Cricut (NASDAQ:CRCT) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Cricut (NASDAQ:CRCT) released its quarterly earnings results on Tuesday. The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.05 by $0.05, FiscalAI reports. Cricut had a net margin of 10.82% and a return on equity of 20.44%. The firm had revenue of $159.47 million during the quarter, compared to analyst estimates of $164.33 million.

Here are the key takeaways from Cricut’s conference call:

• Platform revenue grew nearly 6% YoY to $84.8M, paid subscribers rose by ~104k to ~3.08M and ARPU increased ~4.8% to $55.65, indicating improved platform monetization.
• Products revenue declined ~9.6% YoY (total revenue down ~2%) and product gross margin dropped to 23.1% from 32.7% due to inventory write-downs, lower ASPs, tariffs and promotions; management expects no total-company revenue growth in Q2 and sees a tougher first half.
• Management reported year-over-year growth in global machine sell-out and launched new hardware (Cricut Joy 2, Explore 5, EasyPress SE) plus a new DTF service with early encouraging metrics (≈80% of orders from subscribers, ~33% repeat), supporting future engagement and accessory/material monetization.
• The company remains profitable and cash-positive with $256M cash, no debt, continued share repurchases (Q1 buyback $12.2M; $29.1M remaining) and a recurring semiannual dividend of $0.10 per share, signaling shareholder-friendly capital allocation.

Cricut Price Performance

Shares of NASDAQ:CRCT traded up $0.06 during mid-day trading on Tuesday, reaching $4.22. 586,757 shares of the company traded hands, compared to its average volume of 424,862. The company’s 50 day moving average price is $4.21 and its 200-day moving average price is $4.61. The firm has a market cap of $893.71 million, a PE ratio of 11.72 and a beta of 0.22. Cricut has a 52 week low of $3.73 and a 52 week high of $7.33.

Insider Activity

In related news, CEO Arora Ashish sold 60,000 shares of the business’s stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $4.28, for a total transaction of $256,800.00. Following the completion of the transaction, the chief executive officer directly owned 3,738,453 shares in the company, valued at approximately $16,000,578.84. The trade was a 1.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last ninety days, insiders sold 193,458 shares of company stock worth $858,197. Insiders own 18.02% of the company’s stock.

Institutional Investors Weigh In On Cricut

Institutional investors have recently added to or reduced their stakes in the stock. Jane Street Group LLC lifted its holdings in shares of Cricut by 43.7% in the first quarter. Jane Street Group LLC now owns 20,176 shares of the company’s stock worth $104,000 after buying an additional 6,140 shares in the last quarter. Legal & General Group Plc boosted its position in shares of Cricut by 15.8% during the second quarter. Legal & General Group Plc now owns 59,246 shares of the company’s stock worth $401,000 after acquiring an additional 8,095 shares during the last quarter. Franklin Resources Inc. bought a new position in shares of Cricut during the second quarter worth $232,000. Russell Investments Group Ltd. boosted its position in shares of Cricut by 288.7% during the second quarter. Russell Investments Group Ltd. now owns 21,017 shares of the company’s stock worth $142,000 after acquiring an additional 15,610 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of Cricut by 20.9% during the second quarter. Arrowstreet Capital Limited Partnership now owns 911,221 shares of the company’s stock worth $6,169,000 after acquiring an additional 157,448 shares during the last quarter. 19.60% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have recently commented on CRCT. Weiss Ratings raised shares of Cricut from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, March 5th. Barclays reaffirmed an “underweight” rating and set a $4.00 price target on shares of Cricut in a research report on Wednesday, March 4th. UBS Group reaffirmed a “cautious” rating on shares of Cricut in a research report on Wednesday, March 4th. Finally, The Goldman Sachs Group reduced their price target on shares of Cricut from $3.50 to $3.00 and set a “sell” rating for the company in a research report on Wednesday, January 14th. One research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Strong Sell” and a consensus target price of $3.50.

Cricut Company Profile

Cricut, Inc (NASDAQ: CRCT) is a U.S.-based technology company specializing in personal and small-business crafting solutions. The company designs and markets a family of cutting machines that leverage computer-aided design to precisely cut a wide range of materials, including paper, vinyl, fabric and leather. Complementing its hardware offerings, Cricut provides proprietary software and mobile applications that enable users to create custom artwork, import graphics and access a vast library of pre-designed projects and fonts through a subscription service.

Founded as a division of Provo Craft & Novelty in 2005, Cricut emerged as an independent public company in March 2021.