Tuya (TUYA) investor relations material

Executive summary

• Q2 2026 revenue reached $92.9 million, up 16% year-over-year, driven by strong PaaS, smart home, and AI-enabled product growth.

• Net profit was $18.6 million, up 48% year-over-year, with net margin improving to 20.1%.

• Gross margin was 46.3%, and GAAP operating margin reached 10%.

• Registered AI developers surpassed 2.09 million, with rapid adoption of new AI tools and global customer base exceeding 5,900.

• Disciplined expense management and positive operating leverage supported sustainable profitability.

Financial highlights

• PaaS revenue was $67.9 million, up 16.9% year-over-year; smart home and robot product revenue was $13.5 million, up 23.2%.

• AI application and other segments revenue was $11.5 million, up 3.9% year-over-year.

• Gross profit for Q2 2026 was $43.0 million, up 11.1% year-over-year; blended gross margin was 46.3%.

• Net cash from operating activities was $6.2 million; total liquid assets at quarter-end were $976 million.

• Receivables turnover days averaged 49 days, and shareholders' equity increased to $1,027.6 million.

Outlook and guidance

• Demand momentum remains strong, especially for AI transformation of legacy devices and new AI-native categories.

• Europe shows robust demand for energy-related and smart home solutions; Southeast Asia and Latin America benefit from telecom partnerships.

• Middle East demand paused due to military conflict; North America faces price sensitivity and product mix adjustments.

• The operating environment is complex but normalizing, with cautious planning and continued investment in AI-driven applications and ecosystem development.

• Gross margin expected to stabilize as upstream cost pressures are managed and new technologies are introduced.