Tuya Reports Third Quarter 2025 Unaudited Financial Results

Core Viewpoint - Tuya Inc. reported strong financial performance in Q3 2025, achieving its ninth consecutive quarter of year-over-year revenue growth despite global trade uncertainties. The company aims to deepen customer relationships, enhance global presence, and advance product innovation, particularly in AI-driven software and developer services [4][20]. Financial Highlights - Total revenue for Q3 2025 increased by 1.1% to US$82.5 million from US$81.6 million in Q3 2024 [5]. - Gross profit rose by 6.1% to US$39.8 million, with a gross margin of 48.3%, up from 46.0% in the same period last year [7][14]. - GAAP net profit turned positive at US$15.0 million, compared to a loss of US$4.4 million in Q3 2024 [13][14]. - Non-GAAP net profit remained stable at US$20.1 million, with a net margin of 24.4% [13][14]. Revenue Breakdown - Platform-as-a-Service (PaaS) revenue increased by 2.4% to US$59.2 million [8][9]. - Software-as-a-Service (SaaS) and others revenue grew by 15.4% to US$11.5 million [9]. - Smart solution revenue decreased by 14.6% to US$11.8 million [9]. Cost and Margin Analysis - Cost of revenue decreased by 3.2% to US$42.7 million [6]. - Operating expenses fell by 34.1% to US$36.0 million, while non-GAAP operating expenses increased by 2.6% to US$30.9 million [11]. - Operating margin improved to 4.6%, up 25.6 percentage points from negative 21.0% in Q3 2024 [12]. Cash Flow and Financial Position - Operating cash flow for Q3 2025 was US$30 million, up 25.7% year-over-year [17]. - Total cash and cash equivalents reached US$1,026.5 million as of September 30, 2025, compared to US$1,016.7 million at the end of 2024 [16]. Customer Metrics - PaaS customers remained stable at approximately 2,200, while total customers were around 3,100 [8]. - Premium PaaS customers contributed approximately 88.0% of PaaS revenue [8]. - The dollar-based net expansion rate (DBNER) for PaaS softened to 109% from 124% year-over-year [9]. Strategic Outlook - The company is focused on enhancing its AI capabilities and expanding its developer ecosystem to drive diversified revenue streams [19][20]. - Tuya aims to navigate external uncertainties while investing in long-term growth initiatives [20].