Sohu Swings to 2025 Profit on Changyou Tax Reversal Despite Flat Revenues
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Sohu ( (SOHU) ) has shared an announcement.
On February 9, 2026, Sohu reported unaudited results for the fourth quarter and full year ended December 31, 2025, highlighting the centrality of its online games franchise and a smaller, more volatile marketing services business. Total 2025 revenue dipped 2% to US$584 million as marketing services fell 18%, while online game revenue edged up 1% with group gross margin improving to 77%, underscoring the profitability of its gaming segment.
The company swung to a GAAP net profit of US$394 million for 2025 from a US$100 million loss in 2024, largely driven by a US$285 million reversal of previously accrued withholding tax related to its Changyou unit, which produced a substantial income tax benefit. Fourth-quarter revenue rose 6% year-on-year to US$142 million but declined 21% sequentially, and despite higher operating losses and a goodwill impairment, the tax reversal pushed quarterly GAAP net income to US$223 million, leaving Sohu with about US$1.2 billion in cash and investments and signaling a strengthened balance sheet and improved financial flexibility.
The most recent analyst rating on (SOHU) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Sohu stock, see the SOHU Stock Forecast page.
Spark’s Take on SOHU Stock
According to Spark, TipRanks’ AI Analyst, SOHU is a Neutral.
Sohu’s overall score reflects financial challenges and bearish technical indicators, offset by strong earnings performance in gaming and an attractive valuation. The company’s ability to maintain positive net income and manage market uncertainties will be crucial for future performance.
To see Spark’s full report on SOHU stock, click here.
More about Sohu
Sohu.com Limited is a leading Chinese online media platform and game business group listed on Nasdaq. The company operates a digital media platform focused on marketing services and runs an extensive online games division, with a particular emphasis on high-margin PC and mobile titles for the domestic market.
Average Trading Volume: 41,930
Technical Sentiment Signal: Buy
Current Market Cap: $491.9M
See more data about SOHU stock on TipRanks’ Stock Analysis page.
