Sohu.com (SOHU) Q1 2026 earnings summary

Executive summary

• Q1 2026 total 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; operating loss was $70 million, flat year-over-year.

• Changyou segment revenue was $125 million, up from $118 million in Q1 2025; operating profit was $66 million, up from $55 million.

• Share repurchase program: 8.7 million ADS repurchased at a cost of $116 million as of May 13, 2026.

• 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, about 7% sequential growth but down 10–17% year-over-year.

• Online game revenue guidance for Q2: $104–114 million, implying a sequential decrease of 8–17%.

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

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