Tuya Inc

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涂鸦智能2026Q2业绩直播

Key Takeaways (AI-Generated)

Financial Performance

- Total revenue reached $92.9 million, up 16% year-over-year with accelerating growth from Q1

- PaaS business revenue of $67.9 million, up 16.9% year-over-year as primary growth driver

- AI application segment revenue of $11.5 million, up 3.9% year-over-year

- Smart home and robot products revenue of $13.5 million, up 23.2% year-over-year

Business Highlights

- 318 PaaS premium customers contributing 89.5% of PaaS revenue with over 2.09 million registered developers

- Launched Tuya Co-builder AI development tool reducing panel generation time to 190 seconds

- Strong AI companion products performance during China's June 18th shopping festival

- AI application B2C recurring revenue grew 22% in Q2

Financial Guidance

- Expects gradual demand recovery rather than overnight improvement in market conditions

- Targeting AI application segment margin of 75-80% through increased B2C services mix

- Plans to maintain stable operating profitability while investing in AI R&D

Opportunities

- Strong demand in Europe for energy-related segments and telecom carrier partnerships in Southeast Asia/Latin America

- AI-native applications expanding beyond conversational tools into physical environments with sensing capabilities

- Tuya Co-builder tool enabling natural language development and shortening AI hardware development cycles

Risks

- Upstream semiconductor cost fluctuations impacting gross margins over two quarters globally

- Price sensitivity in North America affecting device pricing and market fluctuations

- Military conflicts in Middle East affecting business recovery timing in region

Full Transcript (AI-Generated)

Operator

Good morning and good evening ladies and gentlemen. Thank you for standing by and welcome to Tuya Inc's Second Quarter 2026 Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers presentation, there will be question and answer session. Please be informed that today's conference is being recorded.

And now turn the call over to your first speaker today, Miss Regina Wang, Investor Relations Associate Director of Tuya. Please go ahead.

Regina Wang

Thank you, operator. Hello everyone. Welcome to our second quarter 2026 earnings conference call. Joining us today is our Founder and CEO, Mr. Jerry Wang and our Co Founder and CFO, Mr. Alex Yang. Our results and webcast of the conference call are available at ir2l.com. A replay of this call will also be available on our IR website in a few hours.

Before we continue, I'd like to refer you to our safe statements in your earnings press release, which applies to this call as we will make forward-looking statements. With that, I will now turn the call over to our founder and CEO, Mr. Jerry Wong. Jerry, please.

Jerry Wang

Hello, everyone and thank you for joining to your earnings conference call for the second quarter of 2026. Monetary and maintained solid growth momentum during the quarter despite the continued complexity of the global operating environment. Our total revenue reached $92.9 million dollars a year over the year increase of 16% with growth accelerating from the first quarter.

Within this, revenue from our core PAST business increased 16.9% year over year. These results reflected ongoing rise in smart product penetration, including steady demand across home appliances, increased adoption of differentiated solutions such as smart door locks and growing demand for emerging AI enabled product categories and also the resilience of our platform business across different regions and product categories.

In terms of strategic execution, we continue to advance our AI DRIVEN development strategy, extending our AI CAPABILITIES beyond foundation models and standalone features towards platformization, productization and scenario based deployment. In the second quarter, shipment volumes of AI campaigning product solutions continued to expand and consumer acceptance of new forms of AI began to be validated.

Meanwhile, we launched to Yahoo Computer, which applied while according to AI hardware development, enabling developers to cover the core development process from private concept to physical device validation using natural language, further shortening AI hardware development segment. These developments further reinforce AI's evolution from a mere conversational tool into a technology that operates in real physical environments and participate in sensing, understanding and execution.

Looking ahead, we will deepen our focus on the following three key areas. First, we will continue to advance AI's native application and product innovation. Centering on higher potential scenarios such as AI Home, AI energy and AI robot. We will drive the large scale adoption of AI across a broader range of physical devices.

Second, we will continue to enhance AI development tools such as live coding, agent orchestration and cloud edge device collaboration, further shortening the cycle from ideation and development to deployment on physical devices or AI. Third, we will advance the global expansion of proven solution. While further strengthening our developed ecosystem and industry. To jointly explore long term opportunities in the AI application market.

