Cricut, Inc. (CRCT)

Price$5.59Cached quoteAs of 2026-09-04 16:23 UTC

AI: Undervalued

Price checkThe shares look modestly undervalued, even after removing unusually favorable quarterly items.

At the observed price, 209.4 million shares imply a market value near $1.18 billion. Trailing net income of $87.7 million equals about 13 times earnings. The latest quarter included a $17.9 million tariff refund and a $6.4 million reserve release; tax-adjusting them lowers trailing earnings to roughly $69 million, lifting the multiple near 17 times. Subtracting $286 million of cash and marketable securities values operations near $890 million, about 13 times normalized earnings. That discount supports Undervalued, though falling product sales limit confidence.

Big pictureRecurring platform growth cushions a long hardware decline, but has not restored total sales.

Revenue fell from $1.31 billion in 2021 to $708.8 million in 2025, and the latest four quarters total about $689.8 million. This is a durable post-pandemic contraction, not a single weak quarter. Yet second-quarter platform revenue, mainly subscriptions and digital content, grew 5% to $85.0 million and exceeded half of sales; products fell 22% to $71.3 million. Paid subscribers rose 3%. The recurring stream and nine consecutive profitable years soften cyclicality, but hardware demand still controls user acquisition and materials purchases.

Business strengthA subscription base and ample cash protect the business, while share awards remain costly.

At June 30, cash and marketable securities totaled $286.3 million, with no drawn debt, providing meaningful downside protection. Paid subscribers reached 3.103 million, while revenue per active user rose 5% to $56.37. Capital returns are real: first-half buybacks cost $19.8 million, and shares outstanding have fallen 4.7% since 2022; the recurring dividend is twenty cents annually. However, share-based pay was $12.2 million in the first half and $34.8 million in 2025, so repurchases partly repair employee dilution rather than purely increasing each owner’s stake.

What could change the storyNew machines must revive product dollars without weakening subscriptions or normalized profit.

Maker 5 and software tools create a bull case if product revenue stabilizes while platform revenue keeps growing near 5%; better-priced hardware could add users, subscriptions, and later materials sales. The bear case is that double-digit unit growth relies on cheaper machine mix and promotions, leaving product dollars down around 20% while paid-subscriber growth slows. The current valuation works if normalized annual earnings remain near $70 million and free cash flow—cash left after running and investing in the business—stays above roughly $100 million. Persistent sales decline or weaker cash conversion would erase the apparent discount.

AI: News

Second-quarter earnings jumpProfit jumped on one-time gains while shrinking product sales exposed the core demand problem.

On August 4, Cricut reported second-quarter revenue of $156.3 million, down 9%, as product revenue fell 22%; platform revenue rose 5%. Net income climbed 59% to $39.1 million. However, a $17.9 million tariff refund and a $6.4 million royalty-reserve release inflated profit; excluding them, operating margin was roughly 14.8%, not 30.3%. Shares gained 22.9% in the next session. The timing supports an earnings-related interpretation, but does not prove the report alone caused the move.

Maker 5 launchA refreshed flagship expands project choices, but sales must prove it can revive hardware revenue.

On September 3, Cricut unveiled Maker 5, available September 4 with bundles starting at $349. It can cut and engrave materials up to 3 millimeters thick, 25% more clearance than its predecessor, and is 30% more compact. The flagship refresh matters because machines seed future subscriptions and materials sales. Cricut disclosed no orders or sales forecast, so commercial impact remains unproven. Shares closed 5.3% lower the next session, but timing alone cannot attribute that move to the launch.

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Revenue

2019

2020

2021

2022

2023

2024

2025

Net income

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$708.8M	$712.5M	$765.1M	$886.3M	$1.31B	$959.0M	$486.6M
Gross profit	$390.4M	$352.8M	$343.3M	$349.9M	$457.4M	$332.4M	$142.3M
Gross margin	55.08%	49.51%	44.87%	39.48%	35.02%	34.66%	29.26%
Research & development	$66.5M	$60.4M	$65.0M	$76.9M	$79.8M	$38.9M	$26.7M
Operating expenses	$294.4M	$276.7M	$273.3M	$269.9M	$265.0M	$131.9M	$88.8M
Operating income	$96.0M	$76.1M	$70.0M	$80.0M	$192.4M	$200.5M	$53.6M
Operating margin	13.55%	10.68%	9.15%	9.02%	14.73%	20.91%	11.01%
EBITDA	$120.5M	$105.1M	$100.0M	$106.9M	$211.8M	$214.6M	$62.7M
EBITDA margin	17.00%	14.75%	13.07%	12.06%	16.21%	22.38%	12.89%
Net income	$76.7M	$62.8M	$53.6M	$60.7M	$140.5M	$154.6M	$39.2M
Net profit margin	10.82%	8.82%	7.01%	6.84%	10.75%	16.12%	8.06%
Basic EPSper basic share	$0.36	$0.29	$0.25	$0.28	$0.67	$0.74	$0.19
Diluted EPSper diluted share	$0.35	$0.29	$0.24	$0.28	$0.64	$0.74	$0.19

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈7.92%of listed shares

Ashish Arora4.33M shares · Jun 1, 2026

View holders

Top 20 reported holders of CRCT
Holder	% owned
Ashish Arora	≈7.92%4.33M shares
BlackRock, Inc.	7.83%4.27M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.31%2.35M shares
AMERICAN CENTURY COMPANIES INC	3.85%2.1M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.80%2.07M shares
GEODE CAPITAL MANAGEMENT, LLC	3.22%1.76M shares
Shill Kimball C	≈3.01%1.64M shares
Blackwell Len	≈2.67%1.46M shares
STATE STREET CORP	2.23%1.22M shares
DIMENSIONAL FUND ADVISORS LP	2.06%1.13M shares
AQR CAPITAL MANAGEMENT LLC	2.03%1.11M shares
D. E. Shaw & Co., Inc.	1.79%976.36K shares
GOLDMAN SACHS GROUP INC	1.78%971.4K shares
JACOBS LEVY EQUITY MANAGEMENT, INC	1.64%894.15K shares
RENAISSANCE TECHNOLOGIES LLC	1.62%886.94K shares
MORGAN STANLEY	1.39%757.39K shares
ALGERT GLOBAL LLC	1.32%718.42K shares
Olsen Donald B.	≈1.27%694.61K shares
Bank of New York Mellon Corp	1.01%548.7K shares
NORTHERN TRUST CORP	0.91%495.75K shares

Percentages use 54.59M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$43.3K disclosed value

Sells (SEC code S)99$18.55M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4 · 10b5-1	Ashish AroraChief Executive Officer	SellClass A Common Stock	16.4K	$4.30	$70.4K	4.33M
May 28, 2026Form 4	Harmer RyanPrincipal Accounting Officer	SellClass A Common Stock	17.3K	$4.12	$71.1K	325.6K
May 22, 2026Form 4 · 10b5-1	Ashish AroraChief Executive Officer	SellClass A Common Stock	60.0K	$3.98	$238.8K	4.34M
May 21, 2026Form 4 · 10b5-1	Ashish AroraChief Executive Officer	SellClass A Common Stock	60.0K	$3.95	$237.0K	4.40M
May 20, 2026Form 4 · 10b5-1	Ashish AroraChief Executive Officer	SellClass A Common Stock	60.0K	$3.95	$237.0K	4.46M