Tuya (TUYA) investor relations material

Executive summary

• Q2 2025 revenue was $80.1 million, up 9.3% year-over-year, with all business segments showing growth and first-half revenue at $155 million, a 15% increase year-over-year.

• Net profit (GAAP) surged 302% year-over-year to $12.6 million, with non-GAAP net profit at $20.1 million and non-GAAP net margin at 25%.

• Gross margin improved to 48.4% in Q2, with non-GAAP operating margin at 10.7% and operating margin turning positive at 1.4%.

• Ended the quarter with a net cash balance above $1 billion and declared a $0.054 per share/ADS cash dividend, totaling $33 million.

• Maintained resilience and growth despite global trade uncertainties, advancing AI product and ecosystem development.

Financial highlights

• Q2 blended gross margin was 48.4%, with PaaS at 48.7%, Smart Solutions at 22.5%, and SaaS at 72%.

• Non-GAAP operating profit grew 127% year-over-year to $8.6 million (11% margin); GAAP net profit was $12.6 million (16% margin).

• Operating cash flow exceeded $18 million in Q2; net cash from operations was $18.2 million, up 53.8% year-over-year.

• Operating expenses fell 17.3% to $37.7 million; non-GAAP operating expenses rose 8.3% to $30.2 million.

• Receivable turnover days improved to 13, outperforming industry averages.

Outlook and guidance

• Management expects continued uncertainty from tariffs and global trade into Q3, with cautious demand from retailers and brands.

• Q3 is expected to remain pressured, but improvement is anticipated in Q4 as tariff negotiations progress.

• Focus remains on product innovation, AI capabilities, and expanding the customer base to drive future growth.

• Sustained operating leverage and profitability expected, supported by a diversified revenue structure and strong cash position.