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Cricut, Inc. (CRCT)
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Cricut Inc (CRCT) AI Stock Analysis

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CRCT

Cricut Inc

(NASDAQ:CRCT)

Rating:73Outperform
Price Target:
$6.50
▲(37.71% Upside)
Cricut Inc.'s overall stock score reflects strong financial performance and a solid valuation, supported by a high dividend yield. The earnings call highlighted positive growth trends, although some risks remain, particularly in engagement metrics and tariff uncertainties. Technical indicators suggest mixed momentum, contributing to a moderate overall score.
Positive Factors
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 Projections
Revenue in the first half of CY25 is expected to decline year over year, though management points to a potential inflection in the second half of CY25.
User Engagement
Engagement trends are yet to stabilize, with active users declining for a third consecutive quarter.

Cricut Inc (CRCT) vs. SPDR S&P 500 ETF (SPY)

Cricut Inc Business Overview & Revenue Model

Company DescriptionCricut 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 MoneyCricut 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 Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q1-2025)
|
% Change Since: -2.68%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several positive developments such as an increase in paid subscribers, international sales growth, and strong profitability. However, these were countered by challenges like a decline in overall sales, engagement metrics, and revenue from accessories and materials, as well as uncertainty due to tariffs.
Q1-2025 Updates
Positive Updates
Increase in Paid Subscribers
Paid subscribers increased over 6% year-over-year to just over 2.97 million, with sequential growth of 15,000 in Q1.
International Sales Growth
International sales grew by 8% year-over-year, with notable strength in the U.K., Germany, META, and Latin America markets.
Strong Profitability
Operating income increased by 16% year-over-year, and net income was $23.9 million, or 14.7% of total sales.
Launch of New Machines
Cricut launched the next generation cutting machines, Cricut Explore 4 and Cricut Maker 4, with positive initial feedback from retailers and users.
Capital Allocation Decisions
The Board approved a special dividend of $0.75 per share, a semi-annual dividend of $0.10 per share, and replenished the stock repurchase program up to $50 million.
Improvement in Gross Margins
Gross margin improved to 60.5% from 54.7% in Q1 2024, aided by higher product margins and a favorable product mix.
Negative Updates
Overall Sales Decline
Total sales in Q1 decreased 3% year-on-year, with a 7% decline in Products revenue.
Decrease in Accessories and Materials Revenue
Revenue from accessories and materials decreased by 15%, partially offset by one-time items.
Engagement Challenges
Engagement metrics showed a decline, with a 4% decrease in 90-Day engaged users and a slight decrease in active users.
Tariff-Related Uncertainty
Tariffs have introduced uncertainty in the market, affecting financial planning and potential consumer spending.
Company Guidance
During Cricut's Q1 2025 earnings call, the company reported a 3% year-on-year sales decline, but highlighted positive metrics such as a 16% increase in operating income and an 8% rise in international sales. The company saw a growth of 6% in paid subscribers, totaling over 2.97 million, and noted a 4% increase in connected machines revenue. Despite a 15% decline in accessories and materials sales, Cricut launched over 100 new SKUs in their Value Line of materials. The company's gross margin improved to 60.5%, up from 54.7% the previous year. Cricut announced a special dividend of $0.75 per share, a semi-annual dividend of $0.10 per share, and replenished its stock repurchase program up to $50 million. The company continues to focus on new user acquisition, user engagement, and expanding its platform, despite challenges such as tariff uncertainties.

Cricut Inc Financial Statement Overview

Summary
Cricut Inc. demonstrates financial stability with strong cash flow and efficient operations. Despite a decline in revenue, the company maintains solid profitability metrics and a healthy balance sheet, indicating resilience.
Income Statement
75
Positive
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
80
Positive
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
85
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue711.95M712.54M765.15M886.30M1.31B959.03M
Gross Profit371.24M352.79M343.29M349.89M457.45M332.37M
EBITDA113.78M118.20M109.91M109.83M215.66M214.63M
Net Income71.82M62.83M53.64M60.67M140.47M154.58M
Balance Sheet
Total Assets721.51M693.03M750.12M949.63M1.01B581.40M
Cash, Cash Equivalents and Short-Term Investments376.94M336.91M245.14M299.20M241.60M122.22M
Total Debt13.39M15.21M14.17M19.37M19.54M0.00
Total Liabilities412.57M226.27M215.25M276.89M332.27M352.48M
Stockholders Equity308.94M466.76M534.87M672.74M673.98M228.93M
Cash Flow
Free Cash Flow251.68M246.63M264.38M83.91M-140.74M226.38M
Operating Cash Flow270.64M264.97M288.10M117.68M-104.95M248.23M
Investing Cash Flow7.16M-18.33M-48.78M-107.87M-35.79M-21.84M
Financing Cash Flow-175.79M-156.44M-322.19M-26.25M260.24M-110.92M

Cricut Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.72
Price Trends
50DMA
5.54
Negative
100DMA
5.09
Negative
200DMA
5.07
Negative
Market Momentum
MACD
-0.22
Positive
RSI
37.32
Neutral
STOCH
17.81
Positive
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 4.72 is below the 20-day moving average (MA) of 5.23, below the 50-day MA of 5.54, and below the 200-day MA of 5.07, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 17.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.03B14.6718.96%11.41%-3.99%7.59%
59
Neutral
$948.16M-15.20%-6.53%-1059.95%
58
Neutral
$915.21M-13.00%-9.29%17.86%
50
Neutral
AU$1.62B3.22-31.35%3.49%16.14%-6.73%
48
Neutral
$302.02M-9.62%7.35%16.59%
43
Neutral
$237.36M-99.85%-8.09%22.06%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRCT
Cricut Inc
4.85
-0.69
-12.45%
DDD
3D Systems
1.74
-0.73
-29.55%
SSYS
Stratasys
10.68
3.48
48.33%
NNDM
Nano Dimension
1.39
-0.65
-31.86%
CRSR
Corsair Gaming
8.96
2.80
45.45%

Cricut Inc Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures
Cricut Inc Reports Q2 2025 Financial Results
Positive
Aug 5, 2025

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.

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.

Executive/Board ChangesShareholder Meetings
Cricut Inc Stockholders Approve Key Amendments at Annual Meeting
Neutral
Jun 2, 2025

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.

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.Date of analysis: Aug 07, 2025