SOHU.COM REPORTS SECOND QUARTER 2025 UNAUDITED FINANCIAL RESULTS

Core Viewpoint - Sohu.com Limited reported its second quarter financial results for 2025, highlighting a decline in total revenues and online game revenues, while marketing services revenues showed a slight recovery quarter-over-quarter. The company emphasized its focus on enhancing user engagement and optimizing its product offerings to capture monetization opportunities [2][4][14]. Financial Performance - Total revenues for the second quarter were US$126 million, down 27% year-over-year and 7% quarter-over-quarter [4][14]. - Marketing services revenues were US$16 million, down 21% year-over-year but up 14% quarter-over-quarter [4][14]. - Online game revenues were US$106 million, down 28% year-over-year and 10% quarter-over-quarter [4][14]. - Both GAAP and non-GAAP gross margin stood at 78%, an increase from 67% in the second quarter of 2024 and 76% in the first quarter of 2025 [5][14]. Operating Expenses and Losses - Operating expenses were US$120 million, down 25% year-over-year and 1% quarter-over-quarter [6][14]. - GAAP operating loss was US$22 million, an improvement from a loss of US$44 million in the second quarter of 2024 [7][14]. - Non-GAAP operating loss was also US$22 million, compared to a loss of US$45 million in the same quarter last year [7][14]. Net Income and Tax Expense - GAAP net loss attributable to Sohu.com Limited was US$20 million, compared to a net loss of US$38 million in the second quarter of 2024 [10][14]. - Non-GAAP net loss was also US$20 million, compared to a net loss of US$34 million in the same quarter last year [11][14]. - GAAP income tax expense was US$9 million, consistent with the previous year, while the first quarter of 2025 had a tax benefit of US$189 million due to a reversal of a tax expense [8][9][14]. Liquidity and Capital Resources - As of June 30, 2025, the company had cash and cash equivalents, short-term investments, and long-term time deposits totaling approximately US$1.2 billion [12][14]. Business Outlook - For the third quarter of 2025, Sohu estimates marketing services revenues to be between US$14 million and US$15 million, and online game revenues to be between US$107 million and US$117 million [20][27].