Core Viewpoint - Tuya Inc. reported its unaudited financial results for the fourth quarter and fiscal year 2025, showcasing significant improvements in profitability and revenue growth, alongside the declaration of a cash dividend. Financial Highlights Fourth Quarter 2025 - Total revenue increased by 3.0% year-over-year to US$84.5 million from US$82.1 million in 4Q2024 [1] - Net profits reached US$19.3 million, up 97.4% from US$9.8 million in 4Q2024 [3] - Non-GAAP net profits were US$20.6 million, compared to US$22.1 million in 4Q2024 [3] - Operating margin improved to 9.5%, up 14.1 percentage points from negative 4.6% in 4Q2024 [3] - Overall gross margin was 47.6%, slightly down from 47.8% in 4Q2024 [3] Full Year 2025 - Total revenue for the year increased by 7.8% to US$321.8 million from US$298.6 million in 2024 [4] - Net profits for the year were US$57.9 million, a significant increase from US$5.0 million in 2024 [4] - Non-GAAP net profits rose to US$80.1 million, up 6.4% from US$75.3 million in 2024 [4] - Operating margin for the year was 3.6%, improved by 19.5 percentage points from negative 15.9% in 2024 [4] - Gross margin increased to 48.2%, up from 47.4% in 2024 [4] Revenue Breakdown - Smart solution revenue in 4Q2025 was US$12.0 million, up 6.0% year-over-year [1] - SaaS and others revenue increased by 8.2% to US$12.4 million in 4Q2025 [1] - PaaS revenue for 4Q2025 was US$60.1 million, up 1.4% year-over-year [1] - For the full year, smart solution revenue was US$45.7 million, an increase of 8.9% [4] - SaaS and others revenue for the year was US$44.9 million, up 13.4% [4] - PaaS revenue for the year increased by 6.5% to US$231.2 million [4] Operating Efficiency - Operating expenses decreased by 25.2% to US$32.2 million in 4Q2025 from US$43.0 million in 4Q2024 [3] - General and administrative expenses dropped by 69.7% to US$4.1 million in 4Q2025 [3] - Research and development expenses decreased by 8.3% to US$21.7 million in 4Q2025 [3] Cash Position and Dividend Declaration - Cash and cash equivalents, along with short-term investments, totaled US$1,017.3 million as of December 31, 2025, slightly up from US$1,016.7 million in 2024 [3] - The company declared a cash dividend of US$0.0605 per ordinary share, amounting to approximately US$37 million, payable on or around April 15, 2026 [5] Strategic Outlook - The company aims to enhance its AI capabilities and expand its developer ecosystem, focusing on long-term value creation [2] - The ongoing evolution of AI technologies is expected to drive diversified revenue streams and improve operating efficiency [5]