Financial Performance Overview - Total revenues for Q3 2025 were $180 million, representing a 19% year-over-year increase and a 43% quarter-over-quarter increase [4] - Marketing services revenues were $14 million, down 27% year-over-year and 13% quarter-over-quarter [4] - Online game revenues reached $162 million, up 27% year-over-year and 53% quarter-over-quarter [4] - GAAP net income attributable to Sohu.com Limited was $9 million, compared to a net loss of $16 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] - Non-GAAP net income attributable to Sohu.com Limited was also $9 million, compared to a net loss of $12 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] Business Line Performance - Sohu Media platform revenues were $17 million, down from $73 million in the same quarter last year, with an operating loss of $71 million [11] - Changyou's quarterly revenues were $163 million, up from $129 million in the same quarter last year, with an operating profit of $88 million compared to $62 million in the same quarter last year [12] Market Performance - The online game business saw strong performance driven by the successful launch of TLBB Return, which exceeded revenue expectations [17] - The performance of TLBB Vintage also achieved historic highs, contributing to the overall success of the gaming segment [17] Company Strategy and Industry Competition - The company is focused on leveraging cutting-edge technologies to optimize products and enhance user experiences across its platforms [5] - Sohu is committed to generating and distributing diversified premium content while exploring greater monetization opportunities through unique IPs [7] - The company is diversifying its game offerings to include card-based RPGs, sports games, and casual games, while expanding into global markets [10] Management Commentary on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains challenging, particularly in sectors like automotive and IT services, which are experiencing pressure [19] - Despite the overall advertising market being under pressure, Sohu has managed to stabilize advertising revenue through innovative marketing campaigns [20][34] - For Q4 2025, marketing service revenues are expected to be between $15 million and $16 million, indicating a year-over-year decrease of 15%-20% [13] Other Important Information - As of November 13, 2025, Sohu has repurchased 7.6 million ADS for approximately $97 million, representing two-thirds of the $150 million share repurchase program [10] Q&A Session Summary Question: Online game business performance and Q4 guidance - Management indicated that the strong Q3 results were driven by TLBB Return and that Q4 performance will depend on the new game and content activities planned [17][29] Question: AI integration within Sohu - AI is being used to improve user experience in gaming and media platforms, enhancing productivity and service offerings [22][23] Question: Insights from TLBB Return and user trends - The biggest surprise from TLBB Return was higher-than-expected user spending and stable retention rates [29] - Both TLBB Return and TLBB Vintage are experiencing steady user bases, but revenues are trending down due to fewer promotional activities planned for Q4 [31] Question: Advertising market sentiment and industry verticals - The advertising market is under pressure, particularly in the automotive sector, but Sohu is finding opportunities in consumer electronics through innovative advertising strategies [34][35]

Financial Performance Overview - Total revenues for Q3 2025 were $180 million, representing a 19% year-over-year increase and a 43% quarter-over-quarter increase [4] - Marketing services revenues were $14 million, down 27% year-over-year and 13% quarter-over-quarter [4] - Online game revenues reached $162 million, up 27% year-over-year and 53% quarter-over-quarter [4] - GAAP net income attributable to Sohu.com Limited was $9 million, compared to a net loss of $16 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] - Non-GAAP net income attributable to Sohu.com Limited was also $9 million, compared to a net loss of $12 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] Business Line Performance - Sohu Media platform revenues were $17 million, down from $73 million in the same quarter last year, with an operating loss of $71 million [11] - Changyou revenues were $163 million, up from $129 million in the same quarter last year, with an operating profit of $88 million compared to $62 million in the same quarter last year [11] Market Performance - The advertising revenue showed a sequential rebound, although the overall macroeconomic situation remains challenging, particularly in sectors like auto and IT services [19][35] - The company is leveraging unique marketing campaigns to stabilize advertising revenue despite a deteriorating market [19][35] Company Strategy and Industry Competition - The company is focused on optimizing products and enhancing user experiences through technology integration and premium content generation [5][6] - Sohu is committed to diversifying its gaming portfolio, including new types of games and expanding into global markets [10] - The company is utilizing AI to improve user experience and operational efficiency, particularly in gaming and media services [22][23] Management Comments on Operating Environment and Future Outlook - Management indicated that the strong performance in Q3 was driven by the successful launch of new games, but expressed caution regarding Q4 performance due to natural declines following initial launches [17][32] - The advertising market is under pressure, but the company is finding ways to attract advertisers through innovative offerings [35] Other Important Information - As of November 13, 2025, Sohu has repurchased 7.6 million ADS for approximately $97 million, representing two-thirds of the $150 million program [10] Q&A Session Summary Question: Online game business performance and Q4 guidance - Management confirmed that Q4 performance is in line with expectations, driven by the success of TLBB Return and new servers for TLBB Vintage [17] Question: AI integration and its impact - AI is being used to enhance user experience in gaming and media services, improving productivity without focusing on large language models [22][23] Question: Surprises from TLBB Return and user trends - User spending on TLBB Return exceeded expectations, with stable user retention, but revenues are trending down as promotional activities decrease [30][32] Question: Advertising market sentiment - The overall advertising market is under pressure, particularly in the auto industry, but innovative marketing strategies are helping to stabilize revenue [35]

