They are not doing well as a non-live-service game company. Which is a very limited metric, but the one many people think of since that is where they got started.
It's interesting to think of an alternative outcome, where they needed to keep making games to make money. I think there is something special about the small team and structure at Valve that would have let them stay nimble and release great games, but as above the industry loves to consolidate good studios and turn them inside out.
To hear them talk about that, it seemed like that was due to their legal issues with Vivendi Universal. I wonder if the same would've been true if those events didn't happen
I was more measuring it based on "Producing enjoyable games" which at least is subjectively true for how I see Valve. I enjoyed Half-Life: Alyx a lot, and it was a jump in quality compared to other VR titles, and the new Counter-Strike 2 is pretty OK too, at least compared to CSGO.