Sohu.com Ltd
NASDAQ:SOHU
Sohu.com Ltd
Sohu.com Ltd. is an online media, search, and game service company, which provides online products and services on PC and mobile devices. The company is headquartered in Beijing, Beijing and currently employs 4,900 full-time employees. The company went IPO on 2000-07-12. The firm mainly operates its businesses through three segments, including the Sohu segment, the Sogou segment and the Changyou segment. The Sohu segment’s main business is the brand advertising business, which offers to users, over Sohu’s matrices of Chinese language online media, various content, products and services across multiple Internet-enabled devices such as PCs, mobile phones and tablets. The Sogou segment is mainly engaged in search and search-related business, including search and search-related advertising services, as well as Internet value-added services (IVAS). The Changyou segment is engaged in online game business; the platform channel business, which consists primarily of online advertising and IVAS; and the cinema advertising business.
Sohu.com Ltd. is an online media, search, and game service company, which provides online products and services on PC and mobile devices. The company is headquartered in Beijing, Beijing and currently employs 4,900 full-time employees. The company went IPO on 2000-07-12. The firm mainly operates its businesses through three segments, including the Sohu segment, the Sogou segment and the Changyou segment. The Sohu segment’s main business is the brand advertising business, which offers to users, over Sohu’s matrices of Chinese language online media, various content, products and services across multiple Internet-enabled devices such as PCs, mobile phones and tablets. The Sogou segment is mainly engaged in search and search-related business, including search and search-related advertising services, as well as Internet value-added services (IVAS). The Changyou segment is engaged in online game business; the platform channel business, which consists primarily of online advertising and IVAS; and the cinema advertising business.
Revenue: Total Q4 revenue was $142 million, up 6% year-on-year but down 21% quarter-on-quarter, beating prior guidance for marketing services and meeting expectations for online games.
Profitability: GAAP net income reached $223 million, boosted by a $285 million tax reversal. Non-GAAP net income was $261 million, both dramatically improved from last year’s net losses.
Segment Performance: Marketing services revenue was $17 million (down 10% YoY, up 25% QoQ) and online games delivered $120 million (up 10% YoY, down 26% QoQ).
Guidance: Q1 2026 guidance calls for marketing services revenue of $10–11 million (down 20–27% YoY), online games revenue of $123–130 million (down 4% to up 5% YoY), and net loss of $10–20 million.
Ad Trends: Q1 softness in advertising is mainly ascribed to the timing of the Chinese New Year and seasonality, not macro changes. Auto sector is showing some improvement.
Game Pipeline: No major new game launches in Q1; future pipeline includes a TLBB-based card RPG and several mini-program games, with launches dependent on development progress.
Share Repurchase: 8.1 million ADS have been repurchased for $106 million, with about a third of the current buyback program remaining.
