#None #AI cloud #Tuya Inc. #PAAS

Tuya Inc. Financial Update for Q2 2025

Tuya Inc. recently unveiled its unaudited financial results for the second quarter of 2025, covering the period ending June 30, 2025. The company, recognized as one of the leading AI cloud platform service providers globally, reported a significant upswing in its revenue streams across various segments.

Financial Highlights

Tuya's total revenue for Q2 2025 reached an impressive $80.1 million, reflecting a year-on-year growth of approximately 9.3% from $73.3 million in Q2 2024. This robust growth can be attributed to the company's strategic advancements and unwavering dedication to enhancing customer engagement and satisfaction.

Segment Performance

• - Platform-as-a-Service (PaaS) revenue amounted to $58.1 million, signifying a rise of 7.0% compared to $54.3 million in the previous year. This growth is largely propelled by the increasing demand for Tuya's innovative solutions despite persistent global trade challenges.
• - Software-as-a-Service (SaaS) and other products garnered $11.1 million, up 15.6% from $9.6 million year-over-year, highlighting the company's commitment to expanding its software offerings and cloud services.
• - The company's smart solution sector reported revenues of $10.9 million, marking a 16.7% increase compared to $9.4 million in Q2 2024, driven by a surge in customer interest in smart devices.

Overall, Tuya's gross margin indicated a promising outlook, positioning at 48.4%, slightly up from 48.0% in the previous year.

Profitability and Cash Flow

Operating margins improved significantly, reaching 1.4%, up from a loss of 14.1% in the same quarter of the previous year. Additionally, Tuya reported net profits of $12.6 million, which equates to a staggering 302.4% increase compared to $3.1 million from the same quarter last year. This demonstrates effective cost management and operational efficiency.

Net cash generated from operating activities was notably strong, amounting to $18.2 million, reflecting a substantial increase of 53.8% year-on-year. As a result, Tuya boasts a solid cash and cash equivalents position of approximately $1,006.3 million as of June 30, 2025.

Dividend Declaration

In a show of confidence, Tuya's Board of Directors has announced a cash dividend of $0.054 per ordinary share or per American Depository Share (ADS), slated for distribution to shareholders on or around October 13, 2025. This announcement was supported by the company’s healthy financial position and robust profit margins, facilitating continuous shareholder returns.

Future Outlook

Despite facing a backdrop of global uncertainties, Tuya remains committed to its long-term strategies, focusing on nurturing relationships with core customers and exploring emerging markets. According to CEO Jerry Wang, the company is poised to leverage its innovative capabilities further while ensuring effective resource allocation to sustain its growth trajectory.

Director and CFO Alex Yang emphasized that Tuya's diverse revenue streams and strong product capabilities would continue to fuel its growth amidst external complexities in the consumer electronics landscape.

As Tuya positions itself at the forefront of AI-driven innovation, its commitments to achieving sustainable profitability and delivering value to shareholders remain steadfast, even in challenging environments, ensuring a promising outlook for the future.

The complete financial results and our outlook can be accessed via the company's investor relations page for comprehensive insights.

Conclusion

Tuya's recent financial disclosures reinforce the effectiveness of its operational strategy, with significant achievements across revenue streams, profitability, and successful dividend declarations. The company continues to focus on innovation and value creation in the growing smart solutions marketplace, setting a solid foundation for future growth and sustainability.