Cricut (CRCT) investor relations material

Executive summary

• Q1 2026 revenue was $159.5 million, down 2% year-over-year, with platform revenue up nearly 6% to $84.8 million and products revenue down 10% to $74.7 million due to lower average selling prices and promotions.

• Net income was $20.3 million (12.7% of sales), down 15% from Q1 2025, with operating income at $22.9 million (14.4% of revenue), reflecting lower gross profit and increased cost pressures.

• International revenue grew over 16% year-over-year, now representing 26% of total revenue, with strong results in Europe, Australia, Asia, and LATAM.

• Paid subscribers increased to nearly 3.1 million, ARPU rose to $55.65, and active users grew year-over-year, though sequential subscriber decline was noted.

• Launched new cutting machines, next-gen heat presses, and direct-to-film service, with strong early adoption and industry recognition.

Financial highlights

• Gross margin was 58.1%, down from 60.5% in Q1 2025; platform gross margin held at 89%, while product gross margin dropped to 23%.

• Operating expenses were flat year-over-year, with R&D up 6%, sales and marketing down 1%, and G&A up 1%.

• Cash from operations was $26.9 million, with $236.5–$256 million in cash and no debt at quarter end.

• Dividends of $21–$21.2 million were paid, and 2.8 million shares were repurchased for $12.2 million; $29.1 million remains on the $50 million buyback program.

• Basic and diluted EPS were $0.10, down from $0.11 year-over-year.

Outlook and guidance

• No total company revenue growth expected in Q2 due to tough comps; platform revenue expected to grow each quarter, with subscriber trends following normal seasonality.

• Second half of 2026 expected to benefit from new product launches, higher-priced bundles, and international expansion.

• Profitability and positive cash flow expected for each quarter and full year 2026.

• Ongoing tariff and cost pressures anticipated; no specific margin guidance due to recent tariff changes.

• Sufficient liquidity is anticipated for the next 12 months and beyond, supported by strong cash balances and available credit.