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what it is
Cricut sells connected craft machines, materials, and a subscription app for people making cards, shirts, and home decor.
how it gets paid
Last year Cricut made $709M in revenue. Accessories and materials was the main engine at $360M, or 51% of sales.
why growth slowed
Revenue fell 0.5% last year. 58.2% gross margin mattered most because it shows Cricut kept more than half of sales after direct costs.
what just happened
$505M of quarterly revenue and $0.32 EPS show the business still throws off real cash.
At a glance
B+ balance sheet — decent shape, but not bulletproof
11.7x trailing p/e — the market's not buying it — or you found a deal
4.9% dividend yield — cash in your pocket every quarter
21.9% return on capital — every dollar works hard here
$0.35 fy2025 eps est
xvary composite: 51/100 — below average
What they do
Cricut sells connected craft machines, materials, and a subscription app for people making cards, shirts, and home decor.
You are not buying a machine alone. You are buying a spending loop. The box pulls you into blades, mats, vinyl, and software, and that keeps the next dollar coming back. Cricut has 640 employees and a 21.9% return on capital. That means each dollar put into the business throws off 21.9 cents of operating profit. Most hobby brands do not get that kind of math.
How they make money
$709M
annual revenue · their business grew -0.5% last year
Connected machines
$170M
2.0%
Accessories and materials
$360M
+1.0%
Subscription services
$110M
+8.0%
Retail and other channels
$69M
1.0%
The products that matter
connected cutting hardware
Cutting machines & hardware
26% product gross margin
This is the front door. A 26% product gross margin tells you the machine sale matters, but not because hardware is wildly lucrative on its own. It matters because it creates the installed base that buys the rest.
the razor
blades, mats, vinyl, accessories
Accessories & materials
supports 55.1% company gross margin
This is where the economics get nicer. Company-wide gross margin hit 55.1%, which only makes sense if repeat purchases are doing a lot of the work. That is good news for margin. It is not a substitute for new user growth.
repeat spend
software & content subscription
Cricut Access
$9.99 per month
The $9.99 monthly subscription adds recurring revenue on top of machine ownership. In human-speak: every active user who keeps paying makes the revenue base less dependent on the next hardware cycle.
recurring revenue
Key numbers
$709M
annual revenue
Your top line was flat to down 0.5%. That says mature hobby business, not a growth rocket.
11.7x
trailing p/e
You pay 11.7 times trailing earnings for the stock. Cheap is relative when sales are shrinking 0.5%.
4.9%
dividend yield
The payout is the story. You get cash back while waiting for sales to stop slipping.
21.9%
return on capital
This is the best number in the file. Cricut turns each dollar invested into 21.9 cents of operating profit.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $8M (1% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CRCT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
$505M of quarterly revenue and $0.32 EPS show the business still throws off real cash.
Revenue was $505M, up 196% vs. prior year, and EPS was $0.32, up 220% vs. prior year. Gross margin was 58.2%, which is why the quarter looked rich even with a soft annual top line.
$177M
revenue
$0.32
eps
58.2%
gross margin
the number that mattered
58.2% gross margin mattered most because it shows Cricut kept more than half of sales after direct costs.
source: company earnings report, 2026
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What could go wrong
Cricut's risk is not abstract competition theory. It's much simpler: a niche installed base is only valuable if those users keep buying supplies, keep paying for design tools, and keep pulling new customers into the funnel.
high
sales keep drifting lower
Annual revenue fell 0.5% to $709M. One weak year does not kill a thesis. A niche consumer brand living below its own prior revenue line for too long absolutely does.
If revenue stays below $709M, the market keeps valuing this like a mature cash payer instead of a business getting its growth legs back.
med
the recurring layer stops feeling recurring
The materials business and the $9.99 monthly subscription matter more when hardware demand cools. If users buy fewer blades, mats, and vinyl, or stop paying for access, the high-margin cushion gets thinner fast.
That would put pressure on the 55.1% gross margin investors currently trust.
med
the stock trades looser than the balance sheet suggests
Institutions own 19.6% of the stock, and price stability is 10 / 100. Those two numbers belong together. The business may look disciplined while the stock still behaves like a small-cap mood ring.
If sentiment turns, you do not have a deep institutional floor under the shares.
med
the dividend becomes the whole pitch
A 4.9% dividend yield is attractive. It is also a signal that capital is leaving the business while investors are still waiting for cleaner growth evidence.
If the payout becomes the main reason to own CRCT, you are no longer underwriting a reset in demand. You are underwriting financial discipline and hoping it lasts.
$709M of revenue, $76.7M of net income, and a 4.9% dividend is a workable formula. It gets a lot less comfortable if sales keep sliding and margin follows.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
annual revenue back above $709M
This is the cleanest scorecard on the page. If revenue stays below $709M again, you should assume the market keeps viewing Cricut as a shrinking niche business, not a comeback story.
calendar
Q1 2026 earnings report
Consensus EPS is $0.07. That matters, but less than management's read on demand. A penny beat without a better revenue tone will not change much.
trend
gross margin near 55.1%
If margin holds while revenue improves, the model starts looking better fast. If both crack together, the bull case stops being about patience and starts being about denial.
risk
subscription and consumables engagement
Cricut can live with slower machine sales if existing users keep buying materials and paying $9.99 per month. If engagement fades, the recurring cushion shrinks right when you need it most.
Analyst rankings
risk profile
average
risk rank 3 — typical risk profile — neither especially safe nor risky.
chart momentum
below average
momentum rank 4 — analysts see underperformance risk in the near term.
source: institutional data
Institutional activity
institutional ownership data for CRCT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$4
current price
n/a
target midpoint · n/a from current
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