Cricut, Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 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.
Jun 30, 2026 · Filed Aug 5, 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 2026-03-31; filed 2026-05-06.
0001828962-26-000039
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001828962-26-000049
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 87 previous paragraphs and 100 current paragraphs.
62 unchanged; 21 reworded; 16 added; 4 removed; 0 previous and 1 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 (16)
Current report
On February 20, 2026, the U.S. Supreme Court ruled that IEEPA tariffs were unauthorized. Following the ruling, CBP established a phased refund process through its CAPE functionality. In April 2026, we submitted a refund request for eligible IEEPA tariff entries through the initial phase of the CAPE process. During the second quarter of 2026, CBP approved refunds, including interest, totaling $20.3 million. Of the approved amount, $17.9 million was recognized as a reduction of product cost of revenue, $1.7 million was recorded as a reduction of inventory, and $0.7 million was recognized as interest income. As of June 30, 2026, we had received $16.8 million in cash and recorded a receivable of $3.5 million for the remaining approved refund amount.
Current report
Products revenue decreased by $20.1 million, or 22%, to $71.3 million for the three months ended June 30, 2026, from $91.4 million for the three months ended June 30, 2025. The decrease was primarily driven by lower sales volume and lower average selling prices from increased promotional activity compared to the prior year.
Current report
Six Months Ended June 30, 2026 and 2025
Current report
Products revenue decreased by $28.1 million, or 16%, to $146.0 million for the six months ended June 30, 2026, from $174.1 million for the six months ended June 30, 2025. The decrease was primarily driven by lower sales volume and lower average selling prices from increased promotional activity compared to the prior year.
Current report
Platform cost of revenue decreased by $2.9 million, or 32%, to $6.0 million for the three months ended June 30, 2026, from $8.8 million for the three months ended June 30, 2025. The decrease was primarily driven by a favorable legal outcome.
Current report
Products cost of revenue decreased by $27.8 million, or 45%, to $33.9 million for the three months ended June 30, 2026, from $61.8 million for the three months ended June 30, 2025. The decrease was primarily driven by IEEPA tariff refunds, lower sales volume, and a favorable legal outcome.
Current report
Six Months Ended June 30, 2026 and 2025
Current report
Platform cost of revenue decreased by $2.2 million, or 12%, to $15.3 million for the six months ended June 30, 2026, from $17.5 million for the six months ended June 30, 2025. The decrease was primarily driven by a favorable legal outcome.
Current report
Gross margin for Platform was 91% for the six months ended June 30, 2026, and 89% for the six months ended June 30, 2025. The increase was primarily driven by a favorable legal outcome.
Current report
Products cost of revenue decreased by $26.0 million, or 22%, to $91.3 million for the six months ended June 30, 2026, from $117.4 million for the six months ended June 30, 2025. The decrease was primarily driven by IEEPA tariff refunds, lower sales volume, and a favorable legal outcome.
Current report
Gross marginfor Products was 37% for thesix months ended June 30, 2026 and 33% for thesix months ended June 30, 2025. The increase was primarily driven by IEEPA tariff refunds and a favorable legal outcome.
Current report
Research and development expenses increased by $0.1 million, or 1%, to $16.9 million for the three months ended June 30, 2026 from $16.8 million for the three months ended June 30, 2025. The increase was primarily due to a $0.2 million increase in product development expense.
Current report
Sales and marketing expenses increased by $2.1 million, or 6%, to $38.0 million for the three months ended June 30, 2026 from $35.9 million for the three months ended June 30, 2025. The increase was primarily driven by a $2.6 million increase in advertising and other marketing expense. This was partially offset by a $0.4 million decrease in payment processing fees.
Current report
General and administrative expenses decreased by $4.7 million, or 25%, to $14.1 million for the three months ended June 30, 2026 from $18.8 million for the three months ended June 30, 2025. The decrease was primarily driven by a $2.2 million decrease in professional services expense, a $2.0 million decrease of personnel related expenses and a $0.8 million reduction in bad debt expense. This was partially offset by a $0.7 million increase in foreign currency translation.
Current report
Other income, net decreased by $1.9 million or 27% to $5.1 million for the six months ended June 30, 2026 from $7.0 million for the six months ended June 30, 2025. The decrease was primarily driven by a decrease in interest income.
Current report
Provision for income taxes increased by $1.9 million, or 20%, to $11.3 million for the three months ended June 30, 2026 from $9.4 million for the three months ended June 30, 2025. The increase was primarily due to a $16.5 million increase in pre-tax book income.
Removed paragraphs (4)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (21)
Previous 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.
Current wording
•Cricut Access Standard: Provides a subscription to fonts, images, templates, projects, and AI credits as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. Cricut Access Standard 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 AI credits, and is billed monthly starting at $14.99 per month or annually at $119.88 per year.
Current wording
•Cricut Access Premium: Includes all of the benefits of Cricut Access Standard as well as additional discounts, additional AI credits, and is billed monthly starting at $14.99 per month or annually at $119.88 per year.
