Cricut NASDAQ: CRCT reported third-quarter 2026 revenue of $188.6 million, up approximately 11% from a year earlier, as new connected-machine launches and platform growth supported results. Net income rose to $27.8 million, or $0.13 per diluted share, from $20.5 million, or $0.10 per share, in the prior-year quarter.
Chief Executive Officer Ashish Arora said the company began the second half with momentum from new products, including its Maker 5 flagship cutting machine and the StickerPix product line. StickerPix marks Cricut’s first new connected-machine category since 2014 and enables users to make full-color stickers and photo prints at home.
“These product launches are important catalysts for our flywheel,” Arora said, adding that they are intended to broaden the customer funnel, strengthen the company’s ecosystem and create opportunities to increase engagement with its platform.
Product and Platform Growth
Products revenue increased approximately 17% year over year to $102.7 million, driven primarily by higher volumes of connected machines. Platform revenue climbed approximately 4% to $85.9 million. The company said global connected-machine sellout increased by double digits for the second consecutive quarter, though it noted that its sellout data does not cover all channels and should be viewed as directional.
The launch of Joy 2, Explore 5, Maker 5 and StickerPix supported machine demand. Chief Financial Officer Kimball Shill said StickerPix launched late in the quarter and therefore did not materially affect results across the full period.
Shill also said product revenue growth benefited from an easier comparison with the prior year. In the second quarter of 2025, Cricut accelerated some channel revenue amid tariff uncertainty, potentially reducing revenue in subsequent quarters. Even without that comparison benefit, Shill said the company experienced solid products revenue growth.
International revenue rose 30% from the prior year to $52.8 million, representing 28% of total revenue compared with 23.8% a year earlier. The company cited product launches in mature markets as well as continued growth in emerging markets. It reported significant connected-machine sellout growth in Asia and Latin America, along with double-digit growth in markets including Europe and Australia.
Subscribers, Engagement and New Offerings
Cricut ended the quarter with just over 3.07 million paid subscribers, an increase of approximately 2% from a year earlier. Subscribers declined sequentially, which management said was consistent with normal seasonal patterns. Active users grew approximately 2% year over year, while 90-Day Engaged Users were flat.
Average revenue per user increased approximately 3% to $56.70. Platform growth reflected the higher number of paid subscribers and the impact of higher-priced options, Shill said.
Management said it is investing in onboarding, localized content and AI-powered tools to improve engagement. During the quarter, the company expanded educational content and guided flows for new users, enhanced its AI-powered chatbot and introduced additional templates and search improvements.
For StickerPix, Cricut added new Design Space features and AI-powered tools that can turn a user’s photo and prompt into sticker sheets and photo prints. The company also launched StickerPix template libraries and introduced other subscription content, including crochet patterns and an AI-powered paint-by-number tool.
Arora said premium subscription tiers were rolled out to Cricut’s largest international markets at the end of the quarter. He said early adoption has been encouraging, with limited effects on overall subscription signups.
Margins, Cash and Capital Returns
Total gross margin was 57.7%, up 2.5 percentage points from a year earlier. Platform gross margin rose to 89.9% from 89.2%, while products gross margin increased to 30.8% from 23.1%.
Shill attributed the overall improvement to scale from product growth, monetization of excess and obsolete inventory, and the final portion of IEEPA tariff refunds. He cautioned that fourth-quarter gross margin typically is lower because the period is Cricut’s most promotional quarter and will include marketing support for new products.
Operating expenses increased about 5% to approximately $75 million, including $5.8 million in stock-based compensation. Operating income rose nearly 50% to $33.9 million, or nearly 18% of revenue, from $22.7 million a year earlier.
Cricut generated $23.7 million in operating cash flow during the quarter and ended the period with $273 million in cash and cash equivalents and no debt. After the quarter ended, the company renewed its $300 million credit line through Oct. 22, 2031.
During the quarter, Cricut repurchased 1.3 million shares for $6.5 million. Its board also approved a recurring semiannual dividend of $0.10 per share, a special dividend of $0.70 per share and a replenishment of the company’s repurchase authorization to $50 million. Both dividends are payable Jan. 21, 2027, to shareholders of record Jan. 7, 2027.
Outlook
While Cricut does not provide detailed quarterly or annual guidance, management said it expects platform revenue and paid subscribers to rise both sequentially and year over year in the fourth quarter and for the full year. The company expects products revenue to increase sequentially in the fourth quarter, supported by positive sellout trends and anticipated replenishment orders, though Shill said management remains cautious about consumers.
Cricut also expects full-year revenue growth for the first time since 2021, profitability in the fourth quarter and significant positive cash flow for the year. Looking further ahead, management identified product innovation, international expansion and broader brand awareness through its “Think It. Make It. Cricut.” campaign as key growth drivers.
About Cricut (NASDAQ:CRCT)
Cricut, Inc develops and sells connected cutting machines and related products for do-it-yourself crafting, personalization and small-scale creative production. Its systems are designed to cut, draw, score and apply materials such as paper, vinyl, fabric, leather and iron-on transfers, enabling users to create customized home décor, apparel, gifts and other projects.
The company's product portfolio includes Cricut smart cutting machines, heat presses, specialized tools and a broad range of consumable materials.
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