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Cricut Inc
(NASDAQ:CRCT)
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Rating:68Neutral
Price Target:
$5.00
▲(11.11% Upside)
Action:Reiterated
Date:06/05/26
The score is driven primarily by a strong financial foundation (low leverage and solid margins) and supportive valuation (P/E ~11.8 with a ~4.8% dividend). These positives are tempered by weakening revenue trends and mixed near-term outlook from the latest earnings call (product margin pressure, lower cash from operations, and tariff/seasonality headwinds), alongside weak technical momentum with the stock trading below key moving averages.
Positive Factors
Debt-free balance sheet
A debt‑free balance sheet with ~$256M cash provides durable financial flexibility to fund buybacks, dividends, product R&D and international expansion without refinancing risk. This liquidity cushions the business through demand cycles, tariff shocks and inventory adjustments, preserving strategic optionality over months.
Negative Factors
Sharp revenue decline
A large multi‑quarter revenue decline reduces scale benefits and threatens the installed base growth that underpins consumables and subscription monetization. Persistent top‑line weakness pressures margins, limits reinvestment capacity, and raises execution risk for product launches and international expansion over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt‑free balance sheet with ~$256M cash provides durable financial flexibility to fund buybacks, dividends, product R&D and international expansion without refinancing risk. This liquidity cushions the business through demand cycles, tariff shocks and inventory adjustments, preserving strategic optionality over months.
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.
Data provided by:
The Fly
The FlyCricut Inc (CRCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$971.83M
Dividend Yield10.8%
Average Volume (3M)505.94K
Price to Earnings (P/E)13.1
Beta (1Y)1.07
Revenue Growth-0.31%
EPS Growth10.31%
CountryUS
Employees640
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.35
Shares Outstanding55,019,005
10 Day Avg. Volume444,609
30 Day Avg. Volume505,938
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 Cap0.72
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda5.61
Forecast
1Y Price Target
$3.62Price Target Upside-19.63% Downside
Rating ConsensusStrong Sell
Number of Analyst Covering3
EPS Forecast (FY)0.18
Revenue Forecast (FY)$691.98M
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 primarily makes money through two broad revenue streams: (1) connected machines and (2) ongoing ecosystem purchases and subscriptions. First, it sells smart cutting machines (hardware) that are used with the company’s software; these device...
Cricut Inc Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: the platform showed clear strength (platform revenue +~6%, ARPU +4.8%, paid subscribers +104k), successful new product and service introductions, improving onboarding and international growth (+16%). However, product revenue and product gross margins suffered materially (products down 9.6%; product GM down ~9.6 pts), total revenue declined ~2%, cash from operations fell significantly, and tariff/cost pressures and inventory E&O impacted profitability. Management emphasized a roadmap of product innovation, bundle strategy and marketing investments to drive a stronger back half, but acknowledged near‑term headwinds.Positive Updates
Platform Revenue Growth and ARPU Increase
Platform revenue grew nearly 6% year‑over‑year to $84.8M and ARPU increased 4.8% to $55.65 (from $53.10), driven by subscriber growth and foreign exchange tailwinds.
Negative Updates
Total Revenue Decline
Total company revenue declined 2% YoY to $159.5M in Q1 2026, with management noting first‑half pressure and expecting no YoY revenue growth in Q2 due to a difficult comparative period.
Read all updates
Q1-2026 Updates
Positive
Negative
Platform Revenue Growth and ARPU Increase
Platform revenue grew nearly 6% year‑over‑year to $84.8M and ARPU increased 4.8% to $55.65 (from $53.10), driven by subscriber growth and foreign exchange tailwinds.
