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Cricut Inc
(NASDAQ:CRCT)
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Rating:73Outperform
Price Target:
$5.50
▲(23.32% Upside)
Action:Reiterated
Date:08/05/26
CRCT scores well primarily due to strong balance-sheet strength and solid free-cash-flow generation, complemented by an attractive valuation (low-to-moderate P/E plus a high dividend yield). The score is held back by ongoing revenue declines and earnings-call risks highlighting product weakness and non-recurring margin benefits, while technicals are positive but somewhat overextended.
Positive Factors
Conservative balance sheet
Extremely low leverage provides capital flexibility and resilience. With roughly debt-to-equity ~0.03 and substantial liquidity, Cricut can fund buybacks, dividends, investments, or navigate consumer softness without forced financing, supporting multi-quarter stability.
Negative Factors
Top-line decline & product weakness
Persisting top-line decline (total rev down ~9% YoY; product rev down 22%) reflects weaker hardware volumes and ASP pressure. A shrinking product base reduces future consumables sales and limits the installed‑base growth that drives durable recurring revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage provides capital flexibility and resilience. With roughly debt-to-equity ~0.03 and substantial liquidity, Cricut can fund buybacks, dividends, investments, or navigate consumer softness without forced financing, supporting multi-quarter stability.
Read all positive factors
Cricut Inc Key Performance Indicators (KPIs)
Any
Revenue by Geography
Sales breakdown across regions (for example U.S., Canada, international), highlighting where growth is coming from and geographic concentration risk. Heavy dependence on one region can expose the company to local economic shifts, while diversification or strong international growth points to new market opportunities.
Sales breakdown across regions (for example U.S., Canada, international), highlighting where growth is coming from and geographic concentration risk. Heavy dependence on one region can expose the company to local economic shifts, while diversification or strong international growth points to new market opportunities.
Data provided by:
The Fly
The FlyCricut Inc (CRCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$984.42M
Dividend Yield4.26%
Average Volume (3M)500.24K
Price to Earnings (P/E)13.3
Beta (1Y)1.10
Revenue Growth-0.31%
EPS Growth10.31%
CountryUS
Employees700
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.42
Shares Outstanding55,019,005
10 Day Avg. Volume471,010
30 Day Avg. Volume500,238
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)3.10
Price to Sales (P/S)1.50
P/FCF Ratio6.06
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$3.85Price Target Upside-13.68% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.19
Revenue Forecast (FY)$677.44M
Cricut Inc Business Overview & Revenue Model
Company Description
Cricut, Inc. offers an innovative creative platform that empowers individuals to transform their imaginative concepts into high-quality, handcrafted items. The company's business model is structured around three core divisions: Connected Machines,...
How the Company Makes Money
Cricut primarily makes money through a combination of hardware, consumables, and subscription/digital revenue tied to its connected ecosystem. (1) Connected machines (hardware): Cricut sells smart cutting machines (and related hardware such as hea...
Cricut Inc Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: meaningful progress on platform metrics (revenue, subscribers, ARPU), product innovation, sell-through strength on new machines, and strong reported profitability and cash generation. However, overall company revenue declined ~9% and product revenue fell 22%, the accessories/materials business remains challenged, and much of the margin improvement was driven by one-time items (IEEPA refunds and a royalty settlement). Management is constructive about the roadmap and expects platform growth and profitability, but material near-term headwinds (tariffs, cost pressures, seasonal softness and early-stage services) temper the outlook.Positive Updates
Platform Revenue and Subscriber Growth
Platform revenue grew just over 5% year-over-year to $85.0M; paid subscribers increased by ~93,000 (+3% YoY) to just over 3.1M and added ~25,000 sequentially; ARPU rose 5% YoY to $56.37.
Negative Updates
Overall Revenue Decline
Total company revenue declined approximately 9% YoY to $156.3M, reflecting a difficult prior-year comp and softness in product revenues.
Read all updates
Q2-2026 Updates
Positive
Negative
Platform Revenue and Subscriber Growth
Platform revenue grew just over 5% year-over-year to $85.0M; paid subscribers increased by ~93,000 (+3% YoY) to just over 3.1M and added ~25,000 sequentially; ARPU rose 5% YoY to $56.37.
