Tuya (TUYA) Reports Q3 Profit Turnaround as Gross Margin Expands

Core Insights - Tuya Inc. reported Q3 2025 results with total revenue of $82.5 million, a 1.1% increase from Q3 2024, but slightly below the higher analyst estimate of $83.82 million [1] - The company experienced a gross profit increase of 6.1% to $39.8 million, with gross margin expanding to 48.3% from the previous year [2] - Operating income turned positive at $3.8 million, resulting in a 4.6% margin, attributed to optimized expenses and investments in AI [2] Financial Performance - Total revenue for Q3 2025 was $82.5 million, reflecting a modest growth of 1.1% year-over-year [1] - Gross profit rose to $39.8 million, with a gross margin of 48.3%, indicating improved profitability [2] - Operating income reached $3.8 million, marking a positive turnaround for the company [2] Market Context - Management attributed the revenue growth to cautious spending by manufacturers and brands amid a challenging global consumer market, countered by increased adoption of AI features in smart hardware [1] - Tuya operates as a global IoT development platform, providing cloud services, app development, and hardware access for smart device manufacturing [3]