Sohu Revenue Falls 26% to $101 Million in Third Quarter of 2026
Key Facts
Sohu.com reported total revenue of $101 million in the third quarter of 2026, down 26% year over year and 14% from the second quarter, led by a decline in its online games business. The company said marketing revenue was $14 million, while games generated $83 million during the period. Gaming revenue fell below the company’s previous forecast range of $105 million to $115 million. GAAP operating loss also widened to $36 million, from $18 million in both the third quarter of 2025 and the second quarter of 2026. GAAP net loss attributable to Sohu was about $30 million, in results that highlighted falling revenue and deteriorating profitability during the quarter.
The year-over-year decline in total revenue was greater than the sequential drop, as the company lost 14% from the $136 million in revenue it reported in the second quarter. Revenue in that quarter had risen 7% year over year, despite falling 4% from the first quarter. Year over year, third-quarter results compare with revenue of $137 million in the same period of 2025. The current-quarter decline was spread across the two main business units, with marketing down 8% year over year and 10% sequentially, and games down 29% year over year and 28% sequentially. These comparisons show that quarterly pressure was not limited to the year-over-year comparison, but also included a decline from the previous quarter.
Chairman and Chief Executive Charles Zhang said gaming revenue fell year over year because of a higher comparison base after the launch of TLBB: Return in the third quarter of 2025, as well as delays to game content updates. He said the earlier launch raised the comparison base for the current period, while content delays affected gaming performance during the quarter. Gaming revenue was $116 million in the second quarter of 2026 before falling to $83 million in the third quarter. The company’s expected gaming revenue range, disclosed in its previous guidance, was $105 million to $115 million; the reported figure therefore came in below the low end. Marketing revenue followed a less pronounced downward path than games, at $14 million after relatively modest year-over-year and sequential declines.
On the bottom line, GAAP loss per diluted American depositary share was about $1.18, compared with a loss of $0.69 in the third quarter of 2025. Net loss attributable to the company rose to $30 million from $18 million a year earlier, while operating loss doubled to $36 million from $18 million in the year-earlier period. In its second-quarter results statement, the company had forecast a GAAP and non-GAAP net loss of between $13 million and $23 million in the third quarter. Second-quarter data also showed that cash and cash equivalents, short-term investments and long-term time deposits totaled about $1.2 billion as of June 30, 2026. Sohu operates online media platforms and games in China, with gaming operations run by its subsidiary Changyou.
Sohu, listed under the ticker SOHU, closed at $13.83 in the Nov. 6, 2026, session. The company is scheduled to hold a conference call to discuss third-quarter results on Nov. 9 at 7:30 a.m. Eastern Time, or 8:30 p.m. Beijing and Hong Kong time. The call will give the company an opportunity to present and discuss quarterly results at the time announced on its investor relations page. The stock closed three days before the call, based on the dates provided in company and market data. Gaming performance, which posted the larger decline of the two business units and fell below the forecast range, remains a key focus of the period’s results.