Cricut Inc (CRCT) AI Stock Analysis

• Market Cap: $859.83M
• Dividend Yield: 10.8%
• Average Volume (3M): 640.07K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.00
• Revenue Growth: -2.72%
• EPS Growth: 32.20%
• Country: US
• Employees: 640
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.04
• Shares Outstanding: 56,748,943
• 10 Day Avg. Volume: 749,425
• 30 Day Avg. Volume: 640,071
• PEG Ratio: 0.58
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 6.06
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 1.59
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: $3.45
• Price Target Upside: -16.46% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): $695.96M

• Rating: 66 Neutral
• Price Target: $4.50 ▲(8.96% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by solid underlying financial quality (strong margins, low leverage, and positive cash flow) and supportive valuation (moderate P/E and very high dividend yield). These positives are tempered by weak technical momentum and ongoing business headwinds highlighted on the earnings call, especially multi-year revenue contraction and continued pressure in products/accessories with near-term uncertainty.

Positive Factors

Margin Expansion

Sustained gross margin expansion, driven by a higher mix of platform revenue and improved product economics, materially boosts profitability resilience. Higher margins support cash flow, allow investment in R&D and marketing, and reduce reliance on volume recovery to sustain earnings over the next several quarters.

Strong Cash and Low Leverage

Robust operating cash generation and a clean balance sheet provide durable financial flexibility. This supports dividends, buybacks and accretive R&D/product investment while cushioning against demand cyclicality, enabling multi-quarter execution on growth initiatives without needing external financing.

Growing Platform & ARPU

Recurring platform revenue growth and rising ARPU enhance revenue quality and predictability. An expanding paid base with improving monetization increases lifetime value, supports higher-margin revenue, and provides a structural lever to offset hardware cyclicality over the medium term.

Negative Factors

Multi-year Revenue Decline

A sustained top-line contraction reduces economies of scale and puts pressure on absolute growth prospects. Even with margin gains, smaller revenue erodes operating leverage, limits reinvestment capacity, and makes long-term growth recovery dependent on successful product/market re-acceleration.

Consumables Competitive Pressure

Declining consumables sales amid low-barrier white-label competition weakens a high-frequency revenue stream tied to machine ownership. Loss of share in consumables undermines recurring revenue predictability and reduces the long-term monetization of the installed base.

Engagement Erosion & Near-term Headwinds

Falling engagement and expected H1 product/ASP pressure (promotions, difficult comps, pulled-forward demand) threaten conversion and repeat purchase rates. Persistent engagement softness can cap ARPU growth and slow consumables recovery, prolonging top-line weakness despite margin gains.

Cricut Inc Business Overview & Revenue Model

Company Description

Cricut, Inc. designs and markets a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates in three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy, Cricut Explore, and Cricut Maker to cut, write, score, and create decorative effects using various materials, such as paper, vinyl, leather, and others; and design apps comprise Design Space app and Cricut Joy-specific app. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, various hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

How the Company Makes Money

Cricut generates revenue through multiple channels, primarily from the sale of its cutting machines and related accessories, which are sold through various retail channels, including online and brick-and-mortar stores. A significant portion of the company's income comes from its subscription service, Cricut Access, which provides users with access to a vast library of designs and fonts for a monthly fee. The company also earns revenue from selling materials such as vinyl, paper, and other crafting supplies that complement its machines. Furthermore, Cricut has established partnerships with retailers and e-commerce platforms to expand its market reach and drive sales. Overall, the combination of machine sales, subscription services, and material sales constitutes the core of Cricut's revenue model.

Cricut Inc Financial Statement Overview

Summary

Financials are solid but mixed: strong and expanding gross margins (~55% in 2025), low leverage (debt-to-equity ~3%), and positive operating/free cash flow in 2022–2025 (FCF ~$176M in 2025). Offsetting this, revenue has contracted materially from 2021–2025 and cash generation declined versus 2024, highlighting top-line pressure and variability.

