Cricut, Inc.

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 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.

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 approximately 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, stickers, 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, print 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. 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:

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, use customizable user templates, 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

As of June 30, 2026, we had 3.1 million Paid Subscribers (as defined below) to Cricut Access Standard and Cricut Access Premium.

Current wording

As of September 30, 2026, we had approximately 3.1 million Paid Subscribers (as defined below) to Cricut Access Standard and Cricut Access Premium.

Previous 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.

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 experiencing 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

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 wording

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. As of September 30, 2026, $18.8 million was recognized as a reduction of product cost of revenue, $0.8 million was recorded as a reduction of inventory, and $0.7 million was recognized as interest income. As of September 30, 2026, we had received $20.3 million in cash and recorded a receivable of $0.0 million for the remaining approved refund amount.

Previous wording

We operate and manage our business in two reportable segments: Platform and Products. We identify our reportable segments based on the information used by management to monitor performance and make operating decisions. See Note 15 to our unaudited consolidated financial statements included elsewhere in this filing for additional information regarding our reportable segments.

Current wording

We operate and manage our business in two reportable segments: Platform and Products. We identify our reportable segments based on the information used by management to monitor performance and make operating decisions. See Note 15 to our unaudited condensed consolidated financial statements included elsewhere in this filing for additional information regarding our reportable segments.

Previous 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.

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 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 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.

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 five product families: Cricut Maker, which includes Maker, Maker 3, Maker 4, and Maker 5; Cricut Explore, which includes Explore Air 2, Explore 3, Explore 4, and Explore 5; Cricut Joy, which includes Joy, Joy Xtra, and Joy 2; Cricut Venture, and Cricut StickerPix, which includes Cricut StickerPix Print and StickerPix Print + Cut. Our ancillary products include Cricut EasyPress, Cricut MugPress, Cricut AutoPress 2, 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

Sales and marketing expenses consist primarily of the advertising and marketing of our products, third-party payment processing fees, personnel-related expenses, including salaries and bonuses, benefits and stock-based compensation expense, as well as customer rebates, professional services, promotional items, and allocated overhead costs. We expect our sales and marketing expenses as a percentage of revenue to fluctuate in the near term.

Current wording

Sales and marketing expenses consist primarily of advertising and marketing of our products, third-party payment processing fees, personnel-related expenses, including salaries and bonuses, benefits and stock-based compensation expense, as well as customer rebates, professional services, promotional items, and allocated overhead costs. We expect our sales and marketing expenses as a percentage of revenue to fluctuate in the near term.

Previous wording

Comparison of the Three and Six Months Ended June 30, 2026 and 2025

Current wording

Comparison of the Three and Nine Months Ended September 30, 2026 and 2025

Previous 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.

Current wording

Platform revenue increased by $3.1 million, or 4%, to $85.9 million for the three months ended September 30, 2026, from $82.8 million for the three months ended September 30, 2025. The increase was driven by an increase in Paid Subscribers from 3.0 million as of September 30, 2025 to nearly 3.1 million as of September 30, 2026.

Previous wording

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.

Current wording

Platform revenue increased by $12.2 million, or 5%, to $255.7 million for the nine months ended September 30, 2026, from $243.5 million for the nine months ended September 30, 2025. The increase was driven by an increase in Paid Subscribers from 3.0 million as of September 30, 2025 to nearly 3.1 million as of September 30, 2026.

Previous wording

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 wording

Products revenue decreased by $13.0 million, or 5%, to $248.7 million for the nine months ended September 30, 2026, from $261.7 million for the nine months ended September 30, 2025. The decrease was primarily driven by lower average selling prices from increased promotional activity compared to the prior year.

Previous 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.

Current wording

Gross margin for Platform was 90% for the three months ended September 30, 2026, and 89% for the three months ended September 30, 2025. The increase was primarily driven by lower software development costs due to higher capitalization.

Previous 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.

Current wording

Gross marginfor Products was 31% for the three months ended September 30, 2026 and 23% for the three months ended September 30, 2025. The increase was primarily driven by lower inventory procurement costs and a reduction in net inventory impairment charges.

Previous wording

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 wording

Gross margin for Platform was 91% for the nine months ended September 30, 2026, and 89% for the nine months ended September 30, 2025. The increase was primarily driven by a favorable legal outcome.

