Tuya Inc. (TUYA): Financial results for Q2 2026
Tuya Inc. (TUYA) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss h
How this was made
The 30-second read
Why it matters
The earnings release shows double‑digit revenue growth and margin improvement, offering a fresh data point for valuation models.
Market read
First‑hand earnings data creates immediate trading relevance for TUYA and related AI platform stocks.
What to watch
Cash burn increased and cash balance fell slightly, indicating potential liquidity pressure.
Tuya Reports Second Quarter 2026 Unaudited Financial Results
Total revenue increased by 16.0% year-over-year to US$92.9 million, all three revenue categories grew, and GAAP net profit increased by 48.0% to US$18.6 million. Gross margin declined to 46.3%, non-GAAP net profit declined to US$18.9 million, and operating cash generation fell to US$6.2 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | US$92.9 million | – | 16.0% |
| Gross profitGAAP | US$43.0 million | – | 11.1% |
| Gross marginGAAP | 46.3% | – | down 2.1 percentage points |
| Operating expensesGAAP | US$33.7 million | – | down 10.4% |
| Non-GAAP operating expensesnon-GAAP | US$33.4 million | – | 10.9% |
| Research and development expensesGAAP | US$23.1 million | – | 3.4% |
| Non-GAAP adjusted research and development expensesnon-GAAP | US$22.8 million | – | – |
| Sales and marketing expensesGAAP | US$8.3 million | – | 6.4% |
| Non-GAAP adjusted sales and marketing expensesnon-GAAP | US$8.3 million | – | – |
| General and administrative expensesGAAP | US$4.7 million | – | down 49.8% |
| Non-GAAP adjusted general and administrative expensesnon-GAAP | US$4.9 million | – | – |
| Other operating income, netGAAP | US$2.4 million | – | – |
| Profit from operationsGAAP | US$9.3 million | – | – |
| Operating marginGAAP | 10.0% | – | up 8.6 percentage points |
| Non-GAAP profit from operationsnon-GAAP | US$9.6 million | – | 11.7% |
| Non-GAAP operating marginnon-GAAP | 10.3% | – | down 0.4 percentage points |
| Net profitGAAP | US$18.6 million | – | 48.0% |
| Net marginGAAP | 20.1% | – | improved by 4.4 percentage points |
| Non-GAAP net profitnon-GAAP | US$18.9 million | – | – |
| Non-GAAP net marginnon-GAAP | 20.4% | – | – |
| Basic net profit per ADSGAAP | US$0.03 | – | – |
| Diluted net profit per ADSGAAP | US$0.03 | – | – |
| Non-GAAP basic net profit per ADSnon-GAAP | US$0.03 | – | – |
| Non-GAAP diluted net profit per ADSnon-GAAP | US$0.03 | – | – |
| Net cash generated from operating activitiesGAAP | US$6.2 million | – | – |
| Cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investmentsGAAP | US$976.1 million | – | – |
| Premium PaaS customers for the trailing 12 months ended June 30, 2026other | 318 | – | – |
| Premium PaaS customer contribution to PaaS revenueother | approximately 89.5% | – | – |
| Registered AI developersother | over 2,092,000 | – | 16.2% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Platform-as-a-service (PaaS)Increasing demand and the Company’s strategic focus on customer needs and product enhancements, despite disruptions in the international business environment due to tariff-related headwinds since April 2025. | US$67.9 million | – | 16.9% |
| AI application & othersAn increase in revenue from cloud-based services and the Company's offering of recurring value-added services with AI application functions. | US$11.5 million | – | 3.9% |
| Smart home & robot productGrowing customer demands. | US$13.5 million | – | 23.2% |
What drove it
- Total revenue increased by 16.0% year-over-year, supported by growth in PaaS, AI application & others, and Smart home & robot product revenue.
- PaaS revenue growth reflected increasing demand, customer-focused product enhancements, and a stable core customer base.
- Premium PaaS customers increased to 318 and contributed approximately 89.5% of PaaS revenue.
- Shipments of AI-powered companion product solutions continued to expand, and Tuya launched Tuya Cobuilder to support AI hardware development.
- GAAP operating expenses decreased by 10.4%, primarily reflecting lower share-based compensation expense in general and administrative expenses.
- Other operating income, net was US$2.4 million, primarily due to the receipt of software value-added tax refunds.
Concerns
- Overall gross margin was 46.3%, down 2.1 percentage points year-over-year, amid product and solution mix changes and semiconductor supply-chain pricing fluctuations.
- PaaS gross margin was 46.8%, compared to 48.7% in the same period of 2025, partly attributable to recent semiconductor supply-chain price fluctuations.
- Non-GAAP net profit was US$18.9 million, compared to US$20.1 million in the same period of 2025, and non-GAAP net margin was 20.4%, compared to 25.1%.
- Net cash generated from operating activities was US$6.2 million, compared to US$18.2 million in the same period of 2025, mainly due to working capital changes in the ordinary course of business.
- The Company cited consumer demand shifts, regional economic divergence, inventory dynamics, foreign exchange and interest-rate volatility, tariffs and trade-policy adjustments, and geopolitical uncertainties as factors that may influence its future trajectory.
What to watch
- Whether demand recovery continues across the Company's core categories amid cautious planning by manufacturers, brands and channel partners.
- PaaS revenue growth and PaaS gross margin amid semiconductor supply-chain pricing fluctuations.
- Expansion of AI-powered companion product solutions, the Tuya Cobuilder platform, and AI application deployment.
