Tuya Reports Third Quarter 2025 Unaudited Financial Results

, /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 third quarter ended September 30, 2025. Third Quarter 2025 Financial Highlights Total revenue was US$82.5 million, up approximately 1.1% year-over-year (3Q2024: US$81.6 million). Platform-as-a-service ("PaaS") revenue was US$59.2 million, up approximately 2.4% year-over-year (3Q2024: US$57.9 million). Software-as-a-service ("SaaS") and others revenue was US$11.5 million, up approximately 15.4% year-over-year (3Q2024: US$9.9 million). Smart solution revenue was US$11.8 million, down approximately 14.6% year-over-year (3Q2024: US$13.8 million). Overall gross margin was 48.3%, up 2.3 percentage point year-over-year (3Q2024: 46.0%). Gross margin of PaaS increased to 48.8%, up 1.9 percentage points year-over-year (3Q2024: 46.9%). Operating margin was 4.6%, improved by 25.6 percentage points year-over-year (3Q2024: negative 21.0%). Non-GAAP operating margin was 10.8% (3Q2024: 9.1%). Net margin was 18.2%, improved by 23.6 percentage points year-over-year (3Q2024: negative 5.4%). Non-GAAP net margin was 24.4% (3Q2024: 24.7%). Net profits were US$15.0 million, compared to a loss of US$4.4 million in the same period of 2024. Non-GAAP net profits were US$20.1 million (3Q2024: US$20.1 million). Net cash generated from operating activities was US$30.0 million, up approximately 25.7% year-over-year (3Q2024: US$23.9 million). Total cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,026.5 million as of September 30, 2025, compared to US$1,016.7 million as of December 31, 2024. For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures." Third Quarter 2025 Operating Highlights PaaS customers1 for the third quarter of 2025 were approximately 2,200 (3Q2024: approximately 2,200). Total customers for the third quarter of 2025 were approximately 3,100 (3Q2024: 3,100). Premium PaaS customers2 for the trailing 12 months ended September 30, 2025 were 280 (3Q2024: 286). In the third quarter of 2025, the Company's premium PaaS customers contributed approximately 88.0% of its PaaS revenue (3Q2024: approximately 85.6%). Dollar-based net expansion rate ("DBNER")3 of PaaS for the trailing 12 months ended September 30, 2025 was 109% (3Q2024: 124%). Registered AI developers were over 1,622,000 as of September 30, 2025, up 23% from approximately 1,316,000 developers as of December 31, 2024. The Company defines a PaaS customer for a given period as a customer who has directly placed orders for PaaS with the Company during that period. The Company defines a premium PaaS customer as a customer as of a given date that contributed more than US$100,000 of PaaS revenue during the immediately preceding 12-month period. The Company calculates DBNER of PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those have placed at least one order for PaaS during that period), and then calculating the quotient from dividing the PaaS revenue generated from such customers in the current trailing 12-month period by the PaaS revenue generated from the same group of customers in the prior 12-month period. The Company's DBNER may change from period to period, due to a combination of various factors, including changes in the customers' purchase cycles and amounts and the Company's customer mix, among other things. DBNER indicates the Company's ability to expand customer use of the Tuya platform over time and generate revenue growth from existing customers. Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "Amid ongoing global trade uncertainties, Tuya delivered another quarter of strong execution and resilient performance. We achieved our ninth consecutive quarter of year-over-year revenue growth, driven by steady demand for our core PaaS and SaaS offerings and the continued enhancement of our product portfolio. Looking ahead, we remain focused on deepening our relationships with core customers, strengthening our global presence, and advancing product innovation, particularly in AI-driven software and developer services. Through disciplined operations and sustained investment in key technologies, we aim to further enhance the value we create for customers, partners, and shareholders." Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, "In the third quarter, Tuya maintained a solid financial foundation. Gross margin improved to 48.3% year over year, and we continued to expand operating leverage through disciplined cost management. GAAP net profit turned positive and showed a significant improvement from the prior year, while non-GAAP profitability remained strong with a net margin of 24.4%. We generated US$30 million in operating cash flow during the quarter and maintained a robust net cash position of over US$1.0 billion. These financial strengths provide us the flexibility to navigate external uncertainties and continue investing in long-term growth initiatives." Third Quarter 2025 Unaudited Financial Results REVENUE Total revenue in the third quarter of 2025 increased by 1.1% to US$82.5 million from US$81.6 million in the same period of 2024. PaaS revenue in the third quarter of 2025 increased by 2.4% to US$59.2 million from