Cricut (CRCT) Q4 2025 earnings summary

Executive summary

• Achieved ninth consecutive year of profitability with net income of $76.7 million in 2025, up 22% year-over-year, representing a 10.8% margin.

• Paid subscribers grew over 4% to 3.09 million, with strong conversion and retention, though active users remained flat and 90-day engaged users declined 3%.

• Launched two new cutting machines, a mini heat press, and enhanced software with AI features and guided project flows.

• Revenue declined less than 1% for the year to $708.8 million, with Q4 revenue down 3% year-over-year.

• Focused on new user acquisition, engagement, subscriptions, and accessories/materials.

Financial highlights

• Full-year revenue was $708.8 million, down less than 1%; Q4 revenue was $203.6 million, down 3% year-over-year.

• Full-year net income was $76.7 million (10.8% of revenue), up 22% year-over-year; Q4 net income was $7.8 million (3.8% margin).

• Operating income for 2025 was $96.0 million (13.5% of revenue), up 26% year-over-year.

• Gross margin improved to 55.1% for the year, up from 49.5% in 2024; Q4 gross margin was 47.4%.

• Ended 2025 debt-free with $276 million in cash and equivalents; $200 million cash from operations in 2025.

Outlook and guidance

• Management expects continued profitability and positive cash flow from operations in each quarter of 2026.

• Accelerating investments in R&D, new product launches, and marketing, including internationally.

• No detailed guidance on margin impact due to tariff uncertainties following Supreme Court ruling.

• Ongoing activity expected under the $50 million stock repurchase program, with $41.3 million remaining.

• Anticipate platform revenue growth for full-year 2026, with seasonal softness in Q2 and Q3.