SOHU.COM REPORTS SECOND QUARTER 2026 UNAUDITED FINANCIAL RESULTS

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 second quarter ended June 30, 2026.

Total revenues were US$136 million, up 7% year-over-year and down 4% quarter-over-quarter. Marketing services revenues were US$15 million, down 3% year-over-year and up 21% quarter-over-quarter. Online game revenues were US$116 million, up 10% year-over-year and down 7% quarter-over-quarter. After giving effect to reversal of a tax expense of approximately US$13 million due to a reversal of uncertain tax positions, GAAP net income attributable to Sohu.com Limited was US$0.2 million, compared with a net loss of US$20 million in the second quarter of 2025 and a net loss of US$4 million in the first quarter of 2026. After giving effect to reversal of a tax expense of approximately US$13 million due to a reversal of uncertain tax positions, non-GAAP net income attributable to Sohu.com Limited was US$0.5 million, compared with a net loss of US$20 million in the second quarter of 2025 and a net loss of US$4 million in the first quarter of 2026.

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.

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."

Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "In the second quarter of 2026, our marketing services revenues, online game revenues and bottom-line performance all exceeded our previous guidance. For the Sohu media platform, we continued to refine our products and host diverse events and activities to stimulate communication and interaction among users, which further strengthened the platform's social features and promoted its vigorous and healthy development. Leveraging our differentiated content and events, we were able to address advertisers' needs and continued to explore diversified monetization opportunities. For our online games, we remained committed to our long-term operation strategy and continued to launch diverse content updates to deliver rich and engaging experiences for game players."

Revenues Total revenues were US$136 million, up 7% year-over-year and down 4% quarter-over-quarter. Marketing services revenues were US$15 million, down 3% year-over-year and up 21% quarter-over-quarter. Online game revenues were US$116 million, up 10% year-over-year and down 7% quarter-over-quarter.

Cost of Revenues Both GAAP and non-GAAP total cost of revenues were US$29 million, up 2% year-over-year and down 3% quarter-over-quarter. Both GAAP and non-GAAP cost of marketing services revenues were US$13 million, up 3% year-over-year and 6% quarter-over-quarter. Both GAAP and n...