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Tuya's Financial Performance: A Robust End to Fiscal Year 2025

On March 2, 2026, Tuya Inc. (NYSE: TUYA; HKEX: 2391), a prominent player in the AI cloud platform sector, released its unaudited financial outcomes for both the fourth quarter and the entire fiscal year ending December 31, 2025. This announcement highlighted key achievements and ongoing strategic initiatives despite a dynamic and sometimes challenging commercial landscape.

Fourth Quarter Highlights

In the fourth quarter of 2025, Tuya recorded total revenues of US$84.5 million, reflecting a growth of approximately 3.0% from US$82.1 million in the same quarter of the previous year. Various product segments contributed to this performance:

• - Platform-as-a-Service (PaaS) revenue reached US$60.1 million, marking a 1.4% increase year-over-year.
• - Software-as-a-Service (SaaS), along with others, generated US$12.4 million, an 8.2% rise from the prior year.
• - Smart Solutions produced US$12.0 million, up 6.0% from last year.

While the overall gross margin showed a minor decline to 47.6% from 47.8%, the operating margin saw a significant upswing, climbing to 9.5% from a previously negative position of 4.6%. The net profit for this quarter reached US$19.3 million, a substantial improvement from US$9.8 million a year prior.

Full Year 2025 Performance

Reviewing the entire fiscal year, Tuya reported total revenues of US$321.8 million, a 7.8% increase from US$298.6 million in 2024. The fiscal year saw positive trends across various areas:

• - PaaS revenue for the year was US$231.2 million, up 6.5% year-over-year.
• - SaaS and others revenue rose by 13.4% to US$44.9 million.
• - Revenue from smart solutions increased by 8.9%, totaling US$45.7 million.

The gross margin for the fiscal year improved to 48.2% from 47.4%, with improvements noted in both the PaaS and SaaS segments. Operating expenses declined by 24.1%, showcasing effective cost management strategies.

Strategic Outlook and Innovation

Tuya emphasized its commitment to enhancing its AI capabilities and expanding its AI+IoT strategies. The company's CEO, Mr. Xueji Wang, articulated a forward-looking vision, discussing the introduction of the Hey Tuya AI-powered smart assistant at CES, which is a significant enhancement to their service portfolio.

Tuya’s registered AI developers surpassed 1.8 million, representing a year-over-year growth of 37%. This developer base is integral to the company’s advancement of its AI functionalities and ecosystem. Approximately 16,000 AI Agents were developed on the Tuya platform, evidencing its expanding influence in intelligent application deployment.

Commitment to Stakeholders

In addition to financial growth, Tuya declared a cash dividend of US$0.0605 per ordinary share, amounting to an approximate US$37 million payment, reinforcing its strong cash position, which stood at US$1.017 billion as of December 31, 2025.

The board's decision on distributing dividends is based on multiple factors including operational performance, financial health, and future growth opportunities. Tuya continues to position itself as a resilient and innovative leader in the AI and IoT landscape, focusing on delivering long-term value while adapting to market conditions.

Conclusion

As Tuya navigates the complexities of the AI and connected device market, its solid financial outcomes paired with strategic innovations highlight its efforts toward maintaining a growth trajectory. The company remains optimistic about its path forward, showcasing the capacity to thrive in an evolving technological landscape.