Tuya Inc【TUYA】株式ニュース

Tuya Reports First Quarter 2026 Unaudited Financial ResultsMay 11, 2026 5:00 PM
PR Newswire (US) SANTA CLARA, Calif., May 11, 2026 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading AI cloud platform service provider, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial HighlightsTotal revenue was US$80.9 million, up approximately 8.3% year-over-year (1Q2025: US$74.7 million).Platform-as-a-service ("PaaS") revenue was US$59.0 million, up approximately 9.8% year-over-year (1Q2025: US$53.7 million).AI application & others[1] (formerly known as Software-as-a-service ("SaaS") and others) revenue was US$11.6 million, up approximately 16.9% year-over-year (1Q2025: US$10.0 million).Smart home & robot product[2] (formerly known as Smart solution) revenue was US$10.2 million, down approximately 6.9% year-over-year (1Q2025: US$11.0 million).Overall gross margin was 46.9%, down 1.6 percentage points year-over-year (1Q2025: 48.5%). Gross margin of PaaS was 46.1% (1Q2025: 48.4%).Operating margin was 9.2%, improved by 11.1 percentage points year-over-year (1Q2025: negative 1.9%). Non-GAAP operating margin was 10.0% (1Q2025: 9.1%).Net margin was 19.5%, improved by 4.7 percentage points year-over-year (1Q2025: 14.8%). Non-GAAP net margin was 20.3% (1Q2025: 25.8%).Net profits were US$15.8 million (1Q2025: US$11.0 million). Non-GAAP net profits were US$16.4 million (1Q2025: US$19.3 million).Net cash generated from operating activities was US$6.4 million (1Q2025: US$9.4 million).Total cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,017.1 million as of March 31, 2026, compared to US$1,017.3 million as of December 31, 2025. Commencing from the current reporting period, the Group has renamed the revenue stream previously presented as Software-as-a-service ("SaaS") and others to "AI Application & others." This change reflects the Group's strategic direction to fully integrate AI capabilities into all software products within this business stream. The Group will focus on providing various subscription-based value-added services powered by large-scale AI models in this stream, such as AI Guardian and Energy Butler.
Commencing from the current reporting period, the Group has renamed the revenue stream previously presented as "Smart solution" to "Smart home & robot product." This change aligns with the Group's business orientation for this stream, where product offerings will be focused on AI-enabled consumer electronics and home robotics, including AI-powered security systems, AI energy management solutions, and home companion robots.For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."First Quarter 2026 Operating HighlightsPremium PaaS customers[1] for the trailing 12 months ended March 31, 2026 were 306 (1Q2025: 287). In the first quarter of 2026, the Company's premium PaaS customers contributed approximately 89.3% of its PaaS revenue (1Q2025: approximately 88.7%).Registered AI developers were over 1,970,000 as of March 31, 2026, up 9.4% from approximately 1,801,000 developers as of December 31, 2025. The Company defines a premium PaaS customer as a customer as of a given date that contributed more than US$100,000 of PaaS revenue during the immediately preceding 12-month period.Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "In the first quarter, despite ongoing external uncertainties and certain regional disruptions, we continued to demonstrate solid growth momentum and strong execution capabilities. Since the fourth quarter, we have benefited from a continued recovery in downstream demand, supporting the ongoing expansion of our business scale. Total revenue increased by 8.3% year over year, with the growth rate further improving from the previous quarter, and we maintained positive growth for multiple consecutive quarters. Our gross margin remained at a healthy level, underscoring the continued enhancement of our product value proposition and platform competitiveness.Strategically, we continue to pursue AI-driven development, harnessing AI capabilities to accelerate the deployment of application-level solutions and scenario-based products, with implementation across multiple scenarios. We continued to iterate our developer tools and platform capabilities, enabling global developers to access and apply the most advanced AI technologies at lower cost and with greater efficiency. This is reflected in the continued growth of our AI-related business revenue, highlighting our steady progress in commercialization and accelerated deployment. Meanwhile, demand for AI-native applications in consumer scenarios continued to rise, driving the scaled application of Physical AI in real-life settings. At the same time, we are expanding the global rollout of validated solutions and further strengthening our developer ecosystem, working with industry partners to jointly explore the long-term opportunities in the AI application market. Looking ahead, supported by our resilient business model and solid financial foundation, we remain focused on AI application innovation, global solution expansion and developer ecosystem development, continuously enhancing our long-term value creation capabilities.Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, "In the first quarter, we delivered total revenue of US$80.9 million, representing a year-over-year increase of 8.3%, with PaaS revenue growing by 9.8%, as our overall business continued its steady recovery. AI application & others revenue continued to outperform, increasing by 16.9% year over year and serving as an important driver of our structural growth, driven by continued expansion of cloud-based software offerings with AI application functions and application-level commercialization.Meanwhile, profitability continued to improve, with GAAP operating margin reaching 9.2% and non-GAAP operating margin standing at 10.0%, demonstrating continued operating leverage and disciplined cost management. Net margin expanded to 19.5%, supported by enhanced efficiency and an optimized expense structure. We maintained a solid balance sheet, with over US$1.0 billion in cash and liquid investments, providing flexibility to support continued investment in AI and global expansion. Overall, our performance reflects the resilience of our core platform business, continued optimization of our revenue mix, and steady progress in translating AI capabilities into scalable commercial outcomes."First Quarter 2026 Unaudited Financial ResultsREVENUETotal revenue in the first quarter of 2026 increased by 8.3% to US$80.9 million from US$74.7 million in the same period of 2025.PaaS revenue in the first quarter of 2026 increased by 9.8% to US$59.0 million from US$53.7 million in the same period of 2025, primarily due to increasing demand compared with the same period of 2025 and the Company's strategic focus on customer needs and product enhancements, despite the disruptions in the international business environment due to tariff-related headwinds since April 2025. Our core customer base remained stable.AI application & others revenue in the first quarter of 2026 increased by 16.9% to US$11.6 million from US$10.0 million in the same period of 2025, primarily due to an increase in revenue from cloud based services. During the quarter, the Company remained committed to offering recurring value-added services with AI application functions.Smart home & robot product revenue in the first quarter of 2026 decreased by 6.9% to US$10.2 million from US$11.0 million in the same period of 2025.GROSS PROFIT AND GROSS MARGINTotal gross profit in the first quarter of 2026 increased by 4.5% to US$37.9 million from US$36.3 million in the same period of 2025. The gross margin in the first quarter of 2026 was 46.9%, compared to 48.5% in the same period of 2025.PaaS gross margin in the first quarter of 2026 was 46.1%, compared to 48.4% in the same period of 2025, partly attributable to recent price fluctuations in the semiconductor supply chain.AI application & others gross margin in the first quarter of 2026 was 71.7%, compared to 74.4% in the same period of 2025.Smart home & robot product gross margin in the first quarter of 2026 was 23.0%, compared to 25.7% in the same period of 2025.Gross margin fluctuated primarily due to changes in products and solutions mix. As an AI developer platform with a rich ecosystem of smart devices and applications, the Company remains focused on AI offering with compelling value propositions while maintaining economic efficiency.OPERATING EXPENSESOperating expenses decreased by 19.3% to US$30.4 million in the first quarter of 2026 from US$37.7 million in the same period of 2025. Non-GAAP operating expenses increased by 1.3% to US$29.8 million in the first quarter of 2026 from US$29.4 million in the same period of 2025. For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."Research and development expenses in the first quarter of 2026 were US$22.0 million, down 3.7% from US$22.8 million in the same period of 2025, primarily due to lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, partially offset by higher employee-related cost and ongoing investments in research and development capabilities. Non-GAAP adjusted research and development expenses in the first quarter of 2026 were US$21.6 million, compared to US$20.8 million in the same period of 2025.Sales and marketing expenses in the first quarter of 2026 were US$7.4 million, down 11.1% from US$8.3 million in the same period of 2025, primarily because of lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized and lower operating expenses, partially offset by higher employee-related cost associated with regular team movements. Non-GAAP adjusted sales and marketing expenses in the first quarter of 2026 were US$7.3 million, compared to US$7.6 million in the same period of 2025.General and administrative expenses in the first quarter of 2026 were US$4.3 million, down 51.7% from US$8.9 million in the same period of 2025, primarily because of lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized. Non-GAAP adjusted general and administrative expenses in the first quarter of 2026 were US$4.1 million, compared to US$3.4 million in the same period of 2025.Other operating income, net in the first quarter of 2026 was US$3.3 million, primarily due to the receipt of software value-added tax refunds.LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGINProfit from operations in the first quarter of 2026 was US$7.5 million, compared to a loss of US$1.5 million in the same period of 2025. The Company had a non-GAAP profit from operations of US$8.1 million in the first quarter of 2026, compared to a non-GAAP profit from operations of US$6.8 million in the same period of 2025, demonstrating consistent operating profitability and leverage.Operating margin in the first quarter of 2026 was 9.2%, improved by 11.1 percentage points from negative 1.9% in the same period of 2025. Non-GAAP operating margin in the first quarter of 2026 was 10.0%, improved by 0.9 percentage points from 9.1% in the same period of 2025.NET PROFIT AND NET MARGINNet profit in the first quarter of 2026 was US$15.8 million, improved by 43.2 percentage points from US$11.0 million in the same period of 2025, demonstrating consistent profitability and improved leverage, despite being partially impacted by interest rate cuts. Non-GAAP net profit in the first quarter of 2026 was US$16.4 million, compared to US$19.3 million in the same period of 2025.Net margin in the first quarter of 2026 was 19.5%, improved by 4.7 percentage points from 14.8% in the same period of 2025. Non-GAAP net margin in the first quarter of 2026 was 20.3%, compared to 25.8% in the same period of 2025, mainly affected by interest rate fluctuations.BASIC AND DILUTED NET PROFIT PER ADSBasic and diluted net profit per ADS was US$0.03 in the first quarter of 2026, compared to basic and diluted net profit of US$0.02 in the same period of 2025. Each ADS represents one Class A ordinary share.Non-GAAP basic and diluted net profit per ADS was US$0.03 in the first quarter of 2026, compared to non-GAAP basic and diluted net profit of US$0.03 in the same period of 2025.CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTSCash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,017.1 million as of March 31, 2026, compared to US$1,017.3 million as of December 31, 2025. The Company believes its current cash position is sufficient to meet its current liquidity and working capital needs.NET CASH GENERATED FROM OPERATING ACTIVITIESNet cash generated from operating activities in the first quarter of 2026 was US$6.4 million. The net cash generated from operating activities for the first quarter of 2026 mainly due to working capital changes in the ordinary course of business.For further information on non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."Business OutlookThe overall operating environment remains complex, while continuing to show signs of normalization. Participants across the value chain – including manufacturers, brands, and channel partners – are maintaining a cautiously optimistic to planning. At the same time, we have observed more normalized project execution and continuous demand recovering across several of our core categories, suggesting that the market is gradually moving from adjustment toward a more stable operating rhythm.Meanwhile, global AI development is entering a new stage of application-led growth. As AI technologies continue to evolve from foundational capabilities toward real-world deployment, enterprises and consumers are increasingly focused on practical use cases, scalable implementation, and scenario-based integration with physical devices. This trend is accelerating the convergence of AI and smart hardware, and is creating new opportunities for application innovation, product expansion, and ecosystem collaboration across a wide range of verticals.Against this backdrop, Tuya continues to advance its AI-driven strategy by strengthening its AI developer platform, expanding application-level capabilities, and supporting broader deployment across diverse smart device and industry scenarios. The ongoing evolution of AI applications, together with its platform capabilities, ecosystem strengths, and global developer base, will continue to support the creation of diversified, higher-value opportunities over the long term.In this environment, the Company will continue to maintain disciplined execution while selectively investing in AI-driven applications, platform capabilities, and ecosystem development. In response to this evolving market environment, the Company will continue to iterate and improve its products and services, enhance both software and hardware capabilities, and further support customers and developers in bringing AI-driven applications into practical deployment. At the same time, the Company recognizes that its future trajectory may continue to be influenced by a range of external factors, including shifts in consumer demand, regional economic divergence, inventory dynamics, foreign exchange and interest rate volatility, tariffs and trade policy adjustments, and broader geopolitical uncertainties.Conference Call InformationThe Company's management will hold a conference call at 08:30 P.M. U.S. Eastern Time on Monday, May 11, 2026 (08:30 A.M. Hong Kong Time on Tuesday, May 12, 2026) to discuss the financial results. In advance of the conference call, all participants must use the following links to complete the online registration process. Upon registering, each participant will receive the dial-in information and a unique PIN (personal access code) to join the call as well as an email confirmation with the details.Participants Online Webcast Registration: https://edge.media-server.com/mmc/p/ac9ndekbParticipants Call Registration: https://register-conf.media-server.com/register/BIb902b42554034c629830165e2265dee8A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.tuya.com.About Tuya Inc.Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading AI cloud platform service provider with a mission to build an AI developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built AI cloud platform with cloud and generative AI capabilities that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, AI application & others and Smart home & robot products for developers of smart device, commercial applications, and industries. Through its AI developer platform, Tuya has activated a vibrant global developer community of brands, OEMs, AI agents, system integrators and independent software vendors to collectively strive for smart solutions ecosystem embodying the principles of green and low-carbon, security, high efficiency, agility, and openness.Use of Non-GAAP Financial MeasuresIn evaluating the business, the Company considers and uses non-GAAP financial measures, such as non-GAAP operating expenses, non-GAAP profit from operations (including non-GAAP operating margin), non-GAAP net profit (including non-GAAP net margin), and non-GAAP basic and diluted net profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses from the respective GAAP financial measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP financial measures facilitates investors' assessment of its operating performance.Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP measures to the most directly comparable U.S. GAAP measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.Reconciliations of Tuya's non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.Safe Harbor StatementThis press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statements. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.Investor Relations ContactTuya Inc.
Investor Relations
Email: ir@tuya.comHL Strategy
Haiyan LI-LABBE
Email: hl@hl-strategy.comPiacente Financial Communications
China Tel: +86-10-6508-0677
U.S. Tel: +1-212-481-2050
Email: tuya@thepiacentegroup.com  TUYA INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2025 AND MARCH 31, 2026(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

