Cricut (NasdaqGS:CRCT) 2025 Conference Summary Company Overview - Cricut has transitioned from a die-cutting machine company to a connected platform with a robust subscription business since 2014, significantly growing during the COVID-19 pandemic [3][4] Key Points Industry and Market Position - Cricut operates in the crafting and DIY industry, focusing on connected machines and subscription services [3] - The platform segment accounts for approximately 47% of sales and 70% of total gross profits, indicating a highly profitable area of the business [5] Subscription Growth - Paid subscribers increased by 7% year-over-year, reaching over 3 million [5] - Innovations and added features for subscribers, such as premium tools and high-quality images, have contributed to this growth [6] Product Dynamics - Cricut is a market leader in connected machines, but faces intense competition in accessories and materials [6][7] - The launch of the Cricut Value Line has been successful, offering better value and longer lengths of materials [7][20] Consumer Demand and Marketing - The company is monitoring consumer demand closely, especially in light of recent tariff impacts on retail partners [9] - Increased marketing investments of about $20 million have been made to boost awareness and grow new users, with sell-out data being a primary metric for measuring effectiveness [10][11] Seasonal Trends - Cricut's business is seasonal, with Q4 and Q1 being the strongest quarters for subscriber growth due to holiday purchases [12][14] - Engagement trends have shown a slight decline, with active users flat on a trailing 12-month basis [16] New Product Launches - The Cricut Explore® 4 and Cricut Maker® 4 were launched, featuring faster cutting capabilities and bundled materials for better consumer experience [18][19] International Performance - International revenue grew by 8%, with challenges noted in Australia and France impacting physical product sales [22][23] Creator Economy Positioning - Cricut is investing in simplifying the user journey and enhancing the maker experience to capitalize on the creator economy [24][25] Financial Strategy - The company has no long-term debt and focuses on funding organic growth, with excess cash returned to shareholders through dividends and stock buybacks [28][29] - A special dividend of $0.75 was paid in July, alongside a recurring dividend of $0.10 [31][32] Future Outlook - Cricut aims to enhance consumer experience through AI integration and continued investment in hardware, with expectations of improved engagement and broader audience reach [36] Conclusion - Cricut is focused on delivering a simplified and engaging platform experience, leveraging AI and new product innovations to drive future growth and shareholder returns [36][38]

Group 1 - The presentation is part of Citi's Global TMT Conference, focusing on technology, hardware, and tech supply chain [1] - Cricut's management team includes CFO Kimball and SVP of Finance and Treasury and IR Jim Suva [1] - The session encourages audience participation for questions, indicating an interactive format [2]

Summary of Cricut (CRCT) 2025 Conference Call Company Overview - **Company**: Cricut (CRCT) - **Event**: Citi's Global TMT Conference - **Date**: September 04, 2025 Key Points Industry and Market Dynamics - **Post-COVID Recovery**: Cricut reported better-than-expected results with positive year-on-year sales growth, contrasting with many peers in the consumer sector who faced downturns [2][10] - **Tariff Impact**: Uncertainty around tariffs has influenced demand, leading to a quicker return to growth than anticipated. The company is closely monitoring sell-out data to assess sustainability [2][10][40] Financial Performance - **Sales Growth**: Total company growth was 2%, with a 4% increase attributed to the platform. Physical products grew, while machines saw a slight decline [2][10] - **Paid Subscribers**: Paid subscribers increased by 7% year-over-year, indicating strong platform engagement despite challenges in physical product sales [5][7] Product and Subscription Strategy - **Subscription Growth**: The subscription model is a bright spot, with ongoing investments to enhance value propositions, such as new features and attractive bundles [4][5][6] - **New Product Launches**: Cricut launched the Cricut Maker® 4 and Cricut Explore® 4, featuring faster cutting capabilities and new colors, which are performing well in the market [22][23][25] Competitive Landscape - **Market Share**: Cricut is gaining share in the accessories and supplies market, aided by a competitive supply chain and the introduction of a value line of materials tailored for online marketplaces [26][27][29] - **Retail Dynamics**: The exit of major retailers like JOANN has shifted demand to other channels, with no significant impact on Cricut's overall team size [16] International Growth - **International Expansion**: International sales grew by 8%, with a focus on deepening presence in existing markets rather than entering new ones. The company is investing in localized content and marketing [30][32][34] Operational Insights - **Inventory Management**: The company has achieved a healthy equilibrium in inventory levels post-COVID, with improved sell-in and sell-out dynamics [15] - **Marketing Strategy**: Increased marketing spend by $20 million has been implemented to drive demand, particularly in North America, with mixed results in international markets [17][18] Financial Strategy and Shareholder Returns - **Capital Allocation**: Cricut prioritizes funding organic growth, followed by potential M&A opportunities, and returning excess cash to shareholders through dividends and buybacks [45][46] - **Cash Flow Generation**: The company has zero debt and emphasizes returning cash to shareholders, with a recent special dividend of $0.75 funded by inventory workdown [47][48] Investor Insights - **Underappreciated Aspects**: The subscription model, which accounts for 80% of profits, and the financial leverage from sustainable growth are often overlooked by investors [50][52][53] Conclusion - Cricut is positioned for growth with a strong subscription base, innovative product offerings, and a strategic focus on both domestic and international markets. The company is navigating challenges related to tariffs and competition while maintaining a commitment to shareholder returns and organic growth.

