Cricut, Inc.
For the period ended Mar 31, 2026. Filed May 6, 2026.
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.
Mar 31, 2026 · Filed May 6, 2026
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 2025-09-30; filed 2025-11-05.
0001828962-25-000153
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001828962-26-000039
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 87 current paragraphs.
50 unchanged; 28 reworded; 9 added; 24 removed; 0 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 (9)
Current report
We sell a broad range of products in the Cricut ecosystem that help bring designs to life. These products work seamlessly and easily together, which helps build brand loyalty among our user base. Cricut products give users peace of mind with a brand they trust for durability, selection, and compliance. Creating projects drives repeat purchases of Cricut products for years after a user first buys a connected machine bundle, demonstrating a growing customer lifetime value through ongoing engagement with our platform.
Current report
The current global macroeconomic environment, including regulation, tariffs that have materially increased, and may continue to increase, our costs and the potential for further trade barriers, or additional retaliatory changes by U.S. trading partners may impact our business and international expansion. We are also beginning to see potential disruption to our supply chain stemming from the Middle East conflict, driven largely by higher fuel and petrochemical-related input costs. While we continue to evaluate actions to mitigate these pressures, the current environment requires a thoughtful and measured approach given the price sensitivity of the consumer.
Current report
On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the U.S. were unauthorized. Following the ruling, U.S. Customs and Border Protection (“CBP”) established a phased refund process through its Consolidated Administration and Processing of Entries (“CAPE”) functionality. In April 2026, we submitted a refund request for eligible IEEPA tariff entries in the initial phase of the process. The ultimate availability, timing, and amount of any refunds remain subject to CBP review and processing, future phases of the CAPE process, and other legal, regulatory and administrative developments. We have not recognized an asset related to potential refunds as of March 31, 2026.
Current report
Other Income
Current report
Products revenue decreased by $7.9 million, or 10%, to $74.7 million for the three months ended March 31, 2026, from $82.6 million for the three months ended March 31, 2025. The decrease was primarily driven by lower average net selling prices on Products compared to the prior year.
Current report
Platform cost of revenue increased by $0.7 million, or 8%, to $9.4 million for the three months ended March 31, 2026, from $8.7 million for the three months ended March 31, 2025. The increase was primarily driven by increases in hosting fees and digital content costs.
Current report
Products cost of revenue increased by $1.8 million, or 3%, to $57.4 million for the three months ended March 31, 2026, from $55.6 million for the three months ended March 31, 2025. The increase was primarily driven by a smaller reduction of inventory reserves compared to the prior year combined with higher tariffs, partially offset by lower inventory procurement costs.
Current report
Other Income
Current report
Provision for income taxes decreased by $3.9 million, or 45%, to $4.8 million for the three months ended March 31, 2026 from $8.7 million for the three months ended March 31, 2025. The decrease was primarily due to an increase in the research and development credit and an increase in the deduction related to foreign derived deduction eligible income (“FDDEI”).
Removed paragraphs (24)
Previous report
•Cricut Joy family $179.00 - $199.00 MSRP
Previous report
•Cricut Explore family $249.00 - $319.00 MSRP
Previous report
•Cricut Maker family $399.00 - $429.00 MSRP
Previous report
•Cricut Venture $999.00 MSRP
Previous report
We sell a broad range of accessories and materials that bring our users’ designs to life, from advanced tools like heat presses to Cricut-branded rulers, scoring tools, pens, paper and iron-on vinyl, all designed to work seamlessly with our connected machines. Designing and completing projects drives repeat purchases of Cricut-branded accessories and materials.
Previous report
Other Income, Net
Previous report
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 report
Nine Months Ended September 30, 2025 and 2024
Previous report
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 report
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 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.
Previous 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.
Previous report
Nine Months Ended September 30, 2025 and 2024
Previous report
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 report
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 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.
Previous report
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 report
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 report
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 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.
