Tuya Inc. (abbreviated below as “Tuya”) reported unaudited results for the three months ended 30 June 2026, revealing solid top-line growth and stronger profitability despite a softer gross margin.
Revenue and Segment Performance • Total revenue rose 16.0% year on year (YoY) to US$92.93 million. • Platform-as-a-Service (PaaS) revenue advanced 16.9% YoY to US$67.88 million, continuing to represent the firm’s primary growth engine. • Smart Home & Robot Product revenue expanded 23.2% YoY to US$13.46 million, reflecting sustained demand across consumer categories. • AI Application & Others revenue increased 3.9% YoY to US$11.53 million, supported by higher take-up of cloud-based services.
Profitability • Overall gross profit improved 11.1% YoY to US$43.05 million; gross margin narrowed to 46.3% from 48.4% a year earlier, pressured by product mix and semiconductor cost fluctuations. • Operating profit reached US$9.31 million versus US$1.09 million in Q2 2025, lifting operating margin to 10.0% (Q2 2025: 1.4%). • Net profit climbed 48.0% YoY to US$18.63 million, pushing net margin to 20.1% from 15.7%. • On a non-GAAP basis, operating margin was 10.3% (Q2 2025: 10.7%) and net margin was 20.4% (Q2 2025: 25.1%).
Cost Dynamics • Research & development expenses grew 3.4% YoY to US$23.13 million, offset by lower share-based compensation. • Sales & marketing costs increased 6.4% YoY to US$8.33 million. • General & administrative expenses almost halved to US$4.72 million, reflecting reduced share-based payments. • Other operating income of US$2.43 million was mainly driven by software value-added tax refunds.
Cash Flow and Liquidity • Net cash generated from operating activities totaled US$6.17 million, compared with US$18.19 million in the prior-year quarter, mainly due to working-capital movements. • Cash, cash equivalents, time deposits and treasury securities stood at US$976.10 million as of 30 June 2026 (31 December 2025: US$1.02 billion), which management views as sufficient for current liquidity and investment plans.
Operational Metrics • The number of premium PaaS customers (≥ US$0.10 million revenue over the trailing 12 months) reached 318, up from 285 a year earlier, accounting for 89.5% of PaaS revenue. • Registered AI developers exceeded 2.09 million, up 16.2% from year-end 2025.
Management Commentary Chief Executive Officer Jerry Wang highlighted “solid growth momentum” driven by resilient demand for AI-enabled products and the rollout of new solutions such as Tuya Cobuilder. Chief Financial Officer Alex Yang noted that the company maintained double-digit non-GAAP operating margin while continuing to invest in AI platform capabilities and global expansion.
Outlook Management described the operating landscape as “complex” but signaled ongoing normalization in demand across core categories. Tuya intends to sustain disciplined execution and selective investment in AI-driven applications, platform enhancements and ecosystem development, while monitoring external variables such as tariffs, supply-chain pricing and macroeconomic conditions.
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