Total revenues for the Beijing-based media and gaming firm reached US$136 million, a 7% increase compared to the previous year but a 4% decline from the first quarter of 2026. Online gaming, the company’s primary revenue engine, contributed US$116 million—a 10% year-over-year climb, though gaming revenue slipped 7% sequentially. Marketing services added US$15 million to the total, showing a 21% recovery from the previous quarter despite a slight annual dip of 3%.
Sohu Swings to Profit in Q2 2026 Driven by Tax Adjustments
Sohu.com posted a modest net income of US$0.2 million for the second quarter of 2026, marking a turnaround from the US$20 million loss reported during the same period last year, largely bolstered by a US$13 million reversal of uncertain tax positions that helped offset ongoing operating challenges.
Despite the return to profitability, the company grappled with an operating loss of US$18 million, reflecting the heavy costs of product development and marketing. Dr. Charles Zhang, Chairman and CEO, credited the performance to disciplined product refinement and the successful launch of content updates for legacy titles. Looking ahead, Sohu has expanded its share repurchase program, removing the previous November deadline to allow for open-ended buybacks up to US$150 million, signaling management's focus on capital allocation amid a cautious outlook for the third quarter.
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