Now let me turn the call over to our cofounder and CFO and who will share more details about our financial performance and business progress.

Alex Yang

Hello everyone, this is Alex. I will now provide a brief overview of our second quarter result. Please note that unless otherwise stated, all figures are in U.S. dollars and all comparisons are on year over year basis. In the second quarter of 2026, regenerated total revenue of approximately 92.9 million U.S. dollars, up 16% year over year and accelerating from the 8.3% growth recorded in the first quarter.

Our past business maintained strong growth where revenue from the smart home and robot products segment is also increased by double digits of our total revenue. The past business generated revenue of about 67.9 million U.S. dollars a year over year increased of 16.9% serving as the important growth drivers for the quarter. At the end of the second quarter, the number of past premium customers for the training 12 months reached 318 contributing approximately 89.5% of the past revenue with our core customer base remained stable.

The AI application and other segments generate revenue of about 11.5 million U.S. dollars year over year increased of 3.9% primarily driven by growth in cloud based service revenue such as video cloud storage. We continue to advance to value added services including video and AD driven energy saving among others to enable applications capabilities while gradually strengthening our renew and recurring service capability.

Smart home and robot products revenue was about 13.5 million U.S. dollar a year over year increase of 23.2%, primarily driven by growing customer demand from smart security, energy and other differentiated smart products. We will continue to increase the contribution of high value added products and strengthen their integration with the software and value added services.

Looking at the specific driver of past growth, home appliances, smart dollar logs, electronics and energy products and AI companion products solutions performed relatively well during the quarter. Growth in the home appliances segments was mainly driven by customers rolled out of the smart enabled models, the expansion of their geographic reach, a higher contribution from smart enabled products and the migration of certain overseas brand projects from our customers legacy solutions into tools.

Growth in smart dialogs was primarily driven by increased adoption of audio, video and no power Wi-Fi solutions. By comparison, demand recovery in categories such as traditional lighting and IP cameras has been relatively slow, reflecting continued divergency in performance across products and regions.

In AI companion products, shipment volumes of the devices powered by our solutions continue to expand. During the June 18th shopping festival in China, Fujuzu, built on Twitter solutions, ranks first in the AI toy categories on Tmall, while a number of other ecosystem products also deliver strong ranking and sales performance across major e-commerce platforms. This provided early validation of both consumer acceptance and the commercialization potential of the new form of AI device.

Beyond basic voice interaction should have building out capabilities in multi model perception, personnel and memory, content, services and user engagement, helping customers accelerate the development and mass productions of the AI native consumer hardware. In the energy sectors solution including EV chargers, smart Power Distribution, metering and home energy management maintains solid growth.

We are expanding our AI energy capabilities from electricity consumption analytics, anomal alerts, and personalized recommendations. Towards dynamic electricity tariff management and user authorized automated device coordination within the smartphone ecosystem. Customers adoptions of the matter based solutions continue to increase lacrosse categories such as electronic products, lighting and climate control. In parallel, we enhance the local control, multi protocol interoperabilities and 3rd party ecosystem compatibilities.

On margin side, our blended gross margin for this quarter was 46.3%, but second gross margin for PASS was 46.8%. Gross margin for AI adaption and others were 72% and gross margin from smart home and robot products were 21.9%. Gross margin fluctuations were mainly driven by the volatilities in upstream semiconductors, costs and changes in business mix in line of the expectation. Despite this, gross profit increased by 11.1% year over year to approximately 43 million U.S. dollars.

On expenses, we maintained disciplined expense management while continuing to invest on AI and D and platform capability. GAAP operating expenses for this quarter were approximately 33.7 million U.S. dollars, down 10.4% year over year primarily due to the lower share based compensation expenses.

In the turn of profitability, we recorded the GAAP profit from operating of approximately 9.3 million U.S. dollars with a GAAP operating margin of 10%. Non GAAP profit from operating were approximately 9.6 million U.S. dollars a year over year increase by 11.7% while non GAAP operating margin remained in the double digit at 10.3%. While delivering revenue growth, we maintained relatively stable core operating profitability.

