02:14:27 EDT Tue 25 Aug 2026
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Tuya Reports Second Quarter 2026 Unaudited Financial Results

2026-08-24 19:00 ET - News Release

Tuya Reports Second Quarter 2026 Unaudited Financial Results

PR Newswire

SANTA CLARA, Calif., Aug. 24, 2026 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading AI cloud platform service provider, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights
  • Totalrevenue was US$92.9 million, up approximately 16.0% year-over-year (2Q2025: US$80.1 million).

  • Platform-as-a-service("PaaS")revenue was US$67.9 million, up approximately 16.9% year-over-year (2Q2025: US$58.1 million).

  • AIapplication&othersrevenue was US$11.5 million, up approximately 3.9% year-over-year (2Q2025: US$11.1 million).

  • Smarthome&robotproductrevenue was US$13.5 million, up approximately 23.2% year-over-year (2Q2025: US$10.9 million).

  • Overallgrossmargin was 46.3%, down 2.1 percentage points year-over-year (2Q2025: 48.4%). Gross margin of PaaS was 46.8% (2Q2025: 48.7%).

  • Operatingmargin was 10.0%, up 8.6 percentage points year-over-year (2Q2025: 1.4%). Non-GAAPoperatingmargin was 10.3% (2Q2025: 10.7%).

  • Netmargin was 20.1%, improved by 4.4 percentage points year-over-year (2Q2025: 15.7%). Non-GAAPnetmargin was 20.4% (2Q2025: 25.1%).

  • Net profits were US$18.6 million (2Q2025: US$12.6 million). Non-GAAP net profits were US$18.9 million (2Q2025: US$20.1 million).

  • Netcashgeneratedfromoperatingactivities was US$6.2 million (2Q2025: US$18.2 million).

  • Totalcashandcashequivalents,timedepositsandtreasurysecuritiesrecordedas short-termand long-terminvestments were US$976.1 million as of June 30, 2026, compared to US$1,017.3 million as of December 31, 2025.

For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

Second Quarter 2026 Operating Highlights
  • PremiumPaaScustomers[1]for the trailing 12 months ended June 30, 2026 were 318 (2Q2025: 285). In the second quarter of 2026, the Company's premium PaaS customers contributed approximately 89.5% of its PaaS revenue (2Q2025: approximately 88.6%).

  • Registered AI developers were over 2,092,000 as of June 30, 2026, up 16.2% from approximately 1,801,000 developers as of December 31, 2025.
  1. The Company defines a premium PaaS customer as a customer as of a given date that contributed more than US$100,000 of PaaS revenue during the immediately preceding 12-month period.

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "In the second quarter, despite a complex global operating environment, the Company continued to demonstrate solid growth momentum. Total revenue increased by 16.0% year over year to US$92.9 million, with PaaS revenue increasing by 16.9% and remaining the Company's primary growth driver. This performance reflected resilient demand across selected home appliance categories and increasing adoption of differentiated, AI-enabled products and solutions.

Strategically, we continued to advance the productization and real-world deployment of AI. Shipments of our AI-powered companion product solutions continued to expand, while the launch of Tuya Cobuilder further lowered the barriers to AI hardware development by helping developers move more efficiently from product concept to physical-device deployment. Looking ahead, we will remain focused on AI-native application innovation, AI developer platform development and the global expansion of validated solutions."

Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, "In the second quarter, total revenue reached US$92.9 million, up 16.0% year over year. PaaS revenue was US$67.9 million, up 16.9%, while Smart home & robot product revenue increased by 23.2% to US$13.5 million and AI application & others revenue increased by 3.9% to US$11.5 million.

Despite pressure from product and solution mix and semiconductor supply-chain pricing, gross profit increased by 11.1% year over year to US$43.0 million. Non-GAAP profit from operations increased by 11.7% to US$9.6 million, with non-GAAP operating margin remaining in double digits at 10.3%. We ended the quarter with approximately US$976.1 million in cash and cash equivalents, time deposits and treasury securities, providing continued flexibility to support our AI capabilities, global expansion and long-term strategic investments."

SecondQuarter2026UnauditedFinancialResults

REVENUE

Total revenue in the second quarter of 2026 increased by 16.0% to US$92.9 million from US$80.1 million in the same period of 2025.

  • PaaS revenue in the second quarter of 2026 increased by 16.9% to US$67.9 million from US$58.1 million 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.