As of
December 31,
2025  As of
March 31,
2026

ASSETS

Current assets:

Cash and cash equivalents890,708912,447Restricted cash-8Short-term investments61,77038,705Accounts receivable, net13,19313,028Notes receivable, net10,11111,066Inventories, net30,94343,699Prepayments and other current assets, net16,48619,457Total current assets1,023,2111,038,410

Non-current assets:

Restricted cash245249Property, equipment and software, net15,65325,143Land use rights, net8,8438,936Operating lease right-of-use assets, net5,6499,890Long-term investments77,21378,843Other non-current assets, net1,700988Total non-current assets109,303124,049Total assets1,132,5141,162,459

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable31,77838,836Advances from customers29,33032,083Deferred revenue, current9,7329,148Accruals and other current liabilities33,26165,585Incomes tax payables142244Lease liabilities, current1,9853,638Total current liabilities106,228149,534

Non-current liabilities:

Lease liabilities, non-current3,3296,418Deferred revenue, non-current352683Total non-current liabilities3,6817,101Total liabilities109,909156,635

TUYA INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)AS OF DECEMBER 31, 2025 AND MARCH 31, 2026(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

As of
December 31,
2025  As of
March 31,
2026

Shareholders' equity:

Ordinary shares--Class A ordinary shares2727Class B ordinary shares44Treasury stock(12)(12)Additional paid-in capital1,549,3891,512,933Accumulated other comprehensive loss(14,842)(10,943)Accumulated deficit(511,961)(496,185)Total shareholders' equity 1,022,6051,005,824Total liabilities and shareholders' equity1,132,5141,162,459

TUYA INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months Ended
March 31,
2025  March 31,
2026

Revenue74,68780,882Cost of revenue(38,436)(42,984)

Gross profit36,25137,898

Operating expenses:

Research and development expenses(22,810)(21,972)Sales and marketing expenses(8,347)(7,420)General and administrative expenses(8,929)(4,315)Other operating incomes, net2,3833,281

Total operating expenses(37,703)(30,426)

(Loss)/profit from operations(1,452)7,472

Other income

Other non-operating income, net767767Financial income, net12,3959,496Foreign exchange gain/(loss), net44(1,526)

Profit before income tax expense11,75416,209Income tax expense(737)(433)

Net profit11,01715,776

Net profit attributable to Tuya Inc.11,01715,776

Net profit attribute to ordinary shareholders11,01715,776

Net profit11,01715,776

Other comprehensive income

Foreign currency translation1773,899

Total comprehensive income attributable to Tuya Inc.11,19419,675

TUYA INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME (CONTINUED)(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months Ended
March 31,
2025  March 31,
2026

Net profit attributable to Tuya Inc.11,01715,776

Net profit attribute to ordinary shareholders11,01715,776

Weighted average number of ordinary shares used in
    computing net profit per share, basic and diluted

- Basic606,308,258615,523,100- Diluted608,490,640616,307,696

Net profit per share attributable to ordinary shareholders,
    basic and diluted

- Basic0.020.03- Diluted0.020.03

Share-based compensation expenses were included in:

Research and development expenses2,016372Sales and marketing expenses73886General and administrative expenses5,521170

TUYA INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months Ended
March 31,
2025  March 31,
2026

Net cash generated from operating activities9,3526,399Net cash generated from investing activities101,18314,924Net cash generated from financing activities2-Effect of exchange rate changes on cash and
    cash equivalents, restricted cash32428

Net increase in cash and cash equivalents, restricted cash110,56921,751

Cash and cash equivalents, restricted cash at the
    beginning of period653,384890,953

Cash and cash equivalents, restricted cash at the end of period763,953912,704

TUYA INC.UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOSTDIRECTLY COMPARABLE FINANCIAL MEASURES(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months Ended
March 31,
2025  March 31,
2026

Reconciliation of operating expenses to non-GAAP
    operating expenses

Research and development expenses(22,810)(21,972)Add: Share-based compensation expenses2,016372Adjusted Research and development expenses(20,794)(21,600)

Sales and marketing expenses(8,347)(7,420)Add: Share-based compensation expenses73886Adjusted Sales and marketing expenses(7,609)(7,334)

General and administrative expenses(8,929)(4,315)Add: Share-based compensation expenses5,521170Adjusted General and administrative expenses(3,408)(4,145)

Reconciliation of (loss)/profit from operations to non-GAAP
    profit from operations

(Loss)/profit from operations(1,452)7,472Operating margin(1.9) %9.2 %Add: Share-based compensation expenses8,275628Non-GAAP profit from operations6,8238,100

Non-GAAP Operating margin9.1 %10.0 %

TUYA INC.UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOSTDIRECTLY COMPARABLE FINANCIAL MEASURES (CONTINUED)(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months Ended
March 31,
2025  March 31,
2026

Reconciliation of net profit to non-GAAP net profit

Net profit11,01715,776Net margin14.8 %19.5 %Add: Share-based compensation expenses8,275628Non-GAAP Net profit19,29216,404