Net profit for the quarter was approximately $18.6 million while non GAAP net profit was approximately $18.9 million. The year over year decline in non GAAP net profit was primarily due to the lower financial income and foreign exchange losses while core operating profit continued to grow. On cash flow side, net cash generated from the operating activities was $6.2 million during the quarter and remained positive.

At the end of the second quarter, the companies to to legal asset including cash and cash equivalent time deposit and treasury securities amounted to approximately 976,000,000 U.S. dollars. Continuing to provide amble resources to support the development of AI capability, global business expansion and our ability to navigate external uncertainties and long term strategy investment.

Next, I will briefly walk you through our progress in the AI developer ecosystem. At the end of the second quarter of 2026, the number of registers developers on our platform exceeded 2,09 million launched during the second quarter to your Co builder served as the AI developer gateway to the tier developer platform. Applying back coding to AI hardware development.

By describing their requirements in natural language, developers can complete product definition, app, user interface, embedded firmware, AI agents, and workflow development in one place and then proceed directly to the device flushing and debugging. This covered the core development process from product concept to physical devices validation and help shorten the AI hardware development cycles.

In just over a month since launch, 12 core builders AI powered panel generation's capabilities has extended to cover 30 product categories with the average generation time for a single panel reduced to approximately 190 seconds only this progress. Demonstrates that we are advancing our developer tools beyond development assistance towards end to end developer capability spending, product definition, software generation and deployment on physical devices.

As an application layer, we continue to enhance head to end device task education capabilities, control reliability and response efficiency while exploring subscription based and value added services across scenarios such as AI driven energy saving, PAC care and video. Understanding certain scenarios has already begun to generate early payment and renewals. We will continue to focus on high frequency use cases and long term user value.

From a broader perspective, AI capabilities gradually expanding beyond single model integrations and in compact device sensoring and contextually understanding memory agent orchestration and device side execution. We will continue to leverage the strength of our platform, device acquisition and global developer base to translate AI capability into a scalable commercial value across a broader range of the real world scenarios.

In summary, our revenue growth accelerated in the second quarter of 2026 with the past business continuing to serve as a primary growth engine. Meanwhile, our AI capabilities are being commercialized in parallel across multiple packs, including Pas, smart products and AI applications. Despite the impact on gross margin from semiconductor supply chain, price fluctuation and Vision's mix change, we maintain stable operating profitability and ample financial resources.

Looking ahead, we will remain focus on AI native applications, physical AI scenarios and developer platform capability and continue to advance the transformation of AI technologies from 2 level capabilities into tangible and scalable commercial value. Thank you, all. Operators, right now we can begin the Q&A.

Operator

We will now begin the question and answer session. To ask a question now, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11. Again, one moment for our first question. We will now take our first question from the line of Yang Liu of Morgan Stanley. Please ask your question. Yang, your line is open.

Yang Liu

Thanks for the opportunity and congratulations on the solid earnings. My question is about the future demand outlook based on your discussion with key customers in current environment or what is the growth or demand outlook going into the second-half of 2026? If you can provide a little bit more breakdown by geographic, that will be even better. Like what's the demand profile in US or in Europe and ASEAN, etc? Thank you.

Jerry Wang

OK, thank you. Thank you, Leo. So right now we see that the the end demand and internal maintenance still within our expectation. So as we stick in the beginning of this year that the entire customers and the consumer side they're looking for to still to consuming more and transfer more legacy devices and solutions into the into the new AI one that we provide. So this maintain continues.

So what we see that we have the accelerating type of we bouncing on the on the demand side. So this will be the overall tier view. So we see that the recovery will not come overnight. So it's gradually climbing and what we what we find here is the moment it still continue and especially based on those kind of positive, very positive self through feedback from the end user side. That's the first one.

If I break down into the geographic areas, so there are different type of demand drivers. Europe still show very strong on the demand side especially for all type of energy related segments. So including the new AI hands so home. Solutions we provide as a solution or include different type of energy efficiency improvement, single device, no matter it's what we provide as a pass or we provide as a home and worldwide products to the solution together that show very strong demand. Still, that's the first one.

