Sohu.com Limited

Ladies and gentlemen, thank you for standing by and good evening. Thank you for joining Sohu's fourth quarter 2025 earnings conference call. At this time, all participants are in list and only mode. After management people have remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I'll now turn the conference over to your host for today's conference call, Wang Pu, Investor Relations Director of Sohu. Please go ahead.

Thanks, Senator. Thank you for joining us to discuss Seoul's first quarter 2025 results. I want to call our Chairman and Chief Executive Officer, Dr. Charles Zhang, CFO General Li, and Vice President of Finance, John Stone. Also with us are Chang-Yu's CEO, Duan Chen, and CFO, Yubing Wang. Before my team begins their prepared remarks, I would like to remind you of the comments they have made in connection with today's conference call. Except for the historical information contained herein, the matters discussed on the column contain forelooking statements. These statements are based on counterplans, estimates, and projections, and therefore, you should not place undue reliance on them. Forelooking statements involve key risks and uncertainties. They caution you that a number of important factors could cause actual results to differ materially from those contained in any forelooking statements. For more information about potential risks and uncertainties, Please refer to the committee findings with the Securities and Exchange Commission, including the most recent annual report on Forum 20F. With that, I will now turn the call over to Dr. Charles Zhang. Charles, please proceed.

Thanks, Huangfu, and thank you everyone for joining our call. In the first quarter of 2025, our marketing services revenues exceeded our previous guidance, while our online game revenues were in line with our expectations. Our non-GAAP bottom line performance excluding the impact of the Chang'e Youth Withholding Income Tax Reversal came in at the high end of our prior guidance. For Soho Media Platform, we continue to improve our products and algorithms to address user needs and enhance their experiences across different scenarios. We continue to host a variety of innovative events which generated abundant premium content, greatly promoted user engagement, and enabled us to capture more monetization opportunities. For our online games, we remain committed to long-term operational excellence and continue to deliver high-quality content updates and compelling experiences to our players. Before going through each business unit in more detail, let me first give you a quick overview of our financial performance. For the first quarter of 2025, the total revenue, $142 million, up 6% year-over-year and down 21% quarter-over-quarter. Marketing services revenues, $17 million, down 10% year-over-year, up 25% quarter-over-quarter. Alan gave revenues $120 million up 10% year-over-year and down 26% quarter-over-quarter. After giving effect to the reversal of previously accrued withholding income tax of approximately $285 million related to Changyong, debt net income attributable to Sohu.com Limited was $223 million, compared with a net loss of $21 million in the fourth quarter of last year, I mean 2024, and net income of $9 million in the third quarter of 2025. After giving, in fact, to the above-mentioned reversal of the withholding income tax, non-GAAP net income attributable to Soho.com Limited, $261 million. compared with a net loss of $15 million in the fourth quarter of 2024, and a net income of $9 million in the third quarter of 2025. For the full year of 2025, total revenues $584 million, down 2% compared with the, compared with 2024. Marketing services revenues $16 million down 18% compared with 2024. Online games revenues, $506 million up 1% compared with 2024. Get net income attributable to SOHO.com Limited, $394 million compared with a net loss of $100 million in 2024. non-GAAP net income attributable to SOFA.com limited $234 million compared with the net loss of $83 million in 2024. Yeah, excluding the reversal, you know, accrued income tax, the 2025 in the non-GAAP net income is $51 million loss, right? $51 million loss. 40% improvement over 20.4. So now I will go through our key businesses in more detail. First, social media platform. We continue to refine our products and enhance algorithms to address diverse user needs in various scenarios. Through a mix of vibrant Offline and online events across various verticals will continue to attract and retain a large number of users, especially younger generations. Through spontaneous and active connections and communication, we consistently improved the user experience and boosted user engagement, further strengthening the stickiness on our platform. With the above efforts, we were able to cultivate a healthy platform ecosystem with an active social atmosphere. For example, in the first quarter of 2025, we successfully hosted the year's most eye-catching finals for the 2025 Sohu K-pop Dancing Awards and 2025 Sohu Video Chinese Traditional Costume Awards. These events received widespread praise, sparked enthusiastic interaction among participants and the audience, and drove extensive discussions and disseminations across multiple social media platforms. These initiatives further consolidated our position as the most influential and preferred platform in these areas, and boosted the vigorous development of the platform. During the quarter, we also continue to host traditional signature events such as 2025 Soho Fashion Awards and 2025 Soho Finance Annual Forum. These events not only garner significant attention, but also contribute to the continuous enhancement of our brand influence. Additionally, we hold a Halloween themed American TV series party During the Social Video American TV Series month, end of fourth quarter of 2025, which brought audiences with lots of high-quality American movies, we have another TV series. We're also continuing to steadily expand our content library with American dramas, as well as other attractive TV series, original dramas, and short dramas to consistently drive traffic to our platform. Marking its fourth anniversary, the physics class, you know, I myself teach, has conducted more than 270 live broadcasts over 30 offline classes and 270 online classes, multiple university seminars, and published three books. It has continuously made physics more engaging in the general public while attracting lots leading professional broadcasters in a variety of fields of knowledge on our platform. With this highly regarded IP, we were able to further reinforce our reputation in the field of knowledge and science-based related live broadcasts and demonstrate our commitment to being a socially responsible media platform. On the monetization side, we deeply integrated advertisers' needs uh with the above mentioned events and customized marketing content we also actively explore more monetization opportunities leveraging our deep understanding of the market through the dissemination of our premium content related to the events we've facilitated advertisers brand marketing while promoting the monetization value we offer now let me uh turn to our online game business During the quarter, our online game business performed well, with revenues in line with our expectations. With fewer launches of the in-game promotional activities for TLBB PC and a natural decline of our new PC game TLBB Return, online game revenues decreased on a sequential basis. In our PC game business, we raised a player level cap for regular TLBB PC, which effectively boosted user engagement. Meanwhile, we rolled out a new character development system for TLDB Vantage, providing players with fresh goals and a more engaging experience. When TLDB returned, we introduced its first new clan and continuously refined the game based on player feedback. In our mobile game businesses, we launched featured content centered on a return to classics and streamlined gameplay for the legacy TLBB Mobile. This effectively boosted player engagement and willingness to pay, leading to a sequential revenue increase. Next quarter, we will continue to launch expansion packs and content updates for the TLBB series and other titles to keep players engaged. Looking ahead, we remain committed to our top game strategy, user-centric approach, and will continue to deliver high-quality games to players. In terms of game development, we will adhere to some methodologies and systematic R&D processes while driving the integration of our new technologies to enhance efficiency and product success rate. Regarding our pipeline, We're actively working to unlock the potential of a PLBB IT. Meanwhile, as we maintain our core competitiveness in MMORPGs, we'll continue to diversify our portfolio with multiple types of games and extended product offerings with global appeal. Now, I'd like to give an update on the ongoing share repurchase program. As of February 5th, of 2026, Soho had purchased 8.1 million ADS for the aggregate cost of approximately $106 million. So we still have to go to finish the purchase. With that, I will now turn the call over to Diana.