Sohu.com (SOHU) investor relations material

Executive summary

• Q1 2026 revenues reached $141 million, up 4% year-over-year but down 1% sequentially.

• Online game revenue was $125 million, up 6% year-over-year and 2–3% sequentially.

• Marketing services revenue was $13 million, down 8% year-over-year and 26% quarter-over-quarter.

• GAAP net loss attributable was $4 million, compared to net income of $182 million in Q1 2025 and $223–$423 million in Q4 2025.

• Non-GAAP net loss was $4 million, improved from a $60 million loss in Q1 2025 but down from $261 million net income in Q4 2025.

Financial highlights

• Sohu Media Platform revenue was $60 million, down from $70 million in Q1 2025.

• Changyou (online games) revenue was $125 million, up from $118 million in Q1 2025.

• Changyou operating profit was $66 million, up from $55 million in Q1 2025.

• GAAP operating loss was $7 million, improving from a $19 million loss a year ago and $66 million loss last quarter.

• Cost of revenues decreased 10% year-over-year and 15% sequentially to $30 million.

Outlook and guidance

• Q2 2026 marketing services revenue expected between $13–$14 million, down 10–17% year-over-year, up 4–11% sequentially.

• Q2 online game revenue expected between $104–$114 million, implying a 2% annual decrease to 8% annual increase, but an 8–17% sequential decrease.

• Q2 net loss (GAAP and non-GAAP) expected between $15–$50 million.

• Management expects Q2 and Q3 results to be similar to last year, with stable advertising growth but lower gaming revenue.