Cricut Inc (CRCT) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: 10.16%
• Average Volume (3M): 542.21K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.88
• Revenue Growth: -2.72%
• EPS Growth: 32.20%
• Country: US
• Employees: 640
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.10
• Shares Outstanding: 53,255,196
• 10 Day Avg. Volume: 455,861
• 30 Day Avg. Volume: 542,214
• PEG Ratio: 1.22
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 4.97
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 8.65
• 1Y Price Target: $3.83
• Price Target Upside: -24.75% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.35
• Revenue Forecast (FY): $698.34M

• Rating: 75 Outperform
• Price Target: $5.50 ▲(8.06% Upside)

Cricut Inc's strong financial performance and attractive valuation are key strengths, supported by a solid balance sheet and high dividend yield. However, technical indicators suggest caution, and challenges highlighted in the earnings call, such as declining accessory sales and tariff impacts, temper the overall outlook.

Positive Factors

Strong Financial Performance

Cricut's robust financial performance, with significant growth in operating income and EPS, underscores its effective business strategies and operational efficiency, which are crucial for sustained long-term growth.

Improved Gross Margins

The improvement in gross margins reflects Cricut's ability to manage costs and enhance profitability, which strengthens its competitive position and supports future financial stability.

International Expansion

Cricut's international expansion efforts are driving revenue growth and diversifying its market presence, which reduces reliance on domestic markets and enhances long-term growth prospects.

Negative Factors

Decline in Accessories and Materials Revenue

The decline in accessories and materials sales indicates potential market share loss and competitive pressures, which could impact Cricut's revenue diversification and growth sustainability.

Ongoing Engagement Challenges

Decreasing user engagement suggests challenges in maintaining customer interest and retention, which could affect Cricut's subscription growth and long-term customer base expansion.

Impact of Tariffs on Margins

Tariff-related margin pressures could constrain Cricut's profitability and pricing strategies, affecting its ability to compete effectively and maintain consumer affordability.

Cricut Inc Business Overview & Revenue Model

Company Description

Cricut Inc. (CRCT) is a technology company that specializes in crafting and DIY (do-it-yourself) solutions. The company operates in the personal and home crafting sector, providing innovative tools, materials, and software designed for makers, hobbyists, and small businesses. Cricut's core products include cutting machines, which allow users to precisely cut a variety of materials, as well as a range of accessories and materials for crafting projects. Additionally, Cricut offers a subscription-based software platform that enables users to access design resources and project inspiration.

How the Company Makes Money

Cricut 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 Financial Statement Overview

Summary

Cricut Inc exhibits strong financial health with impressive revenue growth and profitability improvements. The balance sheet is solid with low leverage and strong equity positioning. However, the decline in free cash flow growth is a concern.

Income Statement

Cricut Inc has demonstrated strong revenue growth in the TTM period with a 35.8% increase, recovering from previous declines. The gross profit margin improved to 54.3%, indicating efficient cost management. Net profit margin also increased to 11.3%, showcasing enhanced profitability. However, historical revenue volatility and fluctuating margins pose potential risks.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.035, reflecting prudent financial leverage. Return on equity improved to 16.5%, indicating effective use of equity to generate profits. The equity ratio stands at 63.5%, suggesting a strong equity base relative to total assets, enhancing financial stability.

Cash Flow

Operating cash flow remains robust with a coverage ratio of 1.18, indicating sufficient cash generation to cover net income. However, free cash flow growth has declined by 20.6%, which could impact future liquidity. The free cash flow to net income ratio of 0.90 suggests efficient cash conversion, but the recent decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	714.49M	712.54M	765.15M	886.30M	1.31B	959.03M
Gross Profit	387.97M	352.79M	343.29M	349.89M	457.45M	332.37M
EBITDA	133.98M	118.21M	110.14M	109.23M	212.06M	214.63M
Net Income	80.84M	62.83M	53.64M	60.67M	140.47M	154.58M
Balance Sheet
Total Assets	564.25M	693.03M	750.12M	949.63M	1.01B	581.40M
Cash, Cash Equivalents and Short-Term Investments	207.10M	336.91M	245.14M	299.20M	241.60M	122.22M
Total Debt	12.51M	15.21M	14.17M	19.37M	19.54M	0.00
Total Liabilities	205.86M	226.27M	215.25M	276.89M	332.27M	352.48M
Stockholders Equity	358.39M	466.76M	534.87M	672.74M	673.98M	228.93M
Cash Flow
Free Cash Flow	199.81M	246.63M	264.38M	83.91M	-140.74M	226.38M
Operating Cash Flow	220.88M	264.97M	288.10M	117.68M	-104.95M	248.23M
Investing Cash Flow	64.00M	-18.33M	-48.78M	-107.87M	-35.79M	-21.84M
Financing Cash Flow	-239.52M	-156.44M	-322.19M	-26.25M	260.24M	-110.92M

Cricut Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 5.09 is above the 20-day moving average (MA) of 4.96, above the 50-day MA of 5.03, and below the 200-day MA of 5.28, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 76.23 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	75 Outperform	$1.08B	13.51	19.38%	10.16%	-2.72%	32.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRSR	57 Neutral	$654.37M	―	-5.88%	―	9.79%	63.17%
RCAT	53 Neutral	$960.94M	―	―	―	―	―
NNDM	50 Neutral	$392.65M	-1.46	-10.03%	―	42.17%	-215.37%
SSYS	45 Neutral	$761.08M	-5.52	-15.13%	―	-2.93%	-22.55%
DDD	44 Neutral	$236.88M	-17.36	7.15%	―	-11.78%	―

Cricut Inc Corporate Events

Cricut Inc Reports Strong Q3 2025 Financial Results

Cricut, Inc. reported its financial results for the third quarter of 2025, showing a 2% increase in revenue to $170.4 million compared to Q3 2024, and a significant 79% rise in net income to $20.5 million. The company also announced a recurring semi-annual dividend of $0.10 per share to be paid in January 2026. Despite challenges from tariffs, Cricut is focusing on accelerating investments in product development and international market expansion to drive future growth. The company ended the quarter with $207 million in cash and remains debt-free, highlighting its strong financial position.