Cricut, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
CRCT$8.78-5.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001828962-25-000146
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001828962-25-000153
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 102 previous paragraphs and 102 current paragraphs.
71 unchanged; 23 reworded; 8 added; 7 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Nine Months Ended September 30, 2025 and 2024
Current report
Platform cost of revenue decreased by $1.0 million, or 10%, to $9.0 million for the three months ended September 30, 2025, from $10.0 million for the three months ended September 30, 2024. The decrease was primarily driven by decreases in external digital content costs and amortization of capitalized software development costs.
Current report
Products cost of revenue decreased by $13.1 million, or 16%, to $67.4 million for the three months ended September 30, 2025, from $80.5 million for the three months ended September 30, 2024. The decrease was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.
Current report
Nine Months Ended September 30, 2025 and 2024
Current report
Products cost of revenue decreased by $32.0 million, or 15%, to $184.8 million for the nine months ended September 30, 2025, from $216.8 million for the nine months ended September 30, 2024. The decrease was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.
Current report
General and administrative expenses increased by $0.9 million, or 5%, to $17.1 million for the three months ended September 30, 2025 from $16.2 million for the three months ended September 30, 2024. The increase was primarily driven by a $0.6 million increase in professional services expense and a $0.5 million increase in foreign currency transaction losses.
Current report
Other income, net decreased slightly for the nine months ended September 30, 2025.
Current report
Provision for income taxes increased by $2.4 million, or 91%, to $5.1 million for the three months ended September 30, 2025 from $2.7 million for the three months ended September 30, 2024. The increase was primarily due to an increase to pre-tax book income of $11.5 million.
Removed paragraphs (7)
Previous report
Products revenue increased by $1.1 million, or 1%, to $91.4 million for the three months ended June 30, 2025 from $90.3 million for the three months ended June 30, 2024. The increase was primarily driven by more units of accessories and materials sold at a higher average selling price as uncertainty around tariffs accelerated demand we would have ordinarily expected later in the calendar year, partially offset by fewer units of connected machines sold.
Previous report
Six Months Ended June 30, 2025 and 2024
Previous report
Platform cost of revenue decreased by $0.1 million, or 1%, to $8.8 million for the three months ended June 30, 2025, from $8.9 million for the three months ended June 30, 2024. The decrease was primarily driven by lower amortization of capitalized software development costs partially offset by increased external digital content costs.
Previous report
Six Months Ended June 30, 2025 and 2024
Previous report
Products cost of revenue decreased by $18.9 million, or 14%, to $117.4 million for the six months ended June 30, 2025, from $136.3 million for the six months ended June 30, 2024. The decrease was primarily driven by a reduction in net inventory impairment charges, lower inventory procurement costs, and fewer units of connected machines sold.
Previous report
General and administrative expenses increased by $3.1 million, or 19%, to $18.8 million for the three months ended June 30, 2025 from $15.7 million for the three months ended June 30, 2024. The increase was primarily driven by a $1.7 million net reversal of bad debt expense in Q2 2024 and a $1.5 million increase in professional services expense.
Previous report
Other income, net increased by $0.4 million or 11% to $3.7 million for the three months ended June 30, 2025 from $3.4 million for the three months ended June 30, 2024. The increase was primarily driven by an increase in interest income.
Reworded paragraphs (23)
Previous wording
Other income, net consists primarily of interest income from our investments in marketable securities, offset by interest expense associated with our debt financing arrangements and amortization of debt issuance costs.
Current wording
Other income, net consists primarily of interest income from our investments in marketable securities and cash and cash equivalents, offset by interest expense associated with our debt financing arrangements and amortization of debt issuance costs.
Previous wording
Comparison of the Three and Six Months Ended June 30, 2025 and 2024
Current wording
Comparison of the Three and Nine Months Ended September 30, 2025 and 2024
Previous wording
Platform revenue increased by $3.0 million, or 4%, to $80.7 million for the three months ended June 30, 2025, from $77.6 million for the three months ended June 30, 2024. The increase was driven by an increase in paid subscribers from 2.8 million as of June 30, 2024 to 3.0 million as of June 30, 2025.