And Southeast Asia and Latin America, the driving forces majorly come from our strong channels in the telecom carriage. So while trying to establish a strategic partnership along with them around 2 1/2 years ago and we started to skip commercialize that part. So through their own channels to deliver some comprehensive total solutions for their users in the AIOT fields. That's a very strong potential and very promising one because they're running on the B2B cycle by the end of time is easy to see, but they run really strong B2B cycles rather than the retail side, they can planning on that. That's for Southeast Asia and Latin America

and the Middle East is still kind of in the past right now because of the military conflict and going, going on in, in the second quarter. So right now we're still kind of wait and see the customers still there and the customers still doing a lot of preparations including the the product development and the new concept definitions and type of stuff. But right now that they I think that overall the business is not coming back yet and we're looking forward to have a better scenarios perhaps maybe end of the Q3 or Q4. We believe we're looking forward to have some agreement, you know for those completing countries and then we'll be able to catch the demand.

And so that will go and North America is that the sales rule is still there, but the some price sensitive especially no price and type of the devices and show kind of fluctuations and by the pricing rates coming from the suppression side. And so we are we structured that type of product mix along with my customers and to deliver on better sales too in the in the second-half of this year.

And so I think that we overall and for China right now, we'll be seeing some really good promising categories, including part of the home appliances that we can find that the recently that the major brands right now, they are speeding up the transformations from the legacy type of devices into the smartphone and from 1st generation IoT type of smart devices into the AI 1. So we are catching the transformation trend and helping a lot of China brands to do that.

And the second one is that in China, so some AI native categories starting to booming like the AI companion. So our first market with time to breakthrough for AI companion categories is from China. So that's why I thought this is in Timor. So we did see that the based on the on a large target consumer scale in China and where we find the right type of the applications and coming on with a very active customer base and we'll try to find more potentials in the new type of the innovations in China. Thank you.

Operator

Thank you. We will now take our next question from Timothy Zhou of Goldman Sachs. Please ask your question. Timothy, your line is open.

Timothy Zhou

Great, good morning, management. Thank you for taking my question and Congrats on the very solid results. My question is on your gross broken margin. I noticed that in the second quarter, the IoT pad margin declined on the young year basis, although stabilized sequentially, while your smartphone and robotic products margin actually declined sequentially in a young year. Just wondering if you can share more color on what was the margin drivers behind and what is your margin outlook for these two segments for the third quarter and rest of this year? Thank you.

Jerry Wang

OK. Yeah. So first of all, that as everyone knows that the upstream cost fluctuation is starting to over two quarters, I mean on a global basis and we're the last one to touch the impact because because our. So for the in Q2, what we do is that the major of the product, we just pass through the cost rate. And so which means that we maintain the we maintain the gross profit and but we don't speak to the gross margin.

And but, but still now that we really build a really good buffering on the on inventory and cost balance between now and future and in next two quarters or three. And when we have the confidence that we'll be able to working through a more stable cost level of my major, my major type of materials we needed. So we can go to either to stabilize the the gross margin and we figure out whatever all the possibilities that by offering new capabilities, new technologies, we like to improve the gross margins overall. So that's pretty much that.

So for the customer side, we'll really show our kindness that so we get packed through the cost, but in the future while anything happens, so we don't, we're looking for the most positive way to help a customer to help the company to run, continue to run the business. So it's not stick to the cost, but it more stick to the value and the containers that we did to the customers to help them get through that. Right. Thank you.

Operator

Thank you. We will now take our next question from Kai Schell of CICC. Please ask your question. Kai, your line is open.

Kai Schell

OK, thank you management. This is Kai. I have two questions right on Tuya Co builder, you mentioned in the quarter. So I wonder what's the current adoption status of Tuya Co builder and what's the company medium,

Jerry Wang

OK. And so Co builder is something we have to do for a couple of quarters, so starting from second-half of last year. Some department into your R&D? And to improve our own coding efficiency and also to bring more our eyes on R&D site supposed to do that are the major users of. And while we have enough experience, how we'll be able to how we'll be able to use that and deliver the right our eye and be able to know how to manage that. And we'll start to think about the way we need to, you know, duplicate our experience and open up our questions.

