Sohu's operational efficiency remains challenged, as evidenced by the 2025Q4 operating margin of -20.0% despite maintaining a gross margin profile consistently above 75%.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Sales/Revenue | 584.33M | 598.4M | 600.67M | 733.87M | 835.58M | 749.89M | 673.8M | 1.88B | 1.86B | 1.65B | 1.94B | 1.67B | 1.4B | 1.07B | 852.09M | 612.78M | 515.24M | 429.05M | 188.93M | 134.24M | 108.35M | 103.21M | 80.42M | 28.73M | 13M | 5.95M | 1.62M |
| Revenue Growth % | -2.35% | -0.38% | -18.15% | -12.17% | 11.43% | 11.29% | -64.22% | 1.19% | 12.76% | -14.8% | 15.78% | 19.48% | 31.21% | 25.25% | 39.05% | 18.93% | 20.09% | 127.09% | 40.75% | 23.89% | 4.98% | 28.33% | 179.94% | 120.99% | 118.38% | 268.15% | - |
| Cost of Goods Sold | 131.49M | 165.83M | 145.76M | 191.57M | 204.67M | 217.44M | 239.65M | 1.07B | 1.04B | 859.8M | 859.06M | 685.63M | 480.05M | 369.66M | 236.7M | 160.31M | 123.39M | 107.31M | 64.76M | 47.13M | 36.32M | 33.98M | 25.21M | 13.42M | 2.77M | 3.98M | 1.3M |
| COGS % of Revenue | 22.5% | 27.71% | 24.27% | 26.1% | 24.49% | 29% | 35.57% | 56.91% | 55.63% | 52.1% | 44.35% | 40.98% | 34.28% | 34.64% | 27.78% | 26.16% | 23.95% | 25.01% | 34.28% | 35.11% | 33.52% | 32.93% | 31.34% | 46.73% | 21.3% | 66.92% | 80.33% |
| Gross Profit | 452.84M | 432.57M | 454.92M | 542.3M | 630.9M | 532.45M | 434.16M | 811.31M | 825.8M | 790.63M | 1.08B | 987.44M | 920.22M | 697.54M | 615.39M | 452.47M | 391.84M | 321.74M | 124.17M | 87.11M | 72.03M | 69.22M | 55.22M | 15.3M | 10.23M | 1.97M | 318K |
| Gross Margin % | 77.5% | 72.29% | 75.73% | 73.9% | 75.51% | 71% | 64.43% | 43.09% | 44.37% | 47.9% | 55.65% | 59.02% | 65.72% | 65.36% | 72.22% | 73.84% | 76.05% | 74.99% | 65.72% | 64.89% | 66.48% | 67.07% | 68.66% | 53.27% | 78.7% | 33.08% | 19.67% |
| Gross Profit Growth % | 4.69% | -4.91% | -16.11% | -14.04% | 18.49% | 22.64% | -46.49% | -1.75% | 4.45% | -26.66% | 9.17% | 7.3% | 31.92% | 13.35% | 36.01% | 15.47% | 21.79% | 159.11% | 42.55% | 20.93% | 4.05% | 25.36% | 260.79% | 49.59% | 419.6% | 519.18% | - |
| Operating Expenses | 509.05M | 541.97M | 542.23M | 543.17M | 533.43M | 459.08M | 505.35M | 955.46M | 948.09M | 907.76M | 955.23M | 1.14B | 736.74M | 471.34M | 333.58M | 221.94M | 187.45M | 157.9M | 91.46M | 62.5M | 47.18M | 35.23M | 23.2M | 17.39M | 37.81M | 23.2M | 3.78M |
| OpEx % of Revenue | 87.12% | 90.57% | 90.27% | 74.01% | 63.84% | 61.22% | 75% | 50.74% | 50.95% | 55% | 49.31% | 68.15% | 52.61% | 44.17% | 39.15% | 36.22% | 36.38% | 36.8% | 48.41% | 46.56% | 43.55% | 34.13% | 28.84% | 60.53% | 290.88% | 389.74% | 233.64% |
| Selling, General & Admin | 262.19M | 286.73M | 262.38M | 282.4M | 264.57M | 217.14M | 259.26M | 514.3M | 535.92M | 554.62M | 557.09M | 730.84M | 460.62M | 289.98M | 224.06M | 145.78M | 130.12M | 107.39M | 64.92M | 41.62M | 31.5M | 25.05M | 15.6M | 11.88M | 19.84M | 15.78M | 3.07M |