Investment Rating - The report maintains a constructive outlook on shares of Amphenol Corp (APH), Dell Technologies (DELL), Corning Inc (GLW), Hewlett Packard Enterprise (HPE), and the memory/disk drive sector including Seagate Technology (STX), Western Digital Corp (WDC), and SanDisk Corp (SNDK) [4]. Core Insights - The upcoming Citi's 33rd annual Global Technology Conference will feature over 240 technology companies, focusing on updates regarding customer and enterprise demand dynamics, as well as supply chain conditions [1]. - Key investor questions include the impact of Generative AI on infrastructure spending, enterprise spending intentions, consumer spending trends, margin impacts from rising component costs, and capital allocation strategies [2][3]. Company Summaries - **Amphenol Corp (APH)**: Current price at $109.36 with a market cap of $133.52 billion. The target price is set at $125.00 with an expected share price return of 14.3% [7]. - **CDW Corp (CDW)**: Current price at $167.00 with a market cap of $21.89 billion. The target price is $200.00 with an expected share price return of 19.8% [7]. - **Corning Inc (GLW)**: Current price at $65.77 with a market cap of $56.34 billion. The target price is $72.00 with an expected share price return of 9.5% [7]. - **Dell Technologies (DELL)**: Current price at $130.84 with a market cap of $88.50 billion. The target price is $160.00 with an expected share price return of 22.3% [7]. - **Hewlett Packard Enterprise (HPE)**: Current price at $22.45 with a market cap of $29.46 billion. The target price is $25.00 with an expected share price return of 11.4% [7]. - **SanDisk Corp (SNDK)**: Current price at $46.37 with a market cap of $6.76 billion. The target price is $57.00 with an expected share price return of 22.9% [7]. - **Seagate Technology (STX)**: Current price at $159.19 with a market cap of $33.86 billion. The target price is $167.00 with an expected share price return of 4.9% [7]. - **Western Digital Corp (WDC)**: Current price at $76.97 with a market cap of $26.70 billion. The target price is $88.00 with an expected share price return of 14.3% [7].

Group 1 - Cricut, Inc. (CRCT) is part of the Business Services group, which consists of 254 companies and ranks 5 in the Zacks Sector Rank [2] - Cricut, Inc. currently holds a Zacks Rank of 2 (Buy), with a 27.3% increase in the consensus estimate for full-year earnings over the past 90 days, indicating positive analyst sentiment [3] - Year-to-date, Cricut, Inc. has returned approximately 3.2%, outperforming the average return of 0% for Business Services companies [4] Group 2 - Cricut, Inc. belongs to the Technology Services industry, which includes 119 companies and ranks 84 in the Zacks Industry Rank, with the industry gaining about 14.9% this year [6] - Another company in the Business Services sector, Digi Power X Inc. (DGXX), has significantly outperformed with a year-to-date return of 59.3% and a 69.3% increase in the consensus EPS estimate over the past three months [4][5] - Investors should monitor both Cricut, Inc. and Digi Power X Inc. for potential continued strong performance in the Business Services sector [7]

Group 1 - The individual investor focuses on managing personal capital accumulated over the years, utilizing a diverse range of investment strategies including fundamental, technical, and momentum investing [1] - The investor aims to leverage the strengths of various investment approaches to refine their investment process [1] - The purpose of writing on Seeking Alpha is to track the performance of investment ideas and connect with like-minded investors [1] Group 2 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor plans to initiate such positions within the next 72 hours [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company [2] - Seeking Alpha does not provide recommendations or advice regarding the suitability of investments for particular investors [3]

Core Viewpoint - The article highlights Cricut (CRCT) as a strong value stock, supported by its favorable Zacks Rank and various valuation metrics indicating it is currently undervalued in the market [4][7]. Valuation Metrics - Cricut has a P/E ratio of 22.89, which is lower than the industry average of 24.46, suggesting it may be undervalued [4]. - The company has a P/B ratio of 3.82, significantly lower than the industry average P/B of 8.07, indicating attractive valuation [5]. - Cricut's P/S ratio stands at 1.65, compared to the industry's average P/S of 2.16, further supporting its undervaluation [6]. Earnings Outlook - The strength of Cricut's earnings outlook, combined with its valuation metrics, positions it as an impressive value stock at the moment [7].

