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BEIJING, Nov. 9, 2026 /PRNewswire/ — Sohu.com Limited (NASDAQ: SOHU) ("Sohu" or the "Company"), a leading Chinese online media platform and game business group, today reported unaudited financial results for the third quarter ended September 30, 2026.
Third Quarter Highlights[1]
- Total revenues were US$133 million, down 26% year-over-year and 2% quarter-over-quarter.
- Marketing services revenues were US$15 million, up 10% year-over-year and down 2% quarter-over-quarter.
- Online game revenues were US$114 million, down 30% year-over-year and 2% quarter-over-quarter.
- GAAP net loss attributable to Sohu.com Limited was US$15 million, compared with net income of US$9 million in the third quarter of 2025 and net income of US$0.2 million in the second quarter of 2026.
- Non-GAAP[2] net loss attributable to Sohu.com Limited was US$15 million, compared with net income of US$9 million in the third quarter of 2025 and net income of US$0.5 million in the second quarter of 2026.
Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "In the third quarter of 2026, our marketing services revenues hit the high end of our guidance, while both our online game revenues and our bottom-line performance were in line with our expectations. For the Sohu social media platform, we continued to strengthen its social features through numerous iconic events, fostering genuine connections among users and boosting active user interactions across multiple verticals. We also kept leveraging our integrated product matrix with innovative and customized marketing solutions to unlock monetization potential. For our online games, we continued to introduce fresh content to sustain player interest while offering tailored gameplay experiences to meet evolving player needs."
Third Quarter Financial Results
Revenues
Total revenues were US$133 million, down 26% year-over-year and 2% quarter-over-quarter.
Marketing services revenues were US$15 million, up 10% year-over-year and down 2% quarter-over-quarter.
Online game revenues were US$114 million, down 30% year-over-year and 2% quarter-over-quarter.
Cost of Revenues
Both GAAP and non-GAAP total cost of revenues were US$32 million, down 9% year-over-year and up 9% quarter-over-quarter.
Both GAAP and non-GAAP cost of marketing services revenues were US$15 million, up 23% year-over-year and 11% quarter-over-quarter.
Both GAAP and non-GAAP cost of online game revenues were US$14 million, down 33% year-over-year and up 2% quarter-over-quarter.
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[1] Changyou’s wholly-owned subsidiary Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao"), which operated Changyou’s cinema advertising business, ceased operations and commenced bankruptcy proceedings during the third quarter of 2019. During the third quarter of 2023, Shanghai Jingmao’s bankruptcy proceedings were concluded by a Chinese mainland bankruptcy court, and the Company accordingly recognized a disposal gain within discontinued operations in the condensed consolidated statements of operations. During the second quarter of 2026, as a result of the Company’s receipt of a further distribution of Shanghai Jingmao’s insolvent assets, the Company recognized an additional disposal gain of US$1 million within discontinued operations in the condensed consolidated statements of operations. Unless indicated otherwise, results presented in this press release are related to continuing operations only and exclude the disposal gain mentioned above. |
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[2] Non-GAAP results exclude share-based compensation expense. Explanation of the Company’s non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying "Non-GAAP Disclosure" and "Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures." |
Operating Expenses
Both GAAP and non-GAAP operating expenses were US$120 million, down 9% year-over-year and 4% quarter-over-quarter.
Operating Profit/(Loss)
Both GAAP and non-GAAP operating losses were US$18 million, compared with operating profit of US$14 million in the third quarter of 2025 and an operating loss of US$18 million in the second quarter of 2026.
Income Tax Expense/(Benefit)
Both GAAP and non-GAAP income tax expenses were US$4 million, compared with income tax expense of US$17 million in the third quarter of 2025 and income tax benefit of US$7 million in the second quarter of 2026. For the second quarter of 2026, income tax benefit included reversal of a tax expense of approximately US$13 million due to a reversal of uncertain tax positions.
Net Income/(Loss)
GAAP net loss attributable to Sohu.com Limited was US$15 million, or a net loss of US$0.60 per fully-diluted American depositary share ("ADS," each ADS representing one Sohu ordinary share), compared with net income of US$9 million in the third quarter of 2025 and net income of US$0.2 million in the second quarter of 2026.
