Tuya (TUYA) Q2 2026 Earnings Call: Revenue Rises 16% on PaaS Growth
Source Tradingkey
Key Takeaways
- Tuya Inc. (NYSE: TUYA) reported Q2 2026 revenue of $92.9 million, up 16.0% year over year and accelerating from 8.3% growth in Q1 2026.
- PaaS remained the main growth engine, with revenue rising 16.9% to $67.9 million. Home appliances, smart door locks, energy products and AI companion solutions were key contributors.
- GAAP operating profit reached $9.3 million, representing a 10.0% margin. Non-GAAP operating profit increased 11.7% to $9.6 million, with a 10.3% margin.
- Blended gross margin was 46.3%, reflecting semiconductor cost volatility and business mix changes. Gross profit nevertheless rose 11.1% to approximately $43.0 million.
- AI companion device shipments continued to expand, while Tuya CoBuilder reduced average AI-powered panel generation time to about 190 seconds across 30 product categories.
- Management said demand recovery remains gradual and uneven. Europe showed strength in energy-related solutions, while North America faced pricing pressure in lower-priced devices and Middle East activity remained constrained by military conflict.
Core Financial Data
| Metric | Q2 2026 | Year-over-year change / commentary |
|---|---|---|
| Total revenue | $92.9 million | +16.0% |
| PaaS revenue | $67.9 million | +16.9% |
| AI application and other revenue | $11.5 million | +3.9% |
| Smart home and robot products revenue | $13.5 million | +23.2% |
| Gross profit | Approximately $43.0 million | +11.1% |
| Blended gross margin | 46.3% | Affected by semiconductor costs and business mix |
| PaaS gross margin | 46.8% | — |
| AI application and other gross margin | 72.0% | — |
| Smart home and robot products gross margin | 21.9% | — |
| GAAP operating expenses | $33.7 million | -10.4%, mainly due to lower share-based compensation |
| GAAP operating profit | $9.3 million | 10.0% operating margin |
| Non-GAAP operating profit | $9.6 million | +11.7%; 10.3% operating margin |
| Net profit | $18.6 million | — |
| Non-GAAP net profit | $18.9 million | Declined due to lower financial income and foreign exchange losses |
| Operating cash flow | $6.2 million | Remained positive |
| Total liquid assets | Approximately $976 million | Cash, term deposits and treasury securities |
Business and Operating Performance
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