Previous report
Other Income, Net
Previous report
Other income, net decreased slightly for the nine months ended September 30, 2025.
Previous 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.
Previous report
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.
Reworded paragraphs (28)
Previous wording
At Cricut, our mission is to help people lead creative lives. We have designed and built a creativity platform that enables our engaged and loyal community of 5.9 million Active Users to turn ideas into professional-looking handmade goods. We define “Active User” as a registered user of at least one registered connected machine who has utilized their connected machine to create a project in the last 365 days. With our highly versatile Design Space Platform and our products, including our connected machines and accessories and materials, our users create everything from personalized birthday cards, mugs and T-shirts, to large-scale interior decorations. Our users’ journeys typically begin with the purchase of a connected machine. We currently sell a portfolio of connected machines that cut, write, score and create other decorative effects using a wide variety of materials including paper, adhesive vinyl, iron-on vinyl, pens, and more. Our connected machines are designed for a wide range of uses and are available at a variety of price points (MSRP by machine family as of September 30, 2025):
Current wording
At Cricut, our mission is to help people lead creative lives. We have designed and built a creativity platform that enables our engaged and loyal community of nearly 6.0 million Active Users (as defined below) to turn ideas into professional-looking handmade goods. With our highly versatile Design Space Platform and our products, our users create everything from personalized birthday cards, mugs and T-shirts, to large-scale interior decorations. Our users’ journeys typically begin with the purchase of a connected machine bundle. We currently sell a portfolio of connected machines that cut, write, score and create other decorative effects using a wide variety of materials including paper, adhesive vinyl, iron-on vinyl, pens, and more. Our connected machines are designed in a variety of sizes for a wide range of uses. They are available at multiple price points and in various bundle configurations.
Previous wording
Our platform integrates our design apps and connected machines, allowing our users to create and share seamlessly. Our software is cloud-based, meaning that users can access and work on their projects anywhere, at any time, across desktops or mobile devices. We enable our users to be inspired, to create and share projects with the Cricut community and to follow others doing the same. On our platform, users can find inspiration, purchase or upload content like fonts and images, design a project from scratch or find a vast array of ready-to-make projects. Users can leverage the full power of our platform by using our connected machines together with our free design apps, in-app purchases and subscription offerings to design and complete projects. All users can access a select number of free images, fonts and projects from our design apps or upload their own. In addition, we offer a wider selection of images, fonts and projects for purchase à la carte, including licensed content from partners with well-known brands and characters, like major motion picture studios. We also have two subscription offerings:
Current wording
Our platform integrates our design apps and connected machines, allowing our users to create and share seamlessly. Our software is cloud-based, meaning that users can access and work on their projects anywhere, at any time, across desktops or mobile devices. We enable our users to be inspired, to create and share projects with the Cricut community and to follow others doing the same. On our platform, users can find inspiration, purchase or upload content like fonts and images, design a project from scratch or find a vast array of ready-to-make projects. In addition, our AI functionality within our app enables users to generate unique, cut-ready images from text or image prompts for personalized crafting projects like stickers, decals, and more. Users can leverage the full power of our platform by using our connected machines together with our free design apps, in-app purchases and subscription offerings to design and complete projects. All users can access a select number of free images, fonts and projects from our design apps or upload their own. In addition, we offer a wider selection of images, fonts and projects for purchase à la carte, including licensed content from partners with well-known brands and characters, like major motion picture studios. We also have two subscription offerings:
Previous wording
•Cricut Access: Provides a subscription to images, fonts and projects as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. Cricut Access is billed monthly for $9.99 per month or annually for $95.88 per year.
Current wording
•Cricut Access: Provides a subscription to fonts, images, templates and projects as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. Cricut Access is billed monthly starting at $9.99 per month or annually at $95.88 per year.
Previous wording
•Cricut Access Premium: Includes all of the benefits of Cricut Access as well as additional discounts and preferred shipping and is billed annually for $119.88 per year.