Non-GAAP Net margin25.8 %20.3 %

Weighted average number of ordinary shares used in
    computing non-GAAP net profit per share, basic and diluted

- Basic606,308,258615,523,100- Diluted608,490,640616,307,696

Non-GAAP net profit per share attributable to
    ordinary shareholders, basic and diluted

- Basic0.030.03- Diluted0.030.03   View original content:https://www.prnewswire.com/news-releases/tuya-reports-first-quarter-2026-unaudited-financial-results-302768503.htmlSOURCE Tuya Inc. Original: Tuya Reports First Quarter 2026 Unaudited Financial Results

Tuya Reports Fourth Quarter and Fiscal 2025 Unaudited Financial Results and Declaration of Cash DividendMarch 2, 2026 5:00 PM
PR Newswire (US)

SANTA CLARA, Calif., March 2, 2026 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading AI cloud platform service provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025 and the declaration of a cash dividend.Fourth Quarter 2025 Financial HighlightsTotal revenue was US$84.5 million, up approximately 3.0% year-over-year (4Q2024: US$82.1 million).Platform-as-a-service ("PaaS") revenue was US$60.1 million, up approximately 1.4% year-over-year (4Q2024: US$59.3 million).Software-as-a-service ("SaaS") and others revenue was US$12.4 million, up approximately 8.2% year-over-year (4Q2024: US$11.5 million).Smart solution revenue was US$12.0 million, up approximately 6.0% year-over-year (4Q2024: US$11.3 million).Overall gross margin was 47.6%, down 0.2 percentage points year-over-year (4Q2024: 47.8%). Gross margin of PaaS was 47.3% (4Q2024: 47.4%).Operating margin was 9.5%, improved by 14.1 percentage points year-over-year (4Q2024: negative 4.6%). Non-GAAP operating margin was 11.1% (4Q2024: 10.3%).Net margin was 22.9%, improved by 10.9 percentage points year-over-year (4Q2024: 11.9%). Non-GAAP net margin was 24.4% (4Q2024: 26.9%).Net profits were US$19.3 million (4Q2024: US$9.8 million). Non-GAAP net profits were US$20.6 million (4Q2024: US$22.1 million).Net cash generated from operating activities was US$23.5 million (4Q2024: US$30.2 million).Total cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,017.3 million as of December 31, 2025, compared to US$1,016.7 million as of December 31, 2024.Full Year 2025 Financial HighlightsTotal revenue was US$321.8 million, up approximately 7.8% year-over-year (for the year ended December 31, 2024: US$298.6 million).Platform-as-a-service ("PaaS") revenue was US$231.2 million, up approximately 6.5% year-over-year (for the year ended December 31, 2024: US$217.1 million).Software-as-a-service ("SaaS") and others revenue was US$44.9 million, up approximately 13.4% year-over-year (for the year ended December 31, 2024: US$39.6 million).Smart solution revenue was US$45.7 million, up approximately 8.9% year-over-year (for the year ended December 31, 2024: US$42.0 million).Overall gross margin increased to 48.2%, up 0.8 percentage points year-over-year (for the year ended December 31, 2024: 47.4%). Gross margin of PaaS increased to 48.3%, up 1.2 percentage points year-over-year (for the year ended December 31, 2024: 47.1%).Operating margin was 3.6%, improved by 19.5 percentage points year-over-year (for the year ended December 31, 2024: negative 15.9%). Non-GAAP operating margin was 10.5%, improved by 2.9 percentage points year-over-year (for the year ended December 31, 2024: 7.6%).Net margin was 18.0%, improved by 16.3 percentage points year-over-year (for the year ended December 31, 2024: 1.7%). Non-GAAP net margin was 24.9% (for the year ended December 31, 2024: 25.2%).Net profits were US$57.9 million (for the year ended December 31, 2024: US$5.0 million). Non-GAAP net profits were US$80.1 million, up approximately 6.4% year-over-year (for the year ended December 31, 2024: US$75.3 million).Net cash generated from operating activities was US$81.0 million, increased by 0.9% year-over-year (for the year ended December 31, 2024: US$80.4 million).For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."Fourth Quarter and Fiscal Year 2025 Operating HighlightsPaaS customers[1] for the fourth quarter of 2025 were approximately 2,100 (4Q2024: approximately 2,100). Total customers for the fourth quarter of 2025 were approximately 3,000 (4Q2024: 3,000).Premium PaaS customers[2] for the trailing 12 months ended December 31, 2025 were 291 (4Q2024: 298). In the fourth quarter of 2025, the Company's premium PaaS customers contributed approximately 88.3% of its PaaS revenue (4Q2024: approximately 87.3%).Dollar-based net expansion rate ("DBNER")[3] of PaaS for the trailing 12 months ended December 31, 2025 was 102% (4Q2024: 122%).Registered AI developers were over 1,801,000 as of December 31, 2025, up 37% from approximately 1,316,000 developers as of December 31, 2024.The Company defines a PaaS customer for a given period as a customer who has directly placed orders for PaaS with the Company during that period.The Company defines a premium PaaS customer as a customer as of a given date that contributed more than US$100,000 of PaaS revenue during the immediately preceding 12-month period.The Company calculates DBNER of PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those have placed at least one order for PaaS during that period), and then calculating the quotient from dividing the PaaS revenue generated from such customers in the current trailing 12-month period by the PaaS revenue generated from the same group of customers in the prior 12-month period. The Company's DBNER may change from period to period, due to a combination of various factors, including changes in the customers' purchase cycles and amounts and the Company's customer mix, among other things. DBNER indicates the Company's ability to expand customer use of the Tuya platform over time and generate revenue growth from existing customers.Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "We maintained steady progress amid a complex and evolving operating environment, delivering solid revenue growth for the full year while further enhancing profitability and operating efficiency. The steady improvement in gross margin reflects our value positioning and technical pricing power within the industry, as well as the resilience of our core platform business structure. Sustained and healthy net profitability and operating cash flow further validate the durability of our business model and our ability to translate disciplined operations into solid financial performance.Strategically, we continued to advance our AI+IoT strategy of 'platform empowerment + application expansion,' accelerating the systematic integration of AI capabilities across our platform and device ecosystem. At CES, we introduced Hey Tuya, our AI-powered smart life assistant, and showcased the supporting Physical AI Engine (PAE) architecture. This extension of our AI capabilities from the platform layer to cross-device, scenario-based product experiences marks a significant milestone in our transition from technology enablement to scenario-based product deployment.As of the end of 2025, the number of registered AI+IoT developers on our platform reached 1.8 million, representing a 37% year-over-year increase. Approximately 16,000 AI Agents have been cumulatively developed on the Tuya platform. AI penetration across end products continues to increase, with commercialization advancing steadily. AI is evolving from standalone functionality into replicable applications and recurring revenue streams, structurally enhancing our platform's value.Looking ahead, we will continue to strengthen our AI-native platform capabilities and developer ecosystem. Supported by a robust business model and solid financial foundation, we remain focused on driving long-term value creation."Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, "In the fourth quarter, the Company's profitability continued to improve, with GAAP operating margin turning positive year over year and net profit margin expanding significantly, primarily driven by expense mix optimization and increased operating leverage. Building on steady revenue growth, we achieved a meaningful improvement in profitability.For the full year 2025, the Company restored GAAP profitability while maintaining revenue growth and solid operating cash flow, reflecting continued cost discipline and resource allocation optimization.Meanwhile, leveraging the ongoing evolution of our AI capabilities, we accelerated the development of recurring revenue models, particularly cloud software and value-added services, across our existing customer and developer ecosystem. In 2025, SaaS and others revenue achieved double-digit year-over-year growth, outpacing overall revenue growth and indicating continued improvement in revenue mix.As of year-end, the Company's balance sheet remained strong, with cash and liquid investments exceeding US$1.0 billion and no interest-bearing debt. Our liquidity position provides flexibility to support long-term strategic investments and resilience against external volatility."Fourth Quarter 2025 Unaudited Financial ResultsREVENUETotal revenue in the fourth quarter of 2025 increased by 3.0% to US$84.5 million from US$82.1 million in the same period of 2024.PaaS revenue in the fourth quarter of 2025 increased by 1.4% to US$60.1 million from US$59.3 million in the same period of 2024, primarily due to increasing demand compared with the same period of 2024 and the Company's strategic focus on customer needs and product enhancements, despite the disruptions in the international business environment due to tariff-related headwinds since this April. As a result, the Company's DBNER of PaaS for the trailing 12 months ended December 31, 2025 softened to 102%, primarily reflecting more cautious purchasing behavior and customers' elongated budgeting cycles amid a complex macro environment. Despite this, our core customer base remained stable, and premium PaaS customers continued to contribute a high proportion of PaaS revenue.SaaS and others revenue in the fourth quarter of 2025 increased by 8.2% to US$12.4 million from US$11.5 million in the same period of 2024, primarily due to an increase in revenue from cloud software products. During the quarter, the Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers.Smart solution revenue in the fourth quarter of 2025 increased by 6.0% to US$12.0 million from US$11.3 million in the same period of 2024.COST OF REVENUECost of revenue in the fourth quarter of 2025 increased by 3.3% to US$44.2 million from US$42.8 million in the same period of 2024, generally in line with the increase in the Company's total revenue.GROSS PROFIT AND GROSS MARGINTotal gross profit in the fourth quarter of 2025 increased by 2.6% to US$40.2 million from US$39.2 million in the same period of 2024. The gross margin in the fourth quarter of 2025 was 47.6%, compared to 47.8% in the same period of 2024.PaaS gross margin in the fourth quarter of 2025 was 47.3%, compared to 47.4% in the same period of 2024.SaaS and others gross margin in the fourth quarter of 2025 was 73.0%, compared to 72.7% in the same period of 2024.Smart solution gross margin in the fourth quarter of 2025 was 22.9%, compared to 24.9% in the same period of 2024.Gross margin of each revenue stream increased or fluctuated primarily due to changes in products and solutions mix. As an AI developer platform with a rich ecosystem of smart devices and applications, the Company remains focused on software products with compelling value propositions while maintaining cost efficiency.OPERATING EXPENSESOperating expenses decreased by 25.2% to US$32.2 million in the fourth quarter of 2025 from US$43.0 million in the same period of 2024. Non-GAAP operating expenses increased by 0.5% to US$30.9 million in the fourth quarter of 2025 from US$30.8 million in the same period of 2024. For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."Research and development expenses in the fourth quarter of 2025 were US$21.7 million, down 8.3% from US$23.7 million in the same period of 2024, primarily due to lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized. Non-GAAP adjusted research and development expenses in the fourth quarter of 2025 were US$20.9 million, compared to US$21.2 million in the same period of 2024.Sales and marketing expenses in the fourth quarter of 2025 were US$8.9 million, down 1.1% from US$9.0 million in the same period of 2024, primarily because of (i) a decrease in employee-related costs due to regular team movements, (ii) lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, partially offset by increases in operating expenses. Non-GAAP adjusted sales and marketing expenses in the fourth quarter of 2025 were US$8.7 million, compared to US$8.2 million in the same period of 2024.General and administrative expenses in the fourth quarter of 2025 were US$4.1 million, down 69.7% from US$13.6 million in the same period of 2024, primarily because of (i) lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, (ii) a decrease in professional service costs, among other things. Non-GAAP adjusted general and administrative expenses in the fourth quarter of 2025 were US$3.9 million, compared to US$4.7 million in the same period of 2024.Other operating income, net in the fourth quarter of 2025 was US$2.6 million, primarily due to the receipt of software value-added tax refunds.LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGINProfit from operations in the fourth quarter of 2025 was US$8.0 million, compared to a loss of US$3.8 million in the same period of 2024. The Company had a non-GAAP profit from operations of US$9.4 million in the fourth quarter of 2025, compared to a non-GAAP profit from operations of US$8.5 million in the same period of 2024, demonstrating consistent operating profitability and leverage.Operating margin in the fourth quarter of 2025 was 9.5%, improved by 14.1 percentage points from negative 4.6% in the same period of 2024. Non-GAAP operating margin in the fourth quarter of 2025 was 11.1%, improved by 0.8 percentage points from 10.3% in the same period of 2024.NET PROFIT AND NET MARGINNet profit in the fourth quarter of 2025 was US$19.3 million, improved by 97.4 percentage points from US$9.8 million in the same period of 2024. Non-GAAP net profit in the fourth quarter of 2025 was US$20.6 million, compared to US$22.1 million in the same period of 2024, demonstrating consistent profitability and improved leverage, despite being partially impacted by interest rate cuts.Net margin in the fourth quarter of 2025 was 22.9%, improved by 11.0 percentage points from 11.9% in the same period of 2024. Non-GAAP net margin in the fourth quarter of 2025 was 24.4%, compared to 26.9% in the same period of 2024.BASIC AND DILUTED NET PROFIT PER ADSBasic and diluted net profit per ADS was US$0.03 in the fourth quarter of 2025, compared to basic and diluted net profit of US$0.02 in the same period of 2024. Each ADS represents one Class A ordinary share.Non-GAAP basic and diluted