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 Overview - In Q4 2025, total revenue was $142 million, representing a 6% year-over-year increase but a 21% decrease quarter-over-quarter [5] - Marketing services revenues were $17 million, down 10% year-over-year but up 25% quarter-over-quarter [5] - Online game revenues reached $120 million, up 10% year-over-year but down 26% quarter-over-quarter [5] - For the full year 2025, total revenues were $584 million, down 2% compared to 2024 [8] - GAAP net income attributable to Sohu.com Limited was $394 million, compared to a net loss of $100 million in 2024 [8] - Non-GAAP net income attributable to Sohu.com Limited was $234 million, compared to a net loss of $83 million in 2024 [8] Business Segment Performance - Sohu Media platform revenues for Q4 were $21 million, down from $24 million year-over-year, with an operating loss of $72 million [16] - Changyou's quarterly revenue was $121 million, up from $111 million year-over-year, with an operating profit of $45 million [17] - For the full year 2025, Changyou's revenue was $509 million, slightly up from $506 million in 2024, with an operating profit of $238 million [17] Market Trends and Guidance - For Q1 2026, marketing service revenues are expected to be between $10 million and $11 million, indicating a 20%-27% annual decrease [18] - Online game revenues are projected to be between $113 million and $123 million, suggesting a potential annual decrease of 4% to an increase of 5% [18] Company Strategy and Industry Position - The company is focusing on enhancing user experience through improved products and algorithms, as well as hosting innovative events to boost user engagement [4] - Sohu is committed to long-term operational excellence in online games, with plans for high-quality content updates and expansion packs [12][13] - The company is exploring new monetization opportunities by integrating advertisers' needs with event marketing [12] Management Commentary on Future Outlook - Management noted that the softness in Q1 advertising guidance is primarily due to the delayed Chinese New Year, affecting advertisers' activities [22][35] - The overall macroeconomic situation remains similar to Q4, with uncertainties persisting [22] - Management expressed optimism about the auto sector's performance, indicating some improvement compared to IT and FMCG sectors [27] Other Important Information - As of February 5, 2026, Sohu had repurchased 8.1 million ADS for approximately $106 million, with one-third of the program remaining [15] Q&A Session Summary Question: Advertising guidance for Q1 seems soft; is it due to macro uncertainties? - Management attributed the softness to seasonality and the delayed Chinese New Year, affecting advertisers' activities in January and February [22][35] Question: What is the trend for advertising categories like auto and IT? - Management noted improvement in the auto sector, which has a higher percentage of overall revenue compared to IT and FMCG sectors [27] Question: Was there any one-off revenue recognized in Q4 that led to outperformance? - Management clarified that Q4 performance was due to overall better execution rather than one-off events, with Q1 softness linked to the delayed Chinese New Year [35][36] Question: Can management share the game pipeline and major expansion packs for 2026? - Management mentioned a card-based RPG based on Xiaomi IP expected to launch by late 2026 or early 2027, with several new games in development [43][44] Question: Why is the net loss guidance narrower than previous quarters? - Management indicated that the narrower loss is due to improved operational performance and expects this trend to continue throughout 2026 [34][45]

Financial Performance Overview - In Q4 2025, total revenue was $142 million, representing a 6% year-over-year increase but a 21% decrease quarter-over-quarter [5] - Marketing services revenue was $17 million, down 10% year-over-year but up 25% quarter-over-quarter [5] - Online game revenue reached $120 million, up 10% year-over-year but down 26% quarter-over-quarter [5] - For the full year 2025, total revenue was $584 million, down 2% compared to 2024 [8] - GAAP net income attributable to Sohu.com Limited was $394 million, compared to a net loss of $100 million in 2024 [8] - Non-GAAP net income attributable to Sohu.com Limited was $234 million, compared to a net loss of $83 million in 2024 [8] Business Segment Performance - Sohu Media platform revenues for Q4 were $21 million, down from $24 million year-over-year, with an operating loss of $72 million [16] - Changyou's quarterly revenue was $121 million, up from $111 million year-over-year, with an operating profit of $45 million [17] - For the full year 2025, Changyou's revenue was $509 million, slightly up from $506 million in 2024, with an operating profit of $238 million [17] Market Trends and Guidance - For Q1 2026, marketing service revenues are expected to be between $10 million and $11 million, indicating a 20%-27% annual decrease and a 35%-41% sequential decrease [18] - Online game revenues are projected to be between $113 million and $123 million, suggesting a potential annual decrease of 4% to an increase of 5% [18] Company Strategy and Industry Competition - The company is focusing on enhancing its media platform through innovative events and improved algorithms to boost user engagement and monetization opportunities [4][9] - In the online gaming sector, the company is committed to delivering high-quality content updates and maintaining a user-centric approach [13][14] - The company is exploring new monetization opportunities by integrating advertisers' needs with its events and content [12] Management Commentary on Operating Environment and Future Outlook - Management noted that the softness in Q1 advertising guidance is primarily due to the delayed Chinese New Year, affecting advertisers' activities [22][34] - The overall macroeconomic situation remains similar to Q4, with ongoing uncertainties impacting advertising spending [35] - Management expressed confidence in the gaming sector's resilience, emphasizing the importance of existing game performance and upcoming content updates [24][41] Other Important Information - As of February 5, 2026, the company had repurchased 8.1 million ADS for approximately $106 million, with one-third of the program remaining [15] Q&A Session Summary Question: Advertising guidance for Q1 appears soft; is it due to macro uncertainties? - Management attributed the softness to seasonality, specifically the delayed Chinese New Year affecting advertising activities [22] Question: What is the trend for advertising categories like auto and IT sectors? - Management noted improvement in the auto sector, which performed better than IT and other FMCG categories [26] Question: Were there any one-off revenues in Q4 that led to outperformance? - Management indicated that Q4 performance was generally better without specific one-off events, attributing it to improved overall operations and innovative marketing solutions [34][36] Question: Can management share the game pipeline and major expansion packs for 2026? - Management confirmed a card-based RPG based on Xiaomi IP is expected to launch by late 2026 or early 2027, with several new games in development [40] Question: Why is the net loss guidance narrower than previous quarters? - Management explained that the narrower loss guidance reflects improved operational performance and cost management [32]

Financial Performance Overview - In Q4 2025, total revenue was $142 million, representing a 6% increase year-over-year but a 21% decrease quarter-over-quarter [5] - Marketing services revenues were $17 million, down 10% year-over-year but up 25% quarter-over-quarter [5] - Online game revenues reached $120 million, up 10% year-over-year but down 26% quarter-over-quarter [5] - For the full year 2025, total revenues were $584 million, down 2% compared to 2024 [7] - GAAP net income attributable to Sohu.com Limited was $223 million, compared to a net loss of $21 million in Q4 2024 [6] - Non-GAAP net income attributable to Sohu.com Limited was $261 million, compared to a net loss of $15 million in Q4 2024 [6] Business Segment Performance - Sohu Media platform revenues for Q4 were $21 million, down from $24 million in the same quarter last year, with an operating loss of $72 million [15] - Changyou's quarterly revenue was $121 million, up from $111 million in the same quarter last year, with an operating profit of $45 million [16] - For the full year 2025, Changyou's revenue was $509 million, compared to $506 million in 2024, with an operating profit of $238 million [16] Market Trends and Insights - The advertising sector showed some improvement in the auto industry, while the IT sector remained weaker [25] - The softness in advertising guidance for Q1 2026 is attributed to the delayed Chinese New Year, impacting advertisers' activities [21][32] Company Strategy and Industry Position - The company is focused on enhancing user engagement through innovative events and improved algorithms on the Sohu Media platform [4][8] - In the online gaming sector, the company plans to continue delivering high-quality content updates and expansion packs to maintain player engagement [12][13] - The