| SG&A % of Revenue | 44.87% | 47.92% | 43.68% | 38.48% | 31.66% | 28.96% | 38.48% | 27.31% | 28.8% | 33.6% | 28.76% | 43.68% | 32.9% | 27.17% | 26.3% | 23.79% | 25.25% | 25.03% | 34.36% | 31.01% | 29.08% | 24.27% | 19.4% | 41.36% | 152.63% | 265.09% | 190.11% |
| Research & Development | 247.51M | 255.23M | 279.84M | 260.77M | 268.86M | 241.94M | 234.85M | 441.16M | 412.17M | 353.14M | 398.14M | 409.29M | 276.12M | 181.36M | 109.52M | 75.6M | 56.94M | 49.71M | 25.44M | 18.89M | 13.73M | 8.82M | 7.54M | 5.51M | 5.37M | 2.44M | 427K |
| R&D % of Revenue | 42.36% | 42.65% | 46.59% | 35.53% | 32.18% | 32.26% | 34.85% | 23.43% | 22.15% | 21.4% | 20.55% | 24.46% | 19.72% | 16.99% | 12.85% | 12.34% | 11.05% | 11.59% | 13.47% | 14.07% | 12.67% | 8.55% | 9.38% | 19.17% | 41.27% | 40.99% | 26.41% |
| Other Operating Expenses | -642K | 0 | 0 | 0 | 0 | 0 | 11.24M | 0 | 6.66M | 0 | 0 | 9.96M | 0 | 0 | 0 | 558K | 388K | 796K | 1.09M | 1.99M | 1.95M | 1.36M | 57K | 0 | 12.61M | 4.98M | 277K |
| Operating Income | -56.21M | -109.4M | -87.31M | -873K | 97.47M | 73.37M | -71.2M | -144.16M | -209.18M | -117.13M | 82.47M | -204.96M | 183.48M | 223.3M | 254.3M | 230.53M | 204.39M | 163.84M | 32.71M | 24.61M | 24.84M | 33.99M | 32.02M | -2.08M | -27.58M | -21.23M | -3.46M |
| Operating Margin % | -9.62% | -18.28% | -14.54% | -0.12% | 11.67% | 9.78% | -10.57% | -7.66% | -11.24% | -7.1% | 4.26% | -12.25% | 13.1% | 20.92% | 29.84% | 37.62% | 39.67% | 38.19% | 17.31% | 18.33% | 22.93% | 32.94% | 39.81% | -7.25% | -212.18% | -356.66% | -213.98% |
| Operating Income Growth % | 48.62% | -25.3% | -9901.15% | -100.9% | 32.85% | 203.05% | 50.61% | 31.08% | -78.58% | -242.03% | 140.24% | -211.71% | -17.83% | -12.19% | 10.31% | 12.79% | 24.75% | 400.88% | 32.94% | -0.97% | -26.91% | 6.16% | 1636.52% | 92.44% | -29.91% | -513.64% | - |
| EBITDA | -31.21M | -84.73M | -57.06M | 30.43M | 133.43M | 113.22M | -4.13M | 7.96M | 14.82M | 87.5M | 319.83M | 3.5M | 314.17M | 325.06M | 324.15M | 231.09M | 204.78M | 164.64M | 45.59M | 34.66M | 33.45M | 40.7M | 36.88M | 2.84M | 6.94M | -16.25M | -3.18M |
| EBITDA Margin % | -5.34% | -14.16% | -9.5% | 4.15% | 15.97% | 15.1% | -0.61% | 0.42% | 0.8% | 5.3% | 16.51% | 0.21% | 22.44% | 30.46% | 38.04% | 37.71% | 39.74% | 38.37% | 24.13% | 25.82% | 30.87% | 39.43% | 45.86% | 9.89% | 53.37% | -273.01% | -196.85% |
| EBITDA Growth % | 63.17% | -48.48% | -287.56% | -77.2% | 17.85% | 2841.48% | -151.9% | -46.29% | -83.07% | -72.64% | 9043.37% | -98.89% | -3.35% | 0.28% | 40.27% | 12.85% | 24.38% | 261.1% | 31.55% | 3.63% | -17.82% | 10.35% | 1197.71% | -59.04% | 142.69% | -410.59% | - |
| D&A (Non-Cash Add-back) | 25M | 24.67M | 30.25M | 31.3M | 35.96M | 39.85M | 67.07M | 152.11M | 224M | 204.63M | 237.37M | 208.46M | 130.69M | 101.76M | 69.85M | 558K | 388K | 796K | 12.88M | 10.05M | 8.6M | 6.7M | 4.86M | 4.93M | 34.52M | 4.98M | 277K |
