Sohu's 2025 Q2 Earnings Call: Navigating Contradictions in Advertising Sentiment, AI Integration, and Gaming Revenue Growth

Advertising sentiment and macroeconomic impacts, AI integration and benefits in online gaming, advertising sentiment and economic impact, advertising sentiment and market conditions, gaming revenue growth expectations are the key contradictions discussed in Sohu's latest 2025Q2 earnings call.



Revenue Decline and Market Conditions:
- Sohu.com Limited reported total revenues of $126 million for Q2 2025, a 27% decline year-over-year and 7% drop quarter-over-quarter.
- The decline was primarily attributed to macroeconomic uncertainties, reduced disposable income affecting consumer spending, and intensified market competition.

Online Game Performance:
- Online game revenues were $106 million, representing a 28% decline year-over-year and 10% drop quarter-over-quarter.
- The decrease in game revenues was due to intensifying market competition and evolving user demands, necessitating a focus on quality and innovation.

Advertising Revenue and AI Integration:
- Marketing services revenues were $16 million, reflecting a 21% decline year-over-year but a 14% increase quarter-over-quarter.
- The mixed performance was influenced by macroeconomic conditions and competitive pressures, with AI being employed to enhance search capabilities on media platforms and productivity in online gaming.

Share Repurchase Program and Capital Return:
- As of July 31, 2025, Sohu had repurchased 6.6 million ADS for an aggregate cost of approximately $83 million, representing more than half of the total commitment.
- The company has no plans to proceed with a dividend or additional capital return programs, prioritizing investments in user base building and social network expansion.