  • AI application & others revenue in the second quarter of 2026 increased by 3.9% to US$11.5 million from US$11.1 million 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.

  • Smart home & robot product revenue in the second quarter of 2026 increased by 23.2% to US$13.5 million from US$10.9 million in the same period of 2025, primarily due to growing customer demands.

GROSSPROFITANDGROSSMARGIN

Total gross profit in the second quarter of 2026 increased by 11.1% to US$43.0 million from US$38.7 million in the same period of 2025. The gross margin in the second quarter of 2026 was 46.3%, compared to 48.4% in the same period of 2025.

  • PaaS gross margin in the second quarter of 2026 was 46.8%, compared to 48.7% in the same period of 2025, partly attributable to recent price fluctuations in the semiconductor supply chain.

  • AI application & others gross margin in the second quarter of 2026 was 72.0%, compared to 72.0% in the same period of 2025.

  • Smart home & robot product gross margin in the second quarter of 2026 was 21.9%, compared to 22.5% in the same period of 2025.

Gross margin fluctuated primarily due to changes in product and solution mix, as well as fluctuations in semiconductor supply-chain pricing. 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.

OPERATINGEXPENSES

Operating expenses decreased by 10.4% to US$33.7 million in the second quarter of 2026 from US$37.7 million in the same period of 2025. Non-GAAP operating expenses increased by 10.9% to US$33.4 million in the second quarter of 2026 from US$30.2 million in the same period of 2025. For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

  • Research and development expenses in the second quarter of 2026 were US$23.1 million, up 3.4% from US$22.4 million in the same period of 2025, primarily due to i) higher employee-related cost and outsourced labor cost of US$1.2 million, ii) higher third-party cloud service fees of US$0.3 million, iii) partially offset by lower share-based compensation expenses of US$1.1 million as equity incentive awards granted at higher valuations in previous years have been gradually amortized. Non-GAAP adjusted research and development expenses in the second quarter of 2026 were US$22.8 million, compared to US$20.9 million in the same period of 2025.

  • Sales and marketing expenses in the second quarter of 2026 were US$8.3 million, up 6.4% from US$7.8 million in the same period of 2025, primarily because of i) higher employee-related cost of US$0.5 million, ii) higher marketing expense of US$0.2 million, iii) partially offset by lower share-based compensation expenses of US$0.5 million as equity incentive awards granted at higher valuations in previous years have been gradually amortized. Non-GAAP adjusted sales and marketing expenses in the second quarter of 2026 were US$8.3 million, compared to US$7.2 million in the same period of 2025.

  • General and administrative expenses in the second quarter of 2026 were US$4.7 million, down 49.8% from US$9.4 million in the same period of 2025, primarily due to i) lower share-based compensation expenses of US$5.3 million as equity incentive awards granted at higher valuations in previous years have been gradually amortized, ii) partially offset by higher allowance for credit losses of US$0.3 million. Non-GAAP adjusted general and administrative expenses in the second quarter of 2026 were US$4.9 million, compared to US$3.9 million in the same period of 2025.

  • Other operating income, net in the second quarter of 2026 was US$2.4 million, primarily due to the receipt of software value-added tax refunds.

PROFITFROMOPERATIONSANDOPERATINGMARGIN

Profit from operations in the second quarter of 2026 was US$9.3 million, compared to US$1.1 million in the same period of 2025. The Company had a non-GAAP profit from operations of US$9.6 million in the second quarter of 2026, compared to US$8.6 million in the same period of 2025, demonstrating consistent operating profitability and leverage.

Operating margin in the second quarter of 2026 was 10.0%, up 8.6 percentage points from 1.4% in the same period of 2025. Non-GAAP operating margin in the second quarter of 2026 was 10.3%, down 0.4 percentage points from 10.7% in the same period of 2025.

NETPROFITANDNETMARGIN

Net profit in the second quarter of 2026 was US$18.6 million, increased by 48.0% from US$12.6 million in the same period of 2025. Non-GAAP net profit in the second quarter of 2026 was US$18.9 million, compared to US$20.1 million in the same period of 2025.

Net margin in the second quarter of 2026 was 20.1%, improved by 4.4 percentage points from 15.7% in the same period of 2025. Non-GAAP net margin in the second quarter of 2026 was 20.4%, compared to 25.1% in the same period of 2025.

