Tuya Inc. announced its financial results for the quarter ended March 31, 2026. Total revenue for Q1 2026 increased by 8.3% to $80.9 million, compared to $74.7 million in the same period of 2025. Gross profit for the quarter rose by 4.5% to $37.9 million from $36.3 million a year earlier. The gross margin for Q1 2026 was 46.9%, compared to 48.5% in Q1 2025.
Net profit for the first quarter of 2026 was $15.8 million, representing a significant increase of 43.2% from $11.0 million in the prior-year period, demonstrating continued profitability and improved leverage despite some impact from interest rate reductions. Non-GAAP net profit for the quarter was $16.4 million, compared to $19.3 million in Q1 2025. The net profit margin improved to 19.5% in Q1 2026, up 4.7 percentage points from 14.8% a year ago. The non-GAAP net profit margin was 20.3% for the quarter, compared to 25.8% in the same period last year, primarily affected by interest rate fluctuations.
Over the trailing twelve months ended March 31, 2026, the company had 306 premium PaaS customers, up from 287 in Q1 2025. In the first quarter of 2026, these premium PaaS customers contributed approximately 89.3% of total PaaS revenue, compared to about 88.7% in the year-ago quarter. As of March 31, 2026, registered AI developers exceeded 1.97 million, a 9.4% increase from approximately 1.801 million developers as of December 31, 2025.
Mr. Jerry Wang, Founder and CEO of Tuya, commented, "In the first quarter, despite ongoing external uncertainties, the company demonstrated robust growth momentum and execution. Since the fourth quarter, benefiting from the continued recovery in downstream demand, our business scale has maintained an expansion trend. Total revenue grew by 8.3% year-over-year, with the growth rate further improving from the previous quarter and maintaining positive growth for multiple consecutive quarters. Gross margin remained at a healthy level, reflecting the continuous enhancement of our product value proposition and platform competitiveness. Strategically, the company is steadily advancing its AI-driven development path, accelerating the translation of AI capabilities from the platform layer to the application layer and scenario-based products, with implementation across multiple scenarios. We are continuously iterating developer tools and platform capabilities, enabling global developers to access and apply cutting-edge AI technology with lower costs and higher efficiency. Revenue from AI-related businesses continues to grow, reflecting steady commercialization progress and an accelerated implementation pace. Demand for AI-native applications in consumer scenarios continues to heat up, driving the large-scale application of Physical AI in real life. The company will continue to promote the global expansion of verified solutions and further strengthen the developer ecosystem, exploring long-term opportunities in the AI application market together with industry partners. Looking ahead, supported by a stable operating model and a solid financial foundation, the company will continue to focus on three key directions: AI application innovation, global solution expansion, and developer ecosystem construction, to continuously enhance its long-term value creation capabilities."
Mr. Jessie Liu, Director and CFO of Tuya, added, "In the first quarter, the company achieved total revenue of $80.9 million, an 8.3% year-over-year increase, with PaaS revenue growing by 9.8% year-over-year, indicating a continued steady recovery in overall business. Notably, revenue from AI applications and other businesses grew by 16.9% year-over-year, maintaining rapid growth and becoming a key engine driving the company's structural growth. In terms of profitability, the company continued to release operating leverage, with the GAAP operating profit margin reaching 9.2% and the non-GAAP operating profit margin at 10.0%. The net profit margin improved to 19.5%, primarily due to optimized operational efficiency and continuous improvement in the expense structure. Financially, the company remains robust. As of the end of the quarter, the combined balance of cash and various liquid investments exceeded $1.0 billion, providing ample resource security and strategic flexibility for the company's continued investment in the AI field and global expansion. Overall, the performance this quarter not only reflects the stability of the core platform business and improved operational efficiency but also indicates that AI-related businesses are gradually becoming a significant pillar for the company's long-term growth."
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