Cricut (NASDAQ:CRCT) Announces Earnings Results

Key Points

• Cricut reported $0.10 EPS, beating estimates by $0.05, but revenue missed at $159.47M versus $164.33M expected; product revenue fell ~9.6% and product gross margin dropped to 23.1% from 32.7%, and management expects no total-company revenue growth in Q2.
• Platform performance was a bright spot — platform revenue grew nearly 6% YoY to $84.8M, paid subscribers rose ~104k to ~3.08M and ARPU increased ~4.8% to $55.65, with new hardware and a DTF service showing early encouraging engagement.
• The company is cash-positive with $256M and no debt, supports shareholder returns via buybacks and a $0.10 semiannual dividend, but analysts remain broadly negative (average "Strong Sell" rating and $3.50 price target) and insiders have been net sellers.

Cricut (NASDAQ:CRCT - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $0.10 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.05, FiscalAI reports. The firm had revenue of $159.47 million for the quarter, compared to analyst estimates of $164.33 million. Cricut had a return on equity of 20.44% and a net margin of 10.82%.

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

• Platform revenue grew nearly 6% YoY to $84.8M, paid subscribers rose by ~104k to ~3.08M and ARPU increased ~4.8% to $55.65, indicating improved platform monetization.
• Products revenue declined ~9.6% YoY (total revenue down ~2%) and product gross margin dropped to 23.1% from 32.7% due to inventory write-downs, lower ASPs, tariffs and promotions; management expects no total-company revenue growth in Q2 and sees a tougher first half.
• Management reported year-over-year growth in global machine sell-out and launched new hardware (Cricut Joy 2, Explore 5, EasyPress SE) plus a new DTF service with early encouraging metrics (≈80% of orders from subscribers, ~33% repeat), supporting future engagement and accessory/material monetization.
• The company remains profitable and cash-positive with $256M cash, no debt, continued share repurchases (Q1 buyback $12.2M; $29.1M remaining) and a recurring semiannual dividend of $0.10 per share, signaling shareholder-friendly capital allocation.

Cricut Trading Up 1.4%

Shares of CRCT traded up $0.06 on Tuesday, reaching $4.22. The company's stock had a trading volume of 586,757 shares, compared to its average volume of 424,862. Cricut has a twelve month low of $3.73 and a twelve month high of $7.33. The stock has a market capitalization of $893.71 million, a PE ratio of 11.72 and a beta of 0.22. The firm has a fifty day moving average of $4.21 and a 200-day moving average of $4.61.

Insider Buying and Selling

In other news, CEO Arora Ashish sold 13,458 shares of the stock in a transaction that occurred on 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 directly owned 3,724,995 shares of the company's stock, valued at $15,831,228.75. This represents a 0.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last three months, insiders sold 193,458 shares of company stock worth $858,197. Insiders own 18.02% of the company's stock.

Hedge Funds Weigh In On Cricut

Several large investors have recently bought and sold shares of the stock. Osaic Holdings Inc. grew its stake in shares of 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 acquiring an additional 2,620 shares in the last quarter. Guggenheim Capital LLC purchased a new position in shares of Cricut in the 4th quarter worth approximately $55,000. Brevan Howard Capital Management LP bought a new position in shares of Cricut in the third quarter valued at approximately $75,000. Envestnet Asset Management Inc. bought a new stake in Cricut during the third quarter worth $78,000. Finally, Orion Porfolio Solutions LLC purchased a new stake in shares of Cricut during the 4th quarter valued at $63,000. 19.60% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

CRCT has been the topic of a number of analyst reports. Weiss Ratings upgraded Cricut from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, March 5th. Barclays reissued an "underweight" rating and set a $4.00 target price on shares of Cricut in a research note on Wednesday, March 4th. UBS Group reaffirmed a "cautious" rating on shares of Cricut in a research report on Wednesday, March 4th. Finally, The Goldman Sachs Group reduced their price target on shares of Cricut from $3.50 to $3.00 and set a "sell" rating for the company in a report on Wednesday, January 14th. One equities research analyst has rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Strong Sell" and an average price target of $3.50.

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.

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