Tuya Reports Fourth Quarter and Fiscal 2025 Unaudited Financial Results and Declaration of Cash Dividend

SANTA CLARA, Calif., March 2, 2026 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading AI cloud platform service provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025 and the declaration of a cash dividend.

Fourth Quarter 2025 Financial Highlights

Full Year 2025 Financial Highlights

For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

Fourth Quarter and Fiscal Year 2025 Operating Highlights

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "We maintained steady progress amid a complex and evolving operating environment, delivering solid revenue growth for the full year while further enhancing profitability and operating efficiency. The steady improvement in gross margin reflects our value positioning and technical pricing power within the industry, as well as the resilience of our core platform business structure. Sustained and healthy net profitability and operating cash flow further validate the durability of our business model and our ability to translate disciplined operations into solid financial performance.

Strategically, we continued to advance our AI+IoT strategy of 'platform empowerment + application expansion,' accelerating the systematic integration of AI capabilities across our platform and device ecosystem. At CES, we introduced Hey Tuya, our AI-powered smart life assistant, and showcased the supporting Physical AI Engine (PAE) architecture. This extension of our AI capabilities from the platform layer to cross-device, scenario-based product experiences marks a significant milestone in our transition from technology enablement to scenario-based product deployment.

As of the end of 2025, the number of registered AI+IoT developers on our platform reached 1.8 million, representing a 37% year-over-year increase. Approximately 16,000 AI Agents have been cumulatively developed on the Tuya platform. AI penetration across end products continues to increase, with commercialization advancing steadily. AI is evolving from standalone functionality into replicable applications and recurring revenue streams, structurally enhancing our platform's value.

Looking ahead, we will continue to strengthen our AI-native platform capabilities and developer ecosystem. Supported by a robust business model and solid financial foundation, we remain focused on driving long-term value creation."

Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, "In the fourth quarter, the Company's profitability continued to improve, with GAAP operating margin turning positive year over year and net profit margin expanding significantly, primarily driven by expense mix optimization and increased operating leverage. Building on steady revenue growth, we achieved a meaningful improvement in profitability.

For the full year 2025, the Company restored GAAP profitability while maintaining revenue growth and solid operating cash flow, reflecting continued cost discipline and resource allocation optimization.

Meanwhile, leveraging the ongoing evolution of our AI capabilities, we accelerated the development of recurring revenue models, particularly cloud software and value-added services, across our existing customer and developer ecosystem. In 2025, SaaS and others revenue achieved double-digit year-over-year growth, outpacing overall revenue growth and indicating continued improvement in revenue mix.

As of year-end, the Company's balance sheet remained strong, with cash and liquid investments exceeding US$1.0 billion and no interest-bearing debt. Our liquidity position provides flexibility to support long-term strategic investments and resilience against external volatility."

Fourth Quarter 2025 Unaudited Financial Results

REVENUE

Total revenue in the fourth quarter of 2025 increased by 3.0% to US$84.5 million from US$82.1 million in the same period of 2024.

COST OF REVENUE

Cost of revenue in the fourth quarter of 2025 increased by 3.3% to US$44.2 million from US$42.8 million in the same period of 2024, generally in line with the increase in the Company's total revenue.

GROSS PROFIT AND GROSS MARGIN

Total gross profit in the fourth quarter of 2025 increased by 2.6% to US$40.2 million from US$39.2 million in the same period of 2024. The gross margin in the fourth quarter of 2025 was 47.6%, compared to 47.8% in the same period of 2024.

Gross margin of each revenue stream increased or fluctuated primarily due to changes in products and solutions mix. As an AI developer platform with a rich ecosystem of smart devices and applications, the Company remains focused on software products with compelling value propositions while maintaining cost efficiency.

OPERATING EXPENSES

Operating expenses decreased by 25.2% to US$32.2 million in the fourth quarter of 2025 from US$43.0 million in the same period of 2024. Non-GAAP operating expenses increased by 0.5% to US$30.9 million in the fourth quarter of 2025 from US$30.8 million in the same period of 2024. For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN

Profit from operations in the fourth quarter of 2025 was US$8.0 million, compared to a loss of US$3.8 million in the same period of 2024. The Company had a non-GAAP profit from operations of US$9.4 million in the fourth quarter of 2025, compared to a non-GAAP profit from operations of US$8.5 million in the same period of 2024, demonstrating consistent operating profitability and leverage.

Operating margin in the fourth quarter of 2025 was 9.5%, improved by 14.1 percentage points from negative 4.6% in the same period of 2024. Non-GAAP operating margin in the fourth quarter of 2025 was 11.1%, improved by 0.8 percentage points from 10.3% in the same period of 2024.