Income Statement

Revenue has contracted meaningfully from 2021–2025 (down from about $1.31B in 2021 to about $0.71B in 2025), signaling demand normalization and weaker top-line momentum. Profitability remains solid despite the smaller revenue base: gross margin expanded steadily (about 35% in 2021 to ~55% in 2025) and net margin held around ~11% in 2025. However, profitability is still below prior peaks (net margin was ~16% in 2020), and growth has been consistently negative in recent years, which limits the score.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (debt-to-equity around ~3% in 2023–2025), providing financial flexibility. Equity remains sizable, though it has declined from 2021–2025 (roughly $674M to ~$344M), which reduces the cushion versus prior years. Returns on equity are healthy (mid-teens to low-20s recently, ~22% in 2025), supported by profitability and modest leverage.

Cash Flow

Cash generation is strong in the most recent years, with operating cash flow materially positive in 2022–2025 (about $200M in 2025) and free cash flow also solid (~$176M in 2025). That said, free cash flow growth is negative recently (down in 2024 and sharply lower in 2025), and cash flow has shown volatility historically (notably negative operating and free cash flow in 2021). Overall cash conversion versus earnings is decent based on the provided relationship between free cash flow and net income, but the recent downtrend and past volatility temper the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	708.78M	712.54M	765.15M	886.30M	1.31B
Gross Profit	390.43M	352.79M	343.29M	349.89M	457.45M
EBITDA	96.03M	118.21M	110.14M	109.23M	212.06M
Net Income	76.70M	62.83M	53.64M	60.67M	140.47M
Balance Sheet
Total Assets	580.81M	693.03M	750.12M	949.63M	1.01B
Cash, Cash Equivalents and Short-Term Investments	275.65M	336.91M	245.14M	299.20M	241.60M
Total Debt	11.62M	15.21M	14.17M	19.37M	19.54M
Total Liabilities	237.25M	226.27M	215.25M	276.89M	332.27M
Stockholders Equity	343.56M	466.76M	534.87M	672.74M	673.98M
Cash Flow
Free Cash Flow	175.81M	246.63M	264.38M	83.91M	-140.74M
Operating Cash Flow	200.23M	264.97M	288.10M	117.68M	-104.95M
Investing Cash Flow	60.66M	-18.33M	-48.78M	-107.87M	-35.79M
Financing Cash Flow	-237.44M	-156.44M	-322.19M	-26.25M	260.24M

Cricut Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRCT, the sentiment is Negative. The current price of 4.13 is below the 20-day moving average (MA) of 4.27, below the 50-day MA of 4.46, and below the 200-day MA of 5.15, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 31.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRCT.

Cricut Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRCT	66 Neutral	$859.83M	13.89	20.44%	10.80%	-2.72%	32.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCAT	53 Neutral	$2.03B	-17.49	-68.15%	―	―	―
CRSR	53 Neutral	$570.64M	-50.52	-2.91%	―	9.79%	63.17%
SSYS	52 Neutral	$672.15M	-9.86	-12.33%	―	-2.93%	-22.55%
DDD	50 Neutral	$312.58M	3.70	30.39%	―	-11.78%	―
NNDM	48 Neutral	$347.09M	-1.62	-36.12%	―	42.17%	-215.37%

Cricut Inc Corporate Events

Cricut Posts Strong 2025 Profitability Despite Flat Revenue

Cricut, Inc. reported fourth-quarter and full-year 2025 results on March 3, 2026, showing its ninth consecutive year of profitability, with 2025 net income up 22% to $76.7 million and revenue nearly flat at $708.8 million. The company expanded gross margin to 55.1%, generated $200.2 million in operating cash, ended the year debt-free with $276 million in cash, and saw paid subscribers grow over 4% to about 3.09 million despite a slight decline in total revenue and some engagement metrics.

Management highlighted mixed operating dynamics, with platform revenue and ARPU rising while product revenue slipped and overall sales growth stalled in both the fourth quarter and full year. Cricut pointed to stronger international performance, positive machine sell-through in North America and abroad, and advances in software, AI-driven features and new hardware launches as it works to broaden its mass-market appeal and support long-term growth, including via an ongoing stock repurchase program.

The most recent analyst rating on (CRCT) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Cricut Inc stock, see the CRCT Stock Forecast page.