Tuya Inc. reported second-quarter 2026 revenue of $92.9 million, a 16% increase from the prior year and ahead of Wall Street’s $89.49 million estimate. The growth rate accelerated from 8.3% in the first quarter, driven by expansion across its platform and hardware segments.
Platform-as-a-Service (PaaS) revenue reached $67.9 million, up 16.9% year-over-year, while smart home and robot products generated $13.5 million, a 23.2% increase. AI application and other revenue rose 3.9% to $11.5 million. Gross margin improved to 46.3%, with PaaS margins at 46.8% and AI-related segments at 72%, the latter expected to approach 75%-80% over time.
Operating profit under GAAP totaled $9.3 million, representing a 10% margin, while non-GAAP operating profit rose 11.7% to $9.6 million with a 10.3% margin. Net profit stood at $18.6 million, with non-GAAP net profit at $18.9 million. Operating cash flow was $6.2 million, and total liquid assets amounted to $976 million.
Management highlighted Tuya CodeBuilder’s rapid expansion, now covering 30 product categories within six weeks and reducing average panel generation time to 190 seconds. The company’s developer ecosystem grew to 2.09 million registered developers, with 318 PaaS premium customers contributing 89.5% of PaaS revenue. During China’s June 18 Shopping Festival, the Xuzu AI toy brand—built on Tuya’s platform—ranked first in its category on Tmall.
Regional performance varied, with Europe and China showing strength in energy-related and AI companion devices, respectively. Southeast Asia and Latin America scaled through telecom partnerships, while North America remained price-sensitive. Operations in the Middle East were paused due to military conflict.
Tuya’s stock closed at $1.76 in regular trading, down 2.22%, but rose 1.70% in after-hours trading to $1.79. Analyst price targets range from $3.10 to $3.87, implying 76% to 120% upside potential from current levels.
