Shares of Cricut, Inc. (NASDAQ: CRCT) surged 8.48% in after-hours trading on Tuesday following the release of the company's first-quarter 2025 financial results, which exceeded analyst expectations. The creative technology company reported earnings per share of $0.11, significantly beating the consensus estimate of $0.07.
Cricut's Q1 revenue came in at $162.6 million, surpassing the FactSet estimate of $154.7 million, despite a 3% year-over-year decline. The company demonstrated strong profitability, with net income rising 22% to $23.9 million compared to the same period last year. Additionally, Cricut reported a 6% year-over-year increase in paid subscribers, reaching just over 2.97 million.
Investors were particularly enthused by the company's capital allocation announcements. Cricut's board of directors approved a special dividend of $0.75 per share, a recurring semi-annual dividend of $0.10 per share, and a $50 million stock repurchase program. These shareholder-friendly moves, coupled with the company's strong cash position of $357 million and debt-free status, likely contributed to the positive after-hours reaction. The company's focus on international growth, with an 8% year-over-year increase in international revenue, also signals potential for future expansion.
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