games declined to $93.0 million from $143.1 million. Other revenues dropped 17% to $18.6 million. No geographic breakdown disclosed beyond China focus.
Gross margin expanded to 77.5% from 72.4%, aided by 21% cost reduction to $131.5 million. Online games maintained 86% margin. Operating expenses stable at $546.6 million (93% of revenues), with product development down 3% to $247.5 million, sales/marketing down 20% to $189.0 million, but G&A up 44% to $73.2 million and $37.0 million goodwill impairment. $37.0 million goodwill impairment on Sohu unit due to real estate fair value decline.
Operating cash used $4.8 million (improved from $48.0 million), reflecting $394.1 million net income offset by $271.8 million deferred tax benefit and working capital changes. Investing generated $24.8 million net from short-term investments/time deposits. Financing used $54.1 million for share repurchases. Total assets $1.64 billion (down from $1.73 billion), liabilities $358.0 million (down from $812.0 million post-tax adjustments). Strong liquidity: $1.18 billion cash/short-term investments.
No explicit guidance provided. Management highlights refining mobile apps, premium content expansion, and events for user engagement. Changyou focuses on 'Top Games' strategy, Tian Long Ba Bu IP potential, AI integration, and international expansion. Risks include competition, regulatory changes, economic slowdowns in China.