NET PROFIT AND NET MARGIN

Net profit in the fourth quarter of 2025 was US$19.3 million, improved by 97.4 percentage points from US$9.8 million in the same period of 2024. Non-GAAP net profit in the fourth quarter of 2025 was US$20.6 million, compared to US$22.1 million in the same period of 2024, demonstrating consistent profitability and improved leverage, despite being partially impacted by interest rate cuts.

Net margin in the fourth quarter of 2025 was 22.9%, improved by 11.0 percentage points from 11.9% in the same period of 2024. Non-GAAP net margin in the fourth quarter of 2025 was 24.4%, compared to 26.9% in the same period of 2024.

BASIC AND DILUTED NET PROFIT PER ADS

Basic and diluted net profit per ADS was US$0.03 in the fourth quarter of 2025, compared to basic and diluted net profit of US$0.02 in the same period of 2024. Each ADS represents one Class A ordinary share.

Non-GAAP basic and diluted net profit per ADS was US$0.03 in the fourth quarter of 2025, compared to non-GAAP basic and diluted net profit of US$0.04 in the same period of 2024.

CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS

Cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,017.3 million as of December 31, 2025, compared to US$1,016.7 million as of December 31, 2024. The Company believes its current cash position is sufficient to meet its current liquidity and working capital needs.

NET CASH GENERATED FROM OPERATING ACTIVITIES

Net cash generated from operating activities in the fourth quarter of 2025 was US$23.5 million, compared to US$30.2 million in the same period of 2024. The net cash generated from operating activities for the fourth quarter of 2025 mainly due to working capital changes in the ordinary course of business.

For further information on non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

Fiscal Year 2025 Unaudited Financial Results

REVENUE

Total revenue increased by 7.8% to US$321.8 million in 2025 from US$298.6 million in 2024, mainly due to the increase in PaaS revenue and SaaS revenue.

COST OF REVENUE

Cost of revenue increased by 6.1% to US$166.8 million in the year ended December 31, 2025 from US$157.2 million in the same period of 2024, in line with the increase in total revenue.

GROSS PROFIT AND GROSS MARGIN

Total gross profit increased by 9.6% to US$155.0 million in the year ended December 31, 2025 from US$141.4 million in the same period of 2024. Gross margin increased to 48.2% in the year ended December 31, 2025 from 47.4% in the same period of 2024.

Gross margin of each revenue stream increased or fluctuated primarily due to changes in products and solutions mix. As a developer platform with rich ecosystem of smart devices and applications, the Company remains focused on software products with compelling value propositions while maintaining cost efficiency.

OPERATING EXPENSES

Operating expenses decreased by 24.1% to US$143.6 million in the year ended December 31, 2025 from US$189.1 million in the same period of 2024. Non-GAAP operating expenses increased by 2.2% to US$121.4 million in the year ended December 31, 2025 from US$118.7 million in the same period of 2024. For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN

Profit from operations was US$11.5 million in the year ended December 31, 2025, compared to a loss from operations of US$47.6 million in the same period of 2024. Non-GAAP profit from operations was US$33.7 million in the year ended December 31, 2025, compared to US$22.7 million in the same period of 2024.

Operating margin was 3.6% in the year ended December 31, 2025, improved by 19.5 percentage points from negative 15.9% in the same period of 2024. Non-GAAP operating margin was 10.5% in the year ended December 31, 2025, improved by 2.9 percentage points from 7.6% in the same period of 2024.

NET PROFIT AND NET MARGIN

The Company had a net profit of US$57.9 million in the year ended December 31, 2025, compared to US$5.0 million in the year ended December 31, 2024.

The Company had a non-GAAP net profit of US$80.1 million in the year ended December 31, 2025, increased by 6.4% compared to US$75.3 million in the same period of 2024, demonstrating the Company's ability to sustain strong profitability on a non-GAAP basis.

Net margin was 18.0% in the year ended December 31, 2025, improved by 16.3 percentage points from 1.7% in the same period of 2024, and non-GAAP net margin was 24.9% in the year ended December 31, 2025, compared to 25.2% in the same period of 2024.

BASIC AND DILUTED NET PROFIT PER ADS

Basic and diluted net profit per ADS were US$0.09 in the year ended December 31, 2025, compared to basic and diluted net profit of US$0.01 in the same period of 2024. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP basic and diluted net profit per ADS in the year ended December 31, 2025 were US$0.13, compared to basic and diluted net profit per ADS of US$0.13 in the same period of 2024.

CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS

Cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,017.3 million as of December 31, 2025, compared to US$1,016.7 million as of December 31, 2024, which the Company believes is sufficient to meet its current liquidity and working capital needs.

NET CASH GENERATED FROM OPERATING ACTIVITIES

Net cash generated from operating activities was US$81.0 million in the year ended December 31, 2025, up 0.9% compared to US$80.4 million in the same period of 2024. The net cash generated from operating activities in the year ended December 31, 2025 improved mainly due to the increase in the Company's revenue and the decrease in working capital changes in the ordinary course of business.

For further information on non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

Business Outlook

The overall operating environment for connected devices and intelligent solutions remains complex, while continuing to show signs of stabilization. Participants across the value chain – including manufacturers, brands, and channel partners – are maintaining a cautious approach to planning; however, we have observed a normalization in project execution and clearer demand visibility in several of our core categories.

At the same time, enterprises and consumers worldwide are accelerating their adoption of AI technologies and smart hardware. In the fourth quarter, Tuya continued to advance its AI and platform strategy by enhancing its AI-powered PaaS and SaaS offerings, expanding industry-focused solutions such as space-intelligence, and further cultivating its global developer and partner ecosystem. These initiatives are designed to reinforce our position as a leading AI developer platform and drive diversified, higher-value revenue streams over the long term.

Building on recent quarters' progress, including sustained profitability, improved margins and robust operating cash flow, the Company remains focused on disciplined execution while selectively investing in key product, technology, and market growth opportunities. Tuya believes that its platform capabilities, ecosystem strengths, and solid financial position provide a strong foundation to navigate near-term uncertainties and capture long-term structural opportunities in the global intelligent technology market.

In response to this evolving market environment, the Company will remain committed to iterating and improving its products and services and further enhancing software and hardware capabilities, specifically by leveraging its AI capabilities, expanding its key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company's future trajectory may be affected by a range of factors, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate and interest rate volatility, new tariffs, adjustments in existing tariffs or trade barriers, and broader geopolitical uncertainties.

Declaration of Cash Dividend and Record Date

On March 2, 2026, the Board has approved the declaration and distribution of a cash dividend (the "Cash Dividend") of US$0.0605 per ordinary share, or US$0.0605 per ADS, to such holders as at the close of business on March 18, 2026, Hong Kong Time and New York Time, respectively. The aggregate amount of the Cash Dividend will be approximately US$37 million, which is payable in U.S. dollars and in cash, and will be funded by surplus cash and to be paid out from the share premium account of the Company. The determination to make distributions and the amount of such distributions will be made at the discretion of its Board and will be based upon the Company's operations and earnings, including, but not limited to, considerations of the Company's GAAP and Non-GAAP net profits, cash flows, financial conditions and other relevant factors.

In order to qualify for the Cash Dividend, with respect to ordinary shares registered on the Company's Hong Kong share register, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company's Hong Kong share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong, no later than 4:30 p.m. on Wednesday, March 18, 2026, Hong Kong time; and with respect to the ordinary shares registered on the Company's principal share register in the Cayman Islands, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company's principal share registrar, Maples Fund Services (Cayman) Limited, at PO Box 1093, Boundary Hall, Cricket Square, Grand Cayman, KY1-1102, Cayman Islands, no later than 3:30 p.m. on Tuesday, March 17, 2026, Cayman Islands time (due to the time difference between Cayman Islands and Hong Kong).

Cash Dividend to be paid to the holders of ADSs issued by the depositary of the ADSs will be subject to the terms of the deposit agreement. The payment date is expected to be on or around April 15, 2026 for holders of ordinary shares, and on or around April 21, 2026 for holders of ADSs.

Conference Call Information

The Company's management will hold a conference call at 07:30 P.M. U.S. Eastern Time on Monday, March 2, 2026 (08:30 A.M. Hong Kong Time on Tuesday, March 3, 2026) to discuss the financial results. In advance of the conference call, all participants must use the following links to complete the online registration process. Upon registering, each participant will receive the dial-in information and a unique PIN (personal access code) to join the call as well as an email confirmation with the details.

Participants Online Webcast Registration:

https://edge.media-server.com/mmc/p/tjv6firr

Participants Call Registration: https://register-conf.media-server.com/register/BI078ae0991e654d959884fbb4236f74a0

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.tuya.com.