US$57.9 million in the same period of 2024, primarily due to increasing demand compared with the same period of 2024 and the Company's strategic focus on customer needs and product enhancements, despite the disruptions in the international business environment due to tariff-related headwinds since this April. As a result, the Company's DBNER of PaaS for the trailing 12 months ended September 30, 2025 softened to 109%, compared to 124% for the trailing 12 months ended September 30, 2024. SaaS and others revenue in the third quarter of 2025 increased by 15.4% to US$11.5 million from US$9.9 million in the same period of 2024, primarily due to an increase in revenue from cloud software products. During the quarter, the Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers. Smart solution revenue in the third quarter of 2025 decreased by 14.6% to US$11.8 million from US$13.8 million in the same period of 2024. COST OF REVENUE Cost of revenue in the third quarter of 2025 decreased by 3.2% to US$42.7 million from US$44.1 million in the same period of 2024. GROSS PROFIT AND GROSS MARGIN Total gross profit in the third quarter of 2025 increased by 6.1% to US$39.8 million from US$37.5 million in the same period of 2024. The gross margin in the third quarter of 2025 was 48.3%, compared to 46.0% in the same period of 2024. PaaS gross margin in the third quarter of 2025 was 48.8%, compared to 46.9% in the same period of 2024. SaaS and others gross margin in the third quarter of 2025 was 70.8%, compared to 71.6% in the same period of 2024. Smart solution gross margin in the third quarter of 2025 was 23.8%, compared to 23.5% 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 rich ecosystem of smart devices and applications, the Company is committed to focusing on software products with compelling value propositions while maintaining cost efficiency. OPERATING EXPENSES Operating expenses decreased by 34.1% to US$36.0 million in the third quarter of 2025 from US$54.6 million in the same period of 2024. Non-GAAP operating expenses increased by 2.6% to US$30.9 million in the third quarter of 2025 from US$30.1 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." Research and development expenses in the third quarter of 2025 were US$22.8 million, down 8.4% from US$24.9 million in the same period of 2024, primarily because of (i) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized and (ii) partially offset by employee-related costs due to regular team movements. Non-GAAP adjusted research and development expenses in the third quarter of 2025 were US$21.7 million, compared to US$19.9 million in the same period of 2024. Sales and marketing expenses in the third quarter of 2025 were US$8.0 million, down 17.3% from US$9.7 million in the same period of 2024, primarily because of (i) the decrease in employee-related costs due to regular team movements, (ii) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized. Non-GAAP adjusted sales and marketing expenses in the third quarter of 2025 were US$7.5 million, compared to US$8.0 million in the same period of 2024. General and administrative expenses in the third quarter of 2025 were US$8.5 million, down 62.0% from US$22.3 million in the same period of 2024, primarily because of (i) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, (ii) a decrease in professional service costs, among other things. Non-GAAP adjusted general and administrative expenses in the third quarter of 2025 were US$4.9 million, compared to US$4.4 million in the same period of 2024. Other operating income, net in the third quarter of 2025 was US$3.2 million, primarily due to the receipt of software value-added tax refunds. LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN Profit from operations in the third quarter of 2025 was US$3.8 million, compared to a loss of US$17.1 million in the same period of 2024. The Company had a non-GAAP profit from operations of US$8.9 million in the third quarter of 2025, compared to a non-GAAP profit from operations of US$7.4 million in the same period of 2024, consistently achieving operating profitability and leverage. Operating margin in the third quarter of 2025 was 4.6%, improved by 25.6 percentage points from negative 21.0% in the same period of 2024. Non-GAAP operating margin in the third quarter of 2025 was 10.8%, improved by 1.7 percentage points from 9.1% in the same period of 2024. NET LOSS/PROFIT AND NET MARGIN Net profit in the third quarter of 2025 was US$15.0 million, compared to a loss of US$4.4 million in the same period of 2024. Non-GAAP net profit in the third quarter of 2025 was US$20.1 million, compared to US$20.1 million in the same period of 2024, consistently demonstrating profitability and improved leverage, despite being partially impacted by interest rate cuts. Net margin in the third quarter of 2025 was 18.2%, improved by 23.6 percentage points from negative 5.4% in the same period of 2024. Non-GAAP net margin in the third quarter of 2025 was 24.4%, compared to 24.7% in the same period of 2024. BASIC AND DILUTED NET LOSS/PROFIT PER ADS Basic and diluted net profit per ADS was US$0.02 in the third quarter of 2025, compared to