Sohu.com(US:SOHU) Prnewswireยท2025-11-17 05:00Core Insights - Sohu.com Limited reported strong financial performance in Q3 2025, with total revenues reaching US$180 million, a 19% increase year-over-year and a 43% increase quarter-over-quarter [3][13]. - The company achieved positive net income of US$9 million, compared to a net loss of US$16 million in Q3 2024 and a net loss of US$20 million in Q2 2025 [9][10]. - Online game revenues significantly contributed to the overall growth, totaling US$162 million, which is a 27% increase year-over-year and a 53% increase quarter-over-quarter [4][13]. Financial Performance - Total revenues for Q3 2025 were US$180 million, up 19% from the previous year and 43% from the previous quarter [3][13]. - Marketing services revenues decreased to US$14 million, down 27% year-over-year and 13% quarter-over-quarter [3][4]. - Online game revenues were US$162 million, reflecting a 27% year-over-year increase and a 53% quarter-over-quarter increase, driven by the launch of the new PC game Tian Long Ba Bu: Return [4][13]. Profitability Metrics - Both GAAP and non-GAAP gross margins were reported at 81%, an improvement from 74% in Q3 2024 and 78% in Q2 2025 [5][33]. - Operating profit for Q3 2025 was US$14 million, compared to an operating loss of US$13 million in Q3 2024 and an operating loss of US$22 million in Q2 2025 [7][18]. - The company reported a GAAP net income of US$9 million, or US$0.32 per fully-diluted ADS, compared to a net loss of US$16 million in the same quarter last year [9][10]. User Engagement and Game Performance - For PC games, average monthly active user accounts (MAU) increased by 24% year-over-year to 2.7 million, while active paying accounts (APA) rose by 27% to 1.1 million [12]. - Mobile games experienced a decline, with MAU decreasing by 42% year-over-year to 1.9 million and APA down by 72% to 0.3 million [14]. Liquidity and Capital Resources - As of September 30, 2025, Sohu had cash and cash equivalents, short-term investments, and long-term time deposits totaling approximately US$1.2 billion [11]. Share Repurchase Program - The company has repurchased 7.6 million ADSs for an aggregate cost of approximately US$97 million under its share repurchase program of up to US$150 million [19]. Business Outlook - For Q4 2025, Sohu estimates marketing services revenues to be between US$15 million and US$16 million, indicating an annual decrease of 15% to 20% [26]. - Online game revenues are expected to be between US$113 million and US$123 million, reflecting an annual increase of 3% to 12% [26].