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Cricut Inc
(NASDAQ:CRCT)
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Rating:67Neutral
Price Target:
$6.50
▲(14.44% Upside)
Action:Downgraded
Date:10/28/26
CRCT scores as a mid-quality opportunity primarily due to financial strength (low leverage and solid free cash flow) and supportive shareholder returns (dividend and buybacks). The score is held back by ongoing top-line contraction and signs of weaker profitability efficiency, while technicals are mixed with subdued near-term momentum. The latest earnings call adds modest support via constructive platform/profitability commentary, but one-time margin drivers and product weakness keep overall conviction moderate.
Positive Factors
Recurring Platform Growth
Growth in platform revenue, subscribers, and ARPU strengthens Cricut’s recurring ecosystem economics. A larger, more engaged installed base can support subscription expansion and repeat digital spending, creating a durable revenue stream alongside hardware sales.
Negative Factors
Sustained Revenue Contraction
Persistent top-line contraction, particularly the sharp product decline, weakens the scale advantages of Cricut’s platform and limits future earnings growth. Unless platform expansion offsets hardware softness, a shrinking revenue base can reduce reinvestment capacity and ecosystem momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Platform Growth
Growth in platform revenue, subscribers, and ARPU strengthens Cricut’s recurring ecosystem economics. A larger, more engaged installed base can support subscription expansion and repeat digital spending, creating a durable revenue stream alongside hardware sales.
Read all positive factors
Cricut Inc Key Performance Indicators (KPIs)
Any
Revenue by Geography
Sales breakdown across regions (for example U.S., Canada, international), highlighting where growth is coming from and geographic concentration risk. Heavy dependence on one region can expose the company to local economic shifts, while diversification or strong international growth points to new market opportunities.
Sales breakdown across regions (for example U.S., Canada, international), highlighting where growth is coming from and geographic concentration risk. Heavy dependence on one region can expose the company to local economic shifts, while diversification or strong international growth points to new market opportunities.
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The Fly
The FlyCricut Inc (CRCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.29B
Dividend Yield3.25%
Average Volume (3M)637.74K
Price to Earnings (P/E)14.5
Beta (1Y)1.29
Revenue Growth-3.11%
EPS Growth23.38%
CountryUS
Employees700
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.42
Shares Outstanding54,662,100
10 Day Avg. Volume621,543
30 Day Avg. Volume637,744
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)3.10
Price to Sales (P/S)1.50
P/FCF Ratio6.06
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit1.63
Enterprise Value/Ebitda4.70
Forecast
1Y Price Target
$4.07Price Target Upside-28.40% Downside
Rating ConsensusStrong Sell
Number of Analyst Covering3
EPS Forecast (FY)0.35
Revenue Forecast (FY)$696.71M
Cricut Inc Business Overview & Revenue Model
Company Description
Cricut, Inc. offers an innovative creative platform that empowers individuals to transform their imaginative concepts into high-quality, handcrafted items. The company's business model is structured around three core divisions: Connected Machines,...
How the Company Makes Money
Cricut makes money through a platform-style model built around its installed base of connected cutting machines. A primary revenue stream is hardware sales (Cricut cutting machines) sold through retail partners and direct-to-consumer channels. Aft...
Cricut Inc Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: meaningful progress on platform metrics (revenue, subscribers, ARPU), product innovation, sell-through strength on new machines, and strong reported profitability and cash generation. However, overall company revenue declined ~9% and product revenue fell 22%, the accessories/materials business remains challenged, and much of the margin improvement was driven by one-time items (IEEPA refunds and a royalty settlement). Management is constructive about the roadmap and expects platform growth and profitability, but material near-term headwinds (tariffs, cost pressures, seasonal softness and early-stage services) temper the outlook.Positive Updates
Platform Revenue and Subscriber Growth
Platform revenue grew just over 5% year-over-year to $85.0M; paid subscribers increased by ~93,000 (+3% YoY) to just over 3.1M and added ~25,000 sequentially; ARPU rose 5% YoY to $56.37.
Negative Updates
Overall Revenue Decline
Total company revenue declined approximately 9% YoY to $156.3M, reflecting a difficult prior-year comp and softness in product revenues.
Read all updates
Q2-2026 Updates
Positive
Negative
Platform Revenue and Subscriber Growth
Platform revenue grew just over 5% year-over-year to $85.0M; paid subscribers increased by ~93,000 (+3% YoY) to just over 3.1M and added ~25,000 sequentially; ARPU rose 5% YoY to $56.37.
