Highlights  

  • Sohu delivered USD 180 million in Q3 2025 revenue, up 19% year-over-year. 
  • Online game revenue surged to USD 162 million, supported by the launch of TLBB: Return. 
  • The company reported USD 9 million in GAAP net income after losses in previous quarters. 
  • Gross margin improved to 81%, reflecting higher game contribution. 
  • Changyou’s PC game user activity rose double digits both year-over-year and sequentially. 

Sohu.com Limited (NASDAQ:SOHU) reported a meaningful turnaround in the third quarter of 2025, fueled by accelerated momentum in its online game portfolio. Total revenues reached USD 180 million, an increase of 19% year-over-year and 43% quarter-over-quarter. Online game revenues accounted for USD 162 million of the total, representing a 27% annual increase and a 53% sequential jump. 

The performance was propelled by the successful launch of the new PC titleTian Long Ba Bu (TLBB): Returnin July 2025 and improved monetization from existing TLBB PC content updates and promotional campaigns. Marketing services revenue came in at USD 14 million, reflecting continued market softness and a 27% decline from the prior year. 

Sohu’s overall GAAP and non-GAAP gross margin both reached 81%, improving from 74% in the same period last year. The online game segment delivered an 87% grossmargin, confirming the high-efficiency economics of PC game operations. 

Operating Performance and Return to Profitability 

Operating expenses totaled USD 132 million for the quarter, up 5% year-over-year, mainly due to increased marketing and promotionalinvestments. Despite this,operating profitreached USD 14 million, compared with an operating loss of USD 13 million a year earlier. 

GAAPnet income attributable to Sohu.com Limited was USD 9 million, translating to USD 0.32 per fully diluted ADS. This marks a return to profitability following net losses in the third quarter of 2024 and the second quarter of 2025. Non-GAAPnet income also stood at USD 9 million, highlighting improved operational execution in the gaming business. 

The company’sliquidityposition remains substantial, with USD 1.2 billion incash, cash equivalents, short-term investments, and long-term time deposits as of September 30, 2025. 

Changyou Game Metrics and Share Repurchase Progress 

Within Sohu’s subsidiary Changyou, PC games delivered notable user activity gains. Average monthly active user accounts reached 2.7 million, up 24% year-over-year, while aggregate active paying accounts rose 27% year-over-year to 1.1 million. Mobile game metrics declined, reflecting the natural lifecycle of titles such as New Westward Journey. 

Changyou’s Q3 revenues totaled USD 163 million, with GAAP and non-GAAP operating profits reaching USD 87 million and USD 88 million, respectively. 

Sohu continued its USD 150 million share repurchase program, having repurchased 7.6 million ADSs for USD 97 million as of mid-November 2025. 

Conclusion 

Sohu’s third quarter of 2025 marked a decisive shift, with online game growth, operational refinement, and improved profitability driving measurable progress. While marketing services remain challenged, the company’s gaming portfolio—particularly TLBB: Return—strengthened revenue performance. Heading into the fourth quarter, Sohu expects sequential game revenue moderation but remains committed to product enhancement, platform engagement and diversified premium content.