The latest episode of Days of Our Lives, which aired on July 23, 2025, took a dramatic turn for the residents of the city of Salem. Tony DiMera met with Gabi Hernandez and asked her to do a favor for him, and as a reward, she would be duly compensated for her efforts.Meanwhile, Xander Kiriakis and Sarah Horton had a conversation with each other regarding their separation and their children. Both of them amicably came to the conclusion that they would share joint custody of their kids under certain conditions. In addition to these developments, Tate Black signed Sophia Choi's contract.Everything that happened on the July 23, 2025, episode of Days of Our LivesOn the July 23, 2025, episode of Days Of Our Lives, Tony DiMera seemed to be the only one who had vested interests in trying to take the DiMera Enterprises company away from the Kiriakis family members. Tony asked Gabi Hernandez for help in trying to carry out his mission. View this post on Instagram Instagram PostHowever, Gabi refused his lucrative offer and said that Xander Kiriakis had been extremely nice to her after the kidnapping. Gabi changed her mind about Tony's offer after he told her he would give her the position of CEO once he regains control of the company. Tony asked her to come to him with dirt on both Xander Kiriakis and Philip Kiriakis. Gabi had previously served as CEO at DiMera Enterprises and seemed eager to regain her position through Tony's offer.Meanwhile, Sarah Horton went over to Xander Kiriakis's office and spent time with Victoria, their daughter. Both of them had a civil conversation regarding their future as co-parents. Sarah and Xander finally agreed to have joint custody of their kids, but Sarah had a condition. She said that Xander would need to work on his anger management issues and also asked him to schedule an appointment with Marlena Evans. View this post on Instagram Instagram PostXander said that neither of them had enough trust for each other to share informal custody, which is why they had filed for a legal formal custody arrangement. The plot of Days of Our Lives also suggested that both of them could get another step closer to divorce and move forward from their legal separation.Sophia Choi met with Tate Black and finally revealed to him details about everything that had happened in Chicago. She told Brady Black and Tate that she had gone into labor in Chicago when she was spending time with the adoptive parents. She said she allowed them to take the girl she had birthed at home and did not even have a chance to hold her.Tate seemed to be extremely stunned and devastated that he never even had the chance to hold his own daughter. Sophia showed both Brady and Tate a picture of the baby girl with her adoptive parents and then took out a contract from her purse and made Tate sign. View this post on Instagram Instagram PostOn Days of Our Lives, Tate seemed to be kept in the dark regarding the fact that Sophia had given birth to a baby boy instead and ended up abandoning the baby at the firehouse. The baby had been living at Rafe Hernandez's house.Fans can watch Days of Our Lives and stream episodes on Peacock.