Tuya Inc. (NYSE: TUYA) (HKEX: 2391), a global AI cloud platform service provider, reported second-quarter 2026 revenue of $92.9 million on Aug 24, 2026, up 16% from $80.1 million in the same period of 2025.
#Tuya's PaaS Revenue Rises 16.9% to $67.9 Million
Platform-as-a-Service revenue, Tuya's largest segment, rose 16.9% to $67.9 million from $58.1 million a year earlier. The company said the increase reflected demand and its strategic focus on customer needs and product enhancements.
AI application and others revenue increased 3.9% to $11.5 million from $11.1 million, which the company attributed to higher revenue from cloud-based services.
Smart home and robot product revenue rose 23.2% to $13.5 million from $10.9 million, which the company said reflected growing customer demand.
"We will remain focused on AI-native application innovation, AI developer platform development and the global expansion of validated solutions," said Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, in the earnings release.
#Tuya's Net Profit Rises 48% as Margins Improve
Gross profit increased 11.1% to $43 million, though overall gross margin fell to 46.3% from 48.4%, which the company linked to product and solution mix changes and semiconductor supply-chain pricing. PaaS gross margin was 46.8%, compared with 48.7% a year earlier.
Operating expenses decreased 10.4% to $33.7 million from $37.7 million. Research and development expenses rose 3.4% to $23.1 million, reflecting higher employee and outsourced labor costs, partly offset by lower share-based compensation.
Sales and marketing expenses increased 6.4% to $8.3 million on higher employee and marketing costs. General and administrative expenses fell 49.8% to $4.7 million, mainly due to lower share-based compensation as prior equity awards continued to amortize.
Other operating income was $2.4 million, which the company said mainly reflected the receipt of software value-added tax refunds.
Profit from operations was $9.3 million, compared with $1.1 million in the same period of 2025. Operating margin rose to 10% from 1.4%. Non-GAAP operating margin was 10.3%, compared with 10.7% a year earlier.
Net profit was $18.6 million, up 48% from $12.6 million. Net margin improved to 20.1% from 15.7%. Non-GAAP net profit was $18.9 million, compared with $20.1 million a year earlier, as non-GAAP net margin eased to 20.4% from 25.1%.
"In the second quarter, total revenue reached $92.9 million, up 16% year over year," said Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, in the earnings release. "We ended the quarter with approximately $976.1 million in cash and cash equivalents, time deposits and treasury securities, providing continued flexibility to support our AI capabilities, global expansion and long-term strategic investments."
Net cash generated from operating activities was $6.2 million, down from $18.2 million, which the company attributed to working capital changes in the ordinary course of business.
Tuya held $976.1 million in cash, time deposits and treasury securities recorded as short-term and long-term investments as of June 30, 2026, compared with $1,017.3 million as of December 31, 2025.
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#Tuya's Registered AI Developer Base Tops 2 Million
Premium PaaS customers for the trailing 12 months ended June 30, 2026 totaled 318, compared with 285 for the corresponding period a year earlier. These customers accounted for approximately 89.5% of PaaS revenue, compared with approximately 88.6% in the same period of 2025.
Registered AI developers exceeded 2,092,000 as of June 30, 2026, up 16.2% from approximately 1,801,000 as of December 31, 2025.
Management described the operating environment as complex but showing signs of normalization, with more consistent project execution and demand recovery across several core categories, according to the earnings release.
Management said Tuya will continue to invest selectively in AI-driven applications, platform capabilities and ecosystem development while maintaining disciplined execution, though shifts in consumer demand, foreign exchange and interest-rate volatility, and tariff and trade-policy adjustments remain risks to that outlook.