Current wording
Platform revenue increased by $5.1 million, or 7%, to $82.8 million for the three months ended September 30, 2025, from $77.7 million for the three months ended September 30, 2024. The increase was driven by an increase in paid subscribers from 2.8 million as of September 30, 2024 to 3.0 million as of September 30, 2025.
Previous wording
Products revenue decreased by $5.3 million, or 3%, to $174.1 million for the six months ended June 30, 2025 from $179.4 million for the six months ended June 30, 2024. The decrease was primarily driven by fewer units of connected machines sold at a lower average selling price and fewer units of accessories and materials sold.
Current wording
Products revenue decreased by $2.6 million, or 3%, to $87.7 million for the three months ended September 30, 2025 from $90.2 million for the three months ended September 30, 2024. The decrease was primarily driven by fewer units of accessories and materials sold and at a lower average selling price, partially offset by more units of connected machines sold and at a higher average selling price.
Previous wording
Platform revenue increased by $4.7 million, or 3%, to $160.7 million for the six months ended June 30, 2025, from $155.9 million for the six months ended June 30, 2024. The increase was driven by an increase in paid subscribers from 2.8 million as of June 30, 2024 to 3.0 million as of June 30, 2025.
Current wording
Platform revenue increased by $9.9 million, or 4%, to $243.5 million for the nine months ended September 30, 2025, from $233.6 million for the nine months ended September 30, 2024. The increase was driven by an increase in paid subscribers from 2.8 million as of September 30, 2024 to 3.0 million as of September 30, 2025.
Previous wording
Products cost of revenue decreased by $7.5 million, or 11%, to $61.8 million for the three months ended June 30, 2025, from $69.2 million for the three months ended June 30, 2024. The decrease was primarily driven by fewer units of connected machines sold, lower inventory procurement costs, and a reduction in net inventory impairment charges, partially offset by more units of accessories and materials sold.
Current wording
Products revenue decreased by $7.9 million, or 3%, to $261.7 million for the nine months ended September 30, 2025 from $269.6 million for the nine months ended September 30, 2024. The decrease was primarily driven by fewer units of accessories and materials sold and at a lower average selling price, partially offset by more units of connected machines sold and at a higher average selling price.
Previous wording
Gross margin for Platform was 89% for the three months ended June 30, 2025, and 89% for the three months ended June 30, 2024.
Current wording
Gross margin for Platform was 89% for the three months ended September 30, 2025, and 87% for the three months ended September 30, 2024. The increase was primarily driven by decreases in external digital content costs and amortization of capitalized software development costs.
Previous wording
Gross marginfor Products was 32% for the three months ended June 30, 2025 and 23% for the three months ended June 30, 2024. The increase was primarily driven by lower inventory procurement costs, a reduction in net inventory impairment charges, and improved product margins.
Current wording
Gross marginfor Products was 23% for the three months ended September 30, 2025 and 11% for the three months ended September 30, 2024. The increase was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.
Previous wording
Platform cost of revenue decreased by $0.2 million, or 1%, to $17.5 million for the six months ended June 30, 2025, from $17.6 million for the six months ended June 30, 2024. The decrease was primarily driven by lower amortization of capitalized software development costs partially offset by increased platform hosting fees.
Current wording
Platform cost of revenue decreased by $1.2 million, or 4%, to $26.4 million for the nine months ended September 30, 2025, from $27.6 million for the nine months ended September 30, 2024. The decrease was primarily driven by lower amortization of capitalized software development costs.
Previous wording
Gross margin for Platform was 89% for the six months ended June 30, 2025, and 89% for the six months ended June 30, 2024.
