The sharp Q3 guidance miss on online game revenue (down 29-35% YoY) is the dominant signal. Traders should expect downside pressure on SOHU as the market prices in a deteriorating core gaming franchise. The open-ended buyback provides a floor but may not offset fundamental weakness. Watch for further updates on TLBB and mobile game performance.
Price Chart
Executive Summary
Sohu reported Q2 2026 revenue of $136M (+7% YoY) and GAAP net income of $0.2M (vs -$20M loss a year ago), beating its own guidance. However, Q3 guidance calls for online game revenue to decline 29-35% YoY and a net loss of $13-23M, signaling a sharp deterioration in the core gaming business that overshadows the Q2 beat.
Key Financial Metrics
Key Facts
- Total Q2 2026 revenue $136M, up 7% YoY and down 4% QoQ
- Online game revenue $116M, up 10% YoY but down 7% QoQ
- GAAP net income $0.2M ($0.01/ADS) vs net loss of $20M in Q2 2025
- Non-GAAP net income $0.5M ($0.02/ADS) vs net loss of $20M in Q2 2025
- Q3 2026 guidance: online game revenue $105-115M (down 29-35% YoY), net loss $13-23M
- Share repurchase program amended to open-ended; $124M of $150M authorization already used
- Cash and investments total ~$1.2B as of June 30, 2026
Financial Impact
Q2 results modestly positive but Q3 guidance implies a ~30%+ YoY decline in the primary online game revenue segment, pointing to a net loss of $13-23M
Risk Factors
- Online game revenue decline accelerating in Q3
- Continued net losses and potential cash burn
- Currency headwinds from RMB/USD exchange rate assumptions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302846862 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 5w ago | 6-K | $13.62 $12.56 | ▼ −7.75% | ▼ −10.93% | $12.75 (−6.35%) |
Aug 10, 2026 11w ago | 6-K | $14.43 $13.74 | ▲ +4.78% | ▲ +3.87% | $12.75 (+11.64%) |
Aug 10, 2026 11w ago | Press Release | $14.43 $13.74 | ▲ +4.78% | ▲ +3.87% | $12.75 (+11.64%) |
Jul 31, 2026 12w ago | Press Release | $13.87 $14.11 | ▲ +1.73% | ▼ −1.26% | $12.75 (−8.07%) |
US Market Status
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