Current wording
•Cricut Access Premium: Includes all of the benefits of Cricut Access as well as additional discounts and AI credits, and is billed monthly starting at $14.99 per month or annually at $119.88 per year.
Previous wording
As of September 30, 2025, we had over 3.0 million Paid Subscribers to Cricut Access and Cricut Access Premium.
Current wording
As of March 31, 2026, we had nearly 3.1 million Paid Subscribers (as defined below) to Cricut Access and Cricut Access Premium.
Previous wording
We sell our connected machines and accessories and materials through our brick-and-mortar and online retail partners, as well as through our website at cricut.com. Our partners include Amazon, Hobby Lobby, HSN, Michaels, Target, Walmart and many others. We also sell our products and subscriptions to Cricut Access and Cricut Access Premium on cricut.com.
Current wording
We sell our products through our brick-and-mortar and online retail partners, as well as through our website at Cricut.com. Our partners include Amazon, Hobby Lobby, Michaels, Target, Walmart and many others. We also sell our products, including subscriptions to Cricut Access and Cricut Access Premium, on Cricut.com.
Previous wording
Historically, we have experienced the highest revenue levels in the fourth quarter of the year, coinciding with the holiday shopping season in the United States. For example, in 2022, 2023 and 2024, our fourth quarter represented 32%, 30% and 29% of total revenue for the year, respectively. Our promotional discounting activity is higher in the fourth quarter as well, which negatively impacts gross margin during this period. For example, gross margin in the fourth quarter of 2024 was 45%, compared to gross margin of 50% for all of 2024. Additionally, sales of accessories and materials typically rise and fall with seasonal holiday crafting periods. As we continue to grow internationally, we expect we may experience seasonality in additional markets, which may differ from the seasonality experienced in the United States. The current global macroeconomic environment, including regulatory and economic uncertainty, adverse impacts from factors such as trade wars, heightened, scheduled or threatened tariffs, or by retaliatory trade measures taken by China or other countries, may impact our business and international expansion.
Current wording
Historically, we have experienced the highest revenue levels in the fourth quarter of the year, coinciding with the holiday shopping season in the United States. For example, in 2023, 2024 and 2025, our fourth quarter represented 30%, 29% and 29% of total revenue for the year, respectively. Our promotional discounting activity is higher in the fourth quarter as well, which negatively impacts gross margin during this period. For example, gross margin in the fourth quarter of 2025 was 47%, compared to gross margin of 55% for all of 2025. As we continue to grow internationally, we expect we may experience seasonality in additional markets, which may differ from the seasonality experienced in the United States.
Previous wording
We define Active Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 365 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total Active Users and the prior owner is removed from the total Active Users if the prior owner does not own any other registered connected machines. Active Users is a key indicator of the health of our business, because changes in the number of Active Users excludes non-users to better represent opportunities for us to drive additional platform and accessories and materials revenue.
Current wording
We define Active Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 365 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total Active Users and the prior owner is removed from the total Active Users if the prior owner does not own any other registered connected machines. Active Users is a key indicator of the health of our business, because changes in the number of Active Users excludes non-users to better represent opportunities for us to drive additional platform and product revenue.
Previous wording
We define 90-Day Engaged Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 90 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total 90-Day Engaged Users and the prior owner is removed from the total 90-Day Engaged Users if the prior owner does not own any other registered connected machines. 90-Day Engaged Users excludes non-users to better represent opportunities for us to drive additional platform and accessories and materials revenue.
Current wording
We define 90-Day Engaged Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 90 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total 90-Day Engaged Users and the prior owner is removed from the total 90-Day Engaged Users if the prior owner does not own any other registered connected machines. 90-Day Engaged Users excludes non-users to better represent opportunities for us to drive additional platform and product revenue.
Previous wording
We define Paid Subscribers as the number of users with a subscription to Cricut Access or Cricut Access Premium, excluding cancelled, unpaid or free trial subscriptions, as of the end of a period. Paid Subscribers is a key metric to track growth in our Platform revenue and potential leverage in our gross margin.
