Tuya Reports Second Quarter 2025 Unaudited Financial Results and Declaration of Cash Dividend

August 26, 2025 | SANTA CLARA, Calif.

Introduction

Tuya Inc. (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, 2025, and the declaration of a cash dividend.

Second Quarter 2025 Financial Highlights

Total revenue: US$80.1 million, up approximately 9.3% year-over-year (2Q2024: US$73.3 million).
Platform-as-a-service (PaaS) revenue: US$58.1 million, up approximately 7.0% year-over-year (2Q2024: US$54.3 million).
Software-as-a-service (SaaS) and others revenue: US$11.1 million, up approximately 15.6% year-over-year (2Q2024: US$9.6 million).
Smart solution revenue: US$10.9 million, up approximately 16.7% year-over-year (2Q2024: US$9.4 million).
Overall gross margin: 48.4%, up 0.4 percentage points year-over-year (2Q2024: 48.0%). PaaS gross margin increased to 48.7%, up 1.1 percentage points year-over-year (2Q2024: 47.6%).
Operating margin: 1.4%, improved by 15.5 percentage points year-over-year (2Q2024: negative 14.1%). Non-GAAP operating margin: 10.7% (2Q2024: 10.0%).
Net margin: 15.7%, improved by 11.4 percentage points year-over-year (2Q2024: 4.3%). Non-GAAP net margin: 25.1% (2Q2024: 28.4%).
Net profits: US$12.6 million, up approximately 302.4% year-over-year (2Q2024: US$3.1 million). Non-GAAP net profits: US$20.1 million (2Q2024: US$20.8 million).
Net cash generated from operating activities: US$18.2 million, up approximately 53.8% year-over-year (2Q2024: US$11.8 million).
Total cash and cash equivalents, time deposits and treasury securities: US$1,006.3 million as of June 30, 2025.

Second Quarter 2025 Operating Highlights

PaaS customers: Approximately 2,100 (vs. approximately 2,100 in 2Q2024). Total customers: Approximately 3,000 (vs. 3,000 in 2Q2024).
Premium PaaS customers (trailing 12 months): 285 (vs. 280 in 2Q2024). Contributed approximately 88.6% of PaaS revenue (vs. 84.8% in 2Q2024).
Dollar-based net expansion rate (DBNER) of PaaS: 114% (vs. 127% in 2Q2024).
Registered AI developers: Over 1,514,000 as of June 30, 2025, up 15% from approximately 1,316,000 as of December 31, 2024.

CEO and CFO Commentary

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer, commented on resilient profitability and solid business growth amidst global trade uncertainty, noting revenue growth of approximately 15% and non-GAAP operating profit increase of around 127%. He emphasized Tuya's commitment to its long-term strategy, cultivating customer relationships, and innovation.

Mr. Yi (Alex) Yang, Director and Chief Financial Officer, highlighted strong product capabilities and a diversified revenue structure, leading to healthy financial performance. He noted year-over-year growth across all business segments, strong gross margins, prudent cost management, and a solid net cash position.

Revenue Details

Total revenue for the second quarter of 2025 increased by 9.3% to US$80.1 million from US$73.3 million in the same period of 2024.

PaaS revenue increased by 7.0% to US$58.1 million, driven by increasing demand and the Company's strategic focus on customer needs and product enhancements.
SaaS and others revenue increased by 15.6% to US$11.1 million, primarily due to an increase in revenue from cloud software products.
Smart solution revenue increased by 16.7% to US$10.9 million, primarily due to increasing customer demand for smart devices with integrated intelligent software capabilities.

Cost of Revenue and Gross Margin

Cost of revenue increased by 8.7% to US$41.4 million, generally in line with the increase in total revenue.

Total gross profit increased by 10.1% to US$38.7 million. The gross margin was 48.4%, compared to 48.0% in the prior year period.

PaaS gross margin was 48.7%, compared to 47.6%.
SaaS and others gross margin was 72.0%, compared to 71.0%.
Smart solution gross margin was 22.5%, compared to 26.8%.

Gross margin changes for each revenue stream are primarily due to shifts in products and solutions mix. The Company remains focused on software products with compelling value propositions and cost efficiency.

Operating Expenses

Operating expenses decreased by 17.3% to US$37.7 million. Non-GAAP operating expenses increased by 8.3% to US$30.2 million.

Research and development expenses were US$22.4 million (down 2.7%), primarily due to lower share-based compensation expenses.
Sales and marketing expenses were US$7.8 million (down 16.6%), primarily due to decreased employee-related costs and lower share-based compensation.
General and administrative expenses were US$9.4 million (down 44.3%), mainly due to lower share-based compensation and a decrease in professional service costs.
Other operating income, net was US$1.9 million, primarily due to software value-added tax refunds.

Profit from Operations and Operating Margin

Profit from operations was US$1.1 million, compared to a loss of US$10.3 million in the prior year. Non-GAAP profit from operations was US$8.6 million.

Operating margin was 1.4%, an improvement of 15.5 percentage points. Non-GAAP operating margin was 10.7%, an improvement of 0.7 percentage points.

Net Profit and Net Margin

Net profit was US$12.6 million, an increase of 302.4% from US$3.1 million. Non-GAAP net profit was US$20.1 million.

Net margin was 15.7%, an improvement of 11.4 percentage points. Non-GAAP net margin was 25.1%.

Basic and Diluted Net Profit Per ADS

Basic and diluted net profit per ADS was US$0.02. Non-GAAP basic and diluted net profit per ADS was US$0.03.

Cash Position

Total cash and cash equivalents, time deposits, and treasury securities were US$1,006.3 million as of June 30, 2025. Net cash generated from operating activities was US$18.2 million.

Business Outlook

Despite global trade uncertainties, Tuya remains confident in the long-term value of intelligent technologies. The company plans to focus on product and service iteration, enhancing capabilities, expanding its customer base, investing in innovation, diversifying revenue streams, and optimizing operating efficiency.

Declaration of Cash Dividend and Record Date

The Board has approved a cash dividend of US$0.054 per ordinary share or ADS, totaling approximately US$33 million. The record date is September 11, 2025. For ordinary shares registered in Hong Kong, transfer documents must be lodged by September 11, 2025. For shares registered in the Cayman Islands, lodging is required by September 10, 2025. Payment is expected around October 13, 2025 for ordinary shares and October 20, 2025 for ADSs.

Conference Call Information

A conference call to discuss the financial results will be held on August 26, 2025. Participants can register online at: https://register-conf.media-server.com/register/BI3986123fbddc4ca5a85f960960afdf30. A live and archived webcast will be available on the investor relations website at https://ir.tuya.com.

About Tuya Inc.

Tuya Inc. is a global leading AI cloud platform service provider dedicated to building an AI developer ecosystem and enabling smart living. It offers Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and smart solutions, fostering a vibrant global developer community.

Use of Non-GAAP Financial Measures

The document explains that non-GAAP financial measures are used as supplemental tools to evaluate operating performance. These measures exclude items such as share-based compensation expenses and credit-related impairment of long-term investments. The limitations and reconciliations of these measures to U.S. GAAP are also discussed.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected. The Company does not undertake an obligation to update these statements.

Investor Relations Contact

Tuya Inc. Investor Relations
Email: ir@tuya.com

HL Strategy
Haiyan LI-LABBE
Email: hl@hl-strategy.com

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