Tuya Inc. (NYSE: TUYA) filed its audited 2025 annual report on Form 20‑F and released its fourth Environmental, Social and Governance (ESG) report on April 22, 2026, giving investors a full view of the company’s financial performance and sustainability strategy for the year ended December 31, 2025.
The company posted total revenue of US$321.8 million, a 7.8 % year‑over‑year increase from US$298.6 million in 2024. Net profit rose dramatically to US$57.9 million, up from US$5.0 million the prior year, while operating margin turned positive at 3.6 % (up 19.5 percentage points from –15.9 % in 2024). Net margin improved to 18.0 % from 1.7 % in 2024, and non‑GAAP net income reached a record US$80.1 million, a 6.4 % increase over US$75.3 million in 2024. Basic and diluted earnings per ADS were US$0.09 in 2025, compared with US$0.01 in 2024.
Segment analysis shows PaaS revenue at US$231.2 million, up 6.5 % YoY, with a gross margin of 48.3 %. SaaS and other revenue grew 13.4 % to US$44.9 million, supported by a 72.5 % gross margin. Smart Solutions revenue increased 8.9 % to US$45.7 million, but its gross margin contracted to 23.7 % from 25.5 % in 2024, reflecting higher cost of goods sold in legacy product lines.
Management highlighted the launch of the Hey Tuya AI assistant and emphasized continued investment in AI capabilities, robust cash reserves, and disciplined cost management as foundations for long‑term growth. CFO Yi Yang noted that Q4 2025 revenue rose 3 % YoY, with a blended gross margin of 47.6 % and non‑GAAP operating margin of 11.1 %. The company’s focus on AI integration and recurring SaaS revenue is positioned to drive higher‑margin, predictable income streams in 2026.
Analysts maintain a “Strong Buy” consensus on Tuya, with a 12‑month price target of US$3.49. The company’s stock was trading near its 200‑day moving average on the filing date, reflecting confidence in its financial turnaround and ESG transparency. The simultaneous release of the ESG report underscores Tuya’s commitment to sustainability and governance, enhancing its appeal to institutional investors seeking responsible investment options.
The 2025 results signal a decisive shift from losses to profitability, with margin expansion driven by higher‑margin PaaS and SaaS segments and improved operational leverage. A strong cash position of US$1.017 billion at year‑end supports ongoing R&D investment and potential shareholder returns, including a declared cash dividend. The company’s AI‑centric strategy and growing developer ecosystem position it to capture expanding demand for connected, intelligent solutions across industries.
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