Tuya Inc. posted solid top-line growth and a return to operating profitability for the six months ended 30 June 2026, underscoring improving demand for its AI-driven cloud services and tighter cost control.
Revenue rose 12.30% year on year to USD 173.82 million. Platform-as-a-Service (PaaS) contributed 73% of total sales, advancing 13.50% to USD 126.97 million on increased customer需求 and expanded product functionality. AI application & others revenue grew 10.10% to USD 23.16 million, while Smart home & robot product sales improved 8.10% to USD 23.69 million.
Group gross profit increased 7.90% to USD 80.95 million, although overall gross margin contracted by 1.8 percentage points to 46.6% on less favourable product mix and semiconductor cost movements. PaaS gross margin slipped 2.1 percentage points to 46.5%.
Stringent expense management drove a notable earnings inflection. Operating expenses fell 14.90% to USD 64.17 million, helped by a sharp 50.70% reduction in general and administrative costs following lower share-based compensation. As a result, Tuya swung to an operating profit of USD 16.78 million from a marginal USD 0.36 million loss a year earlier, lifting operating margin to 9.7% from –0.2%. On a non-GAAP basis, operating margin edged up to 10.2%.
Net profit surged 45.80% to USD 34.41 million, translating into a 19.8% net margin (up 4.6 percentage points). Non-GAAP net profit declined to USD 35.33 million, reflecting a narrower non-GAAP margin of 20.3% versus 25.4% in the prior-year period. Basic and diluted earnings per ADS rose to USD 0.06.
Cash generated from operating activities moderated to USD 12.57 million from USD 27.54 million, while total cash, cash equivalents, time deposits and treasury securities stood at USD 976.10 million at end-June, down from USD 1.02 billion at year-end, primarily due to a USD 37.00 million cash dividend (USD 0.0605 per ADS) paid in April. The group remains debt-free and reported a nil gearing ratio.
Operational metrics stayed resilient. The company served approximately 2,700 PaaS customers, with 318 classified as premium (≥USD 100,000 annual spend) contributing 89.9% of PaaS revenue. Dollar-based net expansion rate for PaaS over the trailing 12 months was 100%. Registered AI developers surpassed 2.09 million, up 16.2% since year-end 2025.
Management highlighted ongoing investments in AI applications and developer-centric tools such as the newly launched “Tuya Cobuilder” workspace, while noting a “complex but normalising” macro environment. No interest-bearing debt, material acquisitions or new treasury-securities purchases were recorded during the period.
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