Core Insights - Cricut reported Q2 2025 GAAP revenue of $172.1 million and diluted GAAP EPS of $0.11, exceeding consensus estimates of $158.6 million for revenue and $0.06 for EPS, indicating strong profitability despite flat user engagement metrics [1][2][5] Financial Performance - GAAP revenue increased by 2.5% year-over-year from $167.9 million in Q2 2024, while GAAP EPS rose by 22.2% from $0.09 [2] - Operating income reached $30.1 million, a 14% increase from $26.4 million in Q2 2024, and net income rose by 23.7% to $24.5 million [2][6] - Gross margin improved to 59.0%, up from 53.5% in Q2 2024, driven by a higher share of subscription revenue and a favorable hardware sales mix [2][6] User Engagement and Community - The active user base remained flat at 5.9 million, with a slight decline in 90-day engaged users to 3.5 million, reflecting the maturation of earlier user cohorts [7] - Engagement initiatives have shown some effect but have not yet resulted in a clear return to growth in user activity [7] International Expansion - International revenue grew by 8% year-over-year, accounting for 21% of total sales, with a focus on product localization and region-specific marketing [8][12] - Despite progress in markets like the UK and Germany, regional performance remains uneven, necessitating ongoing promotional efforts [8] Product and Ecosystem Development - Platform revenue increased by 4%, supported by a 7% rise in paid subscribers to 3.01 million, while average revenue per user (ARPU) rose to $53.84 [5][9] - New product launches, including the Cricut Maker 4 and Cricut Explore 4, positively impacted machine sales, although consumables and accessories faced challenges from competitive products [10] Strategic Focus and Future Outlook - The company aims to strengthen platform monetization, drive paid subscriptions, and expand internationally, while facing challenges in new user acquisition and ongoing engagement [4] - Management did not provide explicit future guidance on operating margins or revenue due to uncertainties around tariffs and global supply chain costs, but expects to remain profitable and generate significant positive cash flow in 2025 [13][14] Capital Returns - Cricut authorized a special dividend of $0.75 per share and a recurring semiannual dividend of $0.10 per share, reflecting confidence in long-term profitability and cash generation [14]

[Note Regarding Forward-Looking Statements](index=3&type=section&id=NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section contains forward-looking statements, subject to substantial risks and uncertainties, cautioning against future predictions - This section contains forward-looking statements subject to substantial risks and uncertainties, primarily related to future events or financial/operating performance[8](index=8&type=chunk)[10](index=10&type=chunk)[12](index=12&type=chunk) - Investors are cautioned not to rely on these as predictions of future events, as actual results may differ materially due to various factors including those discussed in 'Risk Factors'[8](index=8&type=chunk)[10](index=10&type=chunk)[12](index=12&type=chunk) Part I. Financial Information [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) This section presents Cricut, Inc.'s unaudited condensed consolidated financial statements, covering balance sheets, operations, and cash flows [Condensed Consolidated Balance Sheets (unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28unaudited%29) Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | As of June 30, 2025 | As of December 31, 2024 | Change (vs. Dec 31, 2024) | | :--------------------------------- | :------------------- | :---------------------- | :------------------------ | | Cash and cash equivalents | $298,057 | $232,140 | +$65,917 | | Marketable securities | $78,884 | $104,774 | -$25,890 | | Accounts receivable, net | $81,990 | $101,980 | -$19,990 | | Inventories | $124,796 | $115,255 | +$9,541 | | Total current assets | $599,186 | $580,214 | +$18,972 | | Total assets | $721,511 | $693,035 | +$28,476 | | Accounts payable | $71,977 | $53,373 | +$18,604 | | Accrued expenses and other current liabilities | $61,657 | $76,274 | -$14,617 | | Deferred revenue, current portion | $51,047 | $45,427 | +$5,620 | | Dividends payable, current portion | $204,814 | $24,401 | +$180,413 | | Total current liabilities | $393,104 | $203,374 | +$189,730 | | Total liabilities | $412,574 | $226,274 | +$186,300 | | Total stockholders' equity | $308,937 | $466,761 | -$157,824 | [Condensed Consolidated Statements of Operations and Comprehensive Income (unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28unaudited%29) Condensed Consolidated Statements of Operations and Comprehensive Income Highlights (in thousands, except per share) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :--------------------------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | Total revenue | $172,112 | $167,947 | +2.5% | $334,746 | $335,339 | -0.2% | | Total cost of revenue | $70,573 | $78,107 | -9.7% | $134,859 | $153,905 | -12.4% | | Gross profit | $101,539 | $89,840 | +13.0% | $199,887 | $181,434 | +10.2% | | Total operating expenses | $71,434 | $63,408 | +12.7% | $140,441 | $129,797 | +8.2% | | Income from operations | $30,105 | $26,432 | +13.9% | $59,446 | $51,637 | +15.1% | | Net income | $24,488 | $19,769 | +23.9% | $48,402 | $39,416 | +22.8% | | Earnings per share, basic | $0.12 | $0.09 | +33.3% | $0.23 | $0.18 | +27.8% | | Earnings per share, diluted | $0.11 | $0.09 | +22.2% | $0.23 | $0.18 | +27.8% | [Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20%28unaudited%29) - Total stockholders' equity **decreased from $466,761 thousand** as of December 31, 2024, to **$308,937 thousand** as of June 30, 2025[18](index=18&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) - This was primarily due to significant **dividends declared ($204,782 thousand)** and **common stock repurchases ($16,741 thousand)** for the six months ended June 30, 