Current wording
Gross margin for Platform was 89% for the nine months ended September 30, 2025, and 88% for the nine months ended September 30, 2024. The increase was primarily driven by decreases in amortization of capitalized software development costs.
Previous wording
Gross margin for Products was 33% for the six months ended June 30, 2025 and 24% for the six months ended June 30, 2024. The increase was primarily driven by a reduction in net inventory impairment charges, lower inventory procurement costs, and improved product margins.
Current wording
Gross margin for Products was 29% for the nine months ended September 30, 2025 and 20% for the nine months ended September 30, 2024. The increase was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.
Previous wording
Research and development expenses increased by $2.4 million, or 17%, to $16.8 million for the three months ended June 30, 2025 from $14.3 million for the three months ended June 30, 2024. The increase was primarily due to a $1.2 million increase in product development expense, a $0.7 million increase in personnel-related expense, and a $0.4 million increase in professional services expense.
Current wording
Research and development expenses increased by $1.6 million, or 11%, to $16.9 million for the three months ended September 30, 2025 from $15.2 million for the three months ended September 30, 2024. The increase was primarily due to a $1.3 million increase in product development expense and a $0.2 million increase in personnel-related expense.
Previous wording
Research and development expenses increased by $3.3 million, or 11%, to $32.4 million for the six months ended June 30, 2025 from $29.2 million for the six months ended June 30, 2024. The increase was primarily due to a $1.9 million increase in product development expense and a $1.4 million increase in professional services expense.
Current wording
Research and development expenses increased by $4.9 million, or 11%, to $49.3 million for the nine months ended September 30, 2025 from $44.4 million for the nine months ended September 30, 2024. The increase was primarily due to a $3.2 million increase in product development expense and a $1.5 million increase in professional services expense.
Previous wording
Sales and marketing expenses increased by $2.5 million, or 8%, to $35.9 million for the three months ended June 30, 2025 from $33.4 million for the three months ended June 30, 2024. The increase was primarily driven by a $2.4 million increase in advertising and other marketing costs.
Current wording
Sales and marketing expenses increased by $2.2 million, or 6%, to $37.5 million for the three months ended September 30, 2025 from $35.3 million for the three months ended September 30, 2024. The increase was primarily driven by a $1.1 million increase in advertising and other marketing costs, a $0.7 million increase in software subscriptions, and a $0.4 million increase in payment processing fees.
Previous wording
Sales and marketing expenses increased by $6.2 million, or 9%, to $72.6 million for the six months ended June 30, 2025 from $66.4 million for the six months ended June 30, 2024. The increase was primarily driven by a $6.7 million increase in advertising and other marketing costs.
Current wording
Sales and marketing expenses increased by $8.4 million, or 8%, to $110.0 million for the nine months ended September 30, 2025 from $101.7 million for the nine months ended September 30, 2024. The increase was primarily driven by a $7.8 million increase in advertising and other marketing costs and a $1.1 million increase in payment processing fees, offset by a $0.8 million decrease in personnel-related expense.
Previous wording
General and administrative expenses increased by $1.2 million, or 4%, to $35.5 million for the six months ended June 30, 2025 from $34.2 million for the six months ended June 30, 2024. The increase was primarily driven by a $3.2 million increase in professional services expense, offset by foreign currency transaction losses of $1.5 million and a $0.9 million net reversal of bad debt.
Current wording
General and administrative expenses increased by $2.1 million, or 4%, to $52.6 million for the nine months ended September 30, 2025 from $50.5 million for the nine months ended September 30, 2024. The increase was primarily driven by a $3.8 million increase in professional services expense, partially offset by a $1.3 million net reversal of bad debt.
Previous wording
Other income, net increased by $0.6 million or 9% to $7.0 million for the six months ended June 30, 2025 from $6.4 million for the six months ended June 30, 2024. The increase was primarily driven by an increase in interest income.
