Tuya (TUYA) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $80.1 million, up 9.3% year-over-year, with all business segments growing and marking the eighth consecutive quarter of YoY growth.

• Gross margin improved to 48.4%, and non-GAAP net margin was 25.1%; GAAP net profit surged 302% year-over-year to $12.6 million.

• Net cash balance stood at $1.01 billion at quarter end, with a $33 million cash dividend declared.

• Over 1.51 million global developers engaged on the AI platform, supporting 150 million AI interactions per day.

• Despite global trade and tariff uncertainties, the business demonstrated resilience and continued AI ecosystem expansion.

Financial highlights

• Q2 2025 total revenue: $80.1 million (+9.3% YoY); gross margin: 48.4%.

• Non-GAAP operating margin: nearly 11%; non-GAAP net margin: 25.1%; GAAP net margin: 15.7%.

• Non-GAAP operating profit: $8.6 million; non-GAAP net profit: $20.1 million.

• Operating cash flow exceeded $18 million in Q2; net cash from operations was $18.2 million.

• Segment revenue: PaaS $58.1M (+7% YoY), Smart Solution $11.1M (+16.7% YoY), SaaS & Others $11M (+15.6% YoY).

Outlook and guidance

• Management expects continued pressure from global trade, tariffs, and shifting consumer patterns, with Q3 remaining challenging but potential improvement in Q4.

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

• FX pressures are present but stable and under control.