BASICANDDILUTEDNETPROFITPERADS

Basic and diluted net profit per ADS was US$0.03 in the second quarter of 2026, compared to US$0.02 in the same period of 2025. Each ADS represents one Class A ordinary share.

Non-GAAP basic and diluted net profit per ADS was US$0.03 in the second quarter of 2026, compared to US$0.03 in the same period of 2025.

CASHANDCASHEQUIVALENTS,TIMEDEPOSITSANDTREASURYSECURITIES RECORDEDASSHORT-TERMANDLONG-TERMINVESTMENTS

Cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$976.1 million as of June 30, 2026, compared to US$1,017.3 million as of December 31, 2025. The Company believes its current cash position is sufficient to meet its current liquidity and working capital needs.

NETCASHGENERATEDFROMOPERATINGACTIVITIES

Net cash generated from operating activities in the second quarter of 2026 was US$6.2 million, compared to US$18.2 million in the same period of 2025. The net cash generated from operating activities for the second quarter of 2026 mainly due to working capital changes in the ordinary course of business.

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 - remain cautious in their planning. At the same time, we have observed more normalized project execution and continued demand recovery 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 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 the Company's 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. 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. U.S. Eastern Time on Monday, August 24, 2026 (08:30 A.M. Hong Kong Time on Tuesday, August 25, 2026) to discuss the financial results. In advance of the conference call, all participants must use the following links to complete the online registration process. Upon registering, each participant will receive the dial-in information and a unique PIN (personal access code) to join the call as well as an email confirmation with the details.

Participants Online Webcast Registration:
https://edge.media-server.com/mmc/p/x8phnjqd

Participants Call Registration:
https://register-conf.media-server.com/register/BI2992f21177c7423c83ce142eb2ef031c

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 the United States of America ("U.S. GAAP"). The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses and credit-related impairment/(reversal) of long-term investments from the respective GAAP financial measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP financial measures facilitates investors' assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company's operations. Share-based compensation expenses and credit-related impairment/(reversal) of long-term investments have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP measures to the most directly comparable U.S. GAAP measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Tuya's non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statements. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

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
U.S. Tel: +1-212-481-2050
Email: tuya@thepiacentegroup.com

                                   
        
          TUYA INC.


                
        
          UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                   
        
          AS OF DECEMBER 31, 2025 AND JUNE 30, 2026


                    
        
          (All amounts in US$ thousands ("US$"),


         
        
          except for share and per share data, unless otherwise noted)


                                                                                                 As of    As of
                                                                                          December 31, June 30,
                                                                                                  2025      2026





 
          ASSETS



 
          Current assets:



 Cash and cash equivalents                                                                    890,708   871,704



 Restricted cash                                                                                    -        8



 Short-term investments                                                                        61,770   108,173



 Accounts receivable, net                                                                      13,193    14,114



 Notes receivable, net                                                                         10,111    11,214



 Inventories, net                                                                              30,943    63,843



 Prepayments and other current assets, net                                                     16,486    29,201



 
          Total current assets                                                            1,023,211 1,098,257





 
          Non-current assets:



 Restricted cash                                                                                  245       253



 Property, equipment and software, net                                                         15,653    35,007



 Land use rights, net                                                                           8,843     9,032



 Operating lease right-of-use assets, net                                                       5,649     9,138



 Long-term investments                                                                         77,213    12,928



 Other non-current assets, net                                                                  1,700       986



 
          Total non-current assets                                                          109,303    67,344



 
          Total assets                                                                    1,132,514 1,165,601





 
          LIABILITIES AND SHAREHOLDERS' EQUITY



 
          Current liabilities:



 Accounts payable                                                                              31,778    36,776



 Advances from customers                                                                       29,330    43,037



 Deferred revenue, current                                                                      9,732     9,078



 Accruals and other current liabilities                                                        33,261    32,993



 Incomes tax payables                                                                             142       101



 Lease liabilities, current                                                                     1,985     3,665



 
          Total current liabilities                                                         106,228   125,650





 
          Non-current liabilities:



 Lease liabilities, non-current                                                                 3,329     5,651



 Deferred revenue, non-current                                                                    352       720



 Other non-current liabilities                                                                      -    5,937



 
          Total non-current liabilities                                                       3,681    12,308



 
          Total liabilities                                                                 109,909   137,958

                                   
          
            TUYA INC.