2025[18](index=18&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) - The decrease was partially offset by **net income ($48,402 thousand)** and **stock-based compensation ($21,351 thousand)** for the six months ended June 30, 2025[18](index=18&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows (unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28unaudited%29) Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :--------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Net cash provided by operating activities | $97,323 | $91,648 | +$5,675 | | Net cash provided by (used in) investing activities | $15,520 | ($9,965) | +$25,485 | | Net cash used in financing activities | ($47,549) | ($28,191) | -$19,358 | | Net increase in cash and cash equivalents | $65,917 | $53,365 | +$12,552 | | Cash and cash equivalents at end of period | $298,057 | $195,552 | +$102,505 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Description of Business and Basis of Presentation](index=9&type=section&id=Note%201.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) - Cricut, Inc. designs and markets a creativity platform, including connected machines, accessories, materials, and subscription services, enabling users to create handmade goods[27](index=27&type=chunk)[28](index=28&type=chunk) - The company operates in two reportable segments: Platform and Products[27](index=27&type=chunk)[28](index=28&type=chunk) - The condensed consolidated financial statements are prepared in conformity with GAAP and SEC rules for interim reporting, consolidating Cricut, Inc. and its wholly-owned subsidiaries[29](index=29&type=chunk)[30](index=30&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=10&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) - The preparation of financial statements requires management to make estimates and assumptions, particularly for revenue recognition, warranty reserves, credit losses, inventory reserves, and income taxes[34](index=34&type=chunk) - Financial instruments are measured at fair value using a hierarchy, with money market funds classified as Level 1 and U.S. Treasury securities as Level 2[35](index=35&type=chunk)[36](index=36&type=chunk) Accounts Receivable and Allowance for Credit Losses (in millions) | Metric | As of June 30, 2025 | As of December 31, 2024 | As of January 1, 2024 | | :----------------------------- | :------------------ | :---------------------- | :-------------------- | | Net accounts receivable | $82.0 | $102.0 | $111.2 | | Allowance for credit losses | $1.6 | $2.6 | N/A | [Note 3. Revenue and Deferred Revenue](index=11&type=section&id=Note%203.%20Revenue%20and%20Deferred%20Revenue) - Deferred revenue primarily consists of deferred subscription-based services and amounts allocated from connected machine sales for future upgrades and cloud services[41](index=41&type=chunk) - Capitalized contract costs were **$1.5 million** as of June 30, 2025, up from **$1.2 million** as of December 31, 2024[41](index=41&type=chunk) Deferred Revenue Changes (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :--------------------------- | :--------------------------- | | Deferred revenue, beginning of period | $48,253 | $43,235 | | Recognition of revenue included in beginning of period deferred revenue | ($35,372) | ($31,834) | | Revenue deferred, net of revenue recognized on contracts in the respective period | $40,751 | $35,724 | | Deferred revenue, end of period | $53,632 | $47,125 | Total Revenue by Geography (in thousands) | Geography | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :---------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | North America | $135,825 | $134,415 | +1.0% | $263,394 | $269,250 | -2.2% | | International | $36,287 | $33,532 | +8.2% | $71,352 | $66,089 | +7.9% | | Total revenue | $172,112 | $167,947 | +2.5% | $334,746 | $335,339 | -0.2% | Total Revenue by Source (in thousands) | Source | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :------------------ | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | Platform | $80,697 | $77,649 | +3.9% | $160,683 | $155,935 | +3.0% | | Connected machines | $39,430 | $43,970 | -10.4% | $77,892 | $80,918 | -3.7% | | Accessories and materials | $51,985 | $46,328 | +12.2% | $96,171 | $98,486 | -2.4% | | Total revenue | $172,112 | $167,947 | +2.5% | $334,746 | $335,339 | -0.2% | [Note 4. Cash, Cash Equivalents, and Financial Instruments](index=12&type=section&id=Note%204.%20Cash%2C%20Cash%20Equivalents%2C%20and%20Financial%20Instruments) Cash, Cash Equivalents, and Marketable Securities (in thousands) | Category | As of June 30, 2025 (Fair Value) | As of December 31, 2024 (Fair Value) | | :-------------------- | :------------------------------- | :----------------------------------- | | Cash | $222,258 | $161,248 | | Money market funds | $75,799 | $70,892 | | U.S. treasury securities | $78,884 | $104,774 | | Total | $376,941 | $336,914 | | Cash and cash equivalents | $298,057 | $232,140 | | Marketable securities | $78,884 | $104,774 | - Marketable securities held as of June 30, 2025, generally mature over the next **24 months** and were all in an unrealized gain position[46](index=46&type=chunk) - No allowance for credit losses was deemed necessary[46](index=46&type=chunk) [Note 5. Inventories](index=13&type=section&id=Note%205.%20Inventories) Inventory Composition (in thousands) | Category | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :---------------------- | | Raw materials | $30,917 | $38,652 | | Finished goods | $147,941 | $144,630 | | Total inventories | $178,858 | $183,282 | | Less: reserves | ($37,934) | ($49,015) | | Total inventories, net | $140,924 | $134,267 | - As of June 30, 2025, inventory reserves included **$2.2 million** for excess connected machines, **$30.5 million** for excess accessories and materials, and **$5.2 million** for raw materials components[47](index=47&type=chunk) - Amounts charged to the reserve are primarily recorded in cost of revenues[47](index=47&type=chunk) [Note 6. Accrued Expenses and Other Current Liabilities](index=13&type=section&id=Note%206.