Sohu.com (SOHU) investor relations material

Executive summary

• Q2 2026 revenues reached $136 million, up 7% year-over-year but down 4% quarter-over-quarter, exceeding prior guidance.

• Online game and marketing services revenues both surpassed guidance, driven by content updates and product enhancements.

• Net income turned positive at $0.2 million (GAAP), reversing prior losses, aided by a tax expense reversal.

• Continued product refinement and diverse events on the media platform drove user engagement and advertiser interest.

• Online games benefited from strong performance of older titles and successful expansion packs.

Financial highlights

• Total revenue was $136 million, up 7% year-over-year, down 4% quarter-over-quarter.

• Marketing services revenue was $15 million, down 3% year-over-year, up 21% quarter-over-quarter.

• Online game revenue was $116 million, up 10% year-over-year, down 7% quarter-over-quarter.

• GAAP net income was $0.2 million, compared to a net loss of $20 million in Q2 2025 and $4 million in Q1 2026, aided by a tax expense reversal.

• Non-GAAP net income was $0.5 million, versus net losses of $20 million (Q2 2025) and $4 million (Q1 2026).

Outlook and guidance

• Q3 2026 marketing services revenues expected between $14–15 million, implying 3–10% annual growth but 1–8% sequential decline.

• Q3 online game revenues expected between $105–115 million, implying a 29–35% annual decrease and 1–10% sequential decrease.

• Q3 net loss (GAAP and non-GAAP) projected between $13–30 million.