Cricut (CRCT) investor relations material

Executive summary

• Q2 2026 revenue was $156.3 million, down 9% year-over-year, with platform revenue up 5% to $85.0 million and products revenue down 22% to $71.3 million due to lower volumes and increased promotional activity.

• Net income rose to $39.1 million, up 59–60% from Q2 2025, reflecting improved profitability from higher gross margins, IEEPA tariff refunds, and a royalty settlement.

• Double-digit machine sell-out growth and improved user engagement were driven by a platform-first strategy and new global marketing campaigns.

• Paid subscribers increased by 93,000 year-over-year to 3.1 million, with ARPU up 5% to $56.37 and active users nearing 6 million.

• Focus remains on user acquisition, engagement, and monetization through innovation and marketing.

Financial highlights

• Q2 2026 revenue was $156.3 million, down 9–9.2% year-over-year.

• Net income reached $39.1 million (25% of sales), up from $24.5 million in Q2 2025.

• Platform revenue grew 5% to $85 million, while product revenue fell 22% to $71.3 million.

• Gross margin rose to 74.5% (up from 59–60.5%), driven by $17.9 million in IEEPA tariff refunds and a $6.4 million royalty settlement.

• Operating income was $47.4 million (30.3% margin), up from $30.1 million (17.5%) last year.

• Cash from operations was $50.4 million; cash and equivalents totaled $266.9–$286.3 million with no debt.

Outlook and guidance

• Platform revenue is expected to grow each quarter, with product and platform growth projected for the second half of 2026.

• Profitability and positive cash flow are anticipated for each quarter and the full year.

• Ongoing investments in R&D, product launches, and marketing, especially internationally.

• Management expects continued cost pressures from global supply chain disruptions and higher input costs.

• No specific margin guidance due to tariff and cost uncertainties.