Current wording
We define Paid Subscribers as the number of users with a subscription to Cricut Access or Cricut Access Premium, excluding cancelled, unpaid, paused, or free trial subscriptions, as of the end of a period. Paid Subscribers is a key metric to track growth in our Platform revenue and potential leverage in our gross margin.
Previous wording
We generate Platform revenue primarily from sales of subscriptions to Cricut Access and Cricut Access Premium, digital content, and a minimal amount of revenue allocated to the unspecified future upgrades and enhancements related to the essential software and access to our cloud-based services. For a monthly or annual subscription fee, Cricut Access includes a subscription to images, fonts and projects as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. For our annual subscription fee, Cricut Access Premium includes all the benefits of Cricut Access as well as additional discounts and preferred shipping. Digital content includes à la carte digital content purchases, including fonts, images and projects. Platform revenue is recognized on a ratable basis over time, during the subscription term for subscriptions, and at the point in time when control is transferred for à la carte digital content.
Current wording
We generate Platform revenue primarily from sales of subscriptions to Cricut Access and Cricut Access Premium, digital content, and a minimal amount of revenue allocated to the unspecified future upgrades and enhancements related to the essential software and access to our cloud-based services. For a monthly or annual subscription fee, Cricut Access includes a subscription to images, fonts and projects as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. For our annual subscription fee, Cricut Access Premium includes all the benefits of Cricut Access as well as additional discounts and preferred shipping. Digital content includes à la carte digital content purchases, including fonts, images, templates, and projects. Platform revenue is recognized on a ratable basis over time, during the subscription term for subscriptions, and at the point in time when control is transferred for à la carte digital content.
Previous wording
We generate Products revenue from sales of connected machines and ancillary products, net of sales discounts, rebates and returns, and includes amounts allocated to the material right for discounts on materials and accessories available only to Paid Subscribers. Our connected machines portfolio consists of machines in four product families: Cricut Maker, which includes Maker, Maker 3, and Maker 4; Cricut Explore, which includes Explore Air 2, Explore 3, and Explore 4; Cricut Joy, which includes Joy and Joy Xtra; and Cricut Venture. Our ancillary products include Cricut EasyPress, Cricut MugPress, hand tools, machine replacement tools and blades, and project materials such as adhesive vinyl and iron-on vinyl. Products revenue is recognized at the point in time when control is transferred, which is either upon shipment or delivery to the customer in accordance with the terms of each customer contract.
Current wording
We generate Products revenue from sales of connected machine bundles and ancillary products, net of sales discounts, rebates and returns. Our connected machines portfolio consists of machines in four product families: Cricut Maker, which includes Maker, Maker 3, and Maker 4; Cricut Explore, which includes Explore Air 2, Explore 3, Explore 4, and Explore 5; Cricut Joy, which includes Joy, Joy Xtra, and Joy 2; and Cricut Venture. Our ancillary products include Cricut EasyPress, Cricut MugPress, hand tools, machine replacement tools and blades, and project materials such as adhesive vinyl and iron-on vinyl. Products revenue is recognized at the point in time when control is transferred, which is either upon shipment or delivery to the customer in accordance with the terms of each customer contract.
Previous wording
Research and development expenses consist primarily of costs associated with the development of our connected machines, software and accessories and materials, including personnel-related expenses for engineering, product development and quality assurance, as well as prototype costs, service fees incurred by contracting with vendors and allocated overhead. We expect our research and development expenses to increase in the near term as we refine our product roadmaps.
Current wording
Research and development expenses consist primarily of costs associated with the development of our platform and products, including personnel-related expenses for engineering, product development and quality assurance, as well as prototype costs, service fees incurred by contracting with vendors and allocated overhead. We expect our research and development expenses to increase in the near term as we refine our product roadmaps.
