Sohu.com Limited

Ladies and gentlemen, thank you for standing by and good evening. Thank you for joining SOHU second quarter 2026 earnings conference call. At this time, all participants are in a listen only mode. After management prepared remarks, there will be a Q&A session. Today's conference call is being recorded. If you have any objections, you may now disconnect at this time. I would now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of SOHU. Please go ahead.

Thanks, Jovita. Thank you for joining us to discuss SOHU's second quarter 2026 results. On the call are Chairman and Chief User Officer, Dr. Charles Zhang, CFO, John Lee, and Vice President of Finance, James Dunn. Also with us, Chang Youzhi, Dewen Chen, and C.F. Yubing Wang. Before my meeting begins, I would like to remind you of the coming TIABAR statements. Except for the historical information contained herein, the matters discussed on this call may contain forwarding statements. These statements are based on current plans as mentioned in the projections. Therefore, you should not place any rights on them. For looking statements involved in key risks and uncertainties, we caution you that a number of important factors could cause actual results different materially from those containing any forelooking statements. For more information about the potential risks and uncertainties, please refer to the committee's files with the Securities and Exchange Commission, including the most recent annual report on . With that, I will now turn the call over to Dr. Chaoyang Zhang.

Thanks, Huangfu, and thank you everyone for joining our call. In the second quarter of 2026, our marketing services revenues, online game revenues, and the bottom line performance all exceeded our previous guidance. For the social media platform, we continued to refine our products and host diverse events and activities to stimulate communication and interaction among users. which further strengthened the platform's social features and promoted its vigorous and healthy development. Leveraging our differentiated content and events, we were able to address advertisers' needs and continue to explore diversified monetization opportunities. For online games, we remain committed to our long-term Thank you very much. Thank you. Total revenue were $136 million up 7% year-over-year and down 4% quarter-over-quarter. Marketing services revenues were $15 million down 3% year-over-year and up 21% quarter-over-quarter. Online game revenues were $116 million up 10% year-over-year and down 7% quarter-over-quarter. After giving effect to reversal of a tax expense of approximately $13 million due to a reversal of uncertain tax positions previously, gap in net income attributable to Soho.com Limited was $200,000 compared with the net loss of $20 million in the second quarter of 2025 and a net loss of $4 million in the first quarter of 2026. Nungap, after giving effect to the above-mentioned reversal of tax expenses, Nungap net income attributable to Soho.com Limited was $500,000 income, compared with the net loss of $20 million in the second quarter of 2025, and the net loss of $4 million in the first quarter of 2026. Now I'll go through our key businesses in more detail. First, Soho Media Platform, or Soho Social Media Platform. This quarter, we continue to refine our products with upgraded technologies and enhanced user experience and engagement across different scenarios. Leveraging the synergy between various offline activities and our online communities, we boosted active user interactions as well as the generation and dissemination of premium content. These efforts enabled us to expand genuine social connections among users on our platform and foster a virtuous cycle to build a prosperous and healthy social ecosystem. During the quarter, in addition to the 2026 Spring Convention of Sohu Video Influencers , hosted in April where we created opportunities for broadcasters to interact and to establish in-person social connections across various vehicles verticals. We also continued with the signature event of 2026 Kick Off, the year annual K-pop dancing festival and also the 2026 Chinese costume Hanfu model competition. These competitions attracted thousands of young enthusiasts to actively participate, consolidating our appeal and competitiveness in these areas. Based on our long-term endeavor in the dance area, we further consolidated our influence by introducing a series of engaging activities on campus, enhancing our platform's coverage among young people. In addition, we hosted attractive and innovative activities in conjunction with popular events or topics across different verticals, such as the salute to the ultimate explorers, the outdoor vertical, and sports and other verticals, and World Cup-related activities, World Cup watching parties. As a result, a variety of online interest clubs were developing rapidly. These distinctive events and activities garnered significant attention and recognition and spread widely across multiple social platforms, bringing active interactions to our platform and contributing to its vigorous and high-quality development. In May, we successfully hosted our traditional event of 2026 SOFU Annual Science Technology Conference. We invited a host of leading scholars to engage in cross-sector high-end dialogues regarding the latest scientific trends and the developments attracting a large number of scientists and science enthusiasts to our platform. At the same time, we continue to strengthen our leading position in knowledge and science-related live broadcast class with our core IPs on myself, Charles' physics class, and we held live broadcasts related to the National College Entry Examination in Physics and provided relevant learning advice for our audiences. We also kept delivering public science popularization, devoting to narrowing the gap between the public and the cutting-edge science. This month, the English class, Charles' English class, celebrated It's 10th anniversary, 10 years, we've been doing this for 10 years, and has created, conducted for more than 2,000 live broadcasts, contributing, continuing to generate practical content and driving traffic to the platform. So relying on our unique IP product metrics and differentiated campaigns, we're able to tailor marketing solutions for advertisers and tap into more monetization potentials. For example, we organically combine the physics knowledge, physics and delivered in the physics class with industry practices, applications of the applied physics to help brand advertisers to showcase their technological strengths and advance and brand value. Next, turning to our online game businesses. During the quarter, our online game business performed well, with revenues exceeding our prior guidance. In our PC game business, we rolled out a series of crossover content with the renowned wuxia comic franchise storm writers Feng Yun for both regular TLBB PC and TLBB Vintage. We also introduced a new character development system for regular TLBB PC. In addition, we launched a new content and gameplay for TLBB, Return to Enrich the Player Experience. Turning to our mobile game business, we launched an expansion pack to celebrate the anniversary of Legacy TLBB Mobile. as well as certain in-game promotional events which drove an increase in player engagement. Revenue for this game remains stable on a sequential basis. Next quarter, we'll continue to launch expansion packs and content updates for the TLBB series and other titles to further enhance player engagement. Looking ahead, we'll remain committed to our top game strategy on the product development front will adhere to systematic R&D processes. Drive implementation of advanced technologies and enhance our research and development R&D capabilities through continuous experimentation and the validation. Striving to bring more high quality games to the players. Regarding to our pipeline, we seek to further unlock the potential of our TLVB IP. 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 August 6, 2026, Sohu had repurchased 9.4 million ADS from aggregate cost approximately $124 million. Moreover, Sohu today announced that its board of directors authorized repurchases continue on an open-ended basis until the maximum authorized amount of $150 million is reached. With that, I'll now turn the call over to our CFO, Joanna. Please.