Key Highlights

  • Total revenues were US$133 million in the third quarter, down 26% year-over-year, with online game revenues falling 30% to US$114 million.
  • Marketing services revenues rose 10% year-over-year to US$15 million, although they declined 2% from the previous quarter.
  • GAAP net loss attributable to the company was US$15 million, or US$0.60 per fully diluted ADS, compared with Net Income of US$9 million a year earlier.
  • The fourth-quarter outlook projects Marketing services Revenue of US$13 million to US$14 million and a net loss of US$17 million to US$27 million.

Sohu.com Limited (NASDAQ:SOHU), a Chinese online media platform and game Business group, has reported unaudited results for the third quarter ended 30 September 2026. The quarter shows a year-over-year decline in total revenue and a move from net income to a net loss. The decline is concentrated in the online game business, which operates largely through its Changyou unit, while marketing services revenue on the Sohu Social Media platform increased from a year earlier.

Revenue decline driven by online games

Total revenues were US$133 million, down 26% from a year earlier and down 2% from the second quarter of 2026. Online game revenue, the largest revenue line, fell 30% year-over-year to US$114 million. The company attributed the decline mainly to a natural drop-off in older titles and to a high comparison base in the third quarter of 2025, which included content updates for the PC version of Tian Long Ba Bu and the launch of TLBB: Return.

User metrics point to the same trend. Average monthly active user accounts for PC games were 2.6 million, down 4% year-over-year and flat from the previous quarter, while mobile game accounts averaged 1.4 million, down 24% year-over-year. Active paying accounts for PC games declined 8% year-over-year to 1.0 million but rose 4% sequentially. Marketing services revenue reached US$15 million, up 10% year-over-year, while total cost of revenues fell 9% to US$32 million.

Profitability and cash position

Operating expenses fell 9% year-over-year to US$120 million, reflecting lower salary and benefit costs and reduced marketing spending for online games. Despite the smaller expense base, the group recorded an operating loss of US$18 million, compared with an operating profit of US$14 million in the third quarter of 2025. Within the Changyou results, operating profit was US$58 million, down from US$87 million a year earlier, which indicates the game business still generated operating profit while the group as a whole reported a loss.

Income tax expense was US$4 million, compared with US$17 million a year earlier. The GAAP net loss attributable to Sohu.com Limited was US$15 million, or US$0.60 per fully diluted American depositary share, while the non-GAAP net loss was US$0.59 per ADS after excluding share-based compensation. Cash, cash equivalents, short-term investments and long-term time deposits totaled about US$1.2 billion as of 30 September 2026. Under a share repurchase program of up to US$150 million, the company had bought back 10.1 million ADSs for about US$134 million as of 5 November 2026.

Fourth-quarter guidance and open questions

For the fourth quarter, Sohu expects marketing services revenue of US$13 million to US$14 million, an annual decline of 18% to 24%. Online game revenue is projected at US$111 million to US$121 million, a range that spans an 8% annual decrease to a 1% annual increase. The company expects both GAAP and non-GAAP net loss attributable to the group to fall between US$17 million and US$27 million. The forecast uses a presumed Exchange Rate of RMB6.73 to US$1.00, compared with about RMB7.08 for the fourth quarter of 2025, and the company describes it as preliminary and subject to substantial uncertainty.

Several questions remain open. Whether older games can slow the decline in user activity is central to the revenue outlook, and the wide game guidance range reflects that uncertainty. Marketing services would need to reverse the expected sequential decline to offset pressure elsewhere. The announcement does not address how new products or content will contribute to revenue, which leaves the timing of any recovery unclear.

Final Word

Sohu's third-quarter results show a group whose revenue depends heavily on online games, which contracted sharply from a year earlier. Marketing services grew in the period, but the fourth-quarter outlook points to a further decline in that line. Future reporting, buyback activity and the performance of the game portfolio will show how the group's losses and cash position develop.