Tuya Reports Second Quarter 2026 Unaudited Financial Results

Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA ; HKEX: 2391), a global leading AI cloud platform service provider, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights

Total revenue was US$92.9 million, up approximately 16.0% year-over-year (2Q2025: US$80.1 million).

Platform-as-a-service ( " PaaS " ) revenue was US$67.9 million, up approximately 16.9% year-over-year (2Q2025: US$58.1 million).

AI application & others revenue was US$11.5 million, up approximately 3.9% year-over-year (2Q2025: US$11.1 million).

Smart home & robot product revenue was US$13.5 million, up approximately 23.2% year-over-year (2Q2025: US$10.9 million).

Overall gross margin was 46.3%, down 2.1 percentage points year-over-year (2Q2025: 48.4%).

Gross margin of PaaS was 46.8% (2Q2025: 48.7%).

Operating margin was 10.0%, up 8.6 percentage points year-over-year (2Q2025: 1.4%).

Non-GAAP operating margin was 10.3% (2Q2025: 10.7%).

Net margin was 20.1%, improved by 4.4 percentage points year-over-year (2Q2025: 15.7%).

Non-GAAP net margin was 20.4% (2Q2025: 25.1%).

Net profits were US$18.6 million (2Q2025: US$12.6 million).

Non-GAAP net profits were US$18.9 million (2Q2025: US$20.1 million).

Net cash generated from operating activities was US$6.2 million (2Q2025: US$18.2 million).

Total cash and cash equivalents, time deposits and treasury securities recorded as short- term and long- term investments were US$976.1 million as of June 30, 2026, compared to US$1,017.3 million as of December 31, 2025.

Second Quarter 2026 Operating Highlights

Premium PaaS customers [1 ] for the trailing 12 months ended June 30, 2026 were 318 (2Q2025: 285).

In the second quarter of 2026, the Company's premium PaaS customers contributed approximately 89.5% of its PaaS revenue (2Q2025: approximately 88.6%).

Registered AI developers were over 2,092,000 as of June 30, 2026, up 16.2% from approximately 1,801,000 developers as of December 31, 2025.

The Company defines a premium PaaS customer as a customer as of a given date that contributed more than US$100,000 of PaaS revenue during the immediately preceding 12-month period.

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "In the second quarter, despite a complex global operating environment, the Company continued to demonstrate solid growth momentum. Total revenue increased by 16.0% year over year to US$92.9 million, with PaaS revenue increasing by 16.9% and remaining the Company's primary growth driver. This performance reflected resilient demand across selected home appliance categories and increasing adoption of differentiated, AI-enabled products and solutions. Strategically, we continued to advance the productization and real-world deployment of AI. Shipments of our AI-powered companion product solutions continued to expand, while the launch of Tuya Cobuilder further lowered the barriers to AI hardware development by helping developers move more efficiently from product concept to physical-device deployment. Looking ahead, we will remain focused on AI-native application innovation, AI developer platform development and the global expansion of validated solutions."

Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, "In the second quarter, total revenue reached US$92.9 million, up 16.0% year over year. PaaS revenue was US$67.9 million, up 16.9%, while Smart home & robot product revenue increased by 23.2% to US$13.5 million and AI application & others revenue increased by 3.9% to US$11.5 million. Despite pressure from product and solution mix and semiconductor supply-chain pricing, gross profit increased by 11.1% year over year to US$43.0 million. Non-GAAP profit from operations increased by 11.7% to US$9.6 million, wi...