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Sohu ( (SOHU) ) has issued an update.
Sohu.com Limited reported unaudited results for the first quarter ended March 31, 2026, showing total revenues of US$141 million, up 4% year over year but down 1% sequentially, driven largely by online game revenues of US$125 million, which rose 6% year over year and 3% quarter over quarter. Marketing services revenues fell 8% from a year earlier and 26% from the previous quarter, while the company posted a GAAP and non-GAAP net loss of US$4 million, narrowing operating losses, and maintained a strong liquidity position with approximately US$1.2 billion in cash, equivalents, short-term investments and long-term time deposits.
Operating efficiency improved as total cost of revenues declined 10% year over year and 15% quarter over quarter to US$30 million, and GAAP operating expenses dropped 3% year over year and 32% sequentially, aided by the absence of prior-period one-off tax benefits and goodwill impairments that had inflated 2025 profit figures. Changyou’s online game business delivered solid growth, with PC game engagement boosted by the launch of TLBB: Return, even as mobile game user metrics fell due to the natural decline of older titles, underscoring Sohu’s reliance on fresh content and disciplined cost control to stabilize earnings after last year’s tax-related windfalls.
Changyou’s segment revenues reached US$125 million, with GAAP operating profit climbing to US$65 million from US$54 million a year earlier and US$45 million in the fourth quarter of 2025, highlighting improved profitability in the core game unit despite softer mobile usage. Management said first-quarter marketing services, online game revenues and bottom-line performance surpassed prior guidance, suggesting ongoing operational refinements and new monetization initiatives on Sohu’s media platform are starting to offset structural headwinds in legacy advertising and mobile games.
The most recent analyst rating on (SOHU) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Sohu stock, see the SOHU Stock Forecast page.
Spark’s Take on SOHU Stock
According to Spark, TipRanks’ AI Analyst, SOHU is a Neutral.
The score is held back primarily by weak recent cash generation and pressured operating profitability, reinforced by cautious near-term guidance and continued social media losses. Offsetting factors include a strong, low-leverage balance sheet and an optically low P/E, while technicals are broadly neutral with slightly negative momentum.
To see Spark’s full report on SOHU stock, click here.
More about Sohu
Sohu.com Limited is a leading Chinese online media and game business group, operating a digital content platform and publishing PC and mobile games, primarily through its Changyou unit. The Beijing-based company focuses on advertising-supported media services and online games, targeting Chinese internet users and a broad base of game players across multiple platforms.
Average Trading Volume: 46,815
Technical Sentiment Signal: Hold
Current Market Cap: $398.9M
Learn more about SOHU stock on TipRanks’ Stock Analysis page.