Read all positive updates
Company Guidance
Management gave directional (not numeric) guidance: they expect platform revenue to grow each quarter, subscriber trends to follow normal seasonality with softness in Q3, and they project product and platform growth in the second half of 2026; they also expect to be profitable each quarter and to generate operating cash flow for the full year. On capital allocation, they plan to be active under the $50.0 million authorized repurchase program (they used $7.5M to buy 1.7M shares in Q2, leaving $21.6M available) and paid a semiannual dividend of $0.10 per share on July 21, 2026. Financial context for the outlook includes $286M in cash and equivalents, a debt-free balance sheet, $106M of inventory (down $19M year‑over‑year), and $50.4M of cash from operations in Q2 (vs. $36.2M a year ago). They cautioned that while they received IEEPA tariff refunds in the quarter (about $20.3M, with $17.9M benefiting gross margin), remaining tariffs and other cost pressures are a headwind and they are not providing specific margin guidance.Cricut Inc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
84
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 689.79M | 708.78M | 712.54M | 765.15M | 886.30M | 1.31B |
| Gross Profit | 399.65M | 390.43M | 352.79M | 343.29M | 349.89M | 457.45M |
| EBITDA | 138.55M | 132.90M | 118.21M | 110.14M | 109.23M | 212.06M |
| Net Income | 87.67M | 76.70M | 62.83M | 53.64M | 60.67M | 140.47M |
Balance Sheet | ||||||
| Total Assets | 585.68M | 580.81M | 693.03M | 750.12M | 949.63M | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 286.26M | 275.65M | 336.91M | 245.14M | 299.20M | 241.60M |
| Total Debt | 10.38M | 11.62M | 15.21M | 14.17M | 19.37M | 19.54M |
| Total Liabilities | 217.49M | 237.25M | 226.27M | 215.25M | 276.89M | 332.27M |
| Stockholders Equity | 368.19M | 343.56M | 466.76M | 534.87M | 672.74M | 673.98M |
Cash Flow | ||||||
| Free Cash Flow | 147.65M | 175.81M | 246.63M | 264.38M | 83.91M | -140.74M |
| Operating Cash Flow | 180.11M | 200.23M | 264.97M | 288.10M | 117.68M | -104.95M |
| Investing Cash Flow | 26.50M | 60.66M | -18.33M | -48.78M | -107.87M | -35.79M |
| Financing Cash Flow | -237.69M | -237.44M | -156.44M | -322.19M | -26.25M | 260.24M |
Cricut Inc Technical Analysis
Positive
5.68
Price Trends
6.01
Positive
5.36
Positive
4.77
Positive
Market Momentum
0.09
Positive
46.07
Neutral
15.05
Positive
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 5.68 is below the 20-day moving average (MA) of 6.43, below the 50-day MA of 6.01, and above the 200-day MA of 4.77, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 46.07 is Neutral, neither overbought nor oversold. The STOCH value of 15.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRCT.
Cricut Inc Risk Analysis
Cricut Inc disclosed 81 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $30.28B | 12.67 | -727.30% | 3.57% | 8.67% | -4.70% | |
67 Neutral | $1.29B | 14.54 | 24.57% | 3.25% | -3.11% | 23.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $301.14M | -1.88 | -30.81% | ― | 73.04% | 24.91% | |
53 Neutral | $503.43M | -7.46 | -22.63% | ― | -6.22% | 61.98% | |
49 Neutral | $630.67M | -5.34 | -13.79% | ― | -3.05% | -0.01% | |
48 Neutral | $221.19M | -2.88 | -76.13% | ― | 31.52% | 95.47% |
* Technology Sector Average
CRCT
Cricut Inc
6.15
1.12
22.34%
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3.03
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33.58
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SSYS
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NNDM
Nano Dimension
1.43
-0.26
-15.38%
VELO
Velo3D
6.88
1.07
18.42%
Cricut Inc Corporate Events
Business Operations and StrategyStock BuybackDividendsPrivate Placements and Financing
Cricut Inc Establishes New $300 Million Credit Facility
Positive
Oct 27, 2026
On October 22, 2026, Cricut Inc. entered into a new five-year, senior secured, multicurrency revolving credit facility totaling $300 million with BMO Bank N.A. as administrative agent, replacing its prior agreement arranged by JPMorgan Chase Bank ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Cricut Delivers Higher Profits Amid Declining Quarterly Revenue
Positive
Aug 4, 2026
For the second quarter ended June 30, 2026, Cricut Inc. reported revenue of $156.3 million, down 9% from the same period in 2025, as product sales fell 22% while platform revenue grew more than 5%, lifting overall gross margin to 74.5%. Net income...
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.