Sohu.com Limited (NASDAQ:SOHU) reported a first-quarter adjusted net loss on Monday, although total revenue increased year-over-year thanks to continued strength in its online gaming business.
Revenue rises while company remains loss-making
The Chinese online media and gaming group posted total revenue of $141 million for the first quarter, representing a 4% increase from $136 million in the same period last year.
The company reported an adjusted net loss of $0.16 per American depositary share.
Sohu’s adjusted net loss narrowed significantly to $4 million compared with a loss of $16 million recorded in the first quarter of 2025.
Shares showed little movement in after-hours trading following the earnings release.
Online gaming offsets weakness in marketing services
Revenue from Sohu’s online gaming segment rose 6% year-over-year to $125 million.
Meanwhile, marketing services revenue declined 8% to $13 million during the quarter.
“In the first quarter of 2026, our marketing services revenues, online game revenues, and bottom-line performance all exceeded our previous guidance,” chairman and chief executive Dr. Charles Zhang said.
“For our online games, we delivered another solid quarter, driven by a wealth of high-quality content and targeted operational refinements that resonated with our diverse player base.”
Company issues second-quarter outlook
For the second quarter of 2026, Sohu expects online gaming revenue to range between $104 million and $114 million, with a midpoint forecast of $109 million.
The company projected marketing services revenue between $13 million and $14 million.
Sohu also forecast both adjusted and GAAP net losses attributable to the company in a range of $15 million to $25 million for the second quarter.
Cash reserves remain strong alongside share buybacks
As of March 31, 2026, Sohu held approximately $1.2 billion in cash, cash equivalents, short-term investments and long-term time deposits.
The company also continued repurchasing shares under its existing buyback program.
As of May 13, 2026, Sohu had repurchased approximately 8.7 million ADSs for a total value of around $116 million.