Previous wording
As of March 31, 2026, we had nearly 3.1 million Paid Subscribers (as defined below) to Cricut Access and Cricut Access Premium.
Current wording
As of June 30, 2026, we had 3.1 million Paid Subscribers (as defined below) to Cricut Access Standard and Cricut Access Premium.
Previous 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.
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 Standard and Cricut Access Premium, on Cricut.com.
Previous wording
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 wording
The current global macroeconomic environment, including regulation, tariffs that have materially increased, and may continue to increase even after tariffs imposed under IEEPA were rescinded, 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 beginning to experience supply-chain cost pressure related to the Middle East conflict, primarily through 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.
Previous 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.
Current wording
We define Paid Subscribers as the number of users with a subscription to Cricut Access Standard 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, 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.
Current wording
We generate Platform revenue primarily from sales of subscriptions to Cricut Access Standard 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 Standard includes a subscription to fonts, images, templates, projects, and AI credits as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. Cricut Access Premium includes all the benefits of Cricut Access Standard as well as additional discounts and AI credits. 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
Comparison of the Three Months Ended March 31, 2026 and 2025
Current wording
Comparison of the Three and Six Months Ended June 30, 2026 and 2025
Previous 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.
Current wording
Platform revenue increased by $4.3 million, or 5%, to $85.0 million for the three months ended June 30, 2026, from $80.7 million for the three months ended June 30, 2025. The increase was driven by an increase in Paid Subscribers from 3.0 million as of June 30, 2025 to 3.1 million as of June 30, 2026.
Previous 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.
Current wording
Gross margin for Platform was 93% for the three months ended June 30, 2026, and 89% for the three months ended June 30, 2025. The increase was primarily driven by a favorable legal outcome.
Previous 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.
Current wording
Gross marginfor Products was 52% for the three months ended June 30, 2026 and 32% for the three months ended June 30, 2025. The increase was primarily driven by IEEPA tariff refunds and a favorable legal outcome.
Previous 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.
Current wording
Research and development expenses increased by $1.0 million, or 3%, to $33.5 million for the six months ended June 30, 2026 from $32.4 million for the six months ended June 30, 2025. The increase was primarily due to a $1.0 million increase in personnel related expenses.
Previous 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.
Current wording
Sales and marketing expenses increased by $1.8 million, or 2%, to $74.3 million for the six months ended June 30, 2026 from $72.6 million for the six months ended June 30, 2025. The increase was primarily driven by a $2.3 million increase in advertising and other marketing costs and a $1.1 million increase in software subscriptions. This was partially offset by a $0.7 million decrease in payment processing fees and a $0.6 million decrease in professional services expense.
Previous 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.
Current wording
General and administrative expenses decreased by $4.4 million, or 13%, to $31.0 million for the six months ended June 30, 2026 from $35.5 million for the six months ended June 30, 2025. The decrease was primarily driven by a $3.9 million decrease in professional services expense and a $2.5 million decrease in personnel related expenses. This was partially offset by an increase of $1.2 million driven by a reversal of bad debt expense in 2025 and a $1.0 million increase in foreign currency translation.
Previous 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.
Current wording
Other income, net decreased by $0.8 million or 23% to $2.9 million for the three months ended June 30, 2026 from $3.7 million for the three months ended June 30, 2025. The decrease was primarily driven by a decrease in interest income.
Previous wording
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”).
Current wording
Provision for income taxes decreased by $2.0 million, or 11%, to $16.0 million for the six months ended June 30, 2026 from $18.1 million for the six months ended June 30, 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”).
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 $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.
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 $266.9 million and $19.4 million, respectively, as of June 30, 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 three months ended March 31, 2026, we paid dividends of $21.2 million to holders of Class A and Class B common stock.
Current wording
During the six months ended June 30, 2026, we paid dividends of $21.2 million to holders of Class A and Class B common stock. On July 21, 2026, we paid a dividend of $20.9 million to holders of Class A and Class B common stock.
Previous 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.
Current wording
The change in net cash flows from operating activities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 is due to a net decrease in operating assets and liabilities of $2.0 million in 2026 compared to a net increase of $38.9 million in 2025, offset by a net increase in non-cash operating expenses of $19.8 million in 2026 compared to a net increase of $10.0 million in 2025.
Previous 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.
Current wording
The change in net cash flows from investing activities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was due primarily to proceeds from maturities of marketable securities received in 2025. This was partially offset by higher capitalized software development costs in 2026 compared to 2025.
Previous 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.
Current wording
Net cash flows from financing activities for the six months ended June 30, 2026 compared to six months ended June 30, 2025 were comparable.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Platform revenue increased by $9.1 million, or 6%, to $169.8 million for the six months ended June 30, 2026, from $160.7 million for the six months ended June 30, 2025. The increase was driven by an increase in Paid Subscribers from 3.0 million as of June 30, 2025 to 3.1 million as of June 30, 2026.