Sohu Cuts Net Loss 20% in Q1 2025, Driven by Online Gaming Revenue

Sohu Inc. (SOHU.US) released its financial report for the first quarter of 2025, revealing a total revenue of $136 million. The company's net loss, as per non-GAAP standards, was $16 million, marking a significant improvement from the $22 million net loss reported in the same period last year. This represents a year-over-year reduction in net loss of over 20%.

The company's revenue breakdown for the quarter includes $14 million from marketing services and $117 million from online gaming. This performance highlights the company's strategic focus on high-growth areas, particularly online gaming, which has shown strong revenue generation capabilities.

Sohu's founder, Chairman, and CEO, Zhang Chaoyang, commented on the company's performance, noting that the first quarter's results met the company's best expectations. He emphasized that the company's marketing services and overall net loss were in line with projections, while online gaming revenue exceeded expectations. This indicates a positive trajectory for Sohu's financial health and operational efficiency.

In terms of business strategy, Sohu Media has been optimizing its products and enhancing its technology to strengthen the platform's social attributes. By organizing diverse and unique events, the company has successfully increased user engagement and social interactions, resulting in a wealth of high-quality content. Leveraging its competitive advantages as a mainstream media outlet and unique intellectual property, Sohu continues to explore new commercial opportunities.

The online gaming business also performed well, with Zhang Chaoyang attributing this success to high-quality updates and continuous optimization of game content. This focus on improving the user experience has led to satisfactory results, further solidifying the company's position in the gaming market.

Additionally, Sohu has been actively implementing its share repurchase program. As of May 15, 2025, the company has repurchased 5.48 million shares of its American Depositary Shares (ADS), totaling approximately $67 million. This initiative reflects Sohu's commitment to enhancing shareholder value and maintaining financial stability.

Overall, Sohu's first-quarter performance demonstrates the company's ability to navigate market challenges and achieve positive financial results. By focusing on cost management, strategic investments, and innovation, Sohu is well-positioned to capitalize on new opportunities and drive long-term growth. The company's continued efforts in optimizing its business operations and exploring new revenue streams bode well for its future prospects.