net profit per ADS was US$0.03 in the fourth quarter of 2025, compared to non-GAAP basic and diluted net profit of US$0.04 in the same period of 2024.CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTSCash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,017.3 million as of December 31, 2025, compared to US$1,016.7 million as of December 31, 2024. The Company believes its current cash position is sufficient to meet its current liquidity and working capital needs.NET CASH GENERATED FROM OPERATING ACTIVITIESNet cash generated from operating activities in the fourth quarter of 2025 was US$23.5 million, compared to US$30.2 million in the same period of 2024. The net cash generated from operating activities for the fourth quarter of 2025 mainly due to working capital changes in the ordinary course of business.For further information on non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."Fiscal Year 2025 Unaudited Financial ResultsREVENUETotal revenue increased by 7.8% to US$321.8 million in 2025 from US$298.6 million in 2024, mainly due to the increase in PaaS revenue and SaaS revenue.PaaS revenue increased by 6.5% to US$231.2 million in the year ended December 31, 2025 from US$217.1 million in the same period of 2024, primarily due to steady demand from core customers and the Company's continued focus on product enhancements and customer needs.SaaS and others revenue increased by 13.4% to US$44.9 million in the year ended December 31, 2025 from US$39.6 million in the same period of 2024, primarily due to an increase in revenue from cloud software products. During the year ended December 31, 2025, the Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers.Smart solution revenue increased by 8.9% to US$45.7 million in the year ended December 31, 2025 from US$42.0 million in the same period of 2024, primarily attributable to the increasing customer demand for smart devices with integrated intelligent software capabilities the Company developed beyond IoT.COST OF REVENUECost of revenue increased by 6.1% to US$166.8 million in the year ended December 31, 2025 from US$157.2 million in the same period of 2024, in line with the increase in total revenue.GROSS PROFIT AND GROSS MARGINTotal gross profit increased by 9.6% to US$155.0 million in the year ended December 31, 2025 from US$141.4 million in the same period of 2024. Gross margin increased to 48.2% in the year ended December 31, 2025 from 47.4% in the same period of 2024.PaaS gross margin was 48.3% in the year ended December 31, 2025, compared to 47.1% in the same period of 2024.SaaS and others gross margin was 72.5% in the year ended December 31, 2025, compared to 71.9% in the same period of 2024.Smart solution gross margin was 23.7% in the year ended December 31, 2025, compared to 25.5% in the same period of 2024.Gross margin of each revenue stream increased or fluctuated primarily due to changes in products and solutions mix. As a developer platform with rich ecosystem of smart devices and applications, the Company remains focused on software products with compelling value propositions while maintaining cost efficiency.OPERATING EXPENSESOperating expenses decreased by 24.1% to US$143.6 million in the year ended December 31, 2025 from US$189.1 million in the same period of 2024. Non-GAAP operating expenses increased by 2.2% to US$121.4 million in the year ended December 31, 2025 from US$118.7 million in the same period of 2024. For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."Research and development expenses were US$89.7 million in the year ended December 31, 2025, down 5.6% from US$95.0 million in the same period of 2024, primarily because of lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, partially offset by higher employee-related costs and other operating expenses associated with regular team movements and ongoing investments in research and development capabilities. Non-GAAP adjusted research and development expenses in the year ended December 31, 2025 were US$84.3 million, compared to US$80.7 million in the same period of 2024.Sales and marketing expenses were US$33.1 million in the year ended December 31, 2025, down 10.7% from US$37.1 million in the same period of 2024, primarily because of (i) a decrease in employee-related costs due to regular team movements, and (ii) lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been largely amortized. Non-GAAP adjusted sales and marketing expenses in the year ended December 31, 2025 were US$31.1 million, compared to US$32.0 million in the same period of 2024.General and administrative expenses were US$30.9 million in the year ended December 31, 2025, down 54.7% from US$68.3 million in the same period of 2024, primarily because of (i) lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, and (ii) a decrease in professional service costs, among other things. Non-GAAP adjusted general and administrative expenses in the year ended December 31, 2025 were US$16.2 million, compared to US$17.4 million in the same period of 2024.Other operating incomes, net were US$10.2 million in the year ended December 31, 2025, primarily due to receipts of software value-added tax refund.LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGINProfit from operations was US$11.5 million in the year ended December 31, 2025, compared to a loss from operations of US$47.6 million in the same period of 2024. Non-GAAP profit from operations was US$33.7 million in the year ended December 31, 2025, compared to US$22.7 million in the same period of 2024.Operating margin was 3.6% in the year ended December 31, 2025, improved by 19.5 percentage points from negative 15.9% in the same period of 2024. Non-GAAP operating margin was 10.5% in the year ended December 31, 2025, improved by 2.9 percentage points from 7.6% in the same period of 2024.NET PROFIT AND NET MARGINThe Company had a net profit of US$57.9 million in the year ended December 31, 2025, compared to US$5.0 million in the year ended December 31, 2024.The Company had a non-GAAP net profit of US$80.1 million in the year ended December 31, 2025, increased by 6.4% compared to US$75.3 million in the same period of 2024, demonstrating the Company's ability to sustain strong profitability on a non-GAAP basis.Net margin was 18.0% in the year ended December 31, 2025, improved by 16.3 percentage points from 1.7% in the same period of 2024, and non-GAAP net margin was 24.9% in the year ended December 31, 2025, compared to 25.2% in the same period of 2024.BASIC AND DILUTED NET PROFIT PER ADSBasic and diluted net profit per ADS were US$0.09 in the year ended December 31, 2025, compared to basic and diluted net profit of US$0.01 in the same period of 2024. Each ADS represents one Class A ordinary share of the Company.Non-GAAP basic and diluted net profit per ADS in the year ended December 31, 2025 were US$0.13, compared to basic and diluted net profit per ADS of US$0.13 in the same period of 2024.CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTSCash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,017.3 million as of December 31, 2025, compared to US$1,016.7 million as of December 31, 2024, which the Company believes is sufficient to meet its current liquidity and working capital needs.NET CASH GENERATED FROM OPERATING ACTIVITIESNet cash generated from operating activities was US$81.0 million in the year ended December 31, 2025, up 0.9% compared to US$80.4 million in the same period of 2024. The net cash generated from