Cricut Inc (CRCT) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 9.2%
• Average Volume (3M): 694.59K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.73
• Revenue Growth: -3.99%
• EPS Growth: 7.59%
• Country: US
• Employees: 640
• Sector: Technology
• Sector Strength: 87
• Industry: Computer Hardware
• EPS (TTM): 0.11
• Shares Outstanding: 53,976,482
• 10 Day Avg. Volume: 745,020
• 30 Day Avg. Volume: 694,592
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 2.93
• Enterprise Value/Ebitda: 8.81
• 1Y Price Target: $4.25
• Price Target Upside: -26.09% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $6.00 ▲(4.35% Upside)

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

Financial performance

Revenues of $172.1M beat expectations of $155.2M with product revenues growth in Accessories/Materials.

Product development

Cricut, Inc. launched new products and accelerated investments into research and development to drive future revenue growth.

Profitability

Gross margins improved to 59.0% up from 53.5%.

Negative Factors

Market demand

Management visibility into future revenues remains limited.

Revenue stability

The greatest concern lies with continued challenges to stabilize topline and engagement trends.

User engagement

Engagement trends are yet to stabilize, with active users declining for a third consecutive quarter.

Cricut Inc Business Overview & Revenue Model

Company Description

Cricut Inc (CRCT) is a leading technology company that specializes in crafting and DIY (Do It Yourself) cutting machines and related products. The company is known for its innovative machines like Cricut Maker, Cricut Explore, and Cricut Joy, which allow users to cut a variety of materials with precision for projects ranging from home decor to personal fashion. Cricut also offers a suite of design software and digital content, empowering creative individuals to design, personalize, and create custom projects with ease.

How the Company Makes Money

Cricut Inc primarily generates revenue through the sale of its cutting machines, which are the core products that form the foundation of its business. Additionally, the company earns income from the sale of accessories and materials compatible with its machines, such as blades, pens, and craft materials. A significant portion of Cricut's revenue also comes from their software and digital content subscriptions, which provide users access to a wide range of designs and projects. Cricut Access, their subscription service, offers various plans that include premium content, discounts on products, and other perks. The company's business model is further supported by strategic partnerships with retailers and craft supply stores, enhancing the distribution and visibility of their products. These partnerships allow Cricut to reach a broad audience, ensuring steady sales growth and expanding its market reach.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 5.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.75 is above the 20-day moving average (MA) of 5.56, above the 50-day MA of 5.59, and above the 200-day MA of 5.08, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 44.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRCT.

Cricut Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRCT	74 Outperform	$1.21B	17.03	18.96%	9.20%	-3.99%	7.59%
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
CRSR	60 Neutral	$929.94M	―	-13.50%	―	2.08%	-113.97%
DDD	58 Neutral	$309.09M	―	-46.51%	―	-9.11%	58.95%
SSYS	50 Neutral	$914.75M	―	-11.22%	―	-6.00%	17.87%
MKFG	49 Neutral		―		―	-9.27%	19.30%
NNDM	48 Neutral	$308.54M	―	-9.62%	―	7.35%	16.59%

Cricut Inc Corporate Events

Cricut Inc Reports Q2 2025 Financial Results

Cricut, Inc. announced its financial results for the second quarter of 2025, showing a 2% increase in revenue to $172.1 million compared to the same period in 2024. The company reported a 24% rise in net income to $24.5 million and a 7% growth in paid subscribers, reaching over 3 million. Cricut is focusing on accelerating investments in product development and marketing to drive future growth, despite challenges like tariffs. The company also distributed dividends totaling $181 million after the quarter ended, reflecting a robust financial position with $377 million in cash and no debt.

Cricut Inc Stockholders Approve Key Amendments at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 28, 2025, Cricut Inc.’s stockholders approved an amendment to the company’s Certificate of Incorporation, allowing for the exculpation of certain officers from liability under specific circumstances as permitted by Delaware law. Additionally, the meeting saw the election of seven individuals to the Board of Directors for the ensuing year and the approval of several proposals, including the compensation of named executive officers and the ratification of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.