Cricut (NASDAQ:CRCT) Releases Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Cricut (NASDAQ:CRCT) issued its quarterly earnings results on Tuesday. The company reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of $0.05 by $0.08, FiscalAI reports. The business had revenue of $188.62 million for the quarter, compared to the consensus estimate of $172.02 million. Cricut had a return on equity of 26.66% and a net margin of 13.42%.

Here are the key takeaways from Cricut’s conference call:

• Q3 revenue rose 11% year over year to $188.6 million, with products revenue up 17% and platform revenue up 4%. Connected-machine sell-through increased double digits for a second consecutive quarter, supported by Maker 5, StickerPix and continued demand for existing machines.
• StickerPix showed encouraging early momentum after launching late in the quarter, attracting both existing Cricut customers and new users. Management expects the category to broaden the customer funnel and generate future consumables revenue, though it is initially investing to establish the brand in a competitive market.
• International revenue grew 30% and reached 28% of total sales, with strength in Europe, Australia, Asia and Latin America. Management identified international expansion, increased brand awareness and continued product innovation as key growth drivers through 2027 and beyond.
• Platform engagement remains mixed: active users grew 2%, while 90-day engaged users were flat and paid subscribers declined sequentially to just over 3.07 million, although management expects both subscribers and platform revenue to grow in Q4 and for the full year.
• Strong profitability and cash generation enabled a $0.70-per-share special dividend, a recurring $0.10-per-share semiannual dividend and authorization to replenish the stock-repurchase program up to $50 million. However, management cautioned that Q4 is typically the most promotional quarter, with lower margins expected and continued uncertainty around consumer demand.

Cricut Price Performance

Shares of CRCT stock traded up $0.02 during trading on Thursday, reaching $8.90. The company had a trading volume of 1,767,261 shares, compared to its average volume of 649,457. The firm’s 50 day simple moving average is $6.13 and its two-hundred day simple moving average is $4.89. The company has a market capitalization of $1.86 billion, a PE ratio of 19.35 and a beta of 0.24. Cricut has a one year low of $3.73 and a one year high of $9.70.

Analyst Upgrades and Downgrades

Several research firms have weighed in on CRCT. Weiss Ratings upgraded shares of Cricut from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday. Morgan Stanley restated an “underweight” rating and set a $3.70 price target on shares of Cricut in a report on Wednesday, August 5th. Zacks Research downgraded shares of Cricut from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Finally, The Goldman Sachs Group began coverage on Cricut in a research note on Wednesday, August 19th. They issued a “sell” rating and a $4.50 price target for the company. Two investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Strong Sell” and an average price target of $4.07.

Insiders Place Their Bets

In other news, CEO Ashish Arora sold 60,000 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $5.48, for a total value of $328,800.00. Following the completion of the sale, the chief executive officer directly owned 4,027,105 shares of the company’s stock, valued at approximately $22,068,535.40. This represents a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 610,000 shares of company stock worth $3,613,800. 16.48% of the stock is owned by insiders.

Cricut Company Profile

Cricut, Inc develops and sells connected cutting machines and related products for do-it-yourself crafting, personalization and small-scale creative production. Its systems are designed to cut, draw, score and apply materials such as paper, vinyl, fabric, leather and iron-on transfers, enabling users to create customized home décor, apparel, gifts and other projects.

The company’s product portfolio includes Cricut smart cutting machines, heat presses, specialized tools and a broad range of consumable materials.