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Accrued Expenses and Other Current Liabilities (in thousands) | Category | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :---------------------- | | Customer rebates | $24,208 | $38,756 | | Other accrued liabilities and other current liabilities | $37,449 | $37,518 | | Total accrued expenses | $61,657 | $76,274 | [Note 7. Revolving Credit Facility](index=13&type=section&id=Note%207.%20Revolving%20Credit%20Facility) - Cricut has a five-year revolving credit facility of up to **$300.0 million**, maturing on August 4, 2027, with an option to increase by an additional **$150.0 million**[49](index=49&type=chunk) - The unused fee rate is **0.175%** per annum[49](index=49&type=chunk) - As of June 30, 2025, and December 31, 2024, no amounts were outstanding under the Credit Agreement, and available borrowings were **$300.0 million**[51](index=51&type=chunk) - The company was in compliance with all financial and non-financial debt covenants[51](index=51&type=chunk) [Note 8. Income Taxes](index=14&type=section&id=Note%208.%20Income%20Taxes) Estimated Effective Tax Rate and Provision for Income Taxes (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Estimated effective tax rate | 27.6% | 33.6% | 27.2% | 32.1% | | Provision for income taxes | $9,355 | $10,023 | $18,062 | $18,666 | - The decrease in the effective tax rate and provision for income taxes was primarily due to a decrease in stock-based compensation difference attributable to the decrease in stock price upon vesting versus the stock price at the grant date[54](index=54&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA) was enacted on July 4, 2025, which includes corporate tax provisions like restoration of **100% bonus depreciation** and immediate expensing for R&D[56](index=56&type=chunk) - The company is evaluating its financial impact[56](index=56&type=chunk) [Note 9. Capital Structure](index=14&type=section&id=Note%209.%20Capital%20Structure) - As of June 30, 2025, Cricut had **53,976,481 shares** of Class A Common Stock and **158,489,920 shares** of Class B Common Stock outstanding[57](index=57&type=chunk) - Class B shares have **five votes per share** and are convertible to Class A[57](index=57&type=chunk) - The Board approved replenishing the common stock repurchase program by **$50 million** on May 2, 2025[58](index=58&type=chunk) - During the six months ended June 30, 2025, the company repurchased **3,043,806 shares** of Class A common stock for **$16.7 million**[59](index=59&type=chunk) - On May 2, 2025, a special dividend of **$0.75 per share** and a recurring semi-annual dividend of **$0.10 per share** were declared, totaling **$0.85 per share**, payable on July 21, 2025[60](index=60&type=chunk)[61](index=61&type=chunk) - The aggregate dividend of **$204.8 million** is to be satisfied in cash (**$180.6 million**) and dividend equivalents to RSU/PRSU holders (**$24.2 million**)[60](index=60&type=chunk)[61](index=61&type=chunk) [Note 10. Stock-Based Compensation](index=15&type=section&id=Note%2010.%20Stock-Based%20Compensation) Stock-Based Compensation Cost by Award Type (in thousands) | Award Type | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Restricted stock units | $10,231 | $10,027 | $21,019 | $19,824 | | Stock options | $0 | $244 | $0 | $680 | | Class B common stock | $58 | $1,034 | $321 | $2,273 | | Liability-classified awards | $9 | $12 | $11 | $20 | | Total stock-based compensation | $10,298 | $11,317 | $21,351 | $22,797 | Total Stock-Based Compensation Cost by Functional Area (in thousands) | Functional Area | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cost of revenue | $282 | $465 | $555 | $888 | | Research and development | $3,359 | $3,540 | $6,796 | $7,253 | | Sales and marketing | $2,737 | $2,988 | $5,851 | $5,924 | | General and administrative | $3,310 | $3,626 | $6,936 | $7,311 | | Total stock-based compensation expense | $9,688 | $10,619 | $20,138 | $21,376 | | Capitalized for software development costs | $425 | $365 | $848 | $695 | | Capitalized to inventories | $185 | $333 | $365 | $726 | | Total stock-based compensation | $10,298 | $11,317 | $21,351 | $22,797 | - As of June 30, 2025, there was **$65.4 million** of unrecognized stock-based compensation cost for service-based awards (weighted-average period of **2.6 years**)[67](index=67&type=chunk)[72](index=72&type=chunk) - Unrecognized compensation for PRSUs not probable of vesting was **$190.8 million**[67](index=67&type=chunk)[72](index=72&type=chunk) [Note 11. Commitments and Contingencies](index=18&type=section&id=Note%2011.%20Commitments%20and%20Contingencies) - Cricut is subject to various claims and litigation in the ordinary course of business[79](index=79&type=chunk) - Management does not believe any current contingencies will have a material effect on its financial position, results of operations, or liquidity[79](index=79&type=chunk) [Note 12. Leases](index=18&type=section&id=Note%2012.%20Leases) - The company leases office space under operating leases with terms ranging from **one to six years**[80](index=80&type=chunk)[81](index=81&type=chunk) - Operating lease costs were **$1.1 million** for Q2 2025 and **$2.2 million** for H1 2025[80](index=80&type=chunk)[81](index=81&type=chunk) Operating Lease Liabilities Maturities (in thousands) | Year Ended December 31, | Operating Leases | | :---------------------- | :--------------- | | 2025 (remainder of year) | $2,106 | | 2026 | $4,128 | | 2027 | $2,869 | | 2028 | $4,023 | | 2029 | $1,693 | | Total lease payments | $14,819 | | Present value of operating lease liabilities | $13,393 | - As of June 30, 2025, the weighted-average remaining operating lease term was **3.8 years**, and the weighted-average discount rate was **5.4%**[82](index=82&type=chunk) [Note 13. Employee Benefit Plan](index=19&type=section&id=Note%2013.