So at the beginning of the issue, we start to build the computer and we're happy to launch it at the second quarter. And so we believe that will be the new type of default gateway in the future for many developers, even not only device developers, many developers to lower the bar and including me, like right now including my financial department. So many of them, they don't know coding at all for their entire lifetime, but they're starting to write their own agent to improve their own workflow, to improve their own individual efficiencies. I believe some of you did that too.

So core builder will be kind of the shower where how mean how low the market reach and how easy those ideal developers will come with some innovative ideas that they can really quickly to testify the innovations and to validate whether those kind of crazy ideas, you know, make senses for some of them users and build the demo and and get some kind of users and starting to run including the foundations and schedules.

So Co builder we believe to be kind of the inhaler world should be kind of the momentum that wow you have the cross code maybe one year before and we believe that will be default. And so continue to bring that to in Q2 well after we launches. And then we continue to do a lot of webinar training for those developers, even while they don't know what is called, what web coding mean and how they can deal with it. And we're trying to train a lot of, you know, developers.

And also in the same time, we'll use this tool to attract those not developer at this moment, but they're more considered as a product manager maybe in some hardware companies. And in the past they can, the strength or capability for those type of talents are user insight, product definition and interfacing design and psychological understanding. But right now we offer them a better tool that they can transfer that part with or without annoying any of their, you know, engineers. They'll be able to, you know, stretch that out to themselves.

Yeah. So that will be the value of the computer. And so we can further use that to enlarge the developer entire developer base by building up a better target and also be able to improve my customers on the efficiency. Thank you.

Operator

We will now take our next question from the line of Matt Ma of Jefferies. Please ask your question. Matt, your line is open.

Matt Ma

Hey, hello. Thank you for taking my question. I have a question on the AI application segments. So it seems like in Q2 the revenue growth has been decelerated from 17% in the first quarter. I'm just curious what is the reason behind that? I calculated it, it seems that Q2 growth is only 3%. And what can get this line back to a double digit growth? And then also on the second segment margin, on the Q1 call, you pointed that a seasonal rebound in device usage from Q2 would help you to increase the margin for this segment, but it doesn't seems that have come through. Could you walk us through what could actually happen in this quarter or the coming quarters to help to the margin recovery for this segment?

Jerry Wang

OK. I'm sorry, I lost the second question. So is the margin for which segment you mean the home run robot AI application?

Matt Ma

OK, application. Got it.

Jerry Wang

So the first one is thank you for being the question. And so for AI applications right now, the the growth slowing majorly come from the mix of my offering. So as you might know that in that segment they covered 2 offers. So one is B2B and especially some of the project based customization services we provide for the key partners. And the second part of that is the is the B2C. So directly services we offer for the consumer, so which are the user of the devices. So they activated my added services through subscription.

So the growth major is that we gradually still slowing and we don't want to handle this kind of B2B projects for a long time. So the B2B project based the revenue and the growth slower, but actually the CN grows good. So my CN services recurring revenue growth in Q2 is 22%. We happy to see that change because we want to have this segment being the B2C will be able to cover more and more portion of this segment because we believe that would be a better value for that. So that's for the first question.

And so the second question about the, so the margin is on the application segment, right? Yes, in the margin for, yeah, yeah. So for this one is the same is that the segment we want to have more is based on the count and based on the AI capability. So that will be a higher valued 1. So 7% up is the target margin for this segment. So right now we'll be hit it. So in the future should we activate between 75 to 80 and the driver for that the first one.

So we don't want to have those kind of projects and customization based services to take larger portion because that's and more neighbor centric and lower margin type of services which want to lower the entire portion of that. So by increasing more and more cloud based 1B to C side and on the B to C side, not only enlarge the contribution percentage on revenue, but also in the same time while we scale the services and be able to improve more and more efficient architecture on the technique side.

So we'll be able to figure out a better way to manage the clouds and LNN assumptions in another one. So through that, we'll be able to push the cost based services margin from 70 into 75 by 80. I wish my mix. Thank you.

Operator

Thank you. There are no further questions at this time. I'll now hand back to the management team for closing remarks.

Regina Wang

Thank you, operator, and thank you all once again for joining us today. If you have any further questions, please feel free to contact higher team of. Goodbye and see you next quarter

Operator

participation in today's conference. This does conclude the program. You may now disconnect your lines.

Details at Tuya Inc IR

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