About Tuya Inc.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading AI cloud platform service provider with a mission to build an AI developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built AI cloud platform with cloud and generative AI capabilities that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, Software-as-a-Service, or SaaS, and smart solutions for developers of smart device, commercial applications, and industries. Through its AI developer platform, Tuya has activated a vibrant global developer community of brands, OEMs, AI agents, system integrators and independent software vendors to collectively strive for smart solutions ecosystem embodying the principles of green and low-carbon, security, high efficiency, agility, and openness.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP financial measures, such as non-GAAP operating expenses, non-GAAP profit from operations (including non-GAAP operating margin), non-GAAP net profit (including non-GAAP net margin), and non-GAAP basic and diluted net profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, credit-related impairment/(reversal) of long-term investments and litigation costs from the respective GAAP financial measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP financial measures facilitates investors' assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company's operations. Share-based compensation expenses, credit-related impairment/(reversal) of long-term investments and litigation costs have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP measures to the most directly comparable U.S. GAAP measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Tuya's non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statements. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

Investor Relations Contact

Tuya Inc.

Investor Relations

Email: [email protected]

HL Strategy

Haiyan LI-LABBE

Email: [email protected]

Piacente Financial Communications

China Tel: +86-10-6508-0677

U.S. Tel: +1-212-481-2050

Email: [email protected]

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2024 AND 2025

(All amounts in US$ thousands ("US$"),

except for share and per share data, unless otherwise noted)

As of

December 31,

As of

December 31,

2024

2025

ASSETS

Current assets:

Cash and cash equivalents

653,334

890,708

Restricted cash

–

Short-term investments

194,536

61,770

Accounts receivable, net

7,592

13,193

Notes receivable, net

7,485

10,111

Inventories, net

23,840

30,943

Prepayments and other current assets, net

16,179

16,486

Total current assets

903,016

1,023,211

Non-current assets:

Restricted cash

–

245

Property, equipment and software, net

6,619

15,653

Land use rights, net

8,825

8,843

Operating lease right-of-use assets, net

4,550

5,649

Long-term investments

180,092

77,213

Other non-current assets, net

678

1,700

Total non-current assets

200,764

109,303

Total assets

1,103,780

1,132,514

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

19,051

31,778

Advances from customers

31,346

29,330

Deferred revenue, current

7,525

9,732

Accruals and other current liabilities

32,257

33,261

Incomes tax payables

360

142

Lease liabilities, current

3,798

1,985

Total current liabilities

94,337

106,228

Non-current liabilities:

Lease liabilities, non-current

851

3,329

Deferred revenue, non-current

377

352

Other non-current liabilities

767

–

Total non-current liabilities

1,995

3,681

Total liabilities

96,332

109,909

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

AS OF DECEMBER 31, 2024 AND 2025

(All amounts in US$ thousands ("US$"),

except for share and per share data, unless otherwise noted)

As of

December 31,

As of

December 31,

2024

2025

Shareholders' equity:

Ordinary shares

–

Class A ordinary shares

Class B ordinary shares

Treasury stock

(15,726)

(12)

Additional paid-in capital

1,612,712

1,549,389

Accumulated other comprehensive loss

(19,716)

(14,842)

Accumulated deficit

(569,851)

(511,961)

Total shareholders' equity

1,007,448

1,022,605

Total liabilities and shareholders' equity

1,103,780

1,132,514

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

(All amounts in US$ thousands ("US$"),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2024

December 31,

2025

December 31,

2024

December 31,

2025

Revenue

82,059

84,487

298,617

321,791

Cost of revenue

(42,821)

(44,245)

(157,187)

(166,750)

Gross profit

39,238

40,242

141,430

155,041

Operating expenses:

Research and development expenses

(23,705)

(21,729)

(95,049)

(89,687)

Sales and marketing expenses

(9,048)

(8,945)

(37,081)

(33,110)

General and administrative expenses

(13,618)

(4,127)

(68,254)

(30,916)

Other operating incomes, net

3,337

2,605

11,334

10,151

Total operating expenses

(43,034)

(32,196)

(189,050)

(143,562)

(Loss)/profit from operations

(3,796)

8,046

(47,620)

11,479

Other income

Other non-operating income, net

767

2,915

4,180

5,215

Financial income, net

12,474

9,647

50,718

44,179

Foreign exchange gain/(loss), net

864

(974)

(136)

(1,030)

Profit before income tax expense

10,309

19,634

7,142

59,843

Income tax expense

(524)

(320)

(2,145)

(1,953)

Net profit

9,785

19,314

4,997

57,890

Net profit attributable to Tuya Inc.

9,785

19,314

4,997

57,890

Net profit attribute to ordinary

shareholders

9,785

19,314

4,997

57,890

Net profit

9,785

19,314

4,997

57,890

Other comprehensive (loss)/income

Changes in fair value of

long-term investments

153

115

Transfer out of fair value changes of

long-term investments

–

(65)

–

Foreign currency translation

(4,450)

2,657

(2,574)

4,759

Total comprehensive income

attributable to Tuya Inc.

