Tuya (TUYA) Q4 2025 Earnings Call Transcript
Tuya (TUYA) Q4 2025 Earnings Call Transcript
Motley Fool Transcribing, The Motley FoolTue, March 3, 2026 at 2:08 AM UTC
0
Logo of jester cap with thought bubble.
Image source: The Motley Fool.
Date
Mar. 2, 2026
Call participants -
Chief Executive Officer — Jerry Wang
Co-Founder and Chief Financial Officer — Alex Yang
Vice President, Investor Relations — Regina Wang
Need a quote from a Motley Fool analyst? Email pr@fool.com
Takeaways -
Total revenue -- $48.5 million for the quarter, a 3% year-over-year increase with management noting this as the tenth consecutive quarter of year-over-year revenue growth.
Full-year revenue -- Exceeded $322 million, up 7.8% year over year, reflecting momentum in core platform operations.
Blended gross margin -- 47.6% for the quarter; full-year margin of 48.2%, up 0.8 percentage points, indicating improvement in pricing power and product mix.
Non-GAAP operating margin -- 11.1% in the quarter and 10.5% for the full year, showing a 2.9 percentage point increase year over year.
Non-GAAP net margin -- 24.4% in the quarter and 24.9% for the full year, illustrating continued high profitability.
Non-GAAP net income -- $80.1 million for the year, a record high, up $4.7 million year over year.
Cash and cash equivalents -- $1,017 million at year-end, including treasury securities; management described this as providing "ample support" for AI development and capital initiatives.
Net operating cash flow -- $23.5 million for the quarter, with eleven consecutive quarters of positive operating cash flow cited.
PaaS revenue -- Over $230 million for the year, up 6.5%; number of PaaS premium customers reached 291, contributing to segment resilience.
SaaS and others revenue -- $44.8 million for the year, up 13.4%, led by a 37% rise in recurring services revenue called a "key growth driver."
Smart solution revenue -- $45.7 million for the year, showing an 8.9% year-over-year increase; management linked AI capabilities to demand stimulation and enhanced product pricing power in this segment.
Developer ecosystem -- Registered AI plus IoT developers surpassed 1,800,000, a 37% increase, while cumulative AI agents on the platform totaled about 16,000.
AI product launch -- HeyTuya launched to enable AI-powered features across the installed base of "hundreds of millions" of Powered by Tuya devices, integrating situational AI into physical smart products.
AI-driven R&D efficiency -- Nearly 40% of short-term front-end code generation was attributed to AI systems, supporting faster product iteration and headcount control.
Dividend policy -- Management announced a new round of dividends, continuing a practice of distributing one or two dividends per year based on net operating cash flow and profitability.
Strategic priorities -- Management outlined three priorities: strengthening AI-native platform capabilities, scaling AI application services, and expanding developer support and ecosystem vibrancy.
Segment margins -- Smart Solutions segment maintained "20% plus margin," achieved through targeted high-value, differentiated products.
Major events -- First overseas developer hackathon hosted in Silicon Valley, with 300+ participants and majority from overseas markets; all projects utilized Tuya T5 AI development boards.
AI coding tools roadmap -- Plan to launch developer-oriented AI coding tools this year, aiming to accelerate low-code and no-code AI hardware development.
Summary
Management emphasized the early revenue contribution from AI-enabled products and applications as a factor supporting margin expansion and profitability, noting that AI is increasingly integrated at both platform and device levels. Tariff reductions were described as a "positive indicator," but management stressed that customers have not yet increased orders due to evolving global uncertainties and recent holiday closures among manufacturers. The company reported that supply constraints in upstream memory and chipsets are not expected to impact Tuya (NYSE:TUYA) in the near- to medium-term, citing strong supplier relationships and advance inventory preparation. Expansion of recurring-revenue SaaS offerings—especially those with embedded AI—was highlighted by management as a medium-term driver for outpaced growth compared to total company revenue. In response to geopolitical and macroeconomic dynamics, Tuya reaffirmed its strategy to support customers with technical offerings and global service deployment, signaling agility and business resiliency in multi-country supply chains.
Alex Yang stated, "We just announced a new round of dividends for shareholders, continuing our practice of one or two dividends a year," directly confirming capital return intent.
Smart Solution segment's growth is positioned around categories with enhanced AI integration, including video/audio interactions, energy management, toys, and safety, and is expected to yield new device types not previously available before AI advances.
