Tuya Inc. Reports Strong Q1 2026 Financial Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 11 2026
0mins
Source: PRnewswire
- Revenue Growth: In Q1 2026, Tuya Inc. reported total revenue of $80.9 million, an 8.3% year-over-year increase, demonstrating strong growth momentum amidst ongoing market uncertainties and reflecting the company's continued business scale expansion.
- Profitability Improvement: The net profit for Q1 was $15.8 million, up 43.2% from $11.0 million in the same period of 2025, with a net margin increase to 19.5%, indicating significant achievements in optimizing expense structures and enhancing operational efficiency.
- Reduced Operating Expenses: Operating expenses decreased by 19.3% to $30.4 million in Q1 2026, showcasing effective cost management, while non-GAAP operating expenses rose slightly by 1.3%, indicating necessary investments are still being made while maintaining profitability.
- AI Business Drive: Revenue from AI applications and others grew by 16.9% year-over-year, serving as a crucial driver of structural growth, highlighting Tuya's ongoing progress in the commercialization of AI technologies and expansion of application scenarios, further solidifying its market position.
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Analyst Views on TUYA
About TUYA
Tuya Inc is a company primarily engaged in the provision of artificial intelligence (AI) cloud platform service. Through its TuyaOpen open-source development framework and universal AI Agent engines, including the AI Agent development platform, the Company integrates multimodal AI capabilities to promote the deep integration of AI with the physical world. The Company offers physical AI solutions for smart devices, commercial applications, and industry developers through its cloud computing and spatial intelligence capabilities. Through its artificial Internet of Things developer platform, the Company has activated a global developer community of brands, original equipment manufacturers (OEMs), AI agents, system integrators and independent software vendors to collectively strive for smart solutions ecosystem.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Profitability Improvement: The net profit for Q1 was $15.8 million, up 43.2% from $11.0 million in the same period of 2025, with a net margin increase to 19.5%, indicating significant achievements in optimizing expense structures and enhancing operational efficiency.
- Reduced Operating Expenses: Operating expenses decreased by 19.3% to $30.4 million in Q1 2026, showcasing effective cost management, while non-GAAP operating expenses rose slightly by 1.3%, indicating necessary investments are still being made while maintaining profitability.
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See More
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- Strong AI Application Performance: Revenue from AI applications and others increased by 16.9% year-over-year to $11.6 million, highlighting significant progress in the commercialization of cloud services and AI functionalities, further driving structural growth.
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- Annual Meeting Announcement: Tuya Inc. will hold its annual general meeting on June 18, 2026, at 2:00 PM (Hong Kong time) in Hangzhou, China, to consider proposed resolutions, reflecting the company's commitment to shareholder engagement.
- Shareholder Voting Rights: Ordinary shareholders as of May 22, 2026, are entitled to attend and vote, while ADS holders must provide voting instructions to the depositary, ensuring all shareholders' voices are heard and enhancing corporate governance transparency.
- Annual Report Filing: Tuya has filed its annual report on Form 20-F with the SEC for the fiscal year ending December 31, 2025, including audited financial statements, demonstrating the company's commitment to compliance and transparency.
- Global Developer Ecosystem: Tuya aims to build an AI developer ecosystem, offering comprehensive PaaS and smart home products, promoting green, low-carbon, and efficient smart solutions, showcasing its strategic positioning and technological innovation in the global market.
See More
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- Annual General Meeting Announcement: Tuya Inc. will hold its annual general meeting on June 18, 2026, at 2:00 PM in Hangzhou, China, aimed at reviewing and passing proposed resolutions, demonstrating the company's commitment to shareholder engagement.
- Shareholder Voting Rights: Holders of ordinary shares and American depositary shares as of May 22, 2026, are entitled to attend and vote at the meeting, ensuring shareholder voice in corporate decisions and enhancing governance transparency.
- Financial Report Submission: Tuya has filed its annual report for the fiscal year ending December 31, 2025, with the SEC, including audited financial statements, reflecting the company's efforts in compliance and transparency.
- AI Cloud Platform Development: Tuya is focused on building an AI developer ecosystem, offering comprehensive cloud platform services that drive the development of smart devices and commercial applications, showcasing its leadership in the global smart solutions market.
See More
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- Revenue Growth: Tuya Technology reported total revenue of $80.9 million in Q1 2026, reflecting an 8.3% year-over-year increase, particularly driven by PaaS revenue rising to $59 million, which grew by 9.8%, indicating strong market demand in cloud services.
- Margin Performance: The overall gross margin stood at 46.9%, with AI applications and others achieving a high gross margin of 71.7%, while the Smart Home and Robot Products segment saw a decline to 23%, highlighting the impact of product mix fluctuations on profitability.
- Net Profit Improvement: The net profit reached $15.8 million, supported by gross profit growth and reduced share-based compensation expenses, with GAAP operating margin at 9.2% and non-GAAP operating margin at 10%, demonstrating significant improvements in cost control and profitability.
- Market Challenges: Despite strong overall performance, the Smart Home and Robot Products segment experienced a 6.9% year-over-year revenue decline, and the company faces ongoing chipset shortages and external uncertainties, which could impact future cost and pricing strategies, necessitating close monitoring of market dynamics.
See More
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- Revenue Growth: In Q1 2026, Tuya Inc. reported total revenue of $80.9 million, an 8.3% year-over-year increase, demonstrating strong growth momentum amidst ongoing market uncertainties and reflecting the company's continued business scale expansion.
- Profitability Improvement: The net profit for Q1 was $15.8 million, up 43.2% from $11.0 million in the same period of 2025, with a net margin increase to 19.5%, indicating significant achievements in optimizing expense structures and enhancing operational efficiency.
- Reduced Operating Expenses: Operating expenses decreased by 19.3% to $30.4 million in Q1 2026, showcasing effective cost management, while non-GAAP operating expenses rose slightly by 1.3%, indicating necessary investments are still being made while maintaining profitability.
- AI Business Drive: Revenue from AI applications and others grew by 16.9% year-over-year, serving as a crucial driver of structural growth, highlighting Tuya's ongoing progress in the commercialization of AI technologies and expansion of application scenarios, further solidifying its market position.
See More
Tuya Inc. Reports Q1 2026 Financial Results with Strong Growth
- Significant Revenue Growth: Tuya's total revenue for Q1 2026 reached $80.9 million, reflecting an 8.3% year-over-year increase, demonstrating the company's resilience and sustained growth capability in a complex market environment, particularly with PaaS revenue growing by 9.8%, indicating stable customer demand and successful product enhancements.
- Strong AI Application Performance: Revenue from AI applications and others increased by 16.9% year-over-year to $11.6 million, highlighting significant progress in the commercialization of cloud services and AI functionalities, further driving structural growth.
- Improved Profitability: The net profit for Q1 2026 was $15.8 million, representing a 43.2 percentage point increase from the same period in 2025, with a net margin rising to 19.5%, showcasing ongoing optimization in cost management and operational efficiency.
- Stable Cash Flow: As of March 31, 2026, the company reported total cash and cash equivalents of $1.017 billion, maintaining strong liquidity to support future investments in AI and global expansion, ensuring business flexibility and sustainable growth.
See More
