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Sohu
(NASDAQ:SOHU)
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Rating:48Neutral
Price Target:
$12.50
▼(-22.36% Downside)
Action:Reiterated
Date:05/19/26
Overall score reflects solid balance-sheet strength and pockets of operating improvement in online games, but is held back most by ongoing cash burn and weak operating profitability, bearish technical momentum, and loss-based valuation constraints. Earnings call takeaways are balanced: buybacks and games strength help, while marketing/platform losses and guidance for larger near-term losses increase risk.
Positive Factors
Conservative balance sheet
Sohu’s minimal-to-zero debt position and sizable equity provide durable financial flexibility. This balance-sheet conservatism supports ongoing operations during losses, funds share repurchases and strategic investments without forced deleveraging, and reduces solvency risk over the next several quarters.
Negative Factors
Negative operating cash flow
Sustained negative operating and free cash flow across multiple years signals structural cash burn that undermines self-funding. Even with large cash reserves, continued negative cash generation pressures long-term investment capacity, increases reliance on cash buffers, and raises refinancing or capital-allocation risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Sohu’s minimal-to-zero debt position and sizable equity provide durable financial flexibility. This balance-sheet conservatism supports ongoing operations during losses, funds share repurchases and strategic investments without forced deleveraging, and reduces solvency risk over the next several quarters.
Read all positive factors
Sohu Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Reflects the profit left after direct costs for each segment, revealing which parts of Sohu actually generate earnings versus those that only add top-line revenue. Improving gross profit or margins shows stronger unit economics or pricing power, while shrinking margins can indicate cost pressure or heavy investment needs.
Reflects the profit left after direct costs for each segment, revealing which parts of Sohu actually generate earnings versus those that only add top-line revenue. Improving gross profit or margins shows stronger unit economics or pricing power, while shrinking margins can indicate cost pressure or heavy investment needs.
Data provided by:
The Fly
The FlySohu (SOHU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$334.73M
Dividend YieldN/A
Average Volume (3M)38.14K
Price to Earnings (P/E)1.6
Beta (1Y)1.04
Revenue Growth-0.45%
EPS Growth111.66%
CountryUS
Employees4,300
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)7.86
Shares Outstanding26,069,021
10 Day Avg. Volume37,935
30 Day Avg. Volume38,142
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.35
Price to Sales (P/S)0.76
P/FCF Ratio-30.54
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit0.59
Enterprise Value/Ebitda-6.86
Forecast
1Y Price Target
$18.00Price Target Upside11.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-2.51
Revenue Forecast (FY)$545.00M
Sohu Business Overview & Revenue Model
Company Description
Founded in 1996 and headquartered in Beijing, China, Sohu.com Limited functions as a comprehensive digital enterprise, offering a diverse range of online media, video, and gaming solutions to consumers across China, accessible on both personal com...
How the Company Makes Money
Sohu primarily generates revenue from (1) online advertising and marketing services and (2) online game-related revenues from its gaming operations (including sales of virtual items and related in-game services), with the relative contribution of ...
Sohu Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational strengths in the online games business (solid revenue contribution, improved operating profit) and a sizable share repurchase are offset by significant weakness in the marketing/ social media segment (large operating losses, declining ad revenue) and a return to GAAP net loss versus strong prior-year profits. Management provided clear near-term guidance but acknowledged macro headwinds and conservative assumptions. Net effect is balanced between positive operational pockets and material platform losses and guidance risks.Positive Updates
Modest Consolidated Revenue Growth
Total revenues were $141.0M in Q1 2026, up 4% year-over-year and down 1% quarter-over-quarter, showing overall topline stability.
Negative Updates
Return to Net Loss on GAAP Basis
GAAP net loss attributable to Sohu.com Limited was $4.0M in Q1 2026 versus net income of $182.0M in Q1 2025 and $223.0M in Q4 2025, indicating a material decline in bottom-line performance versus prior periods.
