Tuya Inc. Q2 2026 Earnings Recap

Tuya's shares declined modestly by 0.6% as investors digested a mixed quarter marked by solid top-line growth but ongoing margin pressures and uneven demand recovery across key product categories.

Key Takeaways

• Total revenue grew 16% year-over-year to $92.9 million, accelerating from 8.3% growth in Q1.
• PaaS revenue increased 16.9% year-over-year to approximately $67.9 million, driven by smart home, robot product segments, and expanded customer adoption.
• Growth in smart home and robot products was strong at 23.2% YoY, supported by smart security and energy-related devices, though traditional lighting and IP camera segments showed slower demand recovery.
• Gross margin stood at 46.3%, affected by semiconductor cost volatility and shifts in business mix; smart home and robot product margins remained relatively low at 21.9%.
• Early signs of consumer acceptance emerged in AI companion products, but wider monetization and margin improvement appear gradual amid ongoing execution challenges.