Cricut (NASDAQ:CRCT) Issues Earnings Results

Cricut (NASDAQ:CRCT) announced its earnings results on Tuesday. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.13, FiscalAI reports. Cricut had a net margin of 12.71% and a return on equity of 24.83%. The business had revenue of $156.28 million for the quarter, compared to the consensus estimate of $159.95 million.

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

• Platform revenue grew more than 5% to $85 million, while paid subscribers increased by 93,000 year over year to just over 3.1 million; ARPU rose 5% to $56.37.
• Connected-machine sell-in and sell-out units grew at double-digit rates in the first half, led by the Joy 2 and Explore 5 bundles, while active and 90-day engaged users stabilized year over year.
• Total Q2 revenue fell approximately 9% to $156.3 million, with product revenue down 22% to $71.3 million amid weaker accessories and materials volumes, promotional pricing, product mix, and difficult comparisons with last year’s tariff-related pull-forward.
• Reported profitability benefited substantially from one-time items, including $17.9 million of IEEPA tariff refunds and a $6.4 million royalty-reserve release; management expects second-half growth in products and platform but continues to face tariff, input-cost, supply-chain, and cautious-consumer pressures.

Cricut Stock Down 5.0%

CRCT traded down $0.30 on Thursday, reaching $5.76. The company had a trading volume of 409,737 shares, compared to its average volume of 557,945. The stock has a market capitalization of $1.21 billion, a PE ratio of 13.43 and a beta of 0.19. Cricut has a 1 year low of $3.73 and a 1 year high of $6.93. The stock has a 50-day moving average price of $4.48 and a 200-day moving average price of $4.35.

Insider Transactions at Cricut

In other news, CEO Arora Ashish sold 60,000 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $5.98, for a total value of $358,800.00. Following the completion of the sale, the chief executive officer owned 4,207,105 shares in the company, valued at approximately $25,158,487.90. This trade represents a 1.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ryan Harmer sold 17,267 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $4.12, for a total value of $71,140.04. Following the sale, the insider directly owned 325,579 shares in the company, valued at $1,341,385.48. This trade represents a 5.04% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 213,633 shares of company stock worth $1,023,514 over the last 90 days. 16.48% of the stock is currently owned by insiders.

Institutional Trading of Cricut

A number of hedge funds have recently made changes to their positions in CRCT. Mangrove Partners IM LLC bought a new position in Cricut in the fourth quarter worth about $184,000. PharVision Advisers LLC acquired a new position in Cricut during the 3rd quarter valued at about $101,000. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Cricut in the third quarter valued at approximately $172,000. Sei Investments Co. acquired a new position in shares of Cricut during the third quarter worth approximately $88,000. Finally, BNP Paribas Financial Markets increased its position in Cricut by 328.1% in the 3rd quarter. BNP Paribas Financial Markets now owns 18,678 shares of the company’s stock valued at $117,000 after acquiring an additional 14,315 shares during the period. Hedge funds and other institutional investors own 19.60% of the company’s stock.

More Cricut News

Here are the key news stories impacting Cricut this week:

• Positive Sentiment: Earnings significantly exceeded expectations: Cricut reported second-quarter adjusted earnings of $0.19 per share, compared with analyst estimates ranging from $0.04 to $0.06 and $0.11 in the prior-year quarter. Cricut Tops Q2 Earnings Estimates
• Positive Sentiment: Profitability improved sharply: Net income rose 59% year over year to $39.1 million. The company also maintained a recurring semiannual dividend of $0.10 per share, which may support the stock’s value appeal. Cricut Second-Quarter Results
• Positive Sentiment: Paid subscribers continued to grow: Cricut reported more than 3.1 million paid subscribers, up 3% from a year earlier, providing support for its recurring software and content revenue model. Cricut Q2 Earnings Call Transcript
• Neutral Sentiment: Several institutional investors increased their Cricut holdings during the first and second quarters, including Arrowstreet Capital