Previous wording
General and administrative expenses consist of personnel-related expenses for our finance, legal, human resources and administrative personnel, including salaries and bonuses, benefits and stock-based compensation expense, as well as the costs of professional services, any allocated overhead, information technology, impairment charges of unused equipment, and other administrative expenses. We expect our general and administrative expenses as a percentage of revenue to increase in the near term as we expand our operations, invest in systems enhancements, and incur expenses required of a public company.
Current wording
General and administrative expenses consist of personnel-related expenses for our finance, legal, human resources and administrative personnel, including salaries and bonuses, benefits and stock-based compensation expense, as well as the costs of professional services, any allocated overhead, information technology, impairment charges of unused equipment, and other administrative expenses. We expect our general and administrative expenses as a percentage of revenue to increase in the near term as we expand our operations, and invest in systems enhancements.
Previous 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.
Current 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.
Previous wording
Comparison of the Three and Nine Months Ended September 30, 2025 and 2024
Current wording
Comparison of the Three Months Ended March 31, 2026 and 2025
Previous 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.
Current wording
Platform revenue increased by $4.8 million, or 6%, to $84.8 million for the three months ended March 31, 2026, from $80.0 million for the three months ended March 31, 2025. The increase was driven by an increase in Paid Subscribers from 3.0 million as of March 31, 2025 to nearly 3.1 million as of March 31, 2026.
Previous 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.
Current wording
Gross margin for Platform was 89% for the three months ended March 31, 2026, and 89% for the three months ended March 31, 2025.
Previous 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.
Current wording
Gross marginfor Products was 23% for the three months ended March 31, 2026 and 33% for the three months ended March 31, 2025. The decrease was primarily driven by smaller reduction of inventory reserves compared to the prior year combined with higher tariffs and increased promotional activity.
Previous 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.
Current wording
Research and development expenses increased by $0.9 million, or 6%, to $16.6 million for the three months ended March 31, 2026 from $15.7 million for the three months ended March 31, 2025. The increase was primarily due to a $0.9 million increase in personnel-related expense.
Previous 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.
Current wording
Sales and marketing expenses decreased by $0.4 million, or 1%, to $36.3 million for the three months ended March 31, 2026 from $36.7 million for the three months ended March 31, 2025. The decrease was primarily driven by a $0.3 million decrease in advertising and other marketing costs and a $0.3 million decrease in professional services and a $0.2 million decrease in payment processing fees. This was partially offset by a $0.6 million increase in software subscriptions.
Previous 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.
Current wording
General and administrative expenses increased by $0.2 million, or 1%, to $16.9 million for the three months ended March 31, 2026 from $16.7 million for the three months ended March 31, 2025. The increase was primarily driven by a $1.9 million reversal of bad debt expense in 2025. This was partially offset by a $1.7 million decrease in professional services expense.
Previous 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.
Current wording
Other income, net decreased by $1.1 million or 33% to $2.2 million for the three months ended March 31, 2026 from $3.3 million for the three months ended March 31, 2025. The decrease was primarily driven by a decrease in interest income.
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 $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.
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 $236.5 million and $19.2 million, respectively, as of March 31, 2026, 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 nine months ended September 30, 2025, we paid dividends of $202.1 million to holders of Class A and Class B common stock.
Current wording
During the three months ended March 31, 2026, we paid dividends of $21.2 million to holders of Class A and Class B common stock.
Previous 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.
Current wording
The change in net cash flows from operating activities for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 is due to a net decrease in operating assets and liabilities of $5.2 million in 2026 compared to $32.0 million in 2025, offset by an increase in non-cash operating expenses of $11.8 million in 2026 compared to $5.3 million in 2025.
Previous 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.
Current wording
The change in net cash flows from investing activities for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was due primarily to higher capitalizable software development costs in 2026 compared to 2025.
Previous 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.
Current wording
Net cash flows from financing activities for the three months ended March 31, 2026 compared to three months ended March 31, 2025 were comparable.