Tuya Reports First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
Tuya (NYSE: TUYA) reported unaudited Q1 2026 revenue of US$80.9 million, up 8.3% year-over-year. PaaS revenue rose 9.8% to US$59.0 million, while AI application & others grew 16.9% to US$11.6 million. Smart home & robot product revenue declined 6.9% to US$10.2 million.
Overall gross margin was 46.9%, down from 48.5%. Operating margin improved to 9.2% from a negative 1.9%. Net profit increased to US$15.8 million, and net margin reached 19.5%. Cash and investments totaled about US$1.02 billion, with operating cash flow of US$6.4 million.
AI-generated analysis. Not financial advice.
Positive
- Total revenue increased 8.3% year-over-year to US$80.9 million
- PaaS revenue grew 9.8% year-over-year to US$59.0 million
- AI application & others revenue rose 16.9% to US$11.6 million
- Operating result swung to US$7.5 million profit from US$1.5 million loss
- Operating expenses decreased 19.3% to US$30.4 million
- Net profit grew to US$15.8 million from US$11.0 million
- Net margin improved to 19.5% from 14.8%
- Premium PaaS customers increased to 306, contributing 89.3% of PaaS revenue
- Registered AI developers grew to over 1,970,000, up 9.4% since December 2025
- Cash and liquid investments remained strong at US$1,017.1 million
Negative
- Overall gross margin decreased to 46.9% from 48.5%
- PaaS gross margin declined to 46.1% from 48.4%
- AI application & others gross margin fell to 71.7% from 74.4%
- Smart home & robot product revenue dropped 6.9% to US$10.2 million
- Smart home & robot product gross margin declined to 23.0% from 25.7%
- Non-GAAP net profit decreased to US$16.4 million from US$19.3 million
- Net cash from operating activities fell to US$6.4 million from US$9.4 million
News Market Reaction – TUYA
On the day this news was published, TUYA declined 4.07%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TUYA gained 3.33% while peers showed mixed moves: GB (+0.13%), BASE (+0.04%), RZLV (+12.4%) versus PRGS (‑4.77%) and FLYW (‑3.18%). The pattern points to company-specific factors rather than a broad software rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 24 | Quarterly earnings | Positive | +8.9% | Q3 2025 revenue growth with margins turning positive and strong cash generation. |
| May 20 | Quarterly earnings | Positive | -3.5% | Q1 2025 strong growth and net profit but shares fell post‑report. |
| Nov 18 | Quarterly earnings | Positive | -8.1% | Q3 2024 revenue up 33.6% with high non‑GAAP margins and cash build. |
| May 20 | Quarterly earnings | Positive | -5.1% | Q1 2024 strong revenue growth and loss reduction but negative price reaction. |
Across past earnings releases, shares often moved negatively despite upbeat revenue and profitability trends, with only 1 of 4 events showing a positive next-day reaction.
Recent earnings reports show Tuya steadily growing revenue and improving profitability. Q1 2024 and Q3 2024 highlighted strong double‑digit growth, while Q1 2025 and Q3 2025 emphasized sustained net profitability and rising margins with cash balances above US$1.0B. Despite this, three of four prior earnings events saw negative price reactions, so today’s positive move contrasts with a history of post‑earnings weakness.
Historical Comparison
Past earnings headlines for TUYA saw an average move of -1.95%, often negative despite positive fundamentals. Today’s +3.33% reaction to Q1 2026 results marks a reversal of that pattern.
Earnings releases from Q1 2024 through Q3 2025 show a progression from rapid top‑line growth with narrowing losses to consistent net profitability and positive operating margins, with cash balances remaining above US$1.0B. The current Q1 2026 report continues this theme with higher revenue and maintained profitability.
Market Pulse Summary
This announcement details Q1 2026 results with total revenue of US$80.9M, net profit of US$15.8M, and operating margin of 9.2%. Growth was led by PaaS and AI application revenues, while gross margin eased to 46.9%. Historically, earnings have brought mixed share reactions despite improving profitability and cash exceeding US$1.0B. Investors may watch segment mix, margin trends, and continued traction in higher‑margin AI offerings in upcoming quarters.
Key Terms
platform-as-a-service ("paas") technical
software-as-a-service ("saas") technical
non-gaap financial
ads financial
AI-generated analysis. Not financial advice.
