Tuya Inc (NYSE:TUYA) Reports Q2 2025 Results in Line with Analyst Expectations

Tuya Inc (NYSE:TUYA) reported second quarter 2025 financial results that largely aligned with analyst expectations, though the market reaction in after-hours trading showed modest downward movement. The global IoT cloud platform provider posted revenue of $80.13 million, slightly exceeding the consensus estimate of $80.01 million. Earnings per share came in at $0.03, just shy of the $0.0306 projected by analysts.

Financial Performance Versus Expectations

The company's Q2 performance demonstrates continued execution within a competitive IoT and AI cloud services market. Revenue outperformed expectations by approximately 0.16%, while EPS fell short by approximately 2%. This mixed result suggests Tuya maintained solid top-line growth but may have experienced slight margin pressure or higher operational costs than anticipated. The minimal variance in both metrics indicates the company's performance remains largely predictable and aligned with market expectations.

Market Reaction and Price Action

Following the earnings release, Tuya shares declined approximately 1.9% in after-market trading. This reaction appears to reflect investor sentiment regarding the slight EPS miss rather than the revenue beat. The modest sell-off suggests some profit-taking or cautious positioning despite the generally in-line results. Over recent periods, the stock has shown positive momentum with gains of 8% over the past week and approximately 3.6% over the past month, indicating overall positive sentiment leading into the earnings announcement.

Key Announcements from Earnings Release

Beyond the financial figures, Tuya announced the declaration of a cash dividend, returning value to shareholders amid its growth initiatives. The company continues to position itself at the intersection of IoT and artificial intelligence, having integrated its Doubao large language model into the Tuya Cloud Developer Platform. This strategic move aims to enhance their platform's capabilities and drive adoption of AI cloud-native technologies among developers and enterprise clients.

Forward Outlook and Analyst Projections

Looking ahead, analysts project Q3 2025 revenue of $85.49 million with EPS of $0.0306. For the full year 2025, consensus estimates stand at $333.59 million in revenue and $0.10965 EPS. These projections suggest expectations of continued steady growth throughout the remainder of the fiscal year. The company's performance against these estimates, particularly in the competitive AI and IoT platform sector, will be closely watched by investors monitoring adoption rates of their enhanced AI-integrated platform offerings.

For more detailed earnings information and analyst estimates, readers can review the earnings and estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security or investment strategy.