%20Employee%20Benefit%20Plan) - Cricut sponsors a 401(k) plan, matching **50%** of the first **12%** of an employee's salary[83](index=83&type=chunk) - Contributions were **$0.7 million** for Q2 2025 and **$1.5 million** for H1 2025[83](index=83&type=chunk) [Note 14. Net Income Per Share](index=20&type=section&id=Note%2014.%20Net%20Income%20Per%20Share) Net Income Per Share (except share and per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $24,488 | $19,769 | $48,402 | $39,416 | | Basic EPS | $0.12 | $0.09 | $0.23 | $0.18 | | Diluted EPS | $0.11 | $0.09 | $0.23 | $0.18 | | Weighted-average common shares outstanding, basic | 211,865,363 | 216,422,513 | 212,514,662 | 215,986,713 | | Diluted weighted-average common shares outstanding | 214,529,726 | 217,501,646 | 214,649,931 | 217,390,891 | - Potentially dilutive shares excluded from diluted EPS computation due to anti-dilutive effect for the three months ended June 30, 2025, included **3,126,575 employee stock options** and **16,408 unvested Class B common stock**[84](index=84&type=chunk) [Note 15. Segment Information](index=20&type=section&id=Note%2015.%20Segment%20Information) - Cricut operates in two reportable segments: Platform and Products[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - The Platform segment generates revenue from subscriptions and digital content, while the Products segment derives revenue from connected machine hardware and craft/DIY products[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) Segment Financial Performance (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :-------------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | **Platform Revenue** | $80,697 | $77,649 | +3.9% | $160,683 | $155,935 | +3.0% | | Platform Cost of Revenue | $8,816 | $8,888 | -0.8% | $17,484 | $17,647 | -0.9% | | Platform Gross Profit | $71,881 | $68,761 | +4.5% | $143,199 | $138,288 | +3.5% | | Platform Gross Margin | 89% | 89% | 0 pp | 89% | 89% | 0 pp | | **Products Revenue** | $91,415 | $90,298 | +1.2% | $174,063 | $179,404 | -3.0% | | Products Cost of Revenue | $61,757 | $69,219 | -10.8% | $117,375 | $136,258 | -13.8% | | Products Gross Profit | $29,658 | $21,079 | +40.7% | $56,688 | $43,146 | +31.4% | | Products Gross Margin | 32% | 23% | +9 pp | 33% | 24% | +9 pp | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Cricut's financial condition and results of operations, covering business overview, key metrics, and cash flows [Overview of Our Business and History](index=21&type=section&id=Overview%20of%20Our%20Business%20and%20History) - Cricut's mission is to help people lead creative lives through its creativity platform, which includes Design Space, connected machines (Cricut Joy, Explore, Maker, Venture families), and accessories/materials[90](index=90&type=chunk)[92](index=92&type=chunk) - The platform offers two subscription services: Cricut Access (images, fonts, projects, software features, discounts) and Cricut Access Premium (additional discounts, preferred shipping)[91](index=91&type=chunk)[98](index=98&type=chunk) - Products are sold through brick-and-mortar/online retail partners (e.g., Amazon, Michaels, Walmart) and cricut.com[94](index=94&type=chunk)[95](index=95&type=chunk) - The company historically experiences highest revenue in the fourth quarter due to holiday shopping[94](index=94&type=chunk)[95](index=95&type=chunk) [Key Business Metrics](index=23&type=section&id=Key%20Business%20Metrics) Key Business Metrics (in thousands, except ARPU) | Metric | As of June 30, 2025 | As of June 30, 2024 | YoY Change | | :------------------------ | :------------------ | :------------------ | :--------- | | Active Users | 5,901 | 5,918 | -0.3% | | 90-Day Engaged Users | 3,482 | 3,541 | -1.7% | | Paid Subscribers | 3,010 | 2,813 | +7.0% | | Platform ARPU | $53.84 | $52.00 | +3.5% | - Active Users are registered users of at least one connected machine who have created a project in the last **365 days**[101](index=101&type=chunk)[103](index=103&type=chunk) - Paid Subscribers are users with a Cricut Access or Premium subscription, excluding cancelled, unpaid, or free trials[101](index=101&type=chunk)[103](index=103&type=chunk) [Components of our Results of Operations](index=23&type=section&id=Components%20of%20our%20Results%20of%20Operations) - Platform revenue is primarily from subscriptions (Cricut Access, Cricut Access Premium) and digital content, recognized ratably over the subscription term or at point of transfer for à la carte content[106](index=106&type=chunk) - Products revenue comes from sales of connected machines (Maker, Explore, Joy, Venture families) and ancillary products (heat presses, tools, materials), recognized at the point of control transfer (shipment or delivery)[107](index=107&type=chunk) - Cost of revenue for Platform includes hosting fees, digital content, software amortization, and royalties[108](index=108&type=chunk)[109](index=109&type=chunk) - For Products, cost of revenue includes product costs, manufacturing, shipping, warehousing, duties, warranty, and inventory write-downs[108](index=108&type=chunk)[109](index=109&type=chunk) - Operating expenses include Research and Development (product development, personnel), Sales and Marketing (advertising, payment processing, personnel, rebates), and General and Administrative (finance, legal, HR, IT, professional services)[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) [Revenue](index=26&type=section&id=Revenue) Revenue Performance (in thousands) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :-------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | Platform | $80,697 | $77,649 | +3.9% | $160,683 | $155,935 | +3.0% | | Products | $91,415 | $90,298 | +1.2% | $174,063 | $179,404 | -3.0% | | Total revenue | $172,112 | $167,947 | +2.5% | $334,746 | $335,339 | -0.2% | - Platform revenue increased by **4%** for the three months and **3%** for the six months ended June 30, 2025, driven by an increase in paid subscribers from **2.8 million to 3.0 million**[119](index=119&type=chunk)[121](index=121&type=chunk) - Products