Tuya Inc. (NYSE: TUYA), a global AI cloud platform service provider, saw its stock price surge 5.68% in pre-market trading on Wednesday. The significant uptick comes on the heels of the company's impressive second-quarter financial results, strong first-half performance, and the announcement of a special cash dividend.

In its Q2 2025 financial report, Tuya demonstrated robust growth and profitability. The company's total revenue increased by 9.3% year-over-year to $80.1 million, surpassing analyst expectations of $78.44 million. More impressively, Tuya's net profit skyrocketed by 302.4% to $12.6 million compared to the same period last year. The company also maintained a strong non-GAAP net profit margin of 25.1%, showcasing its operational efficiency.

Adding to investor optimism, Tuya reported solid first-half 2025 results, with total revenue reaching $155 million, representing a 14.7% year-over-year growth. The company's financial strength was further underscored by its positive operating cash flow of $18.2 million, up 53.8% year-over-year. In a move that signals confidence in its financial position and commitment to shareholder value, Tuya's Board of Directors approved a special cash dividend of $0.054 per ordinary share or ADS, amounting to approximately $33 million.

Tuya's growth extends beyond financial metrics, with significant progress in its AI initiatives. As of June 30, 2025, the company's AI-enabled product categories accounted for 93.05% of total shipments, while its AI developer platform now boasts over 1.514 million registered developers. These developments, coupled with Tuya's efforts to lower AI development thresholds and promote innovation, position the company well for future growth in the expanding IoT and smart home markets.