Tuya, Inc. ((TUYA)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Tuya, Inc. Reports Strong Financial Performance Amid Global Challenges
The recent earnings call for Tuya, Inc. painted a picture of robust financial health, marked by significant revenue growth and profitability. The company showcased its expansion in the AI developer platform, although these positive developments were somewhat overshadowed by global trade uncertainties and regional market pressures.
Revenue Growth
Tuya, Inc. reported impressive revenue figures for the second quarter of 2025, with revenues reaching approximately USD 80.1 million. This marks a 9.3% increase year-over-year, contributing to a first-half revenue of USD 155 million, which represents about 15% growth compared to the previous year.
Profitability and Margins
The company achieved remarkable growth in profitability, with non-GAAP operating profit increasing by approximately 127% year-over-year. Tuya reached a 10% non-GAAP operating margin and a 25% net margin, while maintaining a blended gross margin of around 48%. The PaaS gross margin hit a historical high of 48.7%.
AI Developer Platform Expansion
Tuya’s AI developer platform saw significant expansion, with the number of global developers surpassing 1.51 million by the end of Q2. Impressively, 93% of Tuya’s shipped product categories are now equipped with AI capabilities, highlighting the company’s commitment to innovation.
Cash Flow and Dividend
The company reported strong operating cash flow of over USD 18 million in Q2, with a net cash balance exceeding USD 1 billion. In a move to return value to shareholders, the Board approved a cash dividend totaling about USD 33 million.
Global Trade Uncertainties
Tuya faced challenges due to U.S. tariff policies, which significantly disrupted the global discretionary consumer electronics industry. This led to operational delays and adjustments by downstream retail channel brands, importers, and exporters.
Regional Market Challenges
The uncertainties surrounding U.S. tariffs have put pressure on consumer electronic categories, with a noted risk of declining demand following retail price increases.
Forward-Looking Guidance
Looking ahead, Tuya remains optimistic despite global trade uncertainties and U.S. tariff impacts. The company aims to continue focusing on AI innovations and developer engagement to drive long-term growth and maintain shareholder value. Tuya announced a cash dividend of about USD 33 million as part of its strategy to return value to shareholders.
In summary, Tuya, Inc.’s earnings call highlighted a strong financial performance with significant growth in revenue and profitability. While global trade uncertainties and regional market challenges pose risks, the company’s strategic focus on AI innovation and developer engagement positions it well for future growth.