| EBIT | -49.52M | -101.64M | -5.65M | 40.6M | 139.07M | 74.87M | -59.95M | -118.35M | -192.77M | -92.55M | 192.97M | -158.59M | 188.44M | 226.87M | 281.81M | 232.08M | 204.39M | 163.84M | 32.71M | 24.61M | 26.19M | 34.98M | 32.02M | -2.08M | -27.58M | -21.23M | -3.46M |
| Net Interest Income | 29.14M | 38.63M | 45.22M | 17.31M | 8.14M | 1.14M | 5.85M | -1.5M | 20.05M | 21.14M | 23.46M | 30.98M | 27.83M | 25.28M | 15.8M | 5.89M | 5M | 4.29M | 2.79M | 3.22M | 2.5M | 2.44M | 1.95M | 1.26M | 2.18M | 2.52M | 0 |
| Interest Income | 29.14M | 38.63M | 45.22M | 17.31M | 15.64M | 7.37M | 6.1M | 16.04M | 24.14M | 22.5M | 23.46M | 30.98M | 27.83M | 25.28M | 15.8M | 4.47M | 5M | 4.29M | 2.79M | 3.22M | 2.5M | 2.44M | 1.95M | 1.26M | 2.18M | 2.52M | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 7.5M | 6.23M | 14.37M | 17.54M | 4.09M | 1.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 6.68M | 61.23M | 81.66M | 41.48M | 34.09M | 23.33M | 1.13M | 32.5M | 12.36M | 23.23M | 91.41M | 40.2M | -48.53M | 30.06M | -6.14M | 3.68M | 5.34M | 3.75M | 3.68M | 3.69M | 4.95M | 2.59M | 986K | 0 | -18.18M | -526K | 0 |
| Pretax Income | -49.52M | -48.17M | -5.65M | 40.6M | 131.57M | 96.7M | -70.07M | -80.79M | -196.85M | -93.9M | 185.79M | -165.17M | 217.37M | 253.36M | 274.89M | 234.22M | 209.73M | 167.59M | 36.39M | 28.3M | 29.79M | 35.6M | 33.01M | -2.08M | -45.76M | -21.76M | 0 |
| Pretax Margin % | -8.48% | -8.05% | -0.94% | 5.53% | 15.75% | 12.9% | -10.4% | -4.29% | -10.58% | -5.69% | 9.59% | -9.87% | 15.52% | 23.74% | 32.26% | 38.22% | 40.71% | 39.06% | 19.26% | 21.08% | 27.5% | 34.49% | 41.04% | -7.25% | -352.02% | -365.5% | - |
| Income Tax | -443.61M | 52.07M | 60.42M | 57.95M | 62.3M | 133.23M | 28.43M | -13.43M | 273.15M | 21.07M | 76.94M | 6.05M | 50.42M | 76.17M | 46.55M | 36.03M | 33.74M | 9.01M | 1.49M | 1.58M | 11K | -37K | 6.65M | -831K | 16M | -2M | -11K |
| Effective Tax Rate % | 895.76% | -108.1% | -1069.38% | 142.71% | 47.35% | 137.77% | -40.57% | 16.63% | -138.76% | -22.44% | 41.41% | -3.66% | 23.2% | 30.06% | 16.93% | 15.38% | 16.09% | 5.38% | 4.09% | 5.58% | 0.04% | -0.1% | 20.15% | 39.88% | -34.97% | 9.17% | - |
| Net Income | 394.1M | -100.27M | -30.38M | -17.34M | 927.73M | -86.11M | -149.34M | -67.36M | -554.53M | -224.02M | -49.6M | -166.66M | -15.3M | 87.16M | 162.74M | 148.63M | 147.83M | 158.64M | 34.93M | 25.89M | 29.78M | 35.64M | 26.36M | -1.04M | -43.59M | -19.24M | -3.45M |
| Net Margin % | 67.44% | -16.76% | -5.06% | -2.36% | 111.03% | -11.48% | -22.16% | -3.58% | -29.8% | -13.57% | -2.56% | -9.96% | -1.09% | 8.17% | 19.1% | 24.25% | 28.69% | 36.97% | 18.49% | 19.28% | 27.49% | 34.53% | 32.77% | -3.61% | -335.28% | -323.13% | -213.3% |
| Net Income Growth % | 493.04% | -230.06% | -75.19% | -101.87% | 1177.35% | 42.34% | -121.7% | 87.85% | -147.53% | -351.67% | 70.24% | -989.4% | -117.55% | -46.44% | 9.49% | 0.54% | -6.81% | 354.14% | 34.95% | -13.08% | -16.43% | 35.21% | 2644.11% | 97.62% | -126.59% | -457.73% | - |
