Core 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].

Financial Performance and Key Metrics - For Q2 2025, total revenues were $126 million, down 27% year over year and 7% quarter over quarter [7] - Marketing services revenues were $16 million, down 21% year over year but up 14% quarter over quarter [7] - Online game revenues were $106 million, down 28% year over year and 10% quarter over quarter [7] - GAAP net loss attributable to Silver dot com Limited was $20 million, compared to a net loss of $38 million in Q2 2024 [8] - Non-GAAP net loss attributable to total.com Limited was $20 million, compared to a net loss of $34 million in the same quarter last year [8] Business Line Performance - Sohu Media Platform revenues for the quarter were $19 million, down from $24 million in the same quarter last year, with an operating loss of $69 million [17] - Changyou's quarterly revenues were $107 million, down from $148 million in the same quarter last year, but with an operating profit of $51 million compared to $32 million last year [18] Market Data and Key Metrics - The largest sector for advertising remains the auto sector, followed by FMCG and IT services, with the auto sector stabilizing amid a price war [25] - The new energy vehicle market share is expanding, while luxury cars and joint ventures are shrinking [25] Company Strategy and Industry Competition - The company is focusing on refining products and enhancing operations across its social media platforms to improve user engagement and monetization opportunities [6] - The online game business strategy includes launching expansion packs and diversifying into multiple game types, including card-based RPGs and casual games [14] - The company is actively exploring opportunities to unlock the potential of its TLBB IP while building a user base in a competitive market [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic situation is challenging, affecting advertising sentiment and leading to cautious marketing spending from companies [24] - There is optimism about reaching a critical mass for user growth in social networks, although the timeline for breakeven remains uncertain [39] Other Important Information - As of July 2025, the company had repurchased 6.6 million ADS for an aggregate cost of approximately $83 million [15] - The company does not currently plan to implement other capital return programs beyond the share buyback [29] Q&A Session Summary Question: Insights on marketing services revenue and advertising sentiment - Management acknowledged weakness in advertising revenue due to macroeconomic uncertainties and lower disposable income among consumers [24] Question: AI application in operations - AI is being used to improve efficiency in online gaming and enhance search capabilities in social media platforms [26][28] Question: Share buyback and other capital returns - The share buyback program is ongoing, with no current plans for additional capital returns [29] Question: Breakeven timing for marketing services revenue - Management indicated that breakeven is uncertain due to the nonlinear growth of user bases in social networks [39] Question: Sequential improvement in gaming revenue - A new game version was launched, expected to contribute to revenue growth [40] Question: Impact of events on user growth - Events like K-pop competitions help build community and attract users to the platform [41]

Financial Performance - Total revenues for Q2 2025 were $126 million, down 27% year over year and 7% quarter over quarter [7] - Marketing services revenues were $16 million, down 21% year over year but up 14% quarter over quarter [7] - Online game revenues were $106 million, down 28% year over year and 10% quarter over quarter [7] - GAAP net loss attributable to Silver dot com Limited was $20 million, compared to a net loss of $38 million in Q2 2024 [8] - Non-GAAP net loss attributable to total.com Limited was $20 million, compared to a net loss of $34 million in the same quarter last year [8] Business Segment Performance - Sohu Media Platform revenues for the quarter were $19 million, down from $24 million in the same quarter last year, with an operating loss of $69 million [16] - Changyou's quarterly revenues were $107 million, down from $148 million in the same quarter last year, but operating profit increased to $51 million from $32 million [16] Market Insights - The advertising market is experiencing weakness due to macroeconomic uncertainties and lower consumer spending [24] - The auto sector remains the largest advertising sector, followed by FMCG and IT services, with stabilization noted in the auto sector [25] Company Strategy and Industry Competition - The company is focusing on enhancing user engagement through differentiated events and product optimization [6] - There is a strategy to diversify game offerings and explore new verticals, including card-based RPGs and casual games [14] - The company aims to build a larger user base in social media, which is seen as critical for future growth [36] Management Commentary on Future Outlook - Management acknowledges the current macroeconomic challenges but remains optimistic about future user growth and market share expansion [24][26] - The company is utilizing AI to improve operational efficiency in gaming and enhance user experience in social media platforms [26][27] Other Important Information - As of July 2025, the company had repurchased 6.6 million ADS for approximately $83 million [15] - There are no current plans for additional capital returns beyond the share buyback program, as the focus remains on user base expansion [28] Q&A Session Summary Question: Insights on marketing services revenue and advertising sentiment - Management noted that advertising revenue is facing sequential weakness due to macroeconomic conditions and lower disposable income [24][25] Question: AI application in operations - AI is being used to improve efficiency in gaming and enhance search capabilities in social media apps, utilizing various language models [26][27] Question: Future capital return plans - Management confirmed that the focus is on the share buyback program, with no immediate plans for dividends or other capital returns [28] Question: Breakeven timing for marketing services revenue - Management indicated that breakeven is uncertain due to the nonlinear growth of the user base in social networks [36] Question: Sequential improvement in gaming revenue - The gaming segment is expected to perform stably, with new game releases anticipated to contribute to revenue [37] Question: Impact of events on user growth - Events like K-pop competitions are seen as community builders that help attract users to the Sohu app [39][40]