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Cricut Inc (CRCT)
NASDAQ:CRCT
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Cricut Inc
(NASDAQ:CRCT)
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Rating:74Outperform
Price Target:
$6.00
▼(-12.15% Downside)
Cricut Inc. demonstrates strong financial performance and attractive valuation, with a solid dividend yield. The earnings call provided positive insights into growth, though some challenges remain. Technical indicators suggest a neutral short-term trend.
Positive Factors
Subscriber Growth
The increase in paid subscribers indicates strong demand for Cricut's digital content and services, enhancing recurring revenue streams and customer loyalty.
Gross Margin Improvement
Improved gross margins reflect better cost management and pricing strategies, contributing to stronger profitability and financial health.
Financial Stability
Low leverage enhances Cricut's financial stability, providing flexibility for strategic investments and resilience against economic fluctuations.
Negative Factors
Decline in Connected Machines Revenue
A decline in connected machines revenue suggests potential challenges in core product sales, which could impact long-term growth if not addressed.
Engagement Erosion
Decreasing user engagement may indicate waning interest or competition, potentially affecting future revenue from subscriptions and content.
Tariff Uncertainty
Tariff uncertainties could increase costs and disrupt supply chains, impacting Cricut's profitability and operational efficiency in the long term.
Cricut Inc (CRCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.45B
Dividend Yield7.75%
Average Volume (3M)699.38K
Price to Earnings (P/E)20.3
Beta (1Y)0.75
Revenue Growth-3.99%
EPS Growth7.59%
CountryUS
Employees640
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.11
Shares Outstanding53,976,482
10 Day Avg. Volume710,527
30 Day Avg. Volume699,384
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue1.53
Enterprise Value/Gross Profit2.93
Enterprise Value/Ebitda8.81
Forecast
1Y Price Target
$4.25Price Target Upside-37.77% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering4
Cricut Inc Business Overview & Revenue Model
Company DescriptionCricut, 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 MoneyCricut 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 Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
Cricut's Q2 2025 earnings call demonstrated solid financial performance with growth in sales, operating income, and subscribers. Marketing efforts and product innovations contributed positively. However, challenges such as the decline in connected machines revenue, international market softness, engagement erosion, and tariff uncertainty present concerns.Q2-2025 Updates
Positive Updates
Revenue and Growth Metrics
Cricut posted a 2% increase in sales, a 14% growth in operating income, and a 22% increase in EPS. Paid subscribers grew by 7% to over 3 million.
Platform and Product Segment Growth
Platform segment revenue grew by 4% and Products by 1%.
Increase in Accessories and Materials Sales
Accessories and materials sales increased by 12% in Q2.
Subscriber Growth
The subscriptions business crossed 3 million paid subscribers with a 7% increase year-on-year and a 1% increase sequentially.
Gross Margin Improvement
Total gross margin improved to 59%, up from 53.5% in Q2 2024.
Successful Marketing and Promotions
Increased marketing spend resulted in 2x the number of views and engagements compared to the prior year, and the Mother’s Day promotion outperformed last year.
Negative Updates
Decline in Connected Machines Revenue
Connected machines revenue decreased by 10% due to selling fewer machine units.
International Market Challenges
International revenue increased by 8%, but there was a decline in products in international markets, with specific softness in Australia.
Engagement Erosion
Engagement metrics showed decline, with 90-day engaged users who cut during the quarter declining by less than 2%.
Tariff Uncertainty
The announcement of new tariffs affecting manufacturing in South Korea, Malaysia, and Thailand introduced uncertainty, with potential impacts expected more meaningfully in 2026.
