Core Insights - Sohu reported total revenue of $180 million for Q3 2025, representing a year-over-year increase of 19% [2] - The company achieved a non-GAAP net profit of $9 million, marking a turnaround from a loss in the previous year [2] - CEO Dr. Zhang Chaoyang highlighted that marketing services revenue met expectations, while online gaming revenue and net profit exceeded prior forecasts [2] Revenue Breakdown - Marketing services revenue for Q3 2025 was $14 million [2] - Online gaming revenue reached $162 million [2] Strategic Initiatives - Sohu is focused on optimizing its media platform products and resource integration to enhance user experience [2] - The company aims to produce and distribute diverse high-quality content, leveraging its product matrix and unique IP for commercial opportunities [2] - Sohu's online gaming business has performed well due to a deep understanding of user needs and years of operational experience [2] Stock Buyback Program - As part of a previously announced stock buyback program of up to $150 million, Sohu repurchased 7.6 million American Depositary Shares for approximately $97 million as of November 13, 2025 [2]

Core Viewpoint - Sohu's stock rose by 7.26% to $15.36 following the release of its financial results, indicating positive market sentiment towards the company's performance [1] Financial Performance - For Q3 2025, Sohu reported total revenue of $180 million, representing a year-over-year increase of 19% and a quarter-over-quarter increase of 43% [1] - The company's non-GAAP net profit attributed to Sohu was $9 million, marking a return to profitability compared to the previous year [1] Revenue Breakdown - Marketing services revenue amounted to $14 million [1] - Online gaming revenue reached $162 million [1] Share Buyback Program - Sohu has initiated a share buyback program with a total amount of up to $150 million [1] - As of November 13, 2025, Sohu has repurchased 7.6 million shares of its American Depositary Shares, totaling approximately $97 million [1]

Summary of Soho Company Q3 2025 Earnings Call Company Overview - **Company**: Soho Company - **Quarter**: Q3 2025 - **Total Revenue**: $202 million, a year-over-year increase of 13% driven by strong performance in online gaming and social media [2][3] Key Financial Highlights - **Online Gaming Revenue**: $162 million, up 27% year-over-year and 53% quarter-over-quarter, serving as the main growth driver [2][3] - **Non-GAAP Net Income**: $89 million, a significant improvement from a net loss of $16 million in Q3 2024 and a loss of $20 million in Q2 2025 [2][3] - **Net Profit**: $9 million, compared to a net loss of $12 million in the same quarter last year and a loss of $20 million in the previous quarter [2][3] Social Media Business Developments - **Profitability**: The social media segment achieved profitability through product optimization, resource integration, and various online and offline events [4] - **User Engagement**: Events like the video creator conference and themed activities enhanced user interaction and content creation [6] Content Production and User Interaction - **Content Strategy**: Continuous production of high-quality content, including multiple TV series and original shows, with flagship IPs reinforcing competitive advantages [7] - **Youth Engagement**: Events such as the Sohu Dance Festival and Model Contest aimed at stimulating youth interest and improving content quality and traffic [7] Online Gaming Performance - **New Game Launch**: The PC game "LBB Return" attracted many returning players by reducing cumbersome upgrades and payment requirements, leading to revenue exceeding expectations [8] - **Nostalgia Factor**: The new content for "TLBB Classic" tapped into players' nostalgia, significantly boosting in-game spending [8] Future Outlook - **Q4 Revenue Projections**: Marketing service revenue expected to be between $50 million and $60 million, a year-over-year decline of 15% to 20%. Online gaming revenue projected between $130 million and $123 million, with a year-over-year increase of 3% to 12% but a quarter-over-quarter decline of 24% to 30% [5][9] - **Net Loss Forecast**: Anticipated net loss between $25 million and $35 million, reflecting market uncertainties [5][9] Market Conditions and Advertising Revenue - **Market Performance**: Despite a challenging macroeconomic environment, innovative marketing activities helped stabilize advertising revenue [10] - **Sector-Specific Challenges**: Industries like automotive and IT services are under pressure, affecting advertising budgets [12] AI Applications - **Efficiency Improvements**: AI is widely applied in gaming to enhance production efficiency and user experience, including summarizing video content and improving search functions in news applications [11] - **User Spending Insights**: The "Return" version of TLBB surprised with higher-than-expected user spending due to its relaxed gameplay approach [11] Conclusion - **Overall Strategy**: Soho Company aims to continue innovating and adapting to market changes while enhancing product quality and user experience to drive future growth [9]

