Tuya Q2 Earnings Call Highlights

Tuya’s Q2 revenue rose 16% year over year to $92.9 million , accelerating from 8.3% growth in Q1. PaaS revenue increased 16.9% and smart home and robot products grew 23.2%, while gross profit reached approximately $43 million. The company remained profitable, reporting approximately $9.3 million in GAAP operating profit , $18.6 million in net profit and $6.2 million in operating cash flow. Tuya ended the quarter with roughly $976 million in liquid assets. Management is prioritizing an AI-focused strategy spanning AI home, energy, robots and consumer hardware, supported by its new Tuya Cobuilder developer tool. Regional demand was strongest in Europe, while Middle East activity remained paused and North American price-sensitive device demand fluctuated.

Tuya NYSE: TUYA reported second-quarter 2026 revenue of $92.9 million, up 16% from a year earlier and accelerating from 8.3% growth in the first quarter, as its platform-as-a-service business and smart home and robot products posted double-digit gains. Founder and CEO Jerry Wang said the company maintained growth despite what he described as a complex global operating environment. He attributed the performance to increasing smart-product penetration, steady demand in home appliances, adoption of differentiated products such as smart door locks, and demand for emerging AI-enabled categories.

“Our total revenue reached $92.9 million, a year-over-year increase of 16%, with growth accelerating from the first quarter,” Wang said. He added that the company is pursuing an AI-focused strategy centered on platformization, productization and scenario-based deployment rather than solely on foundation models or standalone features.

Co-Founder and CFO Alex Yang said PaaS revenue rose 16.9% year over year to approximately $67.9 million, making it the company’s primary growth driver. Tuya’s trailing-12-month PaaS premium customer count stood at 318 at the end of the quarter, and those customers accounted for about 89.5% of PaaS revenue. AI application and other revenue increased 3.9% to approximately $11.5 million, driven primarily by cloud-based services including video cloud storage. Smart home and robot products revenue increased 23.2% to approximately $13.5 million, supported by customer demand for smart-security, energy and other differentiated products. Yang said PaaS growth was led by home appliances, smart door locks, electronics, energy products and AI companion product solutions. Home-appliance growth reflected customer rollouts of smart-enabled models, geographic expansion, a larger contribution from smart-enabled products and the migration of certain overseas brand projects from legacy solutions to Tuya’s platform. Smart-door-lock demand was supported by adoption of audio-video and low-power Wi-Fi solutions, according to Yang. However, he said demand recovery in traditional lighting and IP cameras remained comparatively slow, demonstrating differing trends across product categories and regions.

Tuya’s blended gross margin was 46.3% in the quarter. Segment gross margins were 46.8% for PaaS, 72% for AI application and other revenue, and 21.9% for smart home and robot products. Gross profit increased 11.1% from a year earlier to approximately $43 million. Yang said margin changes were driven by semiconductor-cost volatility and changes in business mix. The company generally passed increased costs through to customers during the quarter, prioritizing gross-profit maintenance rather than holding gross-margin percentages steady. He said the company had built inventory and cost buffers and expects to work toward more stable material costs over the next two or thr...