revenue increased by **1%** for the three months due to more accessories/materials sold at higher prices (accelerated by tariff uncertainty)[120](index=120&type=chunk)[122](index=122&type=chunk) - Products revenue decreased by **3%** for the six months due to fewer connected machines and accessories/materials sold at lower average prices[120](index=120&type=chunk)[122](index=122&type=chunk) [Cost of Revenue, Gross Profit and Gross Margin](index=27&type=section&id=Cost%20of%20Revenue%2C%20Gross%20Profit%20and%20Gross%20Margin) Cost of Revenue, Gross Profit, and Gross Margin Performance (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | Platform Cost of Revenue | $8,816 | $8,888 | -0.8% | $17,484 | $17,647 | -0.9% | | Platform Gross Profit | $71,881 | $68,761 | +4.5% | $143,199 | $138,288 | +3.5% | | Platform Gross Margin | 89% | 89% | 0 pp | 89% | 89% | 0 pp | | Products Cost of Revenue | $61,757 | $69,219 | -10.8% | $117,375 | $136,258 | -13.8% | | Products Gross Profit | $29,658 | $21,079 | +40.7% | $56,688 | $43,146 | +31.4% | | Products Gross Margin | 32% | 23% | +9 pp | 33% | 24% | +9 pp | | Total Gross Profit | $101,539 | $89,840 | +13.0% | $199,887 | $181,434 | +10.2% | - Platform cost of revenue decreased slightly due to lower software amortization[125](index=125&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - Products cost of revenue decreased significantly due to fewer connected machines sold, lower procurement costs, and reduced inventory impairment charges[125](index=125&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - Products gross margin improved by **9 percentage points** for both the three and six months ended June 30, 2025, driven by lower inventory procurement costs, reduced impairment charges, and improved product margins[127](index=127&type=chunk)[130](index=130&type=chunk) [Operating Expenses](index=28&type=section&id=Operating%20Expenses) [Research and Development](index=28&type=section&id=Research%20and%20Development) Research and Development Expenses (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | R&D Expenses | $16,762 | $14,315 | +17.1% | $32,419 | $29,168 | +11.1% | | As a percentage of total revenue | 10% | 9% | +1 pp | 10% | 9% | +1 pp | - The increase in R&D expenses was primarily due to higher product development expense, personnel-related expense, and professional services expense[131](index=131&type=chunk)[132](index=132&type=chunk) [Sales and Marketing](index=28&type=section&id=Sales%20and%20Marketing) Sales and Marketing Expenses (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | S&M Expenses | $35,877 | $33,354 | +7.6% | $72,562 | $66,384 | +9.3% | | As a percentage of total revenue | 21% | 20% | +1 pp | 22% | 20% | +2 pp | - The increase in sales and marketing expenses was primarily driven by higher advertising and other marketing costs[133](index=133&type=chunk)[134](index=134&type=chunk) [General and Administrative](index=28&type=section&id=General%20and%20Administrative) General and Administrative Expenses (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | G&A Expenses | $18,795 | $15,739 | +19.4% | $35,460 | $34,245 | +3.5% | | As a percentage of total revenue | 11% | 9% | +2 pp | 11% | 10% | +1 pp | - The increase in G&A expenses for the three months was due to a **$1.7 million** net reversal of bad debt expense in Q2 2024 and a **$1.5 million** increase in professional services[135](index=135&type=chunk)[136](index=136&type=chunk) - For the six months, it was driven by a **$3.2 million** increase in professional services, offset by foreign currency transaction losses and a bad debt reversal[135](index=135&type=chunk)[136](index=136&type=chunk) [Other Income, Net](index=29&type=section&id=Other%20Income%2C%20Net) Other Income, Net (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :---------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | Other income, net | $3,738 | $3,360 | +11.2% | $7,018 | $6,445 | +8.9% | - The increase in other income, net, for both periods was primarily driven by an increase in interest income[137](index=137&type=chunk)[138](index=138&type=chunk) [Provision for Income Taxes](index=29&type=section&id=Provision%20for%20Income%20Taxes) Provision for Income Taxes (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change (3M) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change (6M) | | :-------------------------- | :--------------------------- | :--------------------------- | :---------------- | :--------------------------- | :--------------------------- | :---------------- | | Provision for income taxes | $9,355 | $10,023 | -6.7% | $18,062 | $18,666 | -3.2% | - The decrease in provision for income taxes was primarily due to a decrease in stock-based compensation difference attributable to the decrease in stock price upon vesting versus the stock price at the grant date[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) - Cricut believes its cash and cash equivalents (**$298.1 million**), marketable securities (**$78.9 million**) as of June 30, 2025, forecasted operating cash flow, and **$300.0 million** available credit facility are sufficient to meet cash requirements for the next **12 months** and beyond[141](index=141&type=chunk) - During the six months ended June 30, 2025, the company paid **$21.5 million** in dividends[142](index=142&type=chunk) - An additional **$180.6 million** dividend was paid on July 21, 2025[142](index=142&type=chunk) [Cash Flows](index=30&type=section&id=Cash%20Flows) Net Cash Flows by Activity (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :--------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Net cash provided by operating activities | $97,323 | $91,648 | +$5,675 | | Net cash provided by (used in) investing activities | $15,520 | ($9,965) | +$25,485 | | Net cash used in financing activities | ($47,549) | ($28,191) | -$19,358 | - Operating cash flows increased due to a net increase in operating assets and liabilities and higher net income, partially offset by