Q2 2025 Sohu.com Ltd Earnings Call Transcript

Aug 04, 2025 / 11:30AM GMT
Release Date Price: €12.4 (-6.06%)

Key Points

Positve
  • Sohu.com Ltd (SOHU) reported that their Online Game revenues and bottom-line performance hit the high end of their guidance.
  • The company successfully hosted differentiated events that increased user engagement and captured more monetization opportunities.
  • Sohu.com Ltd (SOHU) continues to expand its influence in the K-pop and Chinese costume hanfu areas, hosting events that attract significant participation.
  • The Online Game business performed well, with revenues reaching the high end of guidance, supported by new content and game optimizations.
  • Sohu.com Ltd (SOHU) has repurchased 6.6 million ADS for approximately $83 million, indicating a commitment to returning value to shareholders.
Negative
  • Total revenues for the second quarter of 2025 were $126 million, down 27% year over year and 7% quarter over quarter.
  • Marketing Services revenues were $16 million, down 21% year over year, indicating challenges in this segment.
  • The company reported a GAAP net loss of $20 million, compared to a net income of $182 million in the first quarter of 2025.
  • Sohu.com Ltd (SOHU) faces a challenging macroeconomic environment, impacting advertising revenue and consumer spending.
  • The company does not expect to break even in the near future due to the need to build a critical mass for its social network platform.
Operator

Ladies and gentlemen, thank you for standing by and good evening. Thank you for joining Sohu's second-quarter 2025 earnings conference call. (Operator Instructions) Today's conference call is being recorded. If you have any objections, you may disconnect at this time.

I'd now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. Please go ahead.

Huang Pu
Sohu.com Ltd - Investor Relations Officer

Thanks, operator. Thank you for joining us to discuss Sohu's second-quarter 2025 results. On the call are Chairman and Chief Executive Officer, Dr. Charles Zhang; CFO, Joanna Lv; and the Vice President of Finance, James Deng. Also with us are Changyou's CEO, Dewen Chen; and CFO, Yaobin Wang.

Before management begins their prepared remarks, I would like to remind you of the company's Safe Harbor statement in connection with today's conference call. Except for the historical information contained herein, the matters discussed on this call may contain forward-looking statements. These

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