Cricut (NASDAQ:CRCT) Releases Earnings Results, Meets Expectations

Cricut (NASDAQ:CRCT) issued its quarterly earnings results on Tuesday. The company reported $0.04 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.04, FiscalAI reports. The company had revenue of $203.60 million during the quarter, compared to analyst estimates of $202.22 million. Cricut had a net margin of 10.82% and a return on equity of 19.88%.

Here are the key takeaways from Cricut’s conference call:

• Net income and margins improved — full‑year net income was $76.7 million (up 22% YoY), gross margins expanded (FY 55.1% vs 49.5%), the company generated $200 million of operating cash, remains debt‑free, and continues share repurchases and dividends.
• Revenue stagnation and consumables weakness — total company sales were down <1% for 2025 and Q4 sales fell 3% YoY, while accessories and materials declined 13% in Q4 and 9% for the year amid increased low‑cost competition.
• Platform momentum — paid subscribers rose over 4% to 3.09 million, platform revenue increased ~5% and ARPU grew 5%, with AI features (Create AI) and guided project flows cited as acquisition and engagement drivers.
• Product and monetization roadmap — launched two next‑generation machines (Cricut Joy 2, Explore 5), new heat presses, and a direct‑to‑film (DTF) service, and is shifting to a bundle‑first strategy intended to improve out‑of‑box experience and drive future sell‑through and materials monetization.
• Outlook and risks — management expects to be profitable and generate cash flow in 2026 while accelerating R&D and marketing, but cites tariff uncertainty and will stop reporting standalone connected‑machine vs materials revenue as it moves to bundled sales.

Cricut Price Performance

Shares of CRCT stock opened at $4.52 on Thursday. The company has a market cap of $957.06 million, a price-to-earnings ratio of 12.56 and a beta of 0.17. Cricut has a 1 year low of $3.94 and a 1 year high of $7.33. The firm has a fifty day moving average price of $4.60 and a 200-day moving average price of $5.17.

Cricut News Summary

Here are the key news stories impacting Cricut this week:

• Positive Sentiment: Platform revenue rose ~6% year‑over‑year and management outlined an accelerated cadence of product launches and a “bundle‑first” strategy intended to increase attach rates and recurring revenue — a constructive operational update if execution continues. Cricut outlines accelerated product launches and bundle-first strategy
• Positive Sentiment: Company reported net income of $76.7M for FY2025 (10.8% margin) and noted a ninth consecutive year of profitability — evidence of operating leverage that supports longer‑term cash generation. Cricut, Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results
• Neutral Sentiment: Q4 EPS of $0.04 met consensus and revenue of $203.6M was roughly in line (slightly above $202.2M est). Meeting estimates reduces downside from a miss but provides limited upside surprise. Cricut Inc (CRCT) Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Management’s full earnings call and conference presentation transcripts are available (useful for color on growth initiatives, marketing cadence, and margin outlook); no material new guidance was reported in headlines. Q4 2025 Earnings Call Transcript Morgan Stanley TMT Conference Transcript
• Neutral Sentiment: Published short‑interest figures in the feeds appear inconsistent/garbled (zeros and NaN). No clear short‑pressure signal can be drawn from that data as reported. Market data / short interest
• Negative Sentiment: CEO Arora Ashish sold shares in two filings (60,000 shares on Mar 2 at ~$4.28 and 13,458 shares on Mar 3 at ~$4.25). Insider selling at current price levels is being read negatively by some investors as a potential signal of diminished insider conviction or as additional selling pressure. SEC Form 4 / Insider Sales

Analyst Ratings Changes

Several equities analysts have recently weighed in on CRCT shares. Weiss Ratings downgraded Cricut from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, January 27th. Wall Street Zen cut Cricut from a “buy” rating to a “hold” rating in a research note on Saturday, November 29th. The Goldman Sachs Group reduced their price objective on Cricut from $3.50 to $3.00 and set a “sell” rating for the company in a report on Wednesday, January 14th. UBS Group reissued a “cautious” rating on shares of Cricut in a report on Wednesday. Finally, Barclays reiterated an “underweight” rating and set a $4.00 target price on shares of Cricut in a research note on Wednesday. Six research analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has an average rating of “Strong Sell” and a consensus target price of $3.70.

Insider Transactions at Cricut

In other Cricut news, CEO Arora Ashish sold 13,458 shares of the company’s stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $4.25, for a total value of $57,196.50. Following the completion of the sale, the chief executive officer owned 3,724,995 shares in the company, valued at $15,831,228.75. This represents a 0.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders sold a total of 318,917 shares of company stock worth $1,485,894 over the last three months. Insiders own 18.61% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. First Trust Advisors LP lifted its holdings in Cricut by 1.3% during the second quarter. First Trust Advisors LP now owns 154,368 shares of the company’s stock valued at $1,045,000 after purchasing an additional 1,977 shares in the last quarter. Deutsche Bank AG boosted its holdings in Cricut by 6.0% in the 4th quarter. Deutsche Bank AG now owns 41,949 shares of the company’s stock worth $208,000 after buying an additional 2,374 shares during the period. Osaic Holdings Inc. increased its stake in Cricut by 255.9% in the 2nd quarter. Osaic Holdings Inc. now owns 3,644 shares of the company’s stock worth $25,000 after buying an additional 2,620 shares in the last quarter. Legal & General Group Plc raised its holdings in Cricut by 6.0% during the third quarter. Legal & General Group Plc now owns 62,812 shares of the company’s stock valued at $395,000 after acquiring an additional 3,566 shares during the period. Finally, Corient Private Wealth LLC lifted its position in shares of Cricut by 34.6% in the fourth quarter. Corient Private Wealth LLC now owns 16,917 shares of the company’s stock valued at $84,000 after acquiring an additional 4,349 shares in the last quarter. 19.60% of the stock is currently owned by institutional investors.

About Cricut

Cricut, Inc (NASDAQ: CRCT) is a U.S.-based technology company specializing in personal and small-business crafting solutions. The company designs and markets a family of cutting machines that leverage computer-aided design to precisely cut a wide range of materials, including paper, vinyl, fabric and leather. Complementing its hardware offerings, Cricut provides proprietary software and mobile applications that enable users to create custom artwork, import graphics and access a vast library of pre-designed projects and fonts through a subscription service.

Founded as a division of Provo Craft & Novelty in 2005, Cricut emerged as an independent public company in March 2021.