          
          
            UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)


                   
          
            AS OF DECEMBER 31, 2025 AND JUNE 30, 2026


                     
          
            (All amounts in US$ thousands ("US$"),


          
          
            except for share and per share data, unless otherwise noted)


                                                                                                      As of     As of
                                                                                               December 31,  June 30,
                                                                                                       2025       2026





 
            Shareholders' equity:



 Ordinary shares                                                                                         -



 Class A ordinary shares                                                                                27         27



 Class B ordinary shares                                                                                 4          4



 Treasury stock                                                                                       (12)   (1,224)



 Additional paid-in capital                                                                      1,549,389  1,513,127



 Accumulated other comprehensive loss                                                             (14,842)   (6,740)



 Accumulated deficit                                                                             (511,961) (477,551)



 
            Total shareholders' equity                                                         1,022,605  1,027,643



 
            Total liabilities and shareholders' equity                                         1,132,514  1,165,601



                                                              
          
            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                   For the Six Months
                                                                                                                                  Ended                                 Ended


                                                                                                            June 30,                        June 30,  June 30,                      June 30,
                                                                                                                2025                             2026       2025                           2026





 Revenue                                                                                                     80,130                           92,935    154,817                        173,817



 Cost of revenue                                                                                           (41,384)                        (49,887)  (79,820)                      (92,871)





 
            Gross profit                                                                                   38,746                           43,048     74,997                         80,946





 Operating expenses:



 Research and development expenses                                                                         (22,373)                        (23,126)  (45,183)                      (45,098)



 Sales and marketing expenses                                                                               (7,825)                         (8,326)  (16,172)                      (15,746)



 General and administrative expenses                                                                        (9,386)                         (4,716)  (18,315)                       (9,031)



 Other operating incomes, net                                                                                 1,926                            2,428      4,309                          5,709





      Total operating expenses                                                                             (37,658)                        (33,740)  (75,361)                      (64,166)





 
            Profit/(loss) from operations                                                                   1,088                            9,308      (364)                        16,780





 
            Other income



 Other non-operating income, net                                                                                767                              460      1,534                          1,227



 Financial income, net                                                                                       10,761                           10,556     23,156                         20,052



 Foreign exchange gain/(loss), net                                                                              606                          (1,477)       650                        (3,003)





 
            Profit before income tax expense                                                               13,222                           18,847     24,976                         35,056



     Income tax expense                                                                                       (635)                           (213)   (1,372)                         (646)





 
            Net profit                                                                                     12,587                           18,634     23,604                         34,410





 
            Net profit attributable to Tuya Inc.                                                           12,587                           18,634     23,604                         34,410





 
            Net profit attributable to ordinary shareholders                                               12,587                           18,634     23,604                         34,410





 
            Net profit                                                                                     12,587                           18,634     23,604                         34,410





 Other comprehensive income



 Changes in fair value of long-term investments                                                                  91                             (88)        91                           (88)



 Foreign currency translation                                                                                   222                            4,291        399                          8,190





 
            Total comprehensive income                                                                     12,900                           22,837     24,094                         42,512

       attributable to Tuya Inc.



                                                                    
          
            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                    For the Six Months
                                                                                                                                       Ended                                  Ended


                                                                                                                      June 30,                   June 30,   June 30,                      June 30,
                                                                                                                          2025                        2026        2025                           2026





        Net profit attributable to Tuya Inc.                                                                           12,587                      18,634      23,604                         34,410





        
            Net profit attributable to ordinary                                                               12,587                      18,634      23,604                         34,410

              shareholders





        Weighted average number of ordinary shares
  used in computing profit per share, basic and diluted



        - Basic                                                                                                   608,529,487                 615,530,665 608,348,598                    615,524,218



        - Diluted                                                                                                 610,477,980                 616,389,351 610,414,036                    616,345,859





        Net profit per share attributable to ordinary
  shareholders, basic and diluted



        - Basic                                                                                                          0.02                        0.03        0.04                           0.06



        - Diluted                                                                                                        0.02                        0.03        0.04                           0.06





        
            Share-based compensation expenses

              were included in:



        Research and development expenses                                                                               1,460                         356       3,476                            728



        Sales and marketing expenses                                                                                      582                          74       1,320                            160



        General and administrative expenses                                                                             5,437                         172      10,958                            342



                                                                             
          
            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                   For the Six Months
                                                                                                                                                   Ended                                 Ended


