Core Insights - Sohu's Q2 2025 financial report demonstrates resilience, with total revenue of $126 million and a significant reduction in net loss by over 40% to $20 million, reflecting strategic determination during a transformation phase [1][3] Revenue Breakdown - The two core business segments of Sohu show differentiated development, with marketing services revenue stable at $16 million, indicating a solid foundation in the brand advertising market [3] - Online gaming revenue contributed $106 million, becoming the main revenue driver, attributed to a user-demand-centric product strategy [3] Operational Efficiency - The substantial improvement in non-GAAP net loss highlights Sohu's effectiveness in cost control and operational efficiency [3] - Sohu employs a dual-track strategy of "maintaining core strengths while innovating," optimizing media product functions and enhancing social operations to activate platform ecology [3] Capital Management - As of July 31, 2025, Sohu has repurchased 6.6 million American Depositary Shares for approximately $83 million, representing 55% of the maximum repurchase plan [4] - This capital operation strategy not only optimizes the capital structure but also signals management's confidence in the company's long-term value [4] - In a competitive internet industry, Sohu's refined operations have led to reduced losses and increased efficiency, showcasing strategic wisdom by focusing on core business depth rather than blind expansion [4]

Core 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]

Group 1 - The core viewpoint of the article is that Sohu's Q2 2025 financial results show a significant improvement, with total revenue reaching $126 million and a net loss that has narrowed by over 40% year-on-year, meeting previous expectations [1] - Sohu's total revenue for Q2 2025 was $126 million, with marketing services revenue at $16 million and online gaming revenue at $106 million [1] - The non-GAAP net loss attributable to Sohu for Q2 2025 was $20 million, compared to a net loss of $34 million in the same period of 2024, indicating a substantial year-on-year improvement [1] Group 2 - Sohu's CEO, Zhang Chaoyang, highlighted that the marketing services revenue met expectations, while online gaming revenue and group net loss also aligned with prior best forecasts [1] - The company is focusing on optimizing its media products and enhancing social operations to increase user engagement and brand influence, which has led to more commercial opportunities [1] - The online gaming business remains robust, driven by a user-centric approach and continuous improvement in game content and experience [1] Group 3 - As part of a previously announced share repurchase plan of up to $150 million, Sohu has repurchased 6.6 million American depositary shares for a total amount of approximately $83 million as of July 31, 2025 [2]

Group 1 - The core financial performance of Sohu for Q2 2025 includes total revenue of $126 million, with a net loss of $20 million, which is a reduction of over 40% compared to the same period in 2024 [2] - Marketing services revenue reached $16 million, while online gaming revenue was $106 million, both aligning with previous expectations [2] - The company has focused on enhancing product synergy and user engagement through diverse activities, which has strengthened brand influence and created more commercialization opportunities [2] Group 2 - As part of a previously announced share repurchase plan of up to $150 million, Sohu has repurchased 6.6 million American depositary shares for approximately $83 million as of July 31, 2025 [3]

Core Viewpoint - Sohu's financial performance in Q1 2025 exceeded expectations, with total revenue reaching $136 million, driven by strong online gaming and marketing service revenues, while the net loss narrowed significantly year-over-year [1][2]. Business Layout and Development Strategy - Sohu is focusing on a "content + social" business model to drive growth, attracting user attention through high-quality content and social interactions [3]. - The company is enhancing user engagement by creating a unique knowledge live-streaming matrix, which includes popular IPs like "Zhang Chaoyang's Physics Class," and is exploring new marketing strategies through collaborations with brands [3]. - Sohu is also leveraging social distribution to deepen user connections, exemplified by the successful "2025 Spring Sohu Video Host Conference," which gathered numerous influencers and creators [3]. Multi-Engine Growth Strategy - Sohu is developing a multi-engine strategy with long dramas, short dramas, and American dramas to capture diverse growth opportunities [4]. - The company has strengthened its original content production capabilities in long dramas, producing popular series that have generated significant discussions [4]. - Sohu has established itself as a key platform for American dramas, reviving interest in this genre, while short dramas cater to younger audiences' fragmented viewing habits [4]. Brand Influence and Commercial Opportunities - Sohu is leveraging its position as a mainstream media brand to explore various commercial opportunities through flagship events and innovative content marketing activities [5][6]. - The "17th Season Sohu News Marathon" exemplifies Sohu's ability to create engaging content and enhance its influence as a mainstream media platform [6]. - The company's long-term commitment to growth and innovation is expected to yield strong compounding effects in the future [6].