Previous wording

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 wording

Products cost of revenue decreased by $22.3 million, or 12%, to $162.4 million for the nine months ended September 30, 2026, from $184.8 million for the nine months ended September 30, 2025. The decrease was primarily driven by IEEPA tariff refunds.

Previous wording

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 wording

Gross marginfor Products was 35% for thenine months ended September 30, 2026 and 29% for thenine months ended September 30, 2025. The increase was primarily driven by IEEPA tariff refunds and lower inventory procurement costs, partially offset by an increase in net inventory impairment charges.

Previous wording

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 wording

Research and development expenses increased by $0.2 million, or 1%, to $17.1 million for the three months ended September 30, 2026 from $16.9 million for the three months ended September 30, 2025. The increase was primarily due to a $0.6 million increase in personnel related expenses. This was partially offset by a $0.3 million decrease in professional services.

Previous 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.

Current wording

Research and development expenses increased by $1.3 million, or 3%, to $50.5 million for the nine months ended September 30, 2026 from $49.3 million for the nine months ended September 30, 2025. The increase was primarily due to a $1.5 million increase in personnel related expenses and a $0.7 million increase in product development expense. This was partially offset by a $0.6 million decrease in professional services.

Previous wording

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 wording

Sales and marketing expenses increased by $3.7 million, or 10%, to $41.2 million for the three months ended September 30, 2026 from $37.5 million for the three months ended September 30, 2025. The increase was primarily driven by a $3.8 million increase in advertising and other marketing costs.

Previous 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.

Current wording

Sales and marketing expenses increased by $5.5 million, or 5%, to $115.5 million for the nine months ended September 30, 2026 from $110.0 million for the nine months ended September 30, 2025. The increase was primarily driven by a $6.0 million increase in advertising and other marketing costs and a $1.0 million increase in software subscriptions. This was partially offset by a $1.3 million decrease in payment processing fees.

Previous wording

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 wording

General and administrative expenses decreased by $0.4 million, or 2%, to $16.7 million for the three months ended September 30, 2026 from $17.1 million for the three months ended September 30, 2025. The decrease was primarily driven by a $0.6 million decrease in professional services expense. This was partially offset by a $0.2 million increase in foreign currency translation.

Previous 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.

Current wording

General and administrative expenses decreased by $4.9 million, or 9%, to $47.7 million for the nine months ended September 30, 2026 from $52.6 million for the nine months ended September 30, 2025. The decrease was primarily driven by a $4.5 million decrease in professional services expense and a $3.1 million decrease in personnel related expenses. This was partially offset by an increase of $1.6 million driven by a reversal of bad debt expense in 2025 and a $1.2 million increase in foreign currency translation.

Previous 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.

Current wording

Other income, net decreased by $0.5 million or 17% to $2.5 million for the three months ended September 30, 2026 from $3.0 million for the three months ended September 30, 2025. The decrease was primarily driven by a decrease in interest income.

Previous wording

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 wording

Other income, net decreased by $2.4 million or 24% to $7.6 million for the nine months ended September 30, 2026 from $10.0 million for the nine months ended September 30, 2025. The decrease was primarily driven by a decrease in interest income.

Previous wording

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.

Current wording

Provision for income taxes increased by $1.4 million, or 6%, to $24.6 million for the nine months ended September 30, 2026 from $23.2 million for the nine months ended September 30, 2025. The increase was primarily due to a $19.7 million increase in pre-tax book 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 $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.

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 $174.6 million and $98.1 million, respectively, as of September 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 New Credit Agreement by up to an additional amount not to exceed the greater of $225.0 million and 1.5 times consolidated EBITDA (see Note 16) will be sufficient to satisfy our cash requirements over the next 12 months and beyond. Except for the semi-annual dividends 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, 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.

Current wording

During the nine months ended September 30, 2026, we paid cash dividends of $42.1 million to holders of Class A and Class B common stock. On October 30, 2026, our Board of Directors approved a special dividend of

Previous 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.

Current wording

The change in net cash flows from operating activities for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 is due to a net decrease in operating assets and liabilities of $12.1 million in 2026 compared to a net increase of $34.2 million in 2025, partially offset by higher net income and non-cash items in net income in 2026 compared to 2025.

Previous 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.

Current wording

The change in net cash flows from investing activities for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 is due to purchases of marketable securities in 2026, lower proceeds from maturities of marketable securities received in 2026 as compared to 2025, and higher purchases of property and equipment, including capitalized software development costs in 2026 compared to 2025.