Sohu.com(US:SOHU) Jin Rong Jie·2025-08-04 05:32Core Insights - Sohu reported a total revenue of $126 million for Q2 2025, with a net loss narrowing by over 40% year-on-year, meeting previous expectations [1][3] Financial Performance - Total revenue for Q2 2025 was $126 million, a decrease of 27% compared to Q2 2024 and a 7% decline from the previous quarter [3] - Marketing services revenue was $16 million, down 21% year-on-year but up 14% from the previous quarter [4] - Online gaming revenue reached $106 million, a decrease of 28% year-on-year and a 10% decline from the previous quarter [5] - The net loss attributable to Sohu under GAAP was $20 million, compared to a net loss of $38 million in Q2 2024 and a net profit of $182 million in the previous quarter [10] - Non-GAAP net loss was also $20 million, compared to a loss of $34 million in the same quarter last year and a loss of $16 million in the previous quarter [10] Profitability Metrics - Gross margin under both GAAP and non-GAAP was 78%, up from 67% in Q2 2024 and 76% in the previous quarter [6] - Marketing services gross margin was 17%, down from 20% year-on-year but up from 10% in the previous quarter [6] - Online gaming gross margin was 86%, compared to 76% in Q2 2024 and 85% in the previous quarter [6] Operating Expenses - Total operating expenses under both GAAP and non-GAAP were $120 million, a decrease of 25% year-on-year and a 1% decline from the previous quarter [7] Operating Loss - GAAP operating loss was $22 million, compared to a loss of $44 million in Q2 2024 and a loss of $19 million in the previous quarter [8] - Non-GAAP operating loss was also $22 million, compared to a loss of $45 million in the same quarter last year and a loss of $19 million in the previous quarter [9] Tax Expenses - GAAP tax expense was $9 million, consistent with the same quarter last year, while non-GAAP tax expense was $9 million compared to $5 million in Q2 2024 [9] User Engagement in Online Gaming - For PC client games, average monthly active users were 2.3 million, up 6% year-on-year, while active paying users totaled 900,000, an 8% increase year-on-year [11] - For mobile games, average monthly active users were 1.9 million, down 60% year-on-year, with active paying users at 300,000, a 72% decline year-on-year [11] Future Guidance - For Q3 2025, Sohu expects marketing services revenue between $14 million and $15 million, a decline of 20% to 25% year-on-year [15] - Online gaming revenue is projected to be between $107 million and $117 million, a decrease of 8% to 16% year-on-year [15] - The company anticipates a net loss between $25 million and $35 million under both GAAP and non-GAAP for Q3 2025 [15]