Management cited, "First, combined with the previous Q&A, the more promising categories—where we have more confidence in achieving higher growth enabled by AI—will be those devices that can naturally use more AI capabilities, including video and audio interactions, safety, toys or entertainment, and appliances, as well as energy. These segments can use more AI capabilities than ever, and some capabilities directly deliver visible value for end users. We have more confidence in that segment," specifically calling out differentiated, high-margin Smart Solution hardware offerings.
The company observed that recurring SaaS revenue is increasingly driven by expanded services on existing deployed devices, including new AI-powered experiences and storage services which now attract recurring payments.
Among developer ecosystem outcomes, AI hackathon projects that moved from prototype to commercial interest demonstrate pipeline potential for monetizable new categories.
Management commented on supply chain resilience: "The shortage will not impact us because we are a significant buyer in these sectors," mitigating near-term chipset and memory constraints.
Industry glossary -
PaaS (Platform-as-a-Service): Software platform enabling external developers and manufacturers to launch, manage, and monetize smart devices and applications leveraging Tuya's infrastructure.
SaaS (Software-as-a-Service): Cloud-based software services offered by Tuya to help businesses deploy, connect, and manage smart devices, often on a subscription or recurring basis.
AI agent: A software or hardware-enabled AI component on the Tuya platform capable of autonomous operations or interactions in smart product scenarios.
HeyTuya: Tuya's next-generation AI assistant that leverages the installed base of Powered by Tuya devices to deliver real-world situational AI functionality.
Smart Solution segment: Business segment involving finished AIoT hardware and specialized product solutions for OEM customers, usually with higher margin and integration complexity than platform-based software products.
T5 AI development board: Hardware platform provided by Tuya to developers for rapid prototyping and deployment of AI-enabled smart device applications.
Full Conference Call Transcript
Jerry Wang: Hello, everyone. Thank you for joining Tuya Inc. earnings call for the fourth quarter 2025. In 2025, against the complex and evolving external environment, we maintained stability across our platform business, delivered steady full-year revenue growth, and achieved a notable improvement in GAAP profitability. At the same time, we made solid progress in building a more systematic AI capability framework. For full year 2025, we generated total revenue of $320 million, representing a year-over-year increase of approximately 7.8%. Profitability and cash flow quality continued to improve. This result reflects the resilience and stability of our core platform business, as well as our ongoing progress in prioritizing resource allocation and execution discipline.
On the strategic front, we continue to incubate new AI plus IoT application scenarios and a curated systematic integration of AI capabilities across our platform and the device ecosystem. AI is evolving from a mere overlay of discrete features into fully deployable operational applications. As part of our AI strategy, we introduced the AI-powered Smart Life Assistant at CES. Through a more intuitive and tangible entry point integrating AI agents with hardware devices, we aim to help users enjoy more comfortable and effortless home experiences, accelerating the real-world adoption of AI capabilities across a broader range of everyday scenarios. Our understanding of the integration pathway between AI and smart products is becoming increasingly clear.
AI is progressing beyond the stage of capability overlay and entering a phase of deep integration with device form factors and industry-specific scenarios. Its value is increasingly reflected in application maturities, improved revenue structures, and enhanced operational efficiency. We believe that as AI evolves from a conversational tool into an intelligent agent capable of engaging in real-world operations, industry expectations for underlying system stability, real-time responsiveness, and scalability are increasing significantly. The impact of AI extends beyond enhancing product experiences. It is also reshaping application architecture and transforming modes of ecosystem collaboration. As AI applications continue to mature, their value will increasingly be reflected in their replicability and capacity to scale effectively across real-world deployments.
Looking ahead, we will continue to advance our strategy across three key priorities. First, we will further strengthen our AI-native platform capabilities, enabling them to more effectively support millions of developers in creating a diverse range of next-generation AI devices and applications. Second, we will accelerate the deployment and scalable extension of AI application services across key scenarios. Third, we will deepen our investment in developer ecosystem growth and enhance our support for developers, fostering a vibrant community grounded in innovation and commercial success. Now let me turn the call over to our Co-Founder and CFO, Alex Yang, who will share more details about our financial performance and business progress. Hello, everyone. This is Alex.
Alex Yang: I will now provide more details on our fourth quarter and full year results. Please note that all the figures are in U.S. dollars, and all the comparisons are year over year unless stated otherwise. In 2025, we generated total revenue of approximately $48.5 million in the fourth quarter, representing a year-over-year increase of 3%. Against the backdrop of continuous cautious industry demand and more conservative customer procurement cycles, we achieved our tenth consecutive quarter of year-over-year growth. In the fourth quarter, our blended gross margin was 47.6%, while non-GAAP operating margin improved to 11.1% compared with 10.3% in the same period last year. Non-GAAP net margin was 24.4%.