Core Insights - Sohu.com Limited is a significant player in the Chinese online media and gaming industry, known for its diverse content and innovative platform enhancements [1] - Citigroup has maintained a "Buy" rating for Sohu, increasing the price target from $20 to $22, while the stock was priced at $15.57 at that time [1] Financial Performance - In Q3 2025, Sohu reported total revenues of $180 million, marking a 19% year-over-year increase and a 43% rise quarter-over-quarter [2] - The company's marketing services revenues met expectations, while online game revenues and overall bottom-line performance exceeded them [3] - Sohu achieved positive net income for the quarter, reflecting its strategic focus on enhancing its media platform and integrating resources [3] Stock Performance - Currently, Sohu's stock is priced at $15.44, showing a 7.82% increase with a $1.12 price change [4] - The stock has fluctuated between $14.99 and $15.83 today, with a 52-week high of $16.45 and a low of $7.79 [4] - Sohu's market capitalization is approximately $445 million, with a trading volume of 51,253 shares [4]

Core Viewpoint - Sohu.com Limited (NASDAQ:SOHU) has received a positive outlook from Jefferies, with a price target of $20, indicating a potential increase of approximately 27.06% from its current stock price of $15.74 [1][4] Financial Performance - In Q3 2025, Sohu reported total revenues of $180 million, representing a 19% year-over-year increase and a 43% quarter-over-quarter rise [2][4] - The company achieved positive net income for the quarter, highlighting its strong financial health and growth potential [2][4] Stock Performance - The current stock price of SOHU is approximately $15.46, reflecting an increase of about 7.93% or $1.14 [3] - Over the past year, SOHU's stock has experienced volatility, reaching a high of $16.45 and a low of $7.79 [3] - Sohu has a market capitalization of approximately $445.5 million and a trading volume of 44,611 shares on the NASDAQ exchange [3]

Core Viewpoint - Sohu's stock surged nearly 10% following the release of its third-quarter financial results, indicating positive market sentiment towards the company's performance [1] Financial Performance - In Q3, Sohu reported total revenue of $180 million, representing a 19% increase compared to the same period in 2024 [1] - The company's non-GAAP net profit attributable to Sohu was $9 million, marking a turnaround from a loss in the previous year [1]

Core Viewpoint - Sohu's stock surged nearly 9% to $15.60 following the release of its Q3 financial results, indicating strong performance and positive market sentiment [1] Financial Performance - Total revenue for Q3 reached $180 million, representing a 19% increase compared to the same period in 2024 [1] - Marketing services revenue amounted to $14 million, while online gaming revenue was $162 million [1] - The non-GAAP net profit attributable to Sohu was $9 million, marking a turnaround from a loss in the previous year [1] Management Commentary - Dr. Zhang Chaoyang, Sohu's founder and CEO, stated that marketing services revenue met prior expectations and that online gaming revenue and group net profit exceeded forecasts due to ongoing efforts in the gaming sector [1] - The company achieved profitability for the group in this quarter [1]

Core Insights - Sohu reported a total revenue of $180 million for Q3 2025, demonstrating a steady growth trend [1] - The company achieved a non-GAAP net profit of $9 million, marking a return to profitability year-over-year [1] Revenue Breakdown - Total revenue of $180 million represents a 19% increase compared to the same period in 2024 [1] - Marketing services revenue accounted for $14 million [1] - Online gaming revenue was $162 million [1]