- Growth in premium PaaS customers and their contribution to PaaS revenue.
- Operating cash generation and working-capital changes.
- The Company's selective investments in AI-driven applications, platform capabilities and ecosystem development.
Balance sheet and cash flow
- Cash and cash equivalents were US$871,704 as of June 30, 2026, compared to US$890,708 as of December 31, 2025.
- Short-term investments were US$108,173 as of June 30, 2026, compared to US$61,770 as of December 31, 2025.
- Long-term investments were US$12,928 as of June 30, 2026, compared to US$77,213 as of December 31, 2025.
- Total assets were US$1,165,601 as of June 30, 2026, compared to US$1,132,514 as of December 31, 2025.
- Total liabilities were US$137,958 as of June 30, 2026, compared to US$109,909 as of December 31, 2025.
- Total shareholders’ equity was US$1,027,643 as of June 30, 2026, compared to US$1,022,605 as of December 31, 2025.
- Net cash (used in)/generated from investing activities was (US$8.2 million) in the second quarter of 2026, compared to (US$21.2 million) in the same period of 2025.
- Net cash used in financing activities was (US$38.7 million) in the second quarter of 2026, compared to (US$36.9 million) in the same period of 2025.
- Cash and cash equivalents, restricted cash at the end of period were US$871,965 in the second quarter of 2026, compared to US$724,071 in the same period of 2025.
Analysis
Tuya delivered broad-based second-quarter revenue growth under U.S. GAAP. Total revenue increased by 16.0% year-over-year to US$92.9 million. PaaS, the largest revenue category, increased by 16.9% to US$67.9 million, while Smart home & robot product revenue increased by 23.2% to US$13.5 million and AI application & others revenue increased by 3.9% to US$11.5 million. Management attributed PaaS growth to increasing demand and product enhancements, with the core customer base remaining stable despite tariff-related headwinds since April 2025.
Customer and developer indicators expanded. Premium PaaS customers for the trailing 12 months ended June 30, 2026 were 318, compared with 285 in 2Q2025, and these customers contributed approximately 89.5% of PaaS revenue. Registered AI developers were over 2,092,000 as of June 30, 2026, up 16.2% from approximately 1,801,000 developers as of December 31, 2025. The company highlighted expanding shipments of AI-powered companion product solutions and the launch of Tuya Cobuilder.
Profitability improved materially on a GAAP basis, but gross-margin and adjusted-profit trends were softer. Gross profit increased by 11.1% to US$43.0 million, below the revenue growth rate, as gross margin declined to 46.3% from 48.4%. Management cited product and solution mix changes and semiconductor supply-chain pricing fluctuations. GAAP profit from operations was US$9.3 million, compared with US$1.1 million, as operating expenses declined by 10.4%, with general and administrative expenses down 49.8% primarily due to lower share-based compensation expense. Non-GAAP operating margin was 10.3%, compared with 10.7%.
Net profit increased by 48.0% to US$18.6 million and net margin improved to 20.1% from 15.7%. However, non-GAAP net profit was US$18.9 million versus US$20.1 million, and non-GAAP net margin was 20.4% versus 25.1%. Financial income, net was US$10.6 million, while foreign exchange was a net loss of US$1.5 million in the quarter. The difference between GAAP and non-GAAP profitability narrowed because share-based compensation expenses declined.
Liquidity remained substantial, with cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments of US$976.1 million as of June 30, 2026, compared with US$1,017.3 million as of December 31, 2025. Net cash generated from operating activities was US$6.2 million, compared with US$18.2 million in the prior-year period, mainly due to working-capital changes. Tuya gave no quantitative outlook, but described a complex environment with more normalized project execution and demand recovery in several core categories while planning selective investment in AI applications, platform capabilities and ecosystem development.
Management, verbatim
In the second quarter, despite a complex global operating environment, the Company continued to demonstrate solid growth momentum. Total revenue increased by 16.0% year over year to US$92.9 million, with PaaS revenue increasing by 16.9% and remaining the Company’s primary growth driver.
Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya
Despite pressure from product and solution mix and semiconductor supply-chain pricing, gross profit increased by 11.1% year over year to US$43.0 million. Non-GAAP profit from operations increased by 11.7% to US$9.6 million, with non-GAAP operating margin remaining in double digits at 10.3%.
Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya
Not in the filing
stated, not guessed- Quantitative forward guidance was not provided.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Free cash flow was not reported.
- Debt was not reported as a line item.
- Capital-return activity, including repurchases and dividends, was not reported.
- Prior-quarter comparisons for reported operating metrics were not provided.
- A tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Tuya Inc. is a Cayman‑incorporated AI cloud platform listed on NYSE (TUYA) and HKEX (2391). The filing provides its unaudited Q2 2026 results.
Ticker impact
Tuya Inc. filed its Q2 2026 earnings on Form 6‑K, reporting $92.9M revenue and a 10.0% operating margin.
Potential modest price rise in after‑hours trading.
First‑hand filing provides fresh numbers; growth in PaaS and smart‑home revenue signals momentum.
Market effects
Positive for AI cloud and IoT platform providers, may lift peers in the smart‑home space.
Supports Asian tech exposure, especially Hong Kong‑listed AI firms.
Limited to niche AI platform segment; modest global impact.
Counterpoint
Revenue growth may be unsustainable if semiconductor supply constraints tighten.
Key entities
- companyTuya Inc.
AI cloud platform provider reporting Q2 2026 results.