- Total revenue was
US , up approximately$80.9 million 8.3% year-over-year (1Q2025:US ).$74.7 million - Platform-as-a-service ("PaaS") revenue was
US , up approximately$59.0 million 9.8% year-over-year (1Q2025:US ).$53.7 million - AI application & others[1] (formerly known as Software-as-a-service ("SaaS") and others) revenue was
US , up approximately$11.6 million 16.9% year-over-year (1Q2025:US ).$10.0 million - Smart home & robot product[2] (formerly known as Smart solution) revenue was
US , down approximately$10.2 million 6.9% year-over-year (1Q2025:US ).$11.0 million - Overall gross margin was
46.9% , down 1.6 percentage points year-over-year (1Q2025:48.5% ). Gross margin of PaaS was46.1% (1Q2025:48.4% ). - Operating margin was
9.2% , improved by 11.1 percentage points year-over-year (1Q2025: negative1.9% ). Non-GAAP operating margin was10.0% (1Q2025:9.1% ). - Net margin was
19.5% , improved by 4.7 percentage points year-over-year (1Q2025:14.8% ). Non-GAAP net margin was20.3% (1Q2025:25.8% ). - Net profits were
US (1Q2025:$15.8 million US ). Non-GAAP net profits were$11.0 million US (1Q2025:$16.4 million US ).$19.3 million - Net cash generated from operating activities was
US (1Q2025:$6.4 million US ).$9.4 million - Total cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were
US as of March 31, 2026, compared to$1,017.1 million US as of December 31, 2025.$1,017.3 million
|
For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."
- Premium PaaS customers[1] for the trailing 12 months ended March 31, 2026 were 306 (1Q2025: 287). In the first quarter of 2026, the Company's premium PaaS customers contributed approximately
89.3% of its PaaS revenue (1Q2025: approximately88.7% ). - Registered AI developers were over 1,970,000 as of March 31, 2026, up
9.4% from approximately 1,801,000 developers as of December 31, 2025.
|
Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "In the first quarter, despite ongoing external uncertainties and certain regional disruptions, we continued to demonstrate solid growth momentum and strong execution capabilities. Since the fourth quarter, we have benefited from a continued recovery in downstream demand, supporting the ongoing expansion of our business scale. Total revenue increased by
Strategically, we continue to pursue AI-driven development, harnessing AI capabilities to accelerate the deployment of application-level solutions and scenario-based products, with implementation across multiple scenarios. We continued to iterate our developer tools and platform capabilities, enabling global developers to access and apply the most advanced AI technologies at lower cost and with greater efficiency. This is reflected in the continued growth of our AI-related business revenue, highlighting our steady progress in commercialization and accelerated deployment. Meanwhile, demand for AI-native applications in consumer scenarios continued to rise, driving the scaled application of Physical AI in real-life settings. At the same time, we are expanding the global rollout of validated solutions and further strengthening our developer ecosystem, working with industry partners to jointly explore the long-term opportunities in the AI application market. Looking ahead, supported by our resilient business model and solid financial foundation, we remain focused on AI application innovation, global solution expansion and developer ecosystem development, continuously enhancing our long-term value creation capabilities.
Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, "In the first quarter, we delivered total revenue of
Meanwhile, profitability continued to improve, with GAAP operating margin reaching
First Quarter 2026 Unaudited Financial Results
REVENUE
Total revenue in the first quarter of 2026 increased by
- PaaS revenue in the first quarter of 2026 increased by
9.8% toUS from$59.0 million US in the same period of 2025, primarily due to increasing demand compared with the same period of 2025 and the Company's strategic focus on customer needs and product enhancements, despite the disruptions in the international business environment due to tariff-related headwinds since April 2025. Our core customer base remained stable.$53.7 million - AI application & others revenue in the first quarter of 2026 increased by
16.9% toUS from$11.6 million US in the same period of 2025, primarily due to an increase in revenue from cloud based services. During the quarter, the Company remained committed to offering recurring value-added services with AI application functions.$10.0 million - Smart home & robot product revenue in the first quarter of 2026 decreased by
6.9% toUS from$10.2 million US in the same period of 2025.$11.0 million
GROSS PROFIT AND GROSS MARGIN
Total gross profit in the first quarter of 2026 increased by
- PaaS gross margin in the first quarter of 2026 was
46.1% , compared to48.4% in the same period of 2025, partly attributable to recent price fluctuations in the semiconductor supply chain. - AI application & others gross margin in the first quarter of 2026 was
71.7% , compared to74.4% in the same period of 2025. - Smart home & robot product gross margin in the first quarter of 2026 was
23.0% , compared to25.7% in the same period of 2025.