5,488

21,995

2,372

62,764

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME (CONTINUED)

(All amounts in US$ thousands ("US$"),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2024

2025

2024

2025

Net profit attributable to Tuya Inc.

9,785

19,314

4,997

57,890

Net profit attributable to ordinary

shareholders

9,785

19,314

4,997

57,890

Weighted average number of ordinary shares

used in computing net profit per share,

basic and diluted

– basic

587,987,654

613,741,082

573,782,783

611,714,837

– diluted

589,689,036

615,736,271

591,006,801

613,807,254

Net profit per share attributable to ordinary

shareholders, basic and diluted

– Basic

0.02

0.03

0.01

0.09

– Diluted

0.02

0.03

0.01

0.09

Share-based compensation expenses

were included in:

Research and development expenses

2,487

804

14,347

5,404

Sales and marketing expenses

869

258

5,098

2,047

General and administrative expenses

8,855

322

48,305

14,812

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in US$ thousands ("US$"),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2024

December 31,

2025

December 31,

2024

December 31,

2025

Net cash generated from operating activities

30,182

23,526

80,352

81,040

Net cash generated from investing activities

45,556

54,587

107,428

225,979

Net cash used in financing activities

(33,022)

(32,958)

(33,200)

(69,870)

Effect of exchange rate changes on cash and

cash equivalents, restricted cash

(387)

281

116

420

Net increase in cash and cash equivalents,

restricted cash

42,329

45,436

154,696

237,569

Cash and cash equivalents, restricted cash

at the beginning of period

611,055

845,517

498,688

653,384

Cash and cash equivalents, restricted cash

at the end of period

653,384

890,953

653,384

890,953

TUYA INC.

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY

COMPARABLE FINANCIAL MEASURES

(All amounts in US$ thousands ("US$"),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2024

2025

2024

2025

Reconciliation of operating expenses to

non-GAAP operating expenses

Research and development expenses

(23,705)

(21,729)

(95,049)

(89,687)

Add: Share-based compensation expenses

2,487

804

14,347

5,404

Adjusted Research and

development expenses

(21,218)

(20,925)

(80,702)

(84,283)

Sales and marketing expenses

(9,048)

(8,945)

(37,081)

(33,110)

Add: Share-based compensation expenses

869

258

5,098

2,047

Adjusted Sales and marketing expenses

(8,179)

(8,687)

(31,983)

(31,063)

General and administrative expenses

(13,618)

(4,127)

(68,254)

(30,916)

Add: Share-based compensation expenses

8,855

322

48,305

14,812

Add: Credit-related impairment/(reversal) of

long-term investments

(80)

261

(53)

Add: Litigation costs

–

2,300

–

Adjusted General and

administrative expenses

(4,691)

(3,885)

(17,388)

(16,157)

Reconciliation of (loss)/profit from

operations to non-GAAP

profit from operations

(Loss)/profit from operations

(3,796)

8,046

(47,620)

11,479

Operating margin

(4.6) %

9.5 %

(15.9) %

3.6 %

Add: Share-based compensation expenses

12,211

1,384

67,750

22,263

Add: Credit-related impairment/(reversal) of

long-term investments

(80)

261

(53)

Add: Litigation costs

–

2,300

–

Non-GAAP profit from operations

8,487

9,350

22,691

33,689

Non-GAAP Operating margin

10.3 %

11.1 %

7.6 %

10.5 %

TUYA INC.

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY

COMPARABLE FINANCIAL MEASURES (CONTINUED)

(All amounts in US$ thousands ("US$"),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

For the Year Ended

December 31,

2024

2025

2024

2025

Reconciliation of net profit to

non-GAAP net profit

Net profit

9,875

19,314

4,997

57,890

Net margin

11.9 %

22.9 %

1.7 %

18.0 %

Add: Share-based compensation expenses

12,211

1,384

67,750

22,263

Add: Credit-related impairment/(reversal) of

long-term investments

(80)

261

(53)

Add: Litigation costs

–

2,300

–

Non-GAAP Net profit

22,068

20,618

75,308

80,100

Non-GAAP Net margin

26.9 %

24.4 %

25.2 %

24.9 %

Weighted average number of ordinary shares

used in computing non-GAAP

net profit per share,

– Basic

587,987,654

613,741,082

573,782,783

611,714,837

Non-GAAP net profit per share attributable to

ordinary shareholders

– Basic

0.04

0.03

0.13

– Diluted

0.04

0.03

0.13

SOURCE Tuya Inc.