Sohu.com(US:SOHU) Yahoo Finance·2026-02-09 14:07Core Viewpoint - Sohu.com reported a significant reversal of previously accrued withholding income tax, which impacted its financial results, leading to a GAAP net income of $223 million for Q4 2025, compared to a net loss in the previous year [1][7]. Financial Performance - For Q4 2025, Sohu's total revenue was $142 million, reflecting a 6% year-over-year increase but a 21% decrease sequentially [3][7]. - The full year 2025 total revenue was $584 million, down 2% from 2024, with marketing services revenue at $60 million (down 18%) and online game revenue at $506 million (up 1%) [2][8]. - The company reported a GAAP net income of $394 million for the full year 2025, a significant recovery from a net loss of $100 million in 2024 [8]. Segment Performance - Changyou's Q4 revenue was $121 million, up from $111 million year-over-year, with an operating profit of $45 million [6][10]. - The social media platform generated $21 million in Q4 revenue, down from $24 million year-over-year, with an operating loss of $72 million [9]. - For the full year, Changyou's revenue was $509 million, slightly up from $506 million in 2024, while the social media platform's revenue decreased to $75 million from $91 million [9][10]. Guidance and Outlook - For Q1 2026, management guided marketing services revenue to be between $10 million and $11 million, indicating a year-over-year decline of 20% to 27% [5][17]. - Online game revenue is expected to be between $113 million and $123 million, suggesting a slight year-over-year change [17]. - The company anticipates a GAAP and non-GAAP net loss of $10 million to $20 million for Q1 2026 [18]. Advertising and Market Trends - The softer first-quarter guidance is attributed to seasonality related to the Chinese New Year, with a noted shift from traditional advertising to innovative marketing solutions [19]. - The auto sector showed improvement in Q4, contributing a higher percentage of total revenue, while IT and FMCG sectors were weaker [19]. Share Repurchase Program - As of February 5, 2026, Sohu had repurchased 8.1 million ADS for approximately $106 million, with about one-third of the repurchase program remaining [20].