Gross margin fluctuated primarily due to changes in products and solutions mix. As an AI developer platform with a rich ecosystem of smart devices and applications, the Company remains focused on AI offering with compelling value propositions while maintaining economic efficiency.
OPERATING EXPENSES
Operating expenses decreased by
- Research and development expenses in the first quarter of 2026 were
US , down$22.0 million 3.7% fromUS in the same period of 2025, primarily due to lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, partially offset by higher employee-related cost and ongoing investments in research and development capabilities. Non-GAAP adjusted research and development expenses in the first quarter of 2026 were$22.8 million US , compared to$21.6 million US in the same period of 2025.$20.8 million - Sales and marketing expenses in the first quarter of 2026 were
US , down$7.4 million 11.1% fromUS in the same period of 2025, primarily because of lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized and lower operating expenses, partially offset by higher employee-related cost associated with regular team movements. Non-GAAP adjusted sales and marketing expenses in the first quarter of 2026 were$8.3 million US , compared to$7.3 million US in the same period of 2025.$7.6 million - General and administrative expenses in the first quarter of 2026 were
US , down$4.3 million 51.7% fromUS in the same period of 2025, primarily because of lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized. Non-GAAP adjusted general and administrative expenses in the first quarter of 2026 were$8.9 million US , compared to$4.1 million US in the same period of 2025.$3.4 million - Other operating income, net in the first quarter of 2026 was
US , primarily due to the receipt of software value-added tax refunds.$3.3 million
LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN
Profit from operations in the first quarter of 2026 was
Operating margin in the first quarter of 2026 was
NET PROFIT AND NET MARGIN
Net profit in the first quarter of 2026 was
Net margin in the first quarter of 2026 was
BASIC AND DILUTED NET PROFIT PER ADS
Basic and diluted net profit per ADS was
Non-GAAP basic and diluted net profit per ADS was
CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS
Cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were
NET CASH GENERATED FROM OPERATING ACTIVITIES
Net cash generated from operating activities in the first quarter of 2026 was
For further information on non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."
Business Outlook
The overall operating environment remains complex, while continuing to show signs of normalization. Participants across the value chain – including manufacturers, brands, and channel partners – are maintaining a cautiously optimistic to planning. At the same time, we have observed more normalized project execution and continuous demand recovering across several of our core categories, suggesting that the market is gradually moving from adjustment toward a more stable operating rhythm.
Meanwhile, global AI development is entering a new stage of application-led growth. As AI technologies continue to evolve from foundational capabilities toward real-world deployment, enterprises and consumers are increasingly focused on practical use cases, scalable implementation, and scenario-based integration with physical devices. This trend is accelerating the convergence of AI and smart hardware, and is creating new opportunities for application innovation, product expansion, and ecosystem collaboration across a wide range of verticals.
Against this backdrop, Tuya continues to advance its AI-driven strategy by strengthening its AI developer platform, expanding application-level capabilities, and supporting broader deployment across diverse smart device and industry scenarios. The ongoing evolution of AI applications, together with its platform capabilities, ecosystem strengths, and global developer base, will continue to support the creation of diversified, higher-value opportunities over the long term.
In this environment, the Company will continue to maintain disciplined execution while selectively investing in AI-driven applications, platform capabilities, and ecosystem development. In response to this evolving market environment, the Company will continue to iterate and improve its products and services, enhance both software and hardware capabilities, and further support customers and developers in bringing AI-driven applications into practical deployment. At the same time, the Company recognizes that its future trajectory may continue to be influenced by a range of external factors, including shifts in consumer demand, regional economic divergence, inventory dynamics, foreign exchange and interest rate volatility, tariffs and trade policy adjustments, and broader geopolitical uncertainties.
Conference Call Information
The Company's management will hold a conference call at 08:30 P.M.
Participants Online Webcast Registration: https://edge.media-server.com/mmc/p/ac9ndekb
Participants Call Registration: https://register-conf.media-server.com/register/BIb902b42554034c629830165e2265dee8
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.tuya.com.
About Tuya Inc.
Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading AI cloud platform service provider with a mission to build an AI developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built AI cloud platform with cloud and generative AI capabilities that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, AI application & others and Smart home & robot products for developers of smart device, commercial applications, and industries. Through its AI developer platform, Tuya has activated a vibrant global developer community of brands, OEMs, AI agents, system integrators and independent software vendors to collectively strive for smart solutions ecosystem embodying the principles of green and low-carbon, security, high efficiency, agility, and openness.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP financial measures, such as non-GAAP operating expenses, non-GAAP profit from operations (including non-GAAP operating margin), non-GAAP net profit (including non-GAAP net margin), and non-GAAP basic and diluted net profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in
Non-GAAP financial measures are not defined under
Reconciliations of Tuya's non-GAAP financial measures to the most comparable
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Investor Relations Contact
Tuya Inc.
Investor Relations
Email: ir@tuya.com
HL Strategy
Haiyan LI-LABBE
Email: hl@hl-strategy.com
Piacente Financial Communications
China Tel: +86-10-6508-0677
Email: tuya@thepiacentegroup.com
TUYA INC. | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
AS OF DECEMBER 31, 2025 AND MARCH 31, 2026 | ||
(All amounts in US$ thousands ("US$"), | ||
except for share and per share data, unless otherwise noted) | ||
As of | As of | |
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | 890,708 | 912,447 |
Restricted cash | - | 8 |
Short-term investments | 61,770 | 38,705 |
Accounts receivable, net | 13,193 | 13,028 |
Notes receivable, net | 10,111 | 11,066 |
Inventories, net | 30,943 | 43,699 |
Prepayments and other current assets, net | 16,486 | 19,457 |
Total current assets | 1,023,211 | 1,038,410 |
Non-current assets: | ||
Restricted cash | 245 | 249 |
Property, equipment and software, net | 15,653 | 25,143 |
Land use rights, net | 8,843 | 8,936 |
Operating lease right-of-use assets, net | 5,649 | 9,890 |
Long-term investments | 77,213 | 78,843 |
Other non-current assets, net | 1,700 | 988 |
Total non-current assets | 109,303 | 124,049 |
Total assets | 1,132,514 | 1,162,459 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | 31,778 | 38,836 |
Advances from customers | 29,330 | 32,083 |
Deferred revenue, current | 9,732 | 9,148 |
Accruals and other current liabilities | 33,261 | 65,585 |
Incomes tax payables | 142 | 244 |
Lease liabilities, current | 1,985 | 3,638 |
Total current liabilities | 106,228 | 149,534 |
Non-current liabilities: | ||
Lease liabilities, non-current | 3,329 | 6,418 |
Deferred revenue, non-current | 352 | 683 |
Total non-current liabilities | 3,681 | 7,101 |
Total liabilities | 109,909 | 156,635 |
TUYA INC. | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||
AS OF DECEMBER 31, 2025 AND MARCH 31, 2026 | ||
(All amounts in US$ thousands ("US$"), | ||
except for share and per share data, unless otherwise noted) | ||
As of | As of | |
Shareholders' equity: | ||
Ordinary shares | - | - |
Class A ordinary shares | 27 | 27 |
Class B ordinary shares | 4 | 4 |
Treasury stock | (12) | (12) |
Additional paid-in capital | 1,549,389 | 1,512,933 |
Accumulated other comprehensive loss | (14,842) | (10,943) |
Accumulated deficit | (511,961) | (496,185) |
Total shareholders' equity | 1,022,605 | 1,005,824 |
Total liabilities and shareholders' equity | 1,132,514 | 1,162,459 |
TUYA INC. | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF | ||
COMPREHENSIVE INCOME | ||
(All amounts in US$ thousands ("US$"), | ||
except for share and per share data, unless otherwise noted) | ||
For the Three Months Ended | ||
March 31, | March 31, | |
Revenue | 74,687 | 80,882 |
Cost of revenue | (38,436) | (42,984) |
Gross profit | 36,251 | 37,898 |
Operating expenses: | ||
Research and development expenses | (22,810) | (21,972) |
Sales and marketing expenses | (8,347) | (7,420) |
General and administrative expenses | (8,929) | (4,315) |