basic and diluted net loss of US$0.01 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 third 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$1,026.5 million as of September 30, 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 third quarter of 2025 was US$30.0 million, compared to US$23.9 million in the same period of 2024. The net cash generated from operating activities for the third 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." Business Outlook Based on recent trends, the overall operating environment for connected devices and intelligent solutions remains complex but is demonstrating greater stability compared with earlier in the year. Participants across the value chain – including manufacturers, brands, and channel partners – maintain a cautious approach to planning; however, we are observing 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 third 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 the progress achieved in recent quarters, including sustained profitability, an improved margin profile, and strong 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 continuously iterating and improving its products and services and further enhancing software and hardware capabilities, particularly by leveraging the AI capabilities, expanding key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company understands that future trajectories may encounter challenges, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate and interest rates volatility, the imposition of new tariffs, or adjustments in existing tariffs or trade barriers, and broader geopolitical uncertainties. Conference Call Information The Company's management will hold a conference call at 07:30 P.M. Eastern Time on Monday, November 24, 2025 (08:30 A.M. Hong Kong Time on Tuesday, November 25, 2025) 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, and an email confirmation with the details. Participants Online Webcast Registration: https://edge.media-server.com/mmc/p/qmezjvzg Participants Call Registration: https://register-conf.media-server.com/register/BI86c04c19c52a48c6bb64d46104c02dff 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, and a replay of the webcast will be available following the session. 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 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 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 SEPTEMBER 30, 2025 (All amounts in US$ thousands ("US$"), except for share and per share data, unless otherwise noted) As of December 31, As of September 30, 2024 2025 ASSETS Current assets: Cash and cash equivalents 653,334 845,274 Restricted cash 50 – Short-term investments 194,536 112,395 Accounts receivable, net 7,592 9,999 Notes receivable, net 7,485 11,952 Inventories, net 23,840 23,138 Prepayments and other current assets, net 16,179 17,839 Total current assets 903,016 1,020,597 Non-current assets: Restricted cash – 243 Property, equipment and software, net 6,619 11,424 Land use rights, net 8,825 8,792 Operating lease right-of-use assets, net 4,550 3,729 Long-term investments 180,092 81,397 Other non-current assets, net 678 668 Total non-current assets 200,764 106,253 Total assets 1,103,780 1,126,850 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 19,051 23,285 Advances from customers 31,346 26,671 Deferred revenue, current 7,525 9,087 Accruals and other current liabilities 32,257 64,227 Incomes tax payables 360 490 Lease liabilities, current 3,798 1,820 Total current liabilities 94,337 125,580 Non-current liabilities: Lease liabilities, non-current 851 1,631 Deferred revenue, non-current 377 401 Other non-current liabilities 767 – Total non-current liabilities 1,995 2,032 Total liabilities 96,332 127,612 TUYA INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) AS OF DECEMBER 31, 2024 AND SEPTEMBER 30, 2025 (All amounts in US$ thousands ("US$"), except for share and per share data, unless otherwise noted) As of December 31, 2024  As of September 30, 2025 Shareholders' equity: Class A ordinary shares 25 27 Class B ordinary shares 4 4 Treasury stock (15,726) – Additional paid-in capital 1,612,712 1,548,005 Accumulated other comprehensive loss (19,716) (17,523) Accumulated deficit (569,851) (531,275) Total shareholders' equity 1,007,448 999,238 Total liabilities and shareholders' equity 1,103,780 1,126,850 TUYA INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (All amounts in US$ thousands ("US$"), except for share and per share data, unless otherwise noted) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2024 2025 2024 2025 Revenue 81,617 82,487 216,558 237,304 Cost of revenue (44,102) (42,685) (114,366) (122,505) Gross profit 37,515 39,802 102,192 114,799 Operating expenses: Research and development expenses (24,877) (22,775) (71,344) (67,958) Sales and marketing expenses (9,663) (7,993) (28,033) (24,165) General and administrative expenses (22,301) (8,474) (54,636) (26,789) Other operating incomes, net 2,213 3,237 7,997 7,546 Total operating expenses (54,628) (36,005) (146,016) (111,366) (Loss)/profit from operations (17,113) 3,797 (43,824) 3,433 Other income Other non-operating incomes, net 766 766 3,413 