| Net Income (Continuing) | 394.09M | -100.24M | -66.07M | -17.34M | 69.27M | -36.53M | -98.5M | -121.31M | -449.47M | -114.97M | 96.94M | -198.97M | 84.53M | 177.19M | 228.34M | 198.18M | 175.99M | 158.59M | 34.95M | 26.73M | 31.12M | 36.62M | 26.36M | -1.04M | -43.59M | -19.24M | -3.45M |
| Discontinued Operations | 0 | 0 | 35.43M | 0 | 864.9M | -31.14M | 7.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -112.53K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 344K | 353K | 322K | 1.27M | 1.32M | 684.61M | 878.46M | 964.11M | 1.07B | 564.22M | 489.73M | 487.25M | 510.01M | 230.99M | 210.65M | 178.44M | 68M | 5.15M | 7K | 53K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 14.00 | -3.13 | -0.89 | -0.50 | 23.49 | -2.19 | -0.24 | -1.73 | -14.27 | -5.79 | -1.28 | -4.33 | -0.40 | 1.66 | 3.93 | 3.62 | 3.57 | 4.06 | 0.90 | 0.68 | 0.77 | 0.89 | 0.66 | -0.03 | -1.22 | -0.95 | -0.16 |
| EPS Growth % | 547.28% | -251.69% | -78% | -102.13% | 1172.6% | -812.5% | 86.13% | 87.88% | -146.46% | -352.34% | 70.44% | -982.5% | -124.1% | -57.76% | 8.56% | 1.4% | -12.07% | 351.11% | 32.35% | -11.69% | -13.48% | 34.85% | 2368.04% | 97.61% | -28.42% | -493.75% | - |
| EPS (Basic) | 14.00 | -3.13 | -0.89 | -0.50 | 23.49 | -2.19 | -0.24 | -1.74 | -14.30 | -5.83 | -1.32 | -4.43 | -0.40 | 1.92 | 4.26 | 3.92 | 3.86 | 4.16 | 0.94 | 0.70 | 0.82 | 0.98 | 0.74 | -0.03 | -1.22 | -0.95 | -0.16 |
| Diluted Shares Outstanding | 28.23M | 32.01M | 34.11M | 34.95M | 39.5M | 39.45M | 39.25M | 38.96M | 38.86M | 38.71M | 38.6M | 38.47M | 38.5M | 38.39M | 38.76M | 38.45M | 38.97M | 39.12M | 38.92M | 39.1M | 39.68M | 41.01M | 40.35M | 35.66M | 35.63M | 20.29M | 21.61M |
| Basic Shares Outstanding | 28.23M | 32.01M | 34.11M | 34.95M | 39.5M | 39.45M | 39.25M | 38.75M | 38.77M | 38.42M | 37.66M | 37.58M | 38.26M | 38.04M | 38.22M | 37.87M | 38.29M | 38.17M | 37.13M | 36.73M | 36.31M | 36.37M | 35.48M | 35.42M | 35.63M | 20.29M | 21.61M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Structural Gaming Revenue Decay
As reported in recent financial statements, Sohu's revenue growth remains highly inconsistent, oscillating between a 26.5% contraction in 2025Q2 and an 18.7% expansion in 2025Q3, reflecting the inherent instability of a business model heavily reliant on aging legacy gaming assets and cyclical advertising demand.
The erratic top-line performance suggests that the company lacks a reliable organic growth engine to offset the natural decay of its core MMORPG franchises. Investors should monitor whether the recent quarterly fluctuations indicate a structural inability to scale or merely the timing of content-related revenue recognition.
Based on reported figures, Sohu maintains a robust gross margin profile averaging above 75%, yet this high-margin gaming contribution is consistently undermined by the operational drag of the media and video segments, which fail to achieve the scale necessary to drive meaningful consolidated profitability.