Financial Performance Overview - Total revenues for Q3 2025 were $180 million, representing a 19% year-over-year increase and a 43% quarter-over-quarter increase [4] - Marketing services revenues were $14 million, down 27% year-over-year and 13% quarter-over-quarter [4] - Online game revenues reached $162 million, up 27% year-over-year and 53% quarter-over-quarter [4] - GAAP net income attributable to Sohu.com Limited was $9 million, compared to a net loss of $16 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] - Non-GAAP net income attributable to Sohu.com Limited was also $9 million, compared to a net loss of $12 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] Business Line Performance - Sohu Media platform revenues were $17 million, down from $73 million in the same quarter last year, with an operating loss of $71 million [11] - Changyou's quarterly revenues were $163 million, up from $129 million in the same quarter last year, with an operating profit of $88 million compared to $62 million in the same quarter last year [12] Market Performance - The online game business saw strong performance driven by the successful launch of TLBB Return, which exceeded revenue expectations [17] - The performance of TLBB Vintage also achieved historic highs, contributing to the overall success of the gaming segment [17] Company Strategy and Industry Competition - The company is focused on leveraging cutting-edge technologies to optimize products and enhance user experiences across its platforms [5] - Sohu is committed to generating and distributing diversified premium content while exploring greater monetization opportunities through unique IPs [7] - The company is diversifying its game offerings to include card-based RPGs, sports games, and casual games, while expanding into global markets [10] Management Commentary on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains challenging, particularly in sectors like automotive and IT services, which are experiencing pressure [19] - Despite the overall advertising market being under pressure, Sohu has managed to stabilize advertising revenue through innovative marketing campaigns [20][34] - For Q4 2025, marketing service revenues are expected to be between $15 million and $16 million, indicating a year-over-year decrease of 15%-20% [13] Other Important Information - As of November 13, 2025, Sohu has repurchased 7.6 million ADS for approximately $97 million, representing two-thirds of the $150 million share repurchase program [10] Q&A Session Summary Question: Online game business performance and Q4 guidance - Management indicated that the strong Q3 results were driven by TLBB Return and that Q4 performance will depend on the new game and content activities planned [17][29] Question: AI integration within Sohu - AI is being used to improve user experience in gaming and media platforms, enhancing productivity and service offerings [22][23] Question: Insights from TLBB Return and user trends - The biggest surprise from TLBB Return was higher-than-expected user spending and stable retention rates [29] - Both TLBB Return and TLBB Vintage are experiencing steady user bases, but revenues are trending down due to fewer promotional activities planned for Q4 [31] Question: Advertising market sentiment and industry verticals - The advertising market is under pressure, particularly in the automotive sector, but Sohu is finding opportunities in consumer electronics through innovative advertising strategies [34][35]

Financial Performance Overview - Total revenues for Q3 2025 were $180 million, representing a 19% year-over-year increase and a 43% quarter-over-quarter increase [4] - Marketing services revenues were $14 million, down 27% year-over-year and 13% quarter-over-quarter [4] - Online game revenues reached $162 million, up 27% year-over-year and 53% quarter-over-quarter [4] - GAAP net income attributable to Sohu.com Limited was $9 million, compared to a net loss of $16 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] - Non-GAAP net income attributable to Sohu.com Limited was also $9 million, compared to a net loss of $12 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] Business Line Performance - Sohu Media platform revenues were $17 million, down from $73 million in the same quarter last year, with an operating loss of $71 million [11] - Changyou revenues were $163 million, up from $129 million in the same quarter last year, with an operating profit of $88 million compared to $62 million in the same quarter last year [11] Market Performance - The advertising revenue showed a sequential rebound, although the overall macroeconomic situation remains challenging, particularly in sectors like auto and IT services [19][35] - The company is leveraging unique marketing campaigns to stabilize advertising revenue despite a deteriorating market [19][35] Company Strategy and Industry Competition - The company is focused on optimizing products and enhancing user experiences through technology integration and premium content generation [5][6] - Sohu is committed to diversifying its gaming portfolio, including new types of games and expanding into global markets [10] - The company is utilizing AI to improve user experience and operational efficiency, particularly in gaming and media services [22][23] Management Comments on Operating Environment and Future Outlook - Management indicated that the strong performance in Q3 was driven by the successful launch of new games, but expressed caution regarding Q4 performance due to natural declines following initial launches [17][32] - The advertising market is under pressure, but the company is finding ways to attract advertisers through innovative offerings [35] Other Important Information - As of November 13, 2025, Sohu has repurchased 7.6 million ADS for approximately $97 million, representing two-thirds of the $150 million program [10] Q&A Session Summary Question: Online game business performance and Q4 guidance - Management confirmed that Q4 performance is in line with expectations, driven by the success of TLBB Return and new servers for TLBB Vintage [17] Question: AI integration and its impact - AI is being used to enhance user experience in gaming and media services, improving productivity without focusing on large language models [22][23] Question: Surprises from TLBB Return and user trends - User spending on TLBB Return exceeded expectations, with stable user retention, but revenues are trending down as promotional activities decrease [30][32] Question: Advertising market sentiment - The overall advertising market is under pressure, particularly in the auto industry, but innovative marketing strategies are helping to stabilize revenue [35]