Company Guidance
During the Cricut Q2 2025 earnings call, the company reported a 2% increase in sales, 14% growth in operating income, and a 22% rise in earnings per share (EPS). The number of paid subscribers grew by 7% to over 3 million, while Platform and Products segments posted growth of 4% and 1%, respectively. Accessories and materials sales increased by 12%, contributing to an improved gross margin of 59%, up from 53.5% in the previous year. The company also reported net income of $24.5 million, representing 14.2% of total sales, and a tax rate of 27.6%. Despite facing uncertainties due to tariffs, Cricut remains committed to enhancing user engagement and expanding its product offerings, with a focus on new user acquisition and increasing the value of its subscription services. The call highlighted a strategic focus on accelerating investments in hardware product development, materials, engagement, and marketing as part of efforts to drive future revenue growth.Cricut Inc Financial Statement Overview
Summary
Cricut Inc. exhibits strong financial health with efficient operations and solid profitability. The company has a stable balance sheet with low leverage, enhancing its financial resilience. Cash flow generation is improving, although further enhancement in cash profitability would be beneficial. The company should focus on maintaining revenue growth consistency to sustain its financial performance.Income Statement
Cricut Inc. shows a strong gross profit margin of 50.8% TTM, indicating efficient cost management. The net profit margin of 9.5% TTM is healthy, though slightly below the industry average. Revenue growth has been volatile, with a recent TTM increase of 58.8%, following previous declines. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.75
Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.03 TTM, showcasing strong financial stability and low leverage risk. Return on equity is robust at 14.3% TTM, indicating effective use of equity capital. The equity ratio of 42.8% TTM suggests a solid capital structure with a good balance between debt and equity.80
Positive
Cash Flow
Cricut Inc. has demonstrated positive free cash flow growth of 13.6% TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 1.58 TTM, highlighting efficient cash conversion. The free cash flow to net income ratio of 0.93 TTM suggests good cash profitability, though there is room for improvement.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 711.95M | 712.54M | 765.15M | 886.30M | 1.31B | 959.03M |
| Gross Profit | 371.24M | 352.79M | 343.29M | 349.89M | 457.45M | 332.37M |
| EBITDA | 123.57M | 118.20M | 109.91M | 109.83M | 215.66M | 214.63M |
| Net Income | 71.82M | 62.83M | 53.64M | 60.67M | 140.47M | 154.58M |
Balance Sheet | ||||||
| Total Assets | 721.51M | 693.03M | 750.12M | 949.63M | 1.01B | 581.40M |
| Cash, Cash Equivalents and Short-Term Investments | 376.94M | 336.91M | 245.14M | 299.20M | 241.60M | 122.22M |
| Total Debt | 13.39M | 15.21M | 14.17M | 19.37M | 19.54M | 0.00 |
| Total Liabilities | 412.57M | 226.27M | 215.25M | 276.89M | 332.27M | 352.48M |
| Stockholders Equity | 308.94M | 466.76M | 534.87M | 672.74M | 673.98M | 228.93M |
Cash Flow | ||||||
| Free Cash Flow | 251.68M | 246.63M | 264.38M | 83.91M | -140.74M | 226.38M |
| Operating Cash Flow | 270.64M | 264.97M | 288.10M | 117.68M | -104.95M | 248.23M |
| Investing Cash Flow | 7.16M | -18.33M | -48.78M | -107.87M | -35.79M | -21.84M |
| Financing Cash Flow | -175.79M | -156.44M | -322.19M | -26.25M | 260.24M | -110.92M |
Cricut Inc Technical Analysis
Positive
6.83
Price Trends
5.69
Positive
5.60
Positive
5.20
Positive
Market Momentum
0.31
Negative
74.50
Negative
90.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRCT, the sentiment is Positive. The current price of 6.83 is above the 20-day moving average (MA) of 6.17, above the 50-day MA of 5.69, and above the 200-day MA of 5.20, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 74.50 is Negative, neither overbought nor oversold. The STOCH value of 90.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRCT.
Cricut Inc Risk Analysis
Cricut Inc disclosed 82 risk factors in its most recent earnings report. Cricut Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cricut Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.45B | 20.29 | 18.96% | 7.75% | -3.99% | 7.59% | |
56 Neutral | 908.74M | -10.67 | -12.73% | ― | 2.08% | -113.97% | |
54 Neutral | 303.52M | -3.58 | -11.18% | ― | 7.35% | 16.59% | |
51 Neutral | 314.22M | -1.87 | -60.06% | ― | -9.11% | 58.95% | |
50 Neutral | 895.44M | -7.84 | -15.17% | ― | -6.00% | 17.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
CRCT
Cricut Inc
6.83
1.06
18.37%
DDD
3D Systems
2.45
0.01
0.41%
SSYS
Stratasys
10.53
3.11
41.91%
NNDM
Nano Dimension
1.39
-0.76
-35.35%
CRSR
Corsair Gaming
8.57
2.06
31.64%
MKFG
Markforged Holding
4.74
2.25
90.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.