Net operating cash flow totaled $23.5 million, marking the eleventh consecutive quarter of positive operating cash flow. Gross margin remained stable, underscoring the company's pricing power driven by product value and technology capabilities, as well as the strong competitive positioning of our platform-based business model in a dynamic market environment. From a full-year perspective, our stable growth in 2025 became even more pronounced. Our full-year revenue reached over $322 million, representing a year-over-year increase of 7.8%. Blended gross margin for the full year improved to 48.2%, up 0.8 percentage points from 2024. Non-GAAP operating margin reached 10.5%, an increase of 2.9 percentage points year over year, while non-GAAP net margin rose to 24.9%.
Full-year non-GAAP net income reached a record high of $80.1 million, up approximately $4.7 million compared with 2024. Among our segments, the PaaS business delivered stable performance, generating revenue of over $230 million, representing a year-over-year increase of 6.5%. Against the backdrop of extended customer budgeting cycles, we maintained stable growth in our core business by optimizing our customer mix and enhancing our product capabilities, empowering customers to provide more competitive applications. As of 2025, the number of PaaS premium customers reached 291, continuing to contribute structurally stable revenue to the PaaS business. Such a diversified structure, without reliance on any single customer group, has further strengthened our resilience in a volatile operating environment.
The SaaS and Others business generated full-year revenue of $44.8 million, representing a year-over-year increase of 13.4%. Of this total, recurring services revenues rose by 37% year over year, emerging as a key growth driver of SaaS. We are looking forward to enlarging this segment faster with this recurring model. On a full-year basis, the revenue growth from the SaaS and Others business outpaced the company's overall revenue growth. This strong performance highlights the continued expansion of cloud software revenues, especially those AI-enabled software offerings, and reflects the gradual realization of the life-cycle value from the platform software capabilities as the installed base of devices expands.
Our Smart Solution business generated full-year revenue of $45.7 million, making an 8.9% year-over-year increase. In this segment, we observed that AI capabilities are stimulating demand in certain new product categories while also enhancing the overall pricing power of our product offerings. At the end of 2025, our total cash and cash equivalents amounted to over $1 billion, precisely $1,017 million, together with time deposits and treasury securities recorded as short-term and long-term investments. This net cash provides ample support for AI capability development, ecosystem expansion, and potential capital allocation initiatives. Full-year profitability was primarily driven by three factors. First, the continuous stability of our core platform business. Second, the initial revenue contribution from AI-related products and applications.
Third, disciplined expense management and the realization of operating leverage. On the AI ecosystem side for developers, within our developer ecosystem, we continue to advance the open-source capabilities of Tuya Open and further develop our AI agent platform. By the end of 2025, the number of registered AI plus IoT developers exceeded 1,800,000, representing a 37% year-over-year increase. The cumulative number of AI agents on the Tuya Inc. platform was about 16,000, spanning a wide range of smart product categories. At the application deployment level, AI capabilities are being integrated across a variety of user products, gradually establishing standardized pathways for AI applications.
Recently, we hosted overseas development events centered on hands-on AI hardware applications, including the first hackathon held in Silicon Valley. This event attracted over 300 developers, about 90% of them from overseas. All participating projects were built and demonstrated on real hardware using Tuya Inc. T5 AI development boards, completing the journey from concept to a functional prototype within only 48 hours. This enabled AI accessibility to operate directly on physical devices. These products spanned multiple scenarios, including AI companion, wearables, and desktop AI terminals, as well as applications in education and security. Some of these products have already entered subsequent incubation stages and attracted commercial interest.
Beyond customer-facing products and ecosystem development, we have rapidly applied AI internally to enhance development efficiency. For instance, in our short-term front-end development process, nearly 40% of the code is generated with AI systems. This has significantly shortened our R&D iteration cycles and reduced the cost of repetitive development. These efficiency gains enable us to maintain the pace of product and solution iterations while controlling headcount growth. Building on this foundation, we plan to launch AI development tools for developers within this year.