Read all positive updates
Company Guidance
Management said it would not provide detailed guidance but gave color on 2026: they expect total-company revenue to not grow year‑over‑year in Q2 (the first half is more challenging) while platform revenue should grow each quarter, and subscriber trends will face seasonal pressure in Q2 and Q3 that could yield flat-to-declining quarter‑on‑quarter subscriber growth; they finished Q1 with just under 3.08 million paid subscribers (+104k YoY, -13k sequentially). Relevant Q1 metrics cited include revenue $159.5M (-2% YoY), platform revenue ~$84.8M (+~6%), products $74.7M (-9.6%), ARPU $55.65 (+4.8%), net income $20.3M ($0.10 diluted EPS), total gross margin 58.1% (platform GM 89%, products GM 23.1%), operating income $22.9M (14.4% of revenue), cash from operations $26.9M, cash & equivalents $256M, inventory $106M, and a debt‑free balance sheet; they expect to be profitable each quarter and generate operating cash flow for full‑year 2026, will remain active in their $50M share repurchase program ($29.1M remaining) and will pay a recurring semiannual dividend of $0.10 per share (payable July 21, 2026), and they gave no specific guidance on margin impact from recent tariff developments.Cricut Inc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
82
Very Positive
Cash Flow
65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 705.62M | 708.78M | 712.54M | 765.15M | 886.30M | 1.31B |
| Gross Profit | 384.78M | 390.43M | 352.79M | 343.29M | 349.89M | 457.45M |
| EBITDA | 124.87M | 132.90M | 118.21M | 110.14M | 109.23M | 212.06M |
| Net Income | 73.11M | 76.70M | 62.83M | 53.64M | 60.67M | 140.47M |
Balance Sheet | ||||||
| Total Assets | 543.76M | 580.81M | 693.03M | 750.12M | 949.63M | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 255.67M | 275.65M | 336.91M | 245.14M | 299.20M | 241.60M |
| Total Debt | 10.70M | 11.62M | 15.21M | 14.17M | 19.37M | 19.54M |
| Total Liabilities | 186.27M | 237.25M | 226.27M | 215.25M | 276.89M | 332.27M |
| Stockholders Equity | 357.49M | 343.56M | 466.76M | 534.87M | 672.74M | 673.98M |
Cash Flow | ||||||
| Free Cash Flow | 137.26M | 175.81M | 246.63M | 264.38M | 83.91M | -140.74M |
| Operating Cash Flow | 165.92M | 200.23M | 264.97M | 288.10M | 117.68M | -104.95M |
| Investing Cash Flow | 56.42M | 60.66M | -18.33M | -48.78M | -107.87M | -35.79M |
| Financing Cash Flow | -238.42M | -237.44M | -156.44M | -322.19M | -26.25M | 260.24M |
Cricut Inc Technical Analysis
Positive
4.50
Price Trends
4.30
Positive
4.27
Positive
4.70
Negative
Market Momentum
0.08
Negative
64.88
Neutral
60.74
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 4.5 is above the 20-day moving average (MA) of 4.36, above the 50-day MA of 4.30, and below the 200-day MA of 4.70, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $971.83M | 13.11 | 21.37% | 10.80% | -0.31% | 10.31% | |
62 Neutral | $920.26M | 95.35 | 0.87% | ― | 8.03% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $496.56M | 6.47 | 26.66% | ― | -10.16% | ― | |
55 Neutral | $704.03M | -6.05 | -13.44% | ― | -2.96% | 10.37% | |
47 Neutral | $287.02M | -0.88 | -58.69% | ― | 101.52% | -310.43% | |
46 Neutral | $1.41B | -12.21 | -34.71% | ― | ― | ― |
* Technology Sector Average
CRCT
Cricut Inc
4.63
-1.22
-20.87%
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NNDM
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1.38
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-14.81%
RCAT
Red Cat Holdings
9.28
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CRSR
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8.61
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-8.70%
Cricut Inc Corporate Events
Executive/Board ChangesShareholder Meetings
Cricut Shareholders Reaffirm Board, Pay, and Auditor Oversight
Positive
Jun 4, 2026
Cricut Inc. held its 2026 Annual Meeting of Stockholders on June 3, 2026, where shareholders elected seven directors, including CEO Ashish Arora and incumbent board members, to serve one-year terms. The voting results showed broad support for the ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Cricut Highlights Q1 2026 Results and Shareholder Returns
Neutral
May 5, 2026
Cricut Inc., the creative technology company behind a connected platform of smart cutting machines, design software and crafting materials, reported first-quarter 2026 results that underscore a shift toward higher-margin platform revenues despite ...
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.