Sohu.com (SOHU) Q4 2025 earnings summary

Executive summary

• Q4 2025 total revenue reached $142 million, up 6% year-over-year but down 21% sequentially from Q3; full-year 2025 revenue was $584 million, down 2% from 2024.

• Q4 2025 GAAP net income was $223 million, driven by a $285 million tax reversal; non-GAAP net income was $261 million.

• Full-year 2025 GAAP net income was $394 million, reversing a $100 million loss in 2024; non-GAAP net income was $234 million.

• Marketing services revenue exceeded guidance, while online game revenue met expectations.

• Cash, cash equivalents, short-term investments, and long-term time deposits totaled $1.2 billion as of December 31, 2025.

Financial highlights

• Q4 marketing services revenue: $17 million (down 10% YoY, up 25% QoQ); Q4 online game revenue: $120 million (up 10% YoY, down 26% QoQ).

• Q4 2025 gross margin was 75%, up from 73% in Q4 2024 but down from 81% in Q3 2025.

• Q4 2025 GAAP operating loss was $66 million, compared to a $25 million loss in Q4 2024 and a $14 million profit in Q3 2025.

• Q4 2025 included a $37 million goodwill impairment charge.

• Full-year non-GAAP net income: $234 million; excluding tax reversal, a $51 million loss, a 40% improvement YoY.

Outlook and guidance

• Q1 2026 marketing services revenue expected at $10–11 million (down 20–27% YoY, down 35–41% QoQ).

• Q1 2026 online game revenue expected at $113–123 million (YoY change: -4% to +5%; QoQ change: -6% to +2%).

• Q1 2026 net loss forecasted at $10–20 million.