Through AI coding services and web coding, we aim to further lower the barriers for AI hardware development and boost developer efficiency by enabling more low-code and no-code developers to participate in the AI hardware industry and application ecosystem. This initiative will help expand the developer base while accelerating the commercialization of AI applications. Finally, with the maturation of physical AI technology, the opportunity for deep integration between AI and the physical world has arrived. Our launch of HeyTuya is built on this insight. Without waiting for the large-scale deployment of embodied robots, HeyTuya leverages hundreds of millions of existing Powered by Tuya smart devices worldwide to enable AI to fully perceive and proactively interact with the real world today.
It draws on understanding and reasoning on large models while seamlessly interacting with smart devices that help manage daily tasks. This represents a new form of integrated situational AI that makes the benefits of AI tangible and immediately accessible rather than a distant, closed promise. In summary, 2025 showcases the company's continuous progress across its business structure, profitability model, and competitive framework on the technology side. Throughout 2025, Tuya Inc.'s physical AI technology was validated for feasibility in smart devices, giving rise to a wide range of AI hardware forms.
Leveraging our accumulated strengths across our developer communities, hardware ecosystem, and global delivery capabilities, we are well positioned to continuously advance AI deployment and transform it into a sustainable long-term competitive advantage. Looking ahead, we will continue to focus our efforts in these directions. First, we will further categorize the platform-level AI capabilities to enable more efficient applications of AI across diverse device and industry scenarios. By lowering the technology barriers, we aim to help new players bridge the technology gap and accelerate the adoption of AI and innovation in the hardware industry. Meanwhile, through HeyTuya, our next-generation AI assistant will establish a new standard for interactive experience in smart devices through AI, accelerating mass-market penetration of smart products.
Finally, we will maintain cost discipline, consistently improving our profitability quality and long-term competitiveness. Thank you all. Operator, we can begin the Q&A section.
Operator: Thank you. We will now begin the question-and-answer session. To ask a question now, please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. We will now take our first question from the line of Yang Liu from Morgan Stanley.
Yang Liu: Thanks for the opportunity to ask questions and congratulations on the solid results. I have two questions. The first one is regarding the recent tax rate change on the U.S. side, whether that will have any impact to your business outlook going forward. My second question is regarding the recent upstream memory and other chipset supply constraints and whether it will impact Tuya Inc.'s business. Let me translate my question to Chinese.
Alex Yang: Thank you, Mr. Liu. For the first question, yes, let us consider the recent tariff reductions as a positive indicator. The demand did not react immediately yet, but we do see that customers' confidence levels about a better environment to do business, especially in global manufacturing and trading, should improve. People have a more positive outlook and more confidence that the macroeconomy will become more stable and better this year. But the demand and orders did not show up immediately for two reasons. The first one is that we still consider the global situation to be more dynamic, and those types of tariff reductions may not be at a sustainable level.
In the near future, maybe in March, a new executive order may come up that could reset the tariff level to maybe 15% or a little bit higher. So people would rather not overreact. The second reason is that this kind of news happened during Chinese New Year. Until now, most manufacturers started back to work today—literally today—so many manufacturers have not started to offer new prices and make new orders. We will see, but anyhow, it will be a very positive direction we are looking forward to, and overall costs will eventually come down a bit. Customers will be able to have more confidence to enlarge the demand.
For the second question, yes, since last Q4, we started to notice the shortage of production capacity on the semiconductor side. The shortage will not impact us because we are a significant buyer in these sectors, and all our suppliers will ensure that we get fulfillment of our orders, no matter what. At the same time, since last Q4, we prepared quite good inventory levels to go against these kinds of dynamics in supply cycles. So shortage is not a problem for us. About the cost increase, we continue to keep a close eye on that.
Right now, we did not see that immediately increase due to the binding forces, but if this kind of intensity keeps increasing without a limit, we are not sure. We will keep watching that. Anyhow, because of the special value position that the company has built so far, the increase on the supply side will not significantly impact our demand or our gross margin. We will keep monitoring it. It seems that it will last for another one or two quarters. Thank you.
Operator: Thank you. We will now take our next question from the line of Timothy Chow from Goldman Sachs.
Timothy Chow: Good morning, management. Thank you for taking my question, and congrats on the very solid results. I also have two questions here. One is broader about the company's value proposition in the agentic AI world. Given we have seen continued progress in the agentic AI capabilities, how should we think about Tuya Inc.'s value proposition to customers in your PaaS and SaaS business? Will AI technology advances actually enhance self-development capabilities of your customers, and how should we think about the long-term relationship between Tuya Inc. and your customers? Also, I think you mentioned that in the SaaS business, recurring revenue increased quite dramatically last year. Could you further elaborate on that?