Non-GAAP net loss attributable to Sohu.com Limited was US$15 million, or a net loss of US$0.59 per fully-diluted ADS, compared with net income of US$9 million in the third quarter of 2025 and net income of US$0.5 million in the second quarter of 2026.
Liquidity and Capital Resources
As of September 30, 2026, cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.2 billion.
Supplementary Information for Changyou Results[3]
Third Quarter 2026 Operating Results
- For PC games, total average monthly active user accounts[4] (MAU) were 2.6 million, a decrease of 4% year-over-year and flat quarter-over-quarter. Total quarterly aggregate active paying accounts[5] (APA) were 1.0 million, a decrease of 8% year-over-year and an increase of 4% quarter-over-quarter. The year-over-year decrease in APA was mainly due to the natural decline of Changyou’s older games, including Tian Long Ba Bu ("TLBB") PC, and to the natural decline of TLBB: Return, which was launched during the third quarter of 2025.
- For mobile games, total average MAU were 1.4 million, a decrease of 24% year-over-year and 16% quarter-over-quarter. Total quarterly APA were 0.2 million, a decrease of 25% year-over-year and 4% quarter-over-quarter. The year-over-year and quarter-over-quarter decreases in MAU and APA were mainly due to the natural decline of Changyou’s older games.
Third Quarter 2026 Unaudited Financial Results
Total revenues were US$115 million, a decrease of 30% year-over-year and 2% quarter-over-quarter. Online game revenues were US$114 million, a decrease of 30% year-over-year and 2% quarter-over-quarter. For online game revenues, the year-over-year decrease was mainly due to a natural decline from a high comparison base driven by content updates released for TLBB PC and the launch of TLBB: Return in the third quarter of 2025.
Both GAAP and non-GAAP total cost of revenues were US$14 million, a decrease of 33% year-over-year and an increase of 2% quarter-over-quarter.
Both GAAP and non-GAAP operating expenses were US$42 million, a decrease of 23% year-over-year and 12% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in salary and benefits expenses, as well as a decrease in marketing and promotional spending for our online games. The quarter-over-quarter decrease was mainly due to a decrease in licensing fees related to product development.
GAAP operating profit was US$58 million, compared with US$87 million for the third quarter of 2025 and US$55 million for the second quarter of 2026.
Non-GAAP operating profit was US$59 million, compared with US$88 million for the third quarter of 2025 and US$56 million for the second quarter of 2026.
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[3] "Changyou Results" consist of the results of Changyou’s online game business and its 17173.com Website. |
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[4] Monthly active user accounts refers to the number of registered accounts that are logged in to these games at least once during the month. |
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[5] Quarterly aggregate active paying accounts refers to the number of accounts from which game points are utilized at least once during the quarter. |
Recent Development
Under the previously-announced share repurchase program of up to US$150 million of the outstanding ADSs, Sohu had repurchased 10.1 million ADSs for an aggregate cost of approximately US$134 million as of November 5, 2026.
Business Outlook
For the fourth quarter of 2026, Sohu estimates:
- Marketing services revenues to be between US$13 million and US$14 million; this implies an annual decrease of 18% to 24%, and a sequential decrease of 6% to 13%.
- Online game revenues to be between US$111 million and US$121 million; this implies an annual decrease of 8% to an annual increase of 1%, and a sequential decrease of 3% to a sequential increase of 6%.
- Both non-GAAP and GAAP net loss attributable to Sohu.com Limited to be between US$17 million and US$27 million.
For the fourth quarter 2026 guidance, the Company has adopted a presumed exchange rate of RMB6.73=US$1.00, as compared with the actual exchange rate of approximately RMB7.08=US$1.00 for the fourth quarter of 2025, and RMB6.78=US$1.00 for the third quarter of 2026.