2,300 Financial income, net 12,985 11,376 38,244 34,532 Foreign exchange loss, net (638) (706) (1,000) (56) (Loss)/profit before income tax expense (4,000) 15,233 (3,167) 40,209 Income tax expense (373) (261) (1,621) (1,633) Net (loss)/profit (4,373) 14,972 (4,788) 38,576 Net (loss)/profit attributable to Tuya Inc. (4,373) 14,972 (4,788) 38,576 Net (loss)/profit attributable to  ordinary shareholders (4,373) 14,972 (4,788) 38,576 Net (loss)/profit (4,373) 14,972 (4,788) 38,576 Other comprehensive income Changes in fair value of long-term investments – – (139) 91 Transfer out of fair value changes of long-term investments – – (65) – Foreign currency translation 2,904 1,703 1,876 2,102 Total comprehensive (loss)/income  attributable to Tuya Inc. (1,469) 16,675 (3,116) 40,769 TUYA INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (CONTINUED) (All amounts in US$ thousands ("US$"), except for share and per share data, unless otherwise noted) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2024 2025 2024 2025 Net (loss)/profit attributable to Tuya Inc. (4,373) 14,972 (4,788) 38,576 Net (loss)/profit attributable to ordinary shareholders (4,373) 14,972 (4,788) 38,576 Weighted average number of ordinary shares used in computing net (loss)/profit per share – Basic 569,821,232 611,862,458 562,913,590 611,032,000 – Diluted 569,821,232 614,106,059 562,913,590 613,156,826 Net (loss)/profit per share attributable to ordinary shareholders – Basic (0.01) 0.02 (0.01) 0.06 – Diluted (0.01) 0.02 (0.01) 0.06 Share-based compensation expenses were included in: Research and development expenses 4,978 1,124 11,860 4,600 Sales and marketing expenses 1,675 469 4,229 1,789 General and administrative expenses 17,663 3,532 39,450 14,490 TUYA INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (All amounts in US$ thousands ("US$"), except for share and per share data, unless otherwise noted) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2024 2025 2024 2025 Net cash generated from operating activities 23,851 29,971 50,170 57,514 Net cash (used in)/generated from investing activities (28,213) 91,424 61,872 171,392 Net cash used in financing activities (328) – (178) (36,912) Effect of exchange rate changes on cash and cash equivalents, restricted cash 826 51 503 139 Net (decrease)/increase in cash and cash equivalents, restricted cash (3,864) 121,446 112,367 192,133 Cash and cash equivalents, restricted cash at the beginning of period 614,919 724,071 498,688 653,384 Cash and cash equivalents, restricted cash at the end of period 611,055 845,517 611,055 845,517 TUYA INC. UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE FINANCIAL MEASURES (All amounts in US$ thousands ("US$"), except for share and per share data, unless otherwise noted) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2024 2025 2024 2025 Reconciliation of operating expenses to  non-GAAP operating expenses Research and development expenses (24,877) (22,775) (71,344) (67,958) Add: Share-based compensation expenses 4,978 1,124 11,860 4,600 Adjusted Research and development expenses (19,899) (21,651) (59,484) (63,358) Sales and marketing expenses (9,663) (7,993) (28,033) (24,165) Add: Share-based compensation expenses 1,675 469 4,229 1,789 Adjusted Sales and marketing expenses (7,988) (7,524) (23,804) (22,376) General and administrative expenses (22,301) (8,474) (54,636) (26,789) Add: Share-based compensation expenses 17,663 3,532 39,450 14,490 Add: Credit-related impairment of long-term investments – – 189 27 Add: Litigation costs 200 – 2,300 – Adjusted General and administrative expenses (4,438) (4,942) (12,697) (12,272) Reconciliation of (loss)/profit from operations to non-GAAP profit from operations (Loss)/profit from operations (17,113) 3,797 (43,824) 3,433 Add: Share-based compensation expenses 24,316 5,125 55,539 20,879 Add: Credit-related impairment of long-term investments – – 189 27 Add: Litigation costs 200 – 2,300 – Non-GAAP Profit from operations 7,403 8,922 14,204 24,339 Non-GAAP Operating margin 9.1 % 10.8 % 6.6 % 10.3 % TUYA INC. UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE FINANCIAL MEASURES (CONTINUED) (All amounts in US$ thousands ("US$"), except for share and per share data, unless otherwise noted) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2024 2025 2024 2025 Reconciliation of net (loss)/profit to non-GAAP net profit Net (loss)/profit (4,373) 14,972 (4,788) 38,576 Add: Share-based compensation expenses 24,316 5,125 55,539 20,879 Add: Credit-related impairment of long-term investments – – 189 27 Add: Litigation costs 200 – 2,300 – Non-GAAP Net profit 20,143 20,097 53,240 59,482 Non-GAAP Net margin 24.7 % 24.4 % 24.6 % 25.1 % Weighted average number of ordinary shares used in computing non-GAAP net profit per share – Basic 569,821,232 611,862,458 562,913,590 611,032,000 – Diluted 571,386,571 614,106,059 585,311,819 613,156,826 Non-GAAP net profit per share attributable to ordinary shareholders – Basic 0.04 0.03 0.09 0.10 – Diluted 0.04 0.03 0.09 0.10 View original content:https://www.prnewswire.com/news-releases/tuya-reports-third-quarter-2025-unaudited-financial-results-302624782.html SOURCE Tuya Inc.