                                                                                                                                  June 30,                   June 30,  June 30,                      June 30,
                                                                                                                                      2025                        2026       2025                           2026





        Net cash generated from operating activities                                                                               18,191                       6,170     27,543                         12,569



        Net cash (used in)/generated from investing activities                                                                   (21,215)                    (8,205)    79,968                          6,719



        Net cash used in financing activities                                                                                    (36,914)                   (38,704)  (36,912)                      (38,704)



        Effect of exchange rate changes on cash and                                                                                    56                                    88                            428
  cash equivalents, restricted cash





        
            Net (decrease)/increase in cash and cash equivalents,                                                       (39,882)                   (40,739)    70,687                       (18,988)

              restricted cash





        Cash and cash equivalents, restricted cash                                                                                763,953                     912,704    653,384                        890,953
  at the beginning of period





        
            Cash and cash equivalents, restricted                                                                        724,071                     871,965    724,071                        871,965

              cash at the end of period

                                                              
          
            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                   For the Six Months
                                                                                                                              Ended                                 Ended


                                                                                                     June 30,                           June 30,  June 30,                      June 30,
                                                                                                         2025                                2026       2025                           2026





        
            Reconciliation of operating expenses to

              non-GAAP operating expenses



        Research and development expenses                                                           (22,373)                           (23,126)  (45,183)                      (45,098)



        Add: Share-based compensation expenses                                                         1,460                                 356      3,476                            728



        
            Adjusted Research and                                                          (20,913)                           (22,770)  (41,707)                      (44,370)

              development expenses





        Sales and marketing expenses                                                                 (7,825)                            (8,326)  (16,172)                      (15,746)



        Add: Share-based compensation expenses                                                           582                                  74      1,320                            160



        
            Adjusted Sales and marketing expenses                                           (7,243)                            (8,252)  (14,852)                      (15,586)





        General and administrative expenses                                                          (9,386)                            (4,716)  (18,315)                       (9,031)



        Add: Share-based compensation expenses                                                         5,437                                 172     10,958                            342



        Add: Credit-related impairment/(reversal) of                                                      27                               (307)        27                          (307)
  long-term investments



        
            Adjusted General and                                                            (3,922)                            (4,851)   (7,330)                       (8,996)

              administrative expenses







        
            Reconciliation of profit/(loss) from

              operations to non-GAAP

              profit from operations



        Profit/(loss) from operations                                                                  1,088                               9,308      (364)                        16,780



        Operating margin                                                                               1.4 %                             10.0 %   (0.2) %                         9.7 %



        Add: Share-based compensation expenses                                                         7,479                                 602     15,754                          1,230



        Add: Credit-related impairment/(reversal) of                                                      27                               (307)        27                          (307)
  long-term investments



        
            Non-GAAP profit from operations                                                   8,594                               9,603     15,417                         17,703





        
            Non-GAAP Operating margin                                                        10.7 %                             10.3 %    10.0 %                        10.2 %

                                                             
          
            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                           For the Six Months Ended


                                                                                                     June 30,                           June 30,   June 30,                         June 30,
                                                                                                         2025                                2026        2025                              2026





        
            Reconciliation of net profit to

              non-GAAP net profit



        Net profit                                                                                    12,587                              18,634      23,604                            34,410



        Net margin                                                                                    15.7 %                             20.1 %     15.2 %                           19.8 %



        Add: Share-based compensation expenses                                                         7,479                                 602      15,754                             1,230



        Add: Credit-related impairment/(reversal) of                                                      27                                -307          27                              -307
  long-term investments



        
            Non-GAAP Net profit                                                              20,093                              18,929      39,385                            35,333





        
            Non-GAAP Net margin                                                              25.1 %                             20.4 %     25.4 %                           20.3 %





        Weighted average number of ordinary shares
  used in computing non-GAAP
  net profit per share,



        - Basic                                                                                  608,529,487                         615,530,665 608,348,598                       615,524,218



        - Diluted                                                                                610,477,980                         616,389,351 610,414,036                       616,345,859





        Non-GAAP net profit per share attributable to
  ordinary shareholders



        - Basic                                                                                         0.03                                0.03        0.06                              0.06



        - Diluted                                                                                       0.03                                0.03        0.06                              0.06

View original content:https://www.prnewswire.com/news-releases/tuya-reports-second-quarter-2026-unaudited-financial-results-302858533.html

SOURCE Tuya Inc.

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