The persistent gap between gross and operating margins highlights a structural reliance on high-margin gaming to subsidize loss-making media operations. This configuration appears unsustainable, as the gaming segment's profitability is increasingly pressured by regulatory compliance costs and the lack of a high-growth pipeline.
According to recent SEC filings, Sohu's operating income frequently dips into negative territory, with 2025Q4 showing an operating margin of -20.0%, indicating that the company has failed to achieve the necessary operating leverage to convert gross profit into sustainable bottom-line growth.
The inability to scale operating income relative to gross profit suggests that fixed costs, particularly within the video and portal divisions, remain disproportionately high. This lack of efficiency warrants further investigation into whether management can rationalize the cost structure without sacrificing the remaining user base.
As evidenced by the 2025Q4 net income of $223.3M against an operating loss of $28.4M, Sohu's reported net income is heavily influenced by non-operating items, which obscures the underlying performance of the core business and complicates the assessment of true shareholder value creation.
Investors should be cautious of headline net income figures that appear inflated by one-time divestitures or accounting gains. The disconnect between operating losses and net profitability suggests that the company's core operations are not yet self-sustaining, relying instead on non-recurring events to bolster the bottom line.
Based on the provided data, the primary risk to Sohu's valuation is the potential for a permanent decline in the TLBB franchise, which serves as the company's sole reliable cash generator in an increasingly competitive and regulated Chinese gaming landscape.
Short-term volatility in revenue and the persistent operating losses in the media segment suggest that the company may be a value trap rather than a turnaround candidate. The reliance on a single aging IP leaves the firm vulnerable to any further regulatory tightening or shifts in consumer gaming preferences.
Quick answers to the most common questions about buying SOHU stock.
For fiscal year 2025, Sohu.com Limited (SOHU) reported total revenue of $584.3M. This represents a 36036.9% increase compared to $1.6M in 1999.
Sohu.com Limited (SOHU) is profitable, generating $394.1M in net income for the fiscal year ending 2025 with a net profit margin of 67.4%.
Sohu.com Limited (SOHU) reported an operating income of $-56.2M, resulting in an operating profit margin of -9.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Sohu.com Limited (SOHU) generated $452.8M in gross profit for the year, representing a gross profit margin of 77.5%. This demonstrates the company's core pricing power and production efficiency.