Cricut Inc (CRCT) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: 3.03%
• Average Volume (3M): 471.13K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.49
• Revenue Growth: -5.79%
• EPS Growth: 5.78%
• Country: US
• Employees: 640
• Sector: Technology
• Sector Strength: 83
• Industry: Computer Hardware
• EPS (TTM): 0.11
• Shares Outstanding: 51,646,040
• 10 Day Avg. Volume: 381,339
• 30 Day Avg. Volume: 471,133
• PEG Ratio: -0.59
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.69
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 3.78
• 1Y Price Target: $3.98
• Price Target Upside: -39.14% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $7.00 ▲(7.03%Upside)

Cricut Inc. shows strong financial health with robust cash flow and a solid balance sheet. Despite challenges from declining revenues and engagement metrics, the company demonstrates resilience through strategic investments and profitability. The valuation is reasonable, and corporate actions indicate confidence in future growth. Technical indicators suggest caution due to potential overbought conditions.

Positive Factors

New Product Development

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

Profit Margins

1Q gross and operating margins surprised positively, reaching multi-year highs.

Negative Factors

Revenue Stability

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

Tariff Policy

Tariff policy remains fluid and is resulting in headwinds to consumer electronics spending.

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. 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 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. demonstrates financial stability with strong cash flow and efficient operations, but faces challenges due to declining revenue. Solid profitability metrics and a healthy balance sheet indicate resilience.

Income Statement

Cricut Inc. shows stable gross and net profit margins, with a TTM gross profit margin of 50.8% and net profit margin of 9.5%. However, revenue has been declining annually, with a 5.7% decrease from 2022 to 2023, affecting growth prospects. EBIT and EBITDA margins remain healthy, indicating efficient core operations.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.03 and a high equity ratio of 71.9% as of TTM, indicating financial stability and low financial risk. Return on equity is moderate at 13.7%, showing decent profitability relative to equity.

Cash Flow

Cricut Inc. exhibits robust cash flow, with a free cash flow growth rate of 1.9% TTM. The operating cash flow to net income ratio is high at 4.02, indicating strong cash generation relative to reported earnings. Free cash flow to net income ratio is also solid at 3.75.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
707.78M	712.54M	765.15M	886.30M	1.31B	959.03M
	Gross Profit
359.54M	352.79M	343.29M	349.89M	457.45M	332.37M
	EBIT
80.25M	76.11M	69.98M	79.95M	192.41M	200.51M
	EBITDA
117.70M	118.20M	109.91M	109.83M	215.66M	214.63M
	Net Income Common Stockholders
67.10M	62.83M	53.64M	60.67M	140.47M	154.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
356.67M	336.91M	245.14M	299.20M	241.60M	122.22M
	Total Assets
681.65M	693.03M	750.12M	949.63M	1.01B	581.40M
	Total Debt
14.51M	15.21M	14.17M	19.37M	19.54M	0.00
	Net Debt
-237.63M	-216.93M	-128.02M	-205.57M	-222.06M	-122.22M
	Total Liabilities
191.48M	226.27M	215.25M	276.89M	332.27M	352.48M
	Stockholders Equity
490.17M	466.76M	534.87M	672.74M	673.98M	228.93M
Cash Flow		Free Cash Flow
251.34M	246.63M	264.38M	83.91M	-140.74M	226.38M
	Operating Cash Flow
269.45M	264.97M	288.10M	117.68M	-104.95M	248.23M
	Investing Cash Flow
-18.10M	-18.33M	-48.78M	-107.87M	-35.79M	-21.84M
	Financing Cash Flow
-178.21M	-156.44M	-322.19M	-26.25M	260.24M	-110.92M

Cricut Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 6.54 is above the 20-day moving average (MA) of 6.32, above the 50-day MA of 5.69, and above the 200-day MA of 5.74, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 59.54 is Neutral, neither overbought nor oversold. The STOCH value of 74.15 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	76 Outperform	$1.40B	21.19	12.87%	3.03%	-5.79%	5.78%
CRSR	67 Neutral	$974.61M	―	-15.20%	―	-6.53%	-1059.95%
Sector *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%
SSYS	56 Neutral	$886.22M	―	-13.00%	―	-9.29%	17.86%
NNDM	50 Neutral	$302.02M	―	-9.62%	―	7.35%	16.59%
MKFG	49 Neutral	$98.34M	―	-68.97%	―	-9.27%	19.30%
DDD	39 Underperform	$200.53M	―	-99.85%	―	-8.09%	22.06%

Cricut Inc Corporate Events

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.

The most recent analyst rating on (CRCT) stock is a Sell with a $4.00 price target. To see the full list of analyst forecasts on Cricut Inc stock, see the CRCT Stock Forecast page.

Cricut Inc Announces $50 Million Share Repurchase

On May 6, 2025, Cricut, Inc. announced a share repurchase program authorizing the purchase of up to $50 million of its Class A common stock, reflecting confidence in its financial health. The company reported a 6% increase in paid subscribers and a 22% rise in net income for Q1 2025, despite a 3% revenue decline. The board approved a special dividend and a recurring semi-annual dividend, signaling a robust capital allocation strategy.

Cricut Inc Announces New General Counsel Appointment

On April 29, 2025, Don Olsen, General Counsel and Corporate Secretary of Cricut, Inc., announced his intention to step down after nearly 18 years with the company to pursue another opportunity. He will remain with Cricut until July 1, 2025, to ensure a smooth transition. Matt Tuttle, who has been with Cricut for 15 years and most recently served as VP of Business Development/Associate Counsel for Intellectual Property, will succeed Mr. Olsen as General Counsel, effective April 30, 2025.