Financial Performance and Key Metrics - In Q1 2025, total revenues were $136 million, down 3% year over year and up 1% quarter over quarter [7] - Marketing services revenues were $14 million, down 15% year over year and 27% quarter over quarter [7] - Online game revenues were $117 million, flat year over year and up 7% quarter over quarter [7] - GAAP net income attributable to Sohu was $182 million, compared to a net loss of $25 million in Q1 2024 [8] - Non-GAAP net loss attributable to Sohu was $16 million, compared to a net loss of $22 million in Q1 2024 [8] Business Segment Performance - Sohu Media platform revenues were $70 million, compared to $20 million in the same quarter last year, with an operating loss of $70 million [17] - Changyou's quarterly revenues were $180 million, down from $190 million in the same quarter last year, with an operating profit of $55 million [17] Market Data and Key Metrics - For Q2 2025, marketing services revenues are expected to be between $60 million and $70 million, implying a year-over-year decrease of 14% to 19% [18] - Online game revenues are expected to be between $96 million and $106 million, implying a year-over-year decrease of 28% to 35% [19] Company Strategy and Industry Competition - The company is focusing on enhancing its social media platform and leveraging unique IPs for monetization opportunities [6] - The online gaming business is adopting a top game strategy, diversifying its portfolio with various game types, and expanding into global markets [15] Management's Comments on Operating Environment and Future Outlook - Management indicated that the advertising sentiment is mixed, with the auto sector performing better while luxury goods and alcohol spending is declining [22] - The company expects a similar trend in the second half of the year, with a focus on accelerating growth in its social network platform [23] Other Important Information - The company reversed a tax expense previously recognized as an uncertain tax position, amounting to approximately $199 million [8] - As of May 2025, Sohu had repurchased 5.5 million ADS for an aggregate cost of approximately $67 million [15] Q&A Session Summary Question: Recent trend in advertising sentiment and outlook for the second half - Management noted that the auto sector is performing better, while FMCG and IT services are stable, but luxury goods and alcohol spending is declining [22] Question: Impact of AI on advertising and online games - Management stated that AI has a marginal impact on the media platform but is beneficial for the gaming business, improving efficiency in art design and production [26][27] Question: AI models being integrated into gaming - The company is using various AI tools, including open-source language models, for different aspects of game production [34] Question: Clarification on tax reversal - The tax reversal is mainly an accounting issue related to uncertainty that has now been resolved, with no actual cash flow involved [41] Question: ADR delisting risk and alternative plans - Management indicated that they are not currently considering alternatives like a secondary listing in Hong Kong, stating they will think about it if the situation arises [46]

Financial Performance and Key Metrics - In Q1 2025, total revenues were $136 million, down 3% year-over-year and up 1% quarter-over-quarter [7] - Marketing services revenues were $14 million, down 15% year-over-year and 27% quarter-over-quarter [7] - Online game revenues were $117 million, flat year-over-year and up 7% quarter-over-quarter [7] - GAAP net income was $182 million compared to a net loss of $25 million in Q1 2024 [8] - Non-GAAP net loss was $16 million compared to a net loss of $22 million in Q1 2024 [8] Business Line Performance - Sohu Media platform revenues were $70 million, compared to $20 million in the same quarter last year, with an operating loss of $70 million [19] - Changyou's quarterly revenues were $180 million, down from $190 million in the same quarter last year, with an operating profit of $55 million [19] Market Data and Key Metrics - For Q2 2025, marketing services revenues are expected to be between $60 million and $70 million, implying a year-over-year decrease of 14% to 19% [20] - Online game revenues are expected to be between $96 million and $106 million, implying a year-over-year decrease of 28% to 35% [20] Company Strategy and Industry Competition - The company is focusing on enhancing its social media platform and leveraging unique IPs for monetization opportunities [6] - The online gaming business is adopting a top game strategy, diversifying its portfolio with various game types, and expanding into global markets [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the advertising sentiment is mixed, with the auto sector performing better while luxury goods and alcohol spending is declining [24] - The company expects a similar trend in advertising for the second half of the year, with a focus on accelerating growth through its social network platform [25] - AI is seen as beneficial for the gaming business, improving efficiency in art design and production [29] Other Important Information - The company reversed a tax expense previously recognized, amounting to approximately $199 million, which was an accounting treatment issue rather than a cash flow event [8][42] Q&A Session Summary Question: Recent trend in advertising sentiment and outlook for the second half - Management indicated that the auto sector is performing better, while luxury goods and alcohol spending is declining, with expectations for a similar trend in the second half [24][25] Question: Impact of AI on advertising and online games - Management stated that AI has a marginal impact on the media platform but is beneficial for gaming, improving efficiency in various production aspects [26][29] Question: Details on the tax reversal - The tax reversal was an accounting issue related to uncertainty that has now been resolved, with no actual cash flow involved [42][45] Question: ADR delisting risk and alternative plans - Management noted that the situation is speculative and that they would consider alternatives if necessary, but currently, there are no immediate plans [48][52]