The second question is that in your remarks, you talked about accelerating AI deployment in key application scenarios. Could you further elaborate on which scenarios you see as more promising and share more details?
Alex Yang: Thank you, Timothy. First, on the macro side, we are happy to see that more customers are starting to think about how they can create their own differentiations and build their own capabilities in their R&D. We are happy to see that; otherwise, we have to offer that. Over the past ten years, we have been enabling manufacturing players to embrace smart technologies, starting with IoT. If they cannot do that but want it, we have to offer it. Throughout the company's history, we have continued to offer two things. First, if they do not have the capability right now, we offer them an off-the-shelf turnkey solution.
Second, if they have some capability, we continue to educate them and offer the infrastructure that allows them to create the extra values they want more freely. That is the ecosystem we want to create. It is not just about selling stuff so they do not have to do anything. We are happy to see that we already have a significant number of customers who have in-house capability to create their own differentiation and innovations. We continue to enable our customers to build their own device-level and application-level innovations. AI makes no difference; we will continue to do the same thing.
In 2025, for some new players who knew nothing about AI but had ideas about bringing AI into their business, we created turnkey solutions for them to grab and go. At the same time, we continue to have very deep and active conversations with their engineering teams about what they can take now, what they can build in the future, and how Tuya Inc. can enable them to do it more efficiently and faster without overwhelming burden. What makes us very excited is that several years ago, we still needed to convince people how smart devices were a promising business. Now, you do not have to tell people that AI is the future; everyone agrees.
Advertisement
The key is how to help them move faster, more efficiently, and more competitively in user experience. On SaaS recurring, the key driver is our PaaS. We continue to deploy a significant scale of devices overall, with or without recurring services, which means a large base. Along with AI, some existing categories that only came with IoT before can now offer extra experiences and values on the same type of devices already deployed in households. In 2025, we continued to offer new services on the same hardware, and we saw that it worked out.
Even on the existing recurring services, like some storage services, by offering extra AI capabilities we make the services more valuable and more feasible for end users. We continue to enlarge our recurring consumer base and start to offer more recurring services. We believe that will be a long-term driver, especially for some AI-initial products, which means new types of applications from day one. Those new recurring models started taking place from the beginning. We will continue to grow that. We think it will be one of the fastest-growing segments in the medium term. On AI applications, we already shared some overviews late last year.
The segments where AI can provide more significant value are, first, multimodal applications including video and audio interactions and analysis, such as companions, toys, and security. These products already have a significant base, and we have new players coming. With AI, device interactions become more smooth, and with perception of video and audio, devices can provide more—like on security, protecting homes more precisely without bringing any false alarms. For companions and toys, you can provide educational-level interactions by providing the right language, understanding, emotion, feedback, and knowledge to target customers. Second is data analytics and decision making. A typical use case is energy management.
With a full cycle of device deployment across generation, storage, consumption, and metering, you can understand how electricity moves from the grid into each device and how people want to manage the flow. AI will move one step ahead to not only provide analytics and suggestions but also make decisions: how to control the dishwasher, manage the battery bank, and manage HVAC differently, combined with variable pricing and solar generation and with the battery you have at home, to directly reduce total cost. This is a typical showcase of AI not just providing a tool but providing an outcome.
People will see directly the TCO and total value they can get over the life cycle of using these devices, and they will pay for the services as well. Beyond energy, we are looking for more scenarios in that segment as well. That is it, Timothy.
Timothy Chow: Thank you. Thank you for the detailed answers.
Operator: Thank you. We will now take our next question from Mingran Li from CICC. Please ask your question, Mingran. Your line is open.
Mingran Li: Thank you, management, for taking my question, and congrats on the results. My first question concerns the demand side. Given the recent geopolitical risk, how does management assess the potential impact on Tuya Inc.'s international operations? Looking at the current environment this year, how do you perceive the recovery in demand across the overseas markets? My second question is about shareholder return. Tuya Inc. holds a very healthy cash position and your profitability continues to improve. Could management share if there are any more specific plans or considerations for shareholder return as we move through 2026? Thank you very much.
Alex Yang: Thank you for the questions. For the first one, as covered partly from the tariff question, yes, the global situation will become more and more dynamic. We are getting used to that, together with our customers. Right now, we see more positive indicators in that direction, including reductions of tariffs on the global side. Anyhow, whichever pathways, we see that commerce requires a better environment to do business, and people cannot cut each other off. When we see that, end demand continues to increase because technology provides value for end users, and they want it and use it more and more often. This is inevitable.