This forecast reflects Sohu’s management’s current and preliminary view, which is subject to substantial uncertainty.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Sohu’s management uses non-GAAP measures of operating profit/(loss), net income/(loss), net income/(loss) attributable to Sohu.com Limited and diluted net income/(loss) attributable to Sohu.com Limited per ADS, which are adjusted from results based on GAAP to exclude the impact of share-based compensation expense. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
Sohu’s management believes excluding share-based compensation expense from the Company’s non-GAAP financial measures is useful for itself and investors. Further, the impact of share-based compensation expense could not be anticipated by management and business line leaders, and these expenses were not built into the annual budgets and quarterly forecasts that have been the basis for information Sohu provides to analysts and investors as guidance for future operating performance. As share-based compensation expense does not involve subsequent cash outflow and is not reflected in the cash flows at the equity transaction level, Sohu does not factor in its impact when evaluating and approving expenditures or when determining the allocation of its resources to its business segments. As a result, in general, the monthly financial results for internal reporting and any performance measures for commissions and bonuses are based on non-GAAP financial measures that exclude share-based compensation expense.
The non-GAAP financial measures are provided to enhance investors’ overall understanding of Sohu’s current financial performance and prospects for the future. A limitation of using non-GAAP operating profit/(loss), net income/(loss), net income/(loss) attributable to Sohu.com Limited, and diluted net income/(loss) attributable to Sohu.com Limited per ADS excluding share-based compensation expense is that this expense has been and can be expected to continue to recur in Sohu’s business. In order to mitigate these limitations Sohu has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between the GAAP financial measures that are most directly comparable to the non-GAAP financial measures that have been presented.
Notes to Financial Information
Financial information in this press release other than the information indicated as being non-GAAP is derived from Sohu’s unaudited financial statements prepared in accordance with GAAP.
Safe Harbor Statement
This announcement contains forward-looking statements. It is currently expected that the Business Outlook will not be updated until release of Sohu’s next quarterly earnings announcement; however, Sohu reserves right to update its Business Outlook at any time for any reason. Statements that are not historical facts, including statements about Sohu’s beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, instability in global financial and credit markets and its potential impact on the Chinese economy; exchange rate fluctuations, including their potential impact on the Chinese economy and on Sohu’s reported U.S. dollar results; fluctuations in Sohu’s quarterly operating results; the possibilities that Sohu will be unable to recoup its investment in content and will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires; and Sohu’s reliance on marketing services offerings and online games for its revenues. Further information regarding these and other risks is included in Sohu’s annual report on Form 20-F for the year ended December 31, 2025, and other filings with and information furnished to the U.S. Securities and Exchange Commission.
Conference Call and Webcast
Sohu’s management team will host a conference call at 7:30 a.m. U.S. Eastern Time, November 9, 2026 (8:30 p.m. Beijing/Hong Kong time, November 9, 2026) following the quarterly results announcement. Participants can register for the conference call by clicking here, which will lead them to the conference registration website. Upon registration, participants will receive details for the conference call, including the dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.
The live Webcast and archive of the conference call will be available on the Investor Relations section of Sohu’s website at https://investors.sohu.com/.
About Sohu
Sohu.com Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang, one of China’s internet pioneers, in the 1990s. Sohu operates one of the leading Chinese online media platforms and also engages in the online game business in the Chinese mainland. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of Sohu News App, Sohu Video App, the mobile portal m.sohu.com, the PC portal www.sohu.com, and the online games platform www.changyou.com/en/.
As a mainstream media platform with social features, Sohu is indispensable to the daily life of millions of Chinese, providing to a vast number of users a network of web properties and community based products, which offer a broad array of content, such as news and information, in the form of text, picture, video, and live broadcasting. Sohu also attracts users to actively engage in content generation and distribution, and actively interact with each other on the platform. Sohu’s online game business is conducted by its subsidiary Changyou, which develops and operates a diverse portfolio of PC and mobile games, such as the well-known TLBB PC and Legacy TLBB Mobile.
