Sohu.com Limited

What they do

Sohu operates online media and games businesses in China, with the filing identifying Sohu and Changyou as the two components of its operating segment structure. Changyou is the game subsidiary, with revenue lines including PC games and mobile games; Sohu's own operations include marketing services. The company is incorporated in the Cayman Islands and operates through a set of PRC subsidiaries and consolidated variable interest entities, and its ADSs trade on Nasdaq.

Revenue drivers

• Changyou online games — Changyou is disclosed as an operating segment alongside Sohu and generates revenue from PC games and mobile games, with related costs including royalties and expenditures for licensed game content.
• Sohu marketing services — The parent company segment includes marketing services, an advertising revenue line reported separately from the game categories in the segment disclosures.
• Other product and service revenue — A residual 'product and service - other' revenue category is reported alongside entertainment revenue in the company's revenue disaggregation.
• Entertainment revenue — An 'entertainment' revenue line is reported in the revenue disaggregation, distinct from marketing services and the PC and mobile game categories.

Recent performance

Total annual revenue has declined every year from $835.6 million in 2021 to $584.3 million in 2025. Net income was negative in 2022, 2023 and 2024, with losses of $17.3 million, $30.4 million and $100.3 million respectively, before turning to $394.1 million of net income in 2025. Diluted EPS followed the same path, at -$0.50 in 2022, -$0.89 in 2023 and -$3.13 in 2024, then $13.96 in 2025. Operating cash flow was negative in four of the last five years, including -$4.8 million in 2025. At December 31, 2025 the company reported $1.64 billion of total assets, $358.0 million of total liabilities, $1.28 billion of shareholder equity and $128.3 million of cash and equivalents.

Strategy

The filing discloses no forward strategy statement in the excerpts provided. Reported capital spending is minimal: total additions to fixed assets for Sohu and Changyou combined were $0.3 million in 2025, versus $0.6 million for Sohu and $0.7 million for Changyou in 2024. Depreciation and amortization was $15.8 million for Sohu and $9.2 million for Changyou in 2025, down from $18.8 million and $11.4 million respectively in 2023. The company continues to operate with consolidated VIEs and a subsidiary structure spanning numerous PRC entities, and its December 31, 2025 ADS price of $15.64 is cited in the share-based compensation disclosure.

Risks

• Persistent revenue decline — Annual revenue has fallen from $835.6 million in 2021 to $584.3 million in 2025, a cumulative decline of about 30%.
• Weak operating cash generation — Operating cash flow was negative in 2021, 2023, 2024 and 2025, including -$48.0 million in 2024 and -$4.8 million in 2025.
• Earnings volatility — Net income swung from a $927.7 million profit in 2021 to losses in 2022-2024 and then to a $394.1 million profit in 2025, and the filing excerpts provided do not explain the drivers of the 2025 result.
• Concentration in China and in games — Operations and the Changyou game segment are China-based, exposing results to that market; the excerpts also show credit-concentration disclosure tied to total cash.

Outlook

The excerpts provided do not include management guidance or forward-looking commentary. The most recent reported figures are for the year ended December 31, 2025: $584.3 million of revenue, $394.1 million of net income and $4.8 million of operating cash outflow. The only recent 8-K event listed is from 2018, so no post-filing disclosure is available.