Tuya (TUYA) investor relations material

Executive summary

• Achieved total revenue of $80.9 million in Q1 2026, up 8.3% year-over-year, with strong profitability, positive operating leverage, and continued positive momentum despite external uncertainties.

• Net profit reached $15.8 million, a 43.2% increase year-over-year, and net margin improved to 19.5%.

• AI-driven development strategy advanced, with deeper integration of AI into hardware and vertical industry scenarios, and new AI-powered applications such as Hey Tuya and AI Security Guardian launched.

• Continued expansion of the AI developer ecosystem, now exceeding 1.97 million global developers and 5,900+ customers served in 2025.

• Focused on scaling global rollout of AI solutions, especially in energy and green technology sectors, and strengthening the developer ecosystem.

Financial highlights

• Q1 2026 revenue grew to $80.9 million from $74.7 million in Q1 2025, an 8.3% increase year-over-year.

• GAAP operating margin improved to 9.2%, non-GAAP operating margin at 10%.

• Net margin increased to 19.5%, with net profit at $15.8 million; operating profit $7.5 million (non-GAAP: $8.1 million).

• Blended gross margin was 46.9%; PaaS gross margin 46.1%, AI application & others 71.7%, Smart home & robot product 23%.

• Total cash, equivalents, and securities exceeded $1.02 billion as of March 31, 2026.

Outlook and guidance

• Anticipates recovery and growth in Smart home & robot product segment in Q2 or Q3 2026, following structural changes and new product launches.

• Expects natural recovery in AI application segment usage and revenue in Q2, after seasonal Q1 dip.

• Will continue to focus on physical AI scenarios and higher value-added AI products for sustainable long-term returns.

• The operating environment is stabilizing with normalized project execution and recovering demand in core categories.

• Dividend for 2025 declared at $70 million.