For investor and media inquiries, please contact:
Sohu.com Limited
Ms. Pu Huang
Tel: +86 (10) 6272-6645
E-mail: ir@contact.sohu.com
Christensen Advisory
E-mail: sohu@christensencomms.com
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SOHU.COM LIMITED |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) |
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Three Months Ended |
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Sep. 30, 2026 |
Jun. 30, 2026 |
Sep. 30, 2025 |
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Revenues: |
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|
Marketing services |
$ |
14,888 |
$ |
15,179 |
$ |
13,596 |
|
Online games |
113,872 |
116,171 |
162,036 |
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Others |
4,483 |
4,190 |
4,529 |
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Total revenues |
133,243 |
135,540 |
180,161 |
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Cost of revenues: |
||||||
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Marketing services |
14,914 |
13,400 |
12,172 |
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|
Online games |
14,119 |
13,829 |
21,177 |
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Others |
2,531 |
1,727 |
1,517 |
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Total cost of revenues |
31,564 |
28,956 |
34,866 |
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Operating expenses: |
||||||
|
Product development |
63,636 |
68,894 |
61,820 |
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|
Sales and marketing (includes share-based |
43,715 |
43,801 |
49,699 |
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General and administrative (includes share-based |
12,608 |
12,188 |
20,196 |
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Total operating expenses |
119,959 |
124,883 |
131,715 |
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|
Operating profit/(loss) |
(18,280) |
(18,299) |
13,580 |
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|
Other income, net |
3,127 |
7,166 |
5,145 |
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Interest income |
5,486 |
5,718 |
7,140 |
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|
Exchange difference |
(585) |
(1,224) |
(563) |
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|
Income/(loss) before income tax expense |
(10,252) |
(6,639) |
25,302 |
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|
Income tax expense/(benefit)[6] |
4,493 |
(6,874) |
16,636 |
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|
Net income/(loss) from continuing operations |
(14,745) |
235 |
8,666 |
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|
Net income from discontinued operations[7] |
– |
734 |
– |
|||
|
Net income/(loss) |
(14,745) |
969 |
8,666 |
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Less: Net income from continuing operations |
1 |
– |
– |
|||
|
Net income/(loss) from continuing operations attributable |
(14,746) |
235 |
8,666 |
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|
Net income from discontinued operations attributable to |
– |
734 |
– |
|||
|
Net income/(loss) attributable to Sohu.com Limited |
(14,746) |
969 |
8,666 |
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Basic net income/(loss) from continuing operations per |
$ |
(0.60) |
$ |
0.01 |
$ |
0.32 |
|
Basic net income from discontinued operations per |
$ |
– |
$ |
0.03 |
$ |
– |
|
Basic net income/(loss) per share/ADS attributable to |
$ |
(0.60) |
$ |
0.04 |
$ |
0.32 |
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Shares/ADSs used in computing basic net income/(loss) |
24,765 |
25,451 |
27,491 |
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Diluted net income/(loss) from continuing operations |
$ |
(0.60) |
$ |
0.01 |
$ |
0.32 |
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Diluted net income from discontinued operations |
$ |
– |
$ |
0.03 |
$ |
– |
|
Diluted net income/(loss) per share/ADS attributable to |
$ |
(0.60) |
$ |
0.04 |
$ |
0.32 |
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Shares/ADSs used in computing diluted net |
24,765 |
25,451 |
27,491 |
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[6] For the second quarter of 2026, income tax benefit included reversal of a tax expense of approximately US$13 million due to a reversal of uncertain tax positions. |
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[7] See footnote 1. |
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[8] Each ADS represents one ordinary share. |
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SOHU.COM LIMITED |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(UNAUDITED, IN THOUSANDS) |
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As of Sep. 30, 2026 |
As of Dec. 31, 2025 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
125,499 |
$ |
128,308 |
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Short-term investments |
698,463 |
702,372 |
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Accounts receivable, net |
