Sohu.com Limited

Ladies and gentlemen, thank you for standing by and good day. Thank you for joining SOHU's first quarter 2026 earnings conference call. At this time, all participants are in the listen-only mode. After management's prepared remarks, there will be question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. And I'd like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Soho.

Please go ahead. Thank you, operator. Thank you for joining us to discuss Soho's fourth quarter, 2026 results. On the call are Chairman and Chief Executive Officer Dr. Charles Chang, CFO John DeLue, and Vice President of Finance James Stone. Also with us are Chang Youseo, Du Wencheng, and CFO Albin Wang. Before Martin begins their prepared remarks, I would like to remind you of the common CFR statement in connection with today's conference conference. Except for the historical information contained herein, the matters discussed may contain forwarding statements. These statements are based on current plans as made to protect and protect projections. Therefore, you should not place any relies on them. They caution you that a number of important factors could cause actions that are different materially from those contained in the anti-fault listing statement. For more information about potential risks and uncertainties, please refer to the Congress' findings with the Securities and Exchange Commission, including the most recently reported forms on that. With that, I will now turn the call over to Dr. Charles Zhang. Charles, please proceed.

Thanks, Hongbo, and thank you, everyone, for joining our call. In the first quarter of 2026, our marketing service revenue, online game revenue, and offline performance all exceeded our previous guidance. For the social media platform, we continue to focus on promoting a healthy and vibrant atmosphere on our platform with a series of differentiated events. At the same time, we kept refining our products to cater to users' needs. Leveraging our unique events and brand influence, we were able to explore new monetization opportunities. For our online games, we delivered another solid quarter, given by a wealth of high-quality content and targeted operational refinements that resonated with our diverse player base. Before going through each business unit in more detail, let me first give you a quick overview of our financial performance. For the first quarter of 2026, total revenues were $141 million, up 4% year-over-year, and down 1% quarter-over-quarter. Marketing services revenues were $13 million, down 8% year-over-year, and then 26% quarter-over-quarter. Online game revenues were $125 million, up 6% year-over-year, and 3% quarter-over-quarter. Net loss attributable to SOHO.com Limited was $4 million, compared with the net income of $182 million in the first quarter of 2025, and the net income of $423 million in the fourth quarter of 2025. Non-GAAP net loss attributable to SOHO.com Limited was $4 million loss in $4 million. loss net loss performing dollars compared with the net loss of 16 million dollars in the first quarter of 2025 and a net income of 261 million in the fourth quarter of 2025. now i'll go through our key businesses in more detail first social media platform in the first quarter of 2026 we continue to integrate resources in debt and upgrade our products with cutting-edge technologies We offered users various practical and easy-to-use functions to optimize the user experience, enhance user engagement, and further promote dissemination of content. At the same time, we kept focusing on promoting a vigorous atmosphere in our community and fostering a prosperous platform ecosystem. Benefiting from unique offline events, we provided users with plenty of interaction opportunities, improve their social engagement, and generate abundant premium content that was widely spread over the internet. In March, for example, in March we successfully held the 18th Social News Marathon in Hong Kong and the offline seminar of our physics class in Hong Kong. This season's marathon attracted active participation by celebrities and broadcasters nationwide, greatly promoting social interaction on our platform. Meanwhile, the Power Physics Lab made its debut at the Hong Kong University of Science and Technology, bringing in-depth physics knowledge to the public. Both events were well received by audiences, creating a strong synergy between our flagship IPs and further expanding our brand influence. In April, we hosted the 2026 Spring Convention of Sohu Video Influencers, for example, which has been held bi-annually for the past three years. We invited celebrities and gathered influencers from various fields, including verticals popular with young users, such as PPOP and the verticals in professional fields, such as science and health. The convention created a chance for broadcasters to interact in person, promoting content generation and dissemination, and building genuine social connections. During the quarter, we also launched the 2026 Sohu K-pop Dancing Festival competition throughout the year, and also the 2026 Hanzhou Modern Competition. It's also a year-long event. It further consolidates our influence and appeal in these areas. We continue to combine offline events with online interactions to upgrade our profile and the standard of our competition. With these efforts, we garnered widespread attention and attracted some interior guests with shared interest to participate and interact on our platform. We continued to leverage our unique content and live broadcasting technology while exploring new business opportunities. We provided targeted marketing solutions for advertisers through our innovative and customized events and campaigns, such as As the physics class IP is a derivative, it needs to be brought in influence. In fact, it will traffic to the platform in order to unlock monetization potential. Next, turning to our online game business. During the quarter, our online game business performed well, with revenues exceeding our prior guidance. In our PC game business, We roll out various holiday events around the Chinese New Year and Valentine's Day, as well as promotional events for the regular TLBB PC, which helps sustain stable player engagement. Apart from holiday events, we also introduced a new move-on plan for TLBB Vantage. It's boosted player enthusiasm. Meanwhile, we continue to update and refine TLBB Returns, to ensure its long-term vitality. Turning to our mobile side, mobile game business, we launched an expansion pack for Legacy TLBB Mobile to celebrate the Chinese New Year, along with the diverse online and offline events. The opening for this game stays largely stable on a sequential basis. Next quarter, we will continue to launch expansion packs and content updates. for the TLBG series and other titles to further keep players engaged. Looking ahead, we will remain committed to our top games strategy. On the product development front, we will stay anchored in a user-centric approach and adhere to a systematic R&D processes while driving the implementation of new technologies to enhance efficiency and product success rate. Regarding our pipeline, we seek to further unlock the potential of our TLDB IT. Meanwhile, as we maintain our competitive edge in the MMORPGs, we will continue to diversify our portfolio with multiple types of games and expand our product offerings with global appeal. Now, I'd like to provide an update on the ongoing share repurchase program. As of May 13, 2026, Soho had repurchased 8.7 million ABS from aggregated cost of approximately $116 million. With that, I'll turn now the call to .