Overview

• Sohu reports Q3 2025 total rev of $180 million, up 19% yr/yr, driven by online game revenue growth

• Online game rev for Q3 2025 up 27% yr/yr, boosted by new game launches

• Sohu achieves positive net income in Q3 2025, reversing previous losses

Outlook

• Sohu estimates Q4 marketing services revenues between $15 mln and $16 mln

• Sohu expects Q4 online game revenues between $113 mln and $123 mln

• Company projects Q4 net loss between $25 mln and $35 mln

Result Drivers

• ONLINE GAME REVENUE - Driven by new PC game TLBB: Return and content updates for TLBB PC, boosting revenues by 27% yr/yr

• GROSS MARGIN IMPROVEMENT - Gross margin rose to 81% from 74% a year ago, supported by high-margin online games

• MARKETING SERVICES DECLINE - Marketing services revenues fell 27% yr/yr, in line with company guidance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy."

• Wall Street's median 12-month price target for Sohu.com Ltd is $19.00, about 24.6% above its November 14 closing price of $14.32

Press Release: ID:nPnbbCGZDa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)