CRCT · Cricut, Inc.

Cricut delivered Q1 2026 results with total revenue of $159.5 million, a modest 2% decline year-over-year, driven by a 9.6% drop in Products revenue to $74.7 million partially offset by nearly 6% growth in Platform revenue to $84.8 million. CEO Ashish Arora highlighted profitability, platform revenue growth, global machine sell-out units, and early benefits from a platform-first strategy including guided onboarding, bundles, and Design Space improvements, which supported 1% year-over-year Active User growth to 5.97 million. International revenue surged over 16% to represent 26% of total revenue, up from 22% last year. Gross margin contracted to 58.1% from 60.5%, contributing to operating income of $22.9 million (14.4% margin), down 22% YoY. Net income fell 15% to $20.3 million (12.7% margin), with diluted EPS at $0.10. CFO Kimball Shill emphasized the profitable, cash-generative model, generating $27 million in operating cash flow while repurchasing $12.2 million in shares (2.77 million shares), leaving $29.1 million on the $50 million program replenished in May 2025. Balance sheet remains strong with $256 million cash and no debt. Key metrics showed Paid Subscribers up 3% to 3.08 million and Platform ARPU up 5% to $55.65, though 90-Day Engaged Users dipped 1% to 3.35 million. The board approved a recurring semi-annual dividend of $0.10 per share, payable July 21 to record holders on July 7, signaling confidence in capital allocation alongside buybacks. Management views this mix as appropriate given operating plans and will evaluate ongoing.