Cricut (CRCT) investor relations material

Executive summary

• Q3 2025 revenue reached $170.4 million, up 2% year-over-year, with net income up 79% to $20.5 million and operating income up 114% to $22.7 million.

• Paid subscribers surpassed 3 million, a 6% year-over-year increase, with platform ARPU up 4% to $54.96.

• Gross margin improved to 55.2% from 46.1% in Q3 2024.

• Focus remains on user acquisition, engagement, international expansion, and reclaiming share in accessories and materials.

• Accelerated investments in product development, AI-driven features, and marketing are underway to drive future growth.

Financial highlights

• Q3 2025 revenue was $170.4 million, up 2% year-over-year; net income reached $20.5 million, up from $11.5 million in Q3 2024.

• Platform revenue grew 7% to $82.8 million, driven by a 6% increase in paid subscribers; products revenue declined 3% to $87.7 million.

• Connected machines revenue rose 12% year-over-year; accessories and materials revenue declined 17% year-over-year.

• International revenue increased 5% to $40.5 million, representing 24% of total revenue.

• Diluted EPS doubled to $0.10 from $0.05 in Q3 2024.

Outlook and guidance

• Platform sales expected to increase sequentially and year-over-year in Q4 and for the full year, driven by paid subscriber growth.

• Q4 margins will be negatively impacted by higher tariffs, with this headwind accelerating in 2026.

• Profitability and significant positive cash flow are expected for Q4 and the full year.

• Management is accelerating investments in hardware, materials, engagement, and marketing, especially in international markets.

• Management expects sufficient liquidity for the next 12 months and beyond, supported by strong cash balances and a $300 million undrawn credit facility.