Aug 24, 2026 earnings call — AI push and Tuya CoBuilder launch
Total revenue grew to USD 92.9 million, up 16% year-over-year.
Revenue $0.1B (est $0.1B) · EPS $0.03 (est $0.03)
Key quotes
"We continue to advance our AI-driven development strategy extending our AI capabilities beyond foundation models and stand-alone features towards platformization, productization and scenario-based deployment."
"Launched during the second quarter, Tuya CoBuilder served as an AI developer gateway to the Tuya developer platform, applying AI coding to AI hardware development."
"At the end of the second quarter, the company's total liquid assets, including cash and cash equivalents, term deposits and treasury securities amounted to approximately USD 976 million."
Analyst Q&A 4
demand outlook by region
Q (Yang Liu · Morgan Stanley): They asked how demand will evolve in the second half of 2026 and requested a geographic breakdown (U.S., Europe, ASEAN, etc.).
A: They said end demand and internal momentum are within expectations and the recovery is gradual, not overnight. Europe shows strong demand for energy-related and home-management solutions; Southeast Asia and Latin America are scaling via telecom carrier channels after a strategic partnership about 2.5 years ago. Middle East is paused due to military conflict; North America has sell-through but is price sensitive; China has promising AI-native categories like AI companion with early traction on Tmall.
"So right now, we see that the end demand and internal momentum is still within our expectation." — Yi Yang (CFO)
margin drivers and outlook
Q (Timothy Zhao · Goldman Sachs): He asked what drove the QoQ and YoY margin changes for IoT PaaS and smartphone/robot products, and what the margin outlook is for Q3 and the rest of the year.
A: They said upstream cost fluctuations increased globally over 2 quarters and in Q2 they largely passed through the cost, keeping gross profit but not the margin. They have built inventory and cost buffering and expect in the next 2 quarters or 3 to work through more stable material costs and stabilize gross margin. They also plan to improve margins by offering new capabilities and technologies while focusing on value to customers.
"And in next 2 quarters or 3 and when we have the confidence that we'll be able to work through a more stable cost level of my major type of materials we needed." — Yi Yang (CFO)
CoBuilder adoption and purpose
Q (Kai Xiao · CICC): He asked about current adoption of Tuya CoBuilder and the company's medium-term plans for it.
A: They said CoBuilder was used internally from the second half of last year to improve R&D coding efficiency and ROI. They launched CoBuilder in Q2, are running webinar trainings, and aim to lower the bar so non-developers and product managers can sketch, build demos, get pilots, and expand the developer base to improve customers' R&D efficiency.
"At the beginning of this year, we'll start to build CoBuilder and we're happy to launch it at the second quarter." — Yi Yang (CFO)
AI application growth and margin
Q (Matt Ma · Jefferies): He asked why AI application revenue growth slowed in Q2 and what could return it to double-digit growth, and what will drive margin recovery for the segment.
A: They said the slowdown was mainly mix-driven: more B2B project-based customization and less B2C subscription revenue; however, CN recurring revenue growth in Q2 was 22%. For margins, the current target is "70% up" and they aim for 75% to 80% by shifting revenue to cloud-based B2C, reducing labor-intensive customization, and improving technical architecture and LLM cost efficiency.
"So 70% up is the target margin for this segment." — Yi Yang (CFO)