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Investing.com -- Chinese internet company Sohu (NASDAQ:SOHU) reported second-quarter results that aligned with forecasts, as stronger-than-expected gaming performance offset weaker marketing services revenue.
Total (EPA:TTEF) revenue for the quarter reached $126 million, representing a 7% decline quarter-over-quarter and a 27% drop year-over-year. The company’s online games segment generated $106 million in revenue, down 10% from the previous quarter and 28% from the same period last year, but came in at the high end of the company’s guidance range of $96 million to $106 million.
Marketing services revenue fell 14% quarter-over-quarter and 21% year-over-year to $16 million, which was at the lower end of the company’s guidance of $16 million to $17 million.
Sohu maintained a strong gross margin of 78% during the quarter. The company reported a non-GAAP operating loss of $22 million, which was better than expected, and a non-GAAP net loss attributable to Sohu of $20 million, reaching the most favorable end of management’s guidance range of $20 million to $30 million in losses.
Looking ahead to the third quarter, Sohu expects brand advertising revenue to reach $14 million to $15 million, representing a sequential decrease of 4% to 10% and a year-over-year decline of 20% to 25%. The company projects online games revenue to reach $107 million to $117 million, a sequential increase of 1% to 10% but a year-over-year decline of 8% to 16%.
The company forecasts a non-GAAP net loss of $25 million to $35 million for the third quarter.
Sohu also provided an update on its share repurchase program, noting that as of July 31, 2025, it had repurchased shares for an aggregate cost of approximately $83 million, up from $67 million as of May 15, 2025. The company’s total share buyback program allows for repurchases of up to $150 million.
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