Tuya Inc. (Tuya) reported solid top-line and earnings growth for the six months ended 30 June 2026, driven by continued expansion of its Platform-as-a-Service (PaaS) business and disciplined cost control.
Revenue climbed 12.30 % year-over-year to US$173.82 million. PaaS contributed US$126.97 million, up 13.50 % and accounting for 73.10 % of total sales. AI Application & Others revenue grew 10.10 % to US$23.16 million, while Smart Home & Robot Product revenue advanced 8.10 % to US$23.69 million.
Overall gross margin slipped 1.80 percentage points to 46.60 % as product mix shifts and semiconductor pricing offset scale benefits. PaaS gross margin narrowed to 46.50 % (-2.10 pp), AI Application & Others to 71.80 % (-1.40 pp), and Smart Home & Robot Product to 22.30 % (-1.80 pp).
Operating expenses fell 14.90 % to US$64.17 million, reflecting lower share-based compensation and tighter general and administrative spending. Operating profit reached US$16.78 million versus a small loss a year earlier, lifting operating margin to 9.70 % (+9.90 pp).
Net profit surged 45.80 % to US$34.41 million, translating to a 19.80 % net margin (+4.60 pp). Non-GAAP net profit was US$35.33 million, with a 20.30 % margin. Basic and diluted earnings per ADS both improved to US$0.06 (H1 2025: US$0.04).
Cash from operations totaled US$12.57 million, down from US$27.54 million due to an inventory build-up. Total cash, cash equivalents, time deposits and treasury securities stood at US$976.10 million as of 30 June 2026 (31 Dec 2025: US$1.02 billion). The balance sheet remained debt-free, with a nil gearing ratio.
During the period Tuya repurchased 0.77 million Class A shares for US$1.63 million and paid a cash dividend of US$37.08 million (US$0.0605 per share). The board authorised a new share repurchase programme of up to 10 % of outstanding Class A and Class B shares.
Key operating metrics stayed robust: PaaS customers were approximately 2,700, total customers about 4,000, and premium PaaS customers rose to 318 (trailing 12-month basis), contributing 89.90 % of PaaS revenue. Dollar-based net expansion rate for PaaS held at 100 %. Registered AI developers increased 16.20 % since year-end to more than 2.09 million.
Management highlighted ongoing investment in AI-native applications, expansion of Tuya’s Cobuilder AI development workspace, and global rollout of energy, home appliance and robot solutions. Despite a ‘complex’ macro backdrop, the company cited normalising project execution and improving demand across core categories.
Tuya reaffirmed its focus on AI product innovation, enhanced developer tools and disciplined capital allocation, underpinned by a strong cash position and zero debt.
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