38,829 |
43,335 |
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Prepaid and other current assets |
92,100 |
93,903 |
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Total current assets |
954,891 |
967,918 |
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Fixed assets, net |
248,798 |
246,263 |
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Goodwill |
10,257 |
10,257 |
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Long-term investments, net |
43,836 |
43,939 |
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Intangible assets, net |
2,971 |
4,692 |
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Long-term time deposits |
330,906 |
350,659 |
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Other assets |
11,362 |
12,325 |
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Total assets |
$ |
1,603,021 |
$ |
1,636,053 |
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LIABILITIES |
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Current liabilities: |
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Accounts payable |
$ |
35,154 |
$ |
36,215 |
|
Accrued liabilities |
104,966 |
95,430 |
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Receipts in advance and deferred revenue |
56,374 |
54,878 |
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Accrued salary and benefits |
36,976 |
55,018 |
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Taxes payables |
12,320 |
15,571 |
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Other short-term liabilities |
74,993 |
76,601 |
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Total current liabilities |
$ |
320,783 |
$ |
333,713 |
|
Long-term other payables |
3,609 |
2,896 |
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Long-term tax liabilities |
8,212 |
21,051 |
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|
Other long-term liabilities |
222 |
322 |
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|
Total long-term liabilities |
$ |
12,043 |
$ |
24,269 |
|
Total liabilities |
$ |
332,826 |
$ |
357,982 |
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SHAREHOLDERS’ EQUITY: |
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|
Sohu.com Limited shareholders’ equity |
1,269,850 |
1,277,727 |
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|
Noncontrolling interest |
345 |
344 |
||
|
Total shareholders’ equity |
$ |
1,270,195 |
$ |
1,278,071 |
|
Total liabilities and shareholders’ equity |
$ |
1,603,021 |
$ |
1,636,053 |
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SOHU.COM LIMITED |
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RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES |
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(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) |
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Three Months Ended Sep. 30, 2026 |
Three Months Ended Jun. 30, 2026 |
Three Months Ended Sep. 30, 2025 |
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|
GAAP |
Non-GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
Non-GAAP |
GAAP |
Non-GAAP |
Non-GAAP |
||||||||||
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Operating expenses |
$ |
119,959 |
$ |
(207) |
(a) $ |
119,752 |
$ |
124,883 |
$ |
(296) |
(a) $ |
124,587 |
$ |
131,715 |
$ |
(430) |
(a) $ |
131,285 |
|
Operating profit/(loss) |
$ |
(18,280) |
$ |
207 |
(a) $ |
(18,073) |
$ |
(18,299) |
$ |
296 |
(a) $ |
(18,003) |
$ |
13,580 |
$ |
430 |
(a) $ |
14,010 |
|
Income tax expense/(benefit)[9] |
$ |
4,493 |
$ |
– |
$ |
4,493 |
$ |
(6,874) |
$ |
– |
$ |
(6,874) |
$ |
16,636 |
$ |
– |
$ |
16,636 |
|
Net income/(loss) before non- |
$ |
(14,745) |
$ |
207 |
(a) $ |
(14,538) |
$ |
235 |
$ |
296 |
(a) $ |
531 |
$ |
8,666 |
$ |
430 |
(a) $ |
9,096 |
|
Net income/(loss) from continuing |
$ |
(14,746) |
$ |
207 |
(a) $ |
(14,539) |
$ |
235 |
$ |
296 |
(a) $ |
531 |
$ |
8,666 |
$ |
430 |
(a) $ |
9,096 |
|
Net income from discontinued |
$ |
– |
$ |
– |
$ |
– |
$ |
734 |
$ |
– |
$ |
734 |
$ |
– |
$ |
– |
$ |
– |
|
Net income/(loss) attributable to |
$ |
(14,746) |
$ |
207 |
(a) $ |
(14,539) |
$ |
969 |
$ |
296 |
(a) $ |
1,265 |
$ |
8,666 |
$ |
430 |
(a) $ |
9,096 |
|
Diluted net income/(loss) from |
$ |
(0.60) |
$ |
(0.59) |
$ |
0.01 |
$ |
0.02 |
$ |
0.32 |
$ |
0.33 |
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|
Diluted net income from discontinued |
$ |
– |
$ |
– |
$ |
0.03 |
$ |
0.03 |
$ |
– |
$ |
– |
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|
Diluted net income/(loss) per |
$ |
(0.60) |
$ |
(0.59) |
$ |
0.04 |
$ |
0.05 |
$ |
0.32 |
$ |
0.33 |
||||||
|
Shares/ADSs used in computing |
24,765 |
24,765 |
25,451 |
25,451 |
27,491 |
27,491 |
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Note: |
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(a) Share-based compensation expense |
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[9] See footnote 6. |
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[10] See footnote 1. |
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