reduced non-cash adjustments[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - Investing cash flows improved significantly due to a decrease in marketable securities purchases[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - Financing cash flows increased outflows primarily due to higher dividend payments[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) [Critical Accounting Estimates](index=30&type=section&id=Critical%20Accounting%20Estimates) - Management's discussion and analysis relies on critical accounting policies and estimates detailed in Note 2 of the financial statements and the Annual Report, which involve significant judgments and assumptions[148](index=148&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states no material changes to the company's market risk disclosures have occurred since its Annual Report - No material changes to the Company's market risk disclosures have occurred during the three and six months ended June 30, 2025, as referenced in the Annual Report[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details management's evaluation of disclosure controls and internal control over financial reporting, concluding on their effectiveness [Evaluation of Disclosure Controls and Procedures](index=30&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The Chief Executive Officer and Chief Financial Officer concluded that Cricut's disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[150](index=150&type=chunk)[151](index=151&type=chunk) [Changes in Internal Control over Financial Reporting](index=31&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - No changes in internal control over financial reporting occurred during the period that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[152](index=152&type=chunk) [Inherent Limitations on Effectiveness of Controls](index=31&type=section&id=Inherent%20Limitations%20on%20Effectiveness%20of%20Controls) - Management acknowledges that control systems provide only reasonable, not absolute, assurance and have inherent limitations, meaning errors or fraud may occur and not be detected due to resource constraints, faulty judgments, circumvention, or deterioration over time[153](index=153&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms Cricut is not involved in material pending legal proceedings, though subject to routine claims - Cricut is not a party to any material pending legal proceedings but is subject to ordinary course claims and litigation, the resolution of which cannot be predicted with certainty[156](index=156&type=chunk)[157](index=157&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section refers to previously disclosed risk factors in the Annual Report and prior Quarterly Report, with no material changes - No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K (December 31, 2024) and Quarterly Report on Form 10-Q (March 31, 2025) have occurred[158](index=158&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on equity security transactions, noting no unregistered sales and detailing common stock repurchases [Sales of Unregistered Securities](index=32&type=section&id=Sales%20of%20Unregistered%20Securities) - There were no unregistered sales of equity securities during the period[159](index=159&type=chunk) [Purchases of Equity Securities by the Issuer and Affiliated Purchasers](index=32&type=section&id=Purchases%20of%20Equity%20Securities%20by%20the%20Issuer%20and%20Affiliated%20Purchasers) Common Stock Repurchases (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------- | :------------------------------------------------------------------------------------------------ | | April 1, 2025 through April 30, 2025 | 801,296 | $4.97 | $6,912 | | May 1 through May 31, 2025 | — | $— | $50,000 | | June 1, 2025 through June 30, 2025 | 116,046 | $6.30 | $49,269 | | Total | 917,342 | $5.14 | $49,269 | - On May 2, 2025, the Board of Directors approved replenishing the share repurchase program by **$50 million** for Class A common stock[160](index=160&type=chunk) [Item 3. Default Upon Senior Securities](index=32&type=section&id=Item%203.%20Default%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - This item is not applicable[161](index=161&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - This item is not applicable[162](index=162&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section reports on director and executive officer trading plans, indicating no new or terminated Rule 10b5-1 arrangements - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or a 'non-Rule 10b5-1 trading arrangement' during the last fiscal quarter[163](index=163&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all documents filed as exhibits to the Quarterly Report on Form 10-Q, including certifications and XBRL documents - The report includes various exhibits, such as certifications of principal executive and financial officers (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (101.INS, 101.SCH, etc.)[164](index=164&type=chunk)[166](index=166&type=chunk) [Signatures](index=34&type=section&id=SIGNATURES)

Financial Performance - Cricut, Inc. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and up from $0.09 per share a year ago, representing an earnings surprise of +83.33% [1] - The company posted revenues of $172.11 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 9.23%, compared to year-ago revenues of $167.95 million [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $164.37 million, and for the current fiscal year, it is $0.22 on revenues of $689.53 million [7] - The estimate revisions trend for Cricut was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Technology Services industry, to which Cricut belongs, is currently in the top 41% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Viant Technology, another company in the same industry, is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year change of +25%, with revenues anticipated to be $77.8 million, up 87.2% from the previous year [9][10]