Read all positive updates
Company Guidance
Management gave directional (not numeric) guidance: they expect platform revenue to grow each quarter, subscriber trends to follow normal seasonality with softness in Q3, and they project product and platform growth in the second half of 2026; they also expect to be profitable each quarter and to generate operating cash flow for the full year. On capital allocation, they plan to be active under the $50.0 million authorized repurchase program (they used $7.5M to buy 1.7M shares in Q2, leaving $21.6M available) and paid a semiannual dividend of $0.10 per share on July 21, 2026. Financial context for the outlook includes $286M in cash and equivalents, a debt-free balance sheet, $106M of inventory (down $19M year‑over‑year), and $50.4M of cash from operations in Q2 (vs. $36.2M a year ago). They cautioned that while they received IEEPA tariff refunds in the quarter (about $20.3M, with $17.9M benefiting gross margin), remaining tariffs and other cost pressures are a headwind and they are not providing specific margin guidance.Cricut Inc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
84
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 689.79M | 708.78M | 712.54M | 765.15M | 886.30M | 1.31B |
| Gross Profit | 399.65M | 390.43M | 352.79M | 343.29M | 349.89M | 457.45M |
| EBITDA | 138.55M | 132.90M | 118.21M | 110.14M | 109.23M | 212.06M |
| Net Income | 87.67M | 76.70M | 62.83M | 53.64M | 60.67M | 140.47M |
Balance Sheet | ||||||
| Total Assets | 585.68M | 580.81M | 693.03M | 750.12M | 949.63M | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 286.26M | 275.65M | 336.91M | 245.14M | 299.20M | 241.60M |
| Total Debt | 10.38M | 11.62M | 15.21M | 14.17M | 19.37M | 19.54M |
| Total Liabilities | 217.49M | 237.25M | 226.27M | 215.25M | 276.89M | 332.27M |
| Stockholders Equity | 368.19M | 343.56M | 466.76M | 534.87M | 672.74M | 673.98M |
Cash Flow | ||||||
| Free Cash Flow | 147.65M | 175.81M | 246.63M | 264.38M | 83.91M | -140.74M |
| Operating Cash Flow | 180.11M | 200.23M | 264.97M | 288.10M | 117.68M | -104.95M |
| Investing Cash Flow | 26.50M | 60.66M | -18.33M | -48.78M | -107.87M | -35.79M |
| Financing Cash Flow | -237.69M | -237.44M | -156.44M | -322.19M | -26.25M | 260.24M |
Cricut Inc Technical Analysis
Positive
4.46
Price Trends
4.42
Positive
4.25
Positive
4.42
Positive
Market Momentum
0.22
Negative
81.72
Negative
93.52
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 4.46 is below the 20-day moving average (MA) of 4.66, above the 50-day MA of 4.42, and above the 200-day MA of 4.42, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 81.72 is Negative, neither overbought nor oversold. The STOCH value of 93.52 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 81 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $984.42M | 13.28 | 24.57% | 4.48% | -0.31% | 10.31% | |
62 Neutral | $1.13B | 117.50 | 0.87% | ― | 8.03% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $673.87M | -5.79 | -13.44% | ― | -2.96% | 10.37% | |
53 Neutral | $431.22M | 5.62 | -22.63% | ― | -10.16% | ― | |
47 Neutral | $311.98M | -0.96 | -58.69% | ― | 101.54% | -310.54% | |
47 Neutral | $1.15B | -9.91 | -34.96% | ― | ― | ― |
* Technology Sector Average
CRCT
Cricut Inc
6.07
0.62
11.40%
DDD
3D Systems
3.57
1.81
102.84%
SSYS
Stratasys
8.96
-1.72
-16.10%
NNDM
Nano Dimension
1.56
0.21
15.56%
RCAT
Red Cat Holdings
8.66
-0.67
-7.18%
CRSR
Corsair Gaming
11.20
2.34
26.41%
Cricut Inc Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Cricut Delivers Higher Profits Amid Declining Quarterly Revenue
Positive
Aug 4, 2026
For the second quarter ended June 30, 2026, Cricut Inc. reported revenue of $156.3 million, down 9% from the same period in 2025, as product sales fell 22% while platform revenue grew more than 5%, lifting overall gross margin to 74.5%. Net income...
Executive/Board ChangesShareholder Meetings
Cricut Shareholders Reaffirm Board, Pay, and Auditor Oversight
Positive
Jun 4, 2026
Cricut Inc. held its 2026 Annual Meeting of Stockholders on June 3, 2026, where shareholders elected seven directors, including CEO Ashish Arora and incumbent board members, to serve one-year terms. The voting results showed broad support for the ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Cricut Highlights Q1 2026 Results and Shareholder Returns
Neutral
May 5, 2026
Cricut Inc., the creative technology company behind a connected platform of smart cutting machines, design software and crafting materials, reported first-quarter 2026 results that underscore a shift toward higher-margin platform revenues despite ...
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.