Current wording
Other income, net decreased by $0.6 million or 16% to $3.0 million for the three months ended September 30, 2025 from $3.6 million for the three months ended September 30, 2024. The decrease was primarily driven by a decrease in interest income.
Previous wording
Provision for income taxes decreased by $0.7 million, or 7%, to $9.4 million for the three months ended June 30, 2025 from $10.0 million for the three months ended June 30, 2024. The decrease 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.
Current wording
Provision for income taxes increased by $1.8 million, or 9%, to $23.2 million for the nine months ended September 30, 2025 from $21.3 million for the nine months ended September 30, 2024. The increase was primarily due to a decrease in stock based compensation differences attributable to the decrease in stock price upon vesting versus the stock price at the grant date offset by an increase to pre-tax book income of $19.9 million.
Previous wording
Our operations during the periods presented have been financed primarily through cash flow from operating activities. We believe our balances of cash and cash equivalents and marketable securities, which totaled $298.1 million and $78.9 million, respectively, as of June 30, 2025, along with forecasted cash expected to be generated by ongoing operations and $300.0 million in available borrowings and the option to increase the aggregate amount of our credit facility by up to an additional $150.0 million (see Note 7) will be sufficient to satisfy our cash requirements over the next 12 months and beyond. Except for the recently announced special and semi-annual dividends and the new share repurchase program, our cash requirements have not changed materially since our Annual Report.
Current wording
Our operations during the periods presented have been financed primarily through cash flow from operating activities. We believe our balances of cash and cash equivalents and marketable securities, which totaled $187.9 million and $19.2 million, respectively, as of September 30, 2025, along with forecasted cash expected to be generated by ongoing operations and $300.0 million in available borrowings and the option to increase the aggregate amount of our Credit Facility by up to an additional $150.0 million (see Note 7) will be sufficient to satisfy our cash requirements over the next 12 months and beyond. Except for the recently announced semi-annual dividend and our continuing share repurchase program, our cash requirements have not changed materially since our Annual Report.
Previous wording
During the six months ended June 30, 2025, we paid a dividend of $21.5 million to holders of Class A and Class B common stock. On July 21, 2025, we paid a dividend of $180.6 million to holders of Class A and Class B common stock.
Current wording
During the nine months ended September 30, 2025, we paid dividends of $202.1 million to holders of Class A and Class B common stock.
Previous wording
The change in net cash flows from operating activities for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is due to a net increase in operating assets and liabilities of $38.9 million in 2025 compared to $26.6 million in 2024, and an increase in net income. These were partially offset by a reduction in non-cash adjustments of $10.0 million in 2025 compared to $25.6 million in 2024 due primarily to a reduction of the provision for inventory obsolescence and a decrease in depreciation and amortization.
Current wording
The change in net cash flows from operating activities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 is due to a net decrease in operating assets and liabilities of $34.2 million in 2025 compared to $65.5 million in 2024, in addition to a reduction in non-cash adjustments of $14.7 million in 2025 compared to $45.5 million in 2024 due primarily to a reduction of the provision for inventory obsolescence, a decrease in stock-based compensation and a decrease in depreciation and amortization. These were partially offset by an increase in net income.
Previous wording
The change in net cash flows from investing activities for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was due to a decrease in purchases of marketable securities.
Current wording
The change in net cash flows from investing activities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to proceeds from maturities of marketable securities in 2025 not used to purchase new securities.
Previous wording
The change in net cash flows from financing activities for the six months ended June 30, 2025 compared to six months ended June 30, 2024 was primarily due to dividend payments of $21.5 million in 2025 compared to $1.5 million in 2024.
Current wording
The change in net cash flows from financing activities for the nine months ended September 30, 2025 compared to nine months ended September 30, 2024 was primarily due to dividend payments of $202.1 million in 2025 compared to $109.8 million in 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Provision for income taxes decreased by $0.6 million, or 3%, to $18.1 million for the six months ended June 30, 2025 from $18.7 million for the six months ended June 30, 2024. The decrease 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.