Other operating incomes, net | 2,383 | 3,281 |
Total operating expenses | (37,703) | (30,426) |
(Loss)/profit from operations | (1,452) | 7,472 |
Other income | ||
Other non-operating income, net | 767 | 767 |
Financial income, net | 12,395 | 9,496 |
Foreign exchange gain/(loss), net | 44 | (1,526) |
Profit before income tax expense | 11,754 | 16,209 |
Income tax expense | (737) | (433) |
Net profit | 11,017 | 15,776 |
Net profit attributable to Tuya Inc. | 11,017 | 15,776 |
Net profit attribute to ordinary shareholders | 11,017 | 15,776 |
Net profit | 11,017 | 15,776 |
Other comprehensive income | ||
Foreign currency translation | 177 | 3,899 |
Total comprehensive income attributable to Tuya Inc. | 11,194 | 19,675 |
TUYA INC. | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF | ||
COMPREHENSIVE INCOME (CONTINUED) | ||
(All amounts in US$ thousands ("US$"), | ||
except for share and per share data, unless otherwise noted) | ||
For the Three Months Ended | ||
March 31, | March 31, | |
Net profit attributable to Tuya Inc. | 11,017 | 15,776 |
Net profit attribute to ordinary shareholders | 11,017 | 15,776 |
Weighted average number of ordinary shares used in | ||
- Basic | 606,308,258 | 615,523,100 |
- Diluted | 608,490,640 | 616,307,696 |
Net profit per share attributable to ordinary shareholders, | ||
- Basic | 0.02 | 0.03 |
- Diluted | 0.02 | 0.03 |
Share-based compensation expenses were included in: | ||
Research and development expenses | 2,016 | 372 |
Sales and marketing expenses | 738 | 86 |
General and administrative expenses | 5,521 | 170 |
TUYA INC. | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
(All amounts in US$ thousands ("US$"), | ||
except for share and per share data, unless otherwise noted) | ||
For the Three Months Ended | ||
March 31, | March 31, | |
Net cash generated from operating activities | 9,352 | 6,399 |
Net cash generated from investing activities | 101,183 | 14,924 |
Net cash generated from financing activities | 2 | - |
Effect of exchange rate changes on cash and | 32 | 428 |
Net increase in cash and cash equivalents, restricted cash | 110,569 | 21,751 |
Cash and cash equivalents, restricted cash at the | 653,384 | 890,953 |
Cash and cash equivalents, restricted cash at the end of period | 763,953 | 912,704 |
TUYA INC. | ||
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST | ||
DIRECTLY COMPARABLE FINANCIAL MEASURES | ||
(All amounts in US$ thousands ("US$"), | ||
except for share and per share data, unless otherwise noted) | ||
For the Three Months Ended | ||
March 31, | March 31, | |
Reconciliation of operating expenses to non-GAAP | ||
Research and development expenses | (22,810) | (21,972) |
Add: Share-based compensation expenses | 2,016 | 372 |
Adjusted Research and development expenses | (20,794) | (21,600) |
Sales and marketing expenses | (8,347) | (7,420) |
Add: Share-based compensation expenses | 738 | 86 |
Adjusted Sales and marketing expenses | (7,609) | (7,334) |
General and administrative expenses | (8,929) | (4,315) |
Add: Share-based compensation expenses | 5,521 | 170 |
Adjusted General and administrative expenses | (3,408) | (4,145) |
Reconciliation of (loss)/profit from operations to non-GAAP | ||
(Loss)/profit from operations | (1,452) | 7,472 |
Operating margin | (1.9) % | 9.2 % |
Add: Share-based compensation expenses | 8,275 | 628 |
Non-GAAP profit from operations | 6,823 | 8,100 |
Non-GAAP Operating margin | 9.1 % | 10.0 % |
TUYA INC. | ||
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST | ||
DIRECTLY COMPARABLE FINANCIAL MEASURES (CONTINUED) | ||
(All amounts in US$ thousands ("US$"), | ||
except for share and per share data, unless otherwise noted) | ||
For the Three Months Ended | ||
March 31, | March 31, | |
Reconciliation of net profit to non-GAAP net profit | ||
Net profit | 11,017 | 15,776 |
Net margin | 14.8 % | 19.5 % |
Add: Share-based compensation expenses | 8,275 | 628 |
Non-GAAP Net profit | 19,292 | 16,404 |
Non-GAAP Net margin | 25.8 % | 20.3 % |
Weighted average number of ordinary shares used in | ||
- Basic | 606,308,258 | 615,523,100 |
- Diluted | 608,490,640 | 616,307,696 |
Non-GAAP net profit per share attributable to | ||
- Basic | 0.03 | 0.03 |
- Diluted | 0.03 | 0.03 |
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SOURCE Tuya Inc.