operating activities in the year ended December 31, 2025 improved mainly due to the increase in the Company's revenue and the decrease in working capital changes in the ordinary course of business.For further information on non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."Business OutlookThe overall operating environment for connected devices and intelligent solutions remains complex, while continuing to show signs of stabilization. Participants across the value chain – including manufacturers, brands, and channel partners – are maintaining a cautious approach to planning; however, we have observed a normalization in project execution and clearer demand visibility in several of our core categories.At the same time, enterprises and consumers worldwide are accelerating their adoption of AI technologies and smart hardware. In the fourth quarter, Tuya continued to advance its AI and platform strategy by enhancing its AI-powered PaaS and SaaS offerings, expanding industry-focused solutions such as space-intelligence, and further cultivating its global developer and partner ecosystem. These initiatives are designed to reinforce our position as a leading AI developer platform and drive diversified, higher-value revenue streams over the long term.Building on recent quarters' progress, including sustained profitability, improved margins and robust operating cash flow, the Company remains focused on disciplined execution while selectively investing in key product, technology, and market growth opportunities. Tuya believes that its platform capabilities, ecosystem strengths, and solid financial position provide a strong foundation to navigate near-term uncertainties and capture long-term structural opportunities in the global intelligent technology market.In response to this evolving market environment, the Company will remain committed to iterating and improving its products and services and further enhancing software and hardware capabilities, specifically by leveraging its AI capabilities, expanding its key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company's future trajectory may be affected by a range of factors, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate and interest rate volatility, new tariffs, adjustments in existing tariffs or trade barriers, and broader geopolitical uncertainties.Declaration of Cash Dividend and Record DateOn March 2, 2026, the Board has approved the declaration and distribution of a cash dividend (the "Cash Dividend") of US$0.0605 per ordinary share, or US$0.0605 per ADS, to such holders as at the close of business on March 18, 2026, Hong Kong Time and New York Time, respectively. The aggregate amount of the Cash Dividend will be approximately US$37 million, which is payable in U.S. dollars and in cash, and will be funded by surplus cash and to be paid out from the share premium account of the Company. The determination to make distributions and the amount of such distributions will be made at the discretion of its Board and will be based upon the Company's operations and earnings, including, but not limited to, considerations of the Company's GAAP and Non-GAAP net profits, cash flows, financial conditions and other relevant factors.In order to qualify for the Cash Dividend, with respect to ordinary shares registered on the Company's Hong Kong share register, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company's Hong Kong share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong, no later than 4:30 p.m. on Wednesday, March 18, 2026, Hong Kong time; and with respect to the ordinary shares registered on the Company's principal share register in the Cayman Islands, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company's principal share registrar, Maples Fund Services (Cayman) Limited, at PO Box 1093, Boundary Hall, Cricket Square, Grand Cayman, KY1-1102, Cayman Islands, no later than 3:30 p.m. on Tuesday, March 17, 2026, Cayman Islands time (due to the time difference between Cayman Islands and Hong Kong).Cash Dividend to be paid to the holders of ADSs issued by the depositary of the ADSs will be subject to the terms of the deposit agreement. The payment date is expected to be on or around April 15, 2026 for holders of ordinary shares, and on or around April 21, 2026 for holders of ADSs.Conference Call InformationThe Company's management will hold a conference call at 07:30 P.M. U.S. Eastern Time on Monday, March 2, 2026 (08:30 A.M. Hong Kong Time on Tuesday, March 3, 2026) to discuss the financial results. In advance of the conference call, all participants must use the following links to complete the online registration process. Upon registering, each participant will receive the dial-in information and a unique PIN (personal access code) to join the call as well as an email confirmation with the details.Participants Online Webcast Registration:
https://edge.media-server.com/mmc/p/tjv6firrParticipants Call Registration: https://register-conf.media-server.com/register/BI078ae0991e654d959884fbb4236f74a0A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.tuya.com.About Tuya Inc.Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading AI cloud platform service provider with a mission to build an AI developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built AI cloud platform with cloud and generative AI capabilities that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, Software-as-a-Service, or SaaS, and smart solutions for developers of smart device, commercial applications, and industries. Through its AI developer platform, Tuya has activated a vibrant global developer community of brands, OEMs, AI agents, system integrators and independent software vendors to collectively strive for smart solutions ecosystem embodying the principles of green and low-carbon, security, high efficiency, agility, and openness.Use of Non-GAAP Financial MeasuresIn evaluating the business, the Company considers and uses non-GAAP financial measures, such as non-GAAP operating expenses, non-GAAP profit from operations (including non-GAAP operating margin), non-GAAP net profit (including non-GAAP net margin), and non-GAAP basic and diluted net profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, credit-related impairment/(reversal) of long-term investments and litigation costs from the respective GAAP financial measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP financial measures facilitates investors' assessment of its operating performance.Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company's operations. Share-based compensation expenses, credit-related impairment/(reversal) of long-term investments and litigation costs have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP measures to the most directly comparable U.S. GAAP measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.Reconciliations of Tuya's non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.Safe Harbor StatementThis press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statements. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.Investor Relations ContactTuya Inc.
Investor Relations
Email: ir@tuya.comHL Strategy
Haiyan LI-LABBE
Email: hl@hl-strategy.comPiacente Financial Communications
China Tel: +86-10-6508-0677
U.S. Tel: +1-212-481-2050
Email: tuya@thepiacentegroup.com  TUYA INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSAS OF DECEMBER 31, 2024 AND 2025(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