company is exploring new monetization opportunities by integrating advertisers' needs with event-driven marketing strategies [11] Management Commentary on Future Outlook - Management expressed that the overall macroeconomic situation remains similar to Q4, with uncertainties affecting advertising spending [21][33] - The company anticipates a narrower net loss for Q1 2026, guided between $10 million and $20 million, reflecting improved operational efficiency [30] Q&A Session Summary Question: Advertising guidance appears soft for Q1, is it due to macro uncertainties? - Management indicated that the softness is mainly due to seasonality, with the delayed Chinese New Year affecting advertising activities [21] Question: What is the trend for advertising categories like auto and IT? - Management noted improvement in the auto sector, while the IT sector remains weaker [25][24] Question: Was there any one-off revenue in Q4 that led to outperformance? - Management clarified that Q4 performance was due to overall better execution rather than one-off events, with Q1 softness attributed to the delayed Chinese New Year [32][33] Question: Can management share the game pipeline and major expansion packs for 2026? - Management mentioned a card-based RPG based on Xiaomi IP expected to launch by late 2026 or early 2027, with several new games in development [39] Question: Why is the net loss guidance narrower than previous quarters? - Management explained that the narrower loss is due to improved operational efficiency and cost management [30]

Financial Performance Overview - In Q4 2024, total revenues were $135 million, down 5% year-over-year and 11% quarter-over-quarter [6] - Brand advertising revenues were $19 million, down 7% year-over-year and 1% quarter-over-quarter [6] - Online game revenues were $110 million, down 4% year-over-year and 14% quarter-over-quarter [6] - GAAP net loss attributable to Sohu was $21 million, compared to a net loss of $13 million in Q4 2023 [6] - Non-GAAP net loss attributable to Sohu was $15 million, compared to a net loss of $11 million in Q4 2023 [6] - For the full year 2024, total revenues were $598 million, flat compared to 2023 [7] Business Segment Performance Sohu Media Platform - Quarterly revenues were $24 million, compared to $25 million in the same quarter last year [15] - Quarterly operating loss was $69 million, compared to an operating loss of $68 million in the same quarter last year [15] - For the full year 2024, revenues were $91 million, down from $140 million in 2023 [16] - Full year operating loss was $287 million, compared to an operating loss of $269 million in 2023 [16] Online Games - Quarterly revenues for Changyou's online games were $111 million, compared to $115 million in the same quarter last year [16] - Quarterly operating profit was $48 million, compared to an operating profit of $47 million in the same quarter last year [16] - For the full year 2024, revenues were $506 million, down from $485 million in 2023 [16] - Full year operating profit was $196 million, compared to an operating profit of $203 million in 2023 [16] Market Trends and Strategic Direction - The company is focusing on improving technology and optimizing products to enhance user experience [8] - Sohu is integrating online and offline events to attract younger users and stimulate content generation [9][10] - The online game business is expected to maintain a user-centric approach while expanding its portfolio with diverse game types [13][14] Management Commentary on Economic Environment - Management noted that the decline in advertising revenue is attributed to a weak macroeconomic environment, leading to reduced marketing budgets from advertisers [23][34] - There is a trend of decreased spending in the automotive sector, with FMCG now becoming the top sector for advertising [36] Other Important Information - As of February 2025, Sohu had repurchased 4.2 million ADS for approximately $52 million, with $100 million remaining in the buyback program [15][33] Q&A Session Summary Question: Insights on brand advertising business and gaming expectations - Management acknowledged that the decline in advertising is due to the overall economic situation, with advertisers spending less [23] - For gaming, the performance is expected to be flat quarter-over-quarter [24] Question: Overall macro sentiment and advertising budget - Management indicated that consumer spending is down, affecting marketing budgets, particularly in the automotive sector [34] - FMCG has risen to become the top sector for advertising, with increased spending noted in smaller items like food and electronics [36]