Cricut, Inc. Reports First Quarter 2025 Financial Results

Paid subscribers up 6% over Q1 2024 to just over 2.97 million

Q1 2025 revenue of $162.6 million, down 3% compared to Q1 2024

Net income of $23.9 million, up 22% compared to Q1 2024

Board authorizes three capital allocation items

SOUTH JORDAN, Utah, May 06, 2025 (GLOBE NEWSWIRE) -- Cricut, Inc. ("Cricut") (NASDAQ: CRCT), the creative technology company that has brought a connected platform for making to millions of users worldwide, today announced financial results for its first quarter ended March 31, 2025.

"We are pleased with the increase in paid subscribers in Q1 up 6% year-over-year, the continuation of positive International sales growth up 8% year-over-year and strong profitability," said Ashish Arora, Chief Executive Officer of Cricut. "While we acknowledge that tariffs have introduced uncertainty, we have spent the last several years moving the majority of our finished goods spend outside of China across all of our product categories, which we believe results in a competitive advantage in our current supply chain configuration relative to the competition. We are relentlessly focused on increasing our speed of execution and are accelerating investments that will help drive future revenue growth. We are continuing to lean into these investments even as we navigate the uncertainty introduced by tariffs. These accelerated investments are in hardware product development, materials and engagement and will help drive future growth."

First Quarter 2025 Financial Results

   -- Revenue was $162.6 million, down 3% from Q1 2024. 
 
   -- Platform revenue was $80.0 million, up 2% over Q1 2024. 
 
   -- Products revenue was $82.6 million, down 7% from Q1 2024. 
 
   -- International revenue increased by 8% over Q1 2024 and was 22% of total 
      revenue, up from 19% of total revenue in Q1 2024. 
 
   -- Gross margin was 60.5%, up from 54.7% in Q1 2024. 
 
   -- Operating income was $29.3 million, or 18.0% of revenue, and up 16% from 
      Q1 2024. Operating income in Q1 2024 was $25.2 million, or 15.1% of 
      revenue. 
 
   -- Net income was $23.9 million, or 14.7% of revenue, and up 22% from Q1 
      2024. Net income in Q1 2024 was $19.6 million, or 11.7% of revenue. 
 
   -- Diluted earnings per share was $0.11, up from $0.09 per share in Q1 2024. 
 
   -- Generated $61.2 million in Cash from Operations in Q1. 
 
   -- Used $12.0 million to repurchase 2.1 million shares of our common stock 
      in Q1. 

"We continue to generate healthy cash flow on an annual basis, which funds inventory needs and investments for long-term growth. In Q1, we generated $61.2 million in cash from operations, compared to $56.7 million a year ago. We ended Q1 with cash and cash equivalents of $357 million and remain debt free," said Kimball Shill, Chief Financial Officer of Cricut. "Given the confidence in the sustainability of our profitable operations, the board of directors approved three capital allocation items: a special dividend of $0.75 per share, the recurring semi-annual dividend of $0.10 per share, and replenishing our stock repurchase program up to $50 million."

Recent Business Highlights

   -- Paid Subscribers increased to just over 2.97 million, up 6% 
      year-over-year. 
 
   -- Platform ARPU increased to $53.10, up 2% year-over-year. 
 
   -- Active Users decreased slightly year-over-year to just over 5.9 million. 
 
   -- 90-Day Engaged Users decreased 4% year-over-year to nearly 3.4 million. 
 
   -- Three capital allocation items approved by the Board of Directors: 
 
          -- A special dividend of $0.75 per share payable on July 21, 2025 to 
             shareholders of record on July 7, 2025** 
 
          -- Recurring semi-annual dividend of $0.10 per share payable on July 
             21, 2025 to shareholders of record on July 7, 2025** 
 
          -- $50 million stock repurchase approval includes unused portion from 
             prior approvals 

** Both dividends are to the Company's Class A and Class B Common Stockholders. In addition, holders of restricted stock units that are unvested on the record date will be credited with a dividend equivalent based on the value of the per share dividend pursuant to the terms of the Company's equity incentive documents. The dividend equivalent will entitle such holders to receive additional shares upon vesting of the corresponding restricted stock units. The board of directors views this level of capital allocation, both stock repurchases and dividends, as appropriate given the company's operating and financial plans and will continue to evaluate capital allocation on a regular basis.

Key Performance Metrics

In addition to the measures presented in our condensed consolidated financial statements, we use the following key business metrics to evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. We believe these metrics are useful to investors because they can help in monitoring the long-term health of our business. Our determination and presentation of these metrics may differ from that of other companies. The presentation of these metrics is meant to be considered in addition to, not as a substitute for or in isolation from, our financial measures prepared in accordance with GAAP.

 
                                       As of March 31, 
                                        2025      2024 
Active Users (in thousands)               5,926    5,952 
90-Day Engaged Users (in thousands)       3,372    3,527 
Paid Subscribers (in thousands)           2,974    2,797 
 
 
                  As of March 31, 
                   2025      2024 
Platform ARPU    $   53.10  $ 52.26 
 

Glossary of Terms

Active Users

We define Active Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 365 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total Active Users and the prior owner is removed from the total Active Users if the prior owner does not own any other registered connected machines. Active Users is a key indicator of the health of our business, because changes in the number of Active Users excludes non-users to better represent opportunities for us to drive additional platform and accessories and materials revenue.

90-Day Engaged Users

We define 90-Day Engaged Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 90 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total 90-Day Engaged Users and the prior owner is removed from the total 90-Day Engaged Users if the prior owner does not own any other registered connected machines. 90-Day Engaged Users excludes non-users to better represent opportunities for us to drive additional platform and accessories and materials revenue.

Paid Subscribers

We define Paid Subscribers as the number of users with a subscription to Cricut Access or Cricut Access Premium, excluding cancelled, unpaid or free trial subscriptions, as of the end of a period. Paid Subscribers is a key metric to track growth in our Platform revenue and potential leverage in our gross margin.

Platform ARPU

We define Platform ARPU as Platform revenue in a 12-month period divided by Active Users. Platform ARPU allows us to forecast Platform revenue over time and is an indicator of our ability to expand with users and of user engagement with our subscription offerings.

Webcast and Conference Call Information

Cricut management will host a conference call and webcast to discuss the results today, Tuesday, May 6, 2025 at 3:00 p.m. Mountain Time (5:00 p.m. Eastern Time). Information about Cricut's financial results, including a link to the live and archived webcast of the conference call, will be made available on Cricut's investor relations website at https://investor.cricut.com/.

The live call may also be accessed via telephone. Please pre-register using this link: https://register-conf.media-server.com/register/BI206af9f1edc24552bdff389314a1d547. After registering, a confirmation will be sent via email and will include dial-in details and a unique PIN code for entry to the call. To avoid long wait times, we suggest registering at minimum 15 minutes before the start of the call to receive your unique PIN code.

About Cricut, Inc.

Cricut, Inc. is a creative technology company that helps people lead creative lives. Cricut hardware and design software work together as a connected platform for consumers to make beautiful, high-quality DIY projects quickly and easily. These industry-leading products include a flagship line of smart cutting machines -- the Cricut Maker$(R)$ series, the Cricut Explore(R) series, Cricut Joy(R) series, and Cricut Venture(R) -- accompanied by other unique tools like Cricut EasyPress(R) , the Infusible Ink(R) system, and a diverse collection of materials. In addition to providing tools and materials, Cricut fosters a thriving community of millions of dedicated users worldwide.

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