Along with end-demand increase and at the commerce level, people figure out how to fulfill demand and navigate dynamic factors, including tariffs and reallocation of the supply chain globally. For our system, we follow the flow and focus with customers on two things. First, we provide our technical offerings to help them build whatever applications make sense for their end users and scale them, to make sure they provide the right thing. Second, we continue to closely manage costs and allocate our services globally. We can deploy services in whatever countries our customers are; we already did. Our customers already have different production centers across 11 countries worldwide. We follow the flow and help them achieve more agility.
This year, we see people looking for a rebound versus 2025, which was overcautious. People did not know what would happen, and things happened every week. They were not willing to make long-term cross-border decisions and kept decisions frequent, precise, and micro. This year, people see that sustainability of the situation is starting to become better, so they try to rebound from the overcautious confidence level. On shareholder returns, as we have been doing for the past two years, we continue to prioritize shareholder returns as one of the company's targets. We continue to provide a very sustainable and strong foundation on operations, including net cash flow, profitability, revenue growth, and the health of revenue structure and margin.
Shareholder return is our long-term strategy as well. We just announced a new round of dividends for shareholders, continuing our practice of one or two dividends a year. Dividends will reflect our level of net operating cash flow and profitability.
Mingran Li: Very clear. Thank you.
Operator: Our next question comes from Matt Ma from Jefferies.
Matt Ma: Hello. Good morning. Thank you for taking my question, and congrats on the solid results. My question is regarding the Smart Solution segment. We noticed that the company showcased multiple AIoT products at CES last year. Which product categories does the company have higher confidence in for sales growth this year, and what is your thought process when thinking about product category expansion? Could we expect relatively strong growth in the Smart Solution segment in 2026?
Alex Yang: Thanks for the question, Matt. First, combined with the previous Q&A, the more promising categories—where we have more confidence in achieving higher growth enabled by AI—will be those devices that can naturally use more AI capabilities, including video and audio interactions, safety, toys or entertainment, and appliances, as well as energy. These segments can use more AI capabilities than ever, and some capabilities directly deliver visible value for end users. We have more confidence in that segment. At the same time, we will continue to research other segments and new innovative ideas that combine deeply integrated AI with existing device capabilities.
In 2026, gradually, you will find more and more device types that did not exist before starting to occur because of AI. For example, in toys, nobody thought a companion-type toy would become realistic before 2025. These new concepts and applications will grow because more talent is coming into the industry, more players are entering, and new ideas from across the world will create interesting chemistry. New categories—which we may not even know what to name yet—will emerge. On Smart Solutions, the value proposition is hardware that helps our customers train themselves in those differentiators. Customers prefer Tuya Inc. to do that because it is either more efficient or must-have.
A typical use case is the bird feeders I mentioned a couple of times. That started as a concept. The customer came from pet products and knew some of their users are looking to interact with wildlife. If they want to do that, they need to cover the technology gap, which is overwhelming for them—not only due to engineering capability but also because the investment would be huge if they do it individually. This kind of innovation needs deep intuition in software and hardware development. Instead of waiting for Tuya Inc. to offer it in PaaS—maybe it would not show up in our PaaS roadmap—they asked to work closer with Tuya Inc.
If we buy into the concept, we offer it as a solution because we can make it happen directly, and they can try out the concept. That is typical for Smart Solutions: we look for differentiated offerings that help our customers outspend themselves in their segment, region, category, or channel. We focus on this. For Smart Solutions, even as hardware business, we maintain 20% plus margin. The reason is we choose higher-value products with differentiations and special technical offerings, targeting precise consumers willing to pay higher. Consider Smart Solutions a higher-value segment among all our PaaS orders, and we will continue to do this.
Usually, our solutions will become the flagship model for our specific PaaS customers in the new year as we work along our product roadmap year over year and the flagship types they ask us to offer as a solution.
Matt Ma: Thank you. That is very helpful. Thank you.
Operator: Thank you. There are no further questions at this time. I will now hand back to the management team for closing remarks.
Regina Wang: Thank you, Operator, and thank you all once again for joining us today. If you have any further questions, please feel free to contact Tuya Inc. IR team. Goodbye, and see you next quarter.
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.
Should you buy stock in Tuya right now?
Before you buy stock in Tuya, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tuya wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $519,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,086,211!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 2, 2026.
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Source: “AOL Money”