Read all updates
Q1-2026 Updates
Positive
Negative
Modest Consolidated Revenue Growth
Total revenues were $141.0M in Q1 2026, up 4% year-over-year and down 1% quarter-over-quarter, showing overall topline stability.
Read all positive updates
Company Guidance
Management guided Q2 2026 marketing services revenue of $30–$40 million (implying a year‑over‑year decline of ~10–17% but a sequential increase of ~4–11%), online game revenue of $104–$114 million (implying a year‑over‑year change of roughly −2% to +8% and a sequential decline of ~8–17%), and both GAAP and non‑GAAP net loss attributable to Sohu.com of $25–$50 million; for context, Q1 reported total revenue $141M (↑4% YoY, ↓1% QoQ), marketing services $13M (−8% YoY, −26% QoQ), online games $125M (↑6% YoY, ↑3% QoQ), GAAP net loss $4M and non‑GAAP net loss $4M, and the company has repurchased 8.7M ADS for about $160M—management noted the guidance is preliminary and subject to uncertainty given macro weakness and content cadence.Sohu Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 591.08M | 584.33M | 598.40M | 600.67M | 733.87M | 835.58M |
| Gross Profit | 462.69M | 452.84M | 432.57M | 454.92M | 542.30M | 630.90M |
| EBITDA | -39.65M | -24.52M | -76.97M | 24.59M | 71.90M | 175.02M |
| Net Income | 207.55M | 394.10M | -100.27M | -30.38M | -17.34M | 927.73M |
Balance Sheet | ||||||
| Total Assets | 1.62B | 1.64B | 1.73B | 1.88B | 1.98B | 2.25B |
| Cash, Cash Equivalents and Short-Term Investments | 808.52M | 830.68M | 904.42M | 960.27M | 1.17B | 1.40B |
| Total Debt | 0.00 | 0.00 | 37.51M | 41.36M | 36.50M | 36.12M |
| Total Liabilities | 346.11M | 357.98M | 811.98M | 822.82M | 867.07M | 953.60M |
| Stockholders Equity | 1.28B | 1.28B | 922.34M | 1.06B | 1.11B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -14.46M | -67.94M | -43.98M | 8.40M | -104.48M |
| Operating Cash Flow | 0.00 | -4.77M | -48.02M | -25.57M | 32.24M | -62.28M |
| Investing Cash Flow | 0.00 | 24.91M | -113.36M | -291.67M | -232.79M | 516.73M |
| Financing Cash Flow | 0.00 | -54.22M | -40.88M | -6.56M | -82.14M | -434.10M |
Sohu Technical Analysis
Neutral
16.10
Price Trends
13.74
Negative
14.79
Negative
15.15
Negative
Market Momentum
-0.24
Negative
48.45
Neutral
83.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOHU, the sentiment is Neutral. The current price of 16.1 is above the 20-day moving average (MA) of 12.61, above the 50-day MA of 13.74, and above the 200-day MA of 15.15, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 83.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SOHU.
Sohu Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $567.39M | 4.98 | 12.16% | ― | 9.99% | -2.49% | |
77 Outperform | $84.21B | 16.73 | 21.64% | 2.19% | 8.50% | 7.29% | |
65 Neutral | $7.43B | 53.40 | 8.04% | ― | 11.20% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $223.07M | 3.10 | -60.77% | 18.48% | ― | ― | |
48 Neutral | $334.73M | 1.63 | 17.76% | ― | -0.45% | 111.66% |
* Communication Services Sector Average
SOHU
Sohu
12.84
-1.38
-9.70%
NTES
NetEase
128.03
1.22
0.96%
NCTY
The9
4.34
-5.56
-56.16%
BILI
Bilibili
17.70
-4.62
-20.70%
DDI
Doubledown Interactive Co
11.45
1.28
12.59%
GDEV
Nexters
12.29
-3.11
-20.19%
Sohu Corporate Events
Sohu Posts First-Quarter 2026 Loss as Game Revenues Rise and Costs Fall
May 18, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.