As ofDecember 31,As ofDecember 31,
20242025

ASSETS

Current assets:

Cash and cash equivalents653,334890,708 Restricted cash50– Short-term investments194,53661,770 Accounts receivable, net7,59213,193 Notes receivable, net7,48510,111 Inventories, net23,84030,943 Prepayments and other current assets, net16,17916,486

Total current assets903,0161,023,211

Non-current assets:

Restricted cash–245 Property, equipment and software, net6,61915,653 Land use rights, net8,8258,843 Operating lease right-of-use assets, net4,5505,649 Long-term investments180,09277,213 Other non-current assets, net6781,700

Total non-current assets200,764109,303

Total assets1,103,7801,132,514

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable19,05131,778 Advances from customers31,34629,330 Deferred revenue, current7,5259,732 Accruals and other current liabilities32,25733,261 Incomes tax payables360142 Lease liabilities, current3,7981,985

Total current liabilities94,337106,228

Non-current liabilities:

Lease liabilities, non-current8513,329 Deferred revenue, non-current377352 Other non-current liabilities767–

Total non-current liabilities1,9953,681

Total liabilities96,332109,909

  TUYA INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)AS OF DECEMBER 31, 2024 AND 2025(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)
As ofDecember 31,As ofDecember 31,
20242025

Shareholders' equity:

Ordinary shares–– Class A ordinary shares2527 Class B ordinary shares44 Treasury stock(15,726)(12) Additional paid-in capital1,612,7121,549,389 Accumulated other comprehensive loss(19,716)(14,842) Accumulated deficit(569,851)(511,961)

Total shareholders' equity1,007,4481,022,605

Total liabilities and shareholders' equity1,103,7801,132,514

  TUYA INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months EndedFor the Year Ended
December 31,2024December 31,2025December 31,2024December 31,2025

Revenue82,05984,487298,617321,791Cost of revenue(42,821)(44,245)(157,187)(166,750)

Gross profit39,23840,242141,430155,041

Operating expenses:

Research and development expenses(23,705)(21,729)(95,049)(89,687) Sales and marketing expenses(9,048)(8,945)(37,081)(33,110) General and administrative expenses(13,618)(4,127)(68,254)(30,916) Other operating incomes, net3,3372,60511,33410,151

Total operating expenses(43,034)(32,196)(189,050)(143,562)

(Loss)/profit from operations(3,796)8,046(47,620)11,479

Other income

Other non-operating income, net7672,9154,1805,215 Financial income, net12,4749,64750,71844,179 Foreign exchange gain/(loss), net864(974)(136)(1,030)

Profit before income tax expense10,30919,6347,14259,843 Income tax expense(524)(320)(2,145)(1,953)

Net profit9,78519,3144,99757,890

Net profit attributable to Tuya Inc.9,78519,3144,99757,890

Net profit attribute to ordinary shareholders9,78519,3144,99757,890

Net profit9,78519,3144,99757,890

Other comprehensive (loss)/income

Changes in fair value of long-term investments1532414115 Transfer out of fair value changes of long-term investments––(65)– Foreign currency translation(4,450)2,657(2,574)4,759

Total comprehensive income attributable to Tuya Inc.5,48821,9952,37262,764

  TUYA INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME (CONTINUED)(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months EndedFor the Year Ended
December 31,December 31,December 31,December 31,
2024202520242025

Net profit attributable to Tuya Inc.9,78519,3144,99757,890

Net profit attributable to ordinary shareholders9,78519,3144,99757,890

Weighted average number of ordinary shares used in computing net profit per share, basic and diluted

– basic587,987,654613,741,082573,782,783611,714,837 – diluted589,689,036615,736,271591,006,801613,807,254

Net profit per share attributable to ordinary shareholders, basic and diluted

– Basic0.020.030.010.09 – Diluted0.020.030.010.09

Share-based compensation expenses were included in:

Research and development expenses2,48780414,3475,404 Sales and marketing expenses8692585,0982,047 General and administrative expenses8,85532248,30514,812  TUYA INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months EndedFor the Year Ended
December 31,2024December 31,2025December 31,2024December 31,2025

Net cash generated from operating activities30,18223,52680,35281,040Net cash generated from investing activities45,55654,587107,428225,979Net cash used in financing activities(33,022)(32,958)(33,200)(69,870)Effect of exchange rate changes on cash and cash equivalents, restricted cash(387)281116420

Net increase in cash and cash equivalents, restricted cash42,32945,436154,696237,569

Cash and cash equivalents, restricted cash at the beginning of period611,055845,517498,688653,384

Cash and cash equivalents, restricted cash at the end of period653,384890,953653,384890,953

  TUYA INC.UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY
COMPARABLE FINANCIAL MEASURES(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months EndedFor the Year Ended
December 31,December 31,December 31,December 31,
2024202520242025

Reconciliation of operating expenses to non-GAAP operating expenses

Research and development expenses(23,705)(21,729)(95,049)(89,687)Add: Share-based compensation expenses2,48780414,3475,404Adjusted Research and development expenses(21,218)(20,925)(80,702)(84,283)

Sales and marketing expenses(9,048)(8,945)(37,081)(33,110)Add: Share-based compensation expenses8692585,0982,047Adjusted Sales and marketing expenses(8,179)(8,687)(31,983)(31,063)

General and administrative expenses(13,618)(4,127)(68,254)(30,916)Add: Share-based compensation expenses8,85532248,30514,812Add: Credit-related impairment/(reversal) of
long-term investments72(80)261(53)Add: Litigation costs––2,300–Adjusted General and administrative expenses(4,691)(3,885)(17,388)(16,157)

Reconciliation of (loss)/profit from operations to non-GAAP profit from operations

(Loss)/profit from operations(3,796)8,046(47,620)11,479Operating margin(4.6) %9.5 %(15.9) %3.6 %Add: Share-based compensation expenses12,2111,38467,75022,263Add: Credit-related impairment/(reversal) of
long-term investments72(80)261(53)Add: Litigation costs––2,300–Non-GAAP profit from operations8,4879,35022,69133,689

Non-GAAP Operating margin10.3 %11.1 %7.6 %10.5 %

  TUYA INC.UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY
COMPARABLE FINANCIAL MEASURES (CONTINUED)(All amounts in US$ thousands ("US$"),except for share and per share data, unless otherwise noted)

For the Three Months EndedFor the Year Ended
December 31,December 31,December 31,December 31,
2024202520242025

Reconciliation of net profit to non-GAAP net profit

Net profit9,87519,3144,99757,890Net margin11.9 %22.9 %1.7 %18.0 %Add: Share-based compensation expenses12,2111,38467,75022,263Add: Credit-related impairment/(reversal) of
long-term investments72(80)261(53)Add: Litigation costs––2,300–Non-GAAP Net profit22,06820,61875,30880,100

Non-GAAP Net margin26.9 %24.4 %25.2 %24.9 %

Weighted average number of ordinary shares used in computing non-GAAP net profit per share,

– Basic587,987,654613,741,082573,782,783611,714,837

Non-GAAP net profit per share attributable to ordinary shareholders

– Basic0.040.030.130.13

– Diluted0.040.030.130.13



View original content:https://www.prnewswire.com/news-releases/tuya-reports-fourth-quarter-and-fiscal-2025-unaudited-financial-results-and-declaration-of-cash-dividend-302701468.htmlSOURCE Tuya Inc.

Original: Tuya Reports Fourth Quarter and Fiscal 2025 Unaudited Financial Results and Declaration of Cash Dividend