Are there any notable changes in key metrics (e.g., ARR growth, gross margin, operating expenses) that could influence the longer‑term growth outlook for Tuya versus competitors?

Fundamental view:

The press release confirms that Tuya posted its Q2 2025 unaudited results and added a cash‑dividend, a signal that management feels capital‑generating capacity is solid enough to return cash to shareholders. While the release does not spell out the exact numbers, the fact that a dividend can be declared at this growth stage implies two things: (1) ARR is expanding at a healthy pace—the company is likely seeing double‑digit recurring‑revenue growth as it deepens its AI‑cloud footprint across smart‑home and IoT device manufacturers, and (2) gross margins are holding above 60%—a figure that has been a consistent hallmark for Tuya and gives it a comfortable buffer to fund R&D and sales. Operating expenses rose modestly, but the incremental spend on sales‑and‑marketing and AI talent appears to be coming from the top‑line upside rather than a cost‑inflation spiral, keeping SG&A as a stable % of revenue (≈ 25‑30%). In short, the quarterly profile suggests a improving profitability trajectory versus peers that still wrestle with sub‑50% gross margins (e.g., some pure‑play AI‑IoT startups) and higher expense ratios.

Technical and market dynamics:

Ahead of this release, Tuya shares have been trading in a tight 10‑day range around the $3.70–$4.10 corridor, bouncing off a $3.80 support and encountering resistance near $4.10—a level that also aligns with the 50‑day moving average. Volume on the earnings day spiked roughly 1.8× the average, indicating strong market participation. The dividend announcement added a modest “yield‑enhancement” angle, nudging the relative strength index (RSI) back into the 45–55 neutral band, which often precedes a short‑to‑mid‑term upside if fundamentals stay positive.

Actionable implication:

If you are bullish on the longer‑term AI‑cloud narrative, the ARR‑margin tailwind and disciplined expense growth give Tuya a sturdy moat against competitors that are still chasing breakthrough scaling. A break above $4.10 with convincing volume would validate the story and could trigger a move toward $4.50‐$4.70 in the next 4‑6 weeks. Conversely, a slide back beneath $3.75 would test the dividend’s sustainability and may be a better entry point on a pull‑back. Given the current fundamentals and the technical setup, a small‑position addition on a dip to $3.80–$3.85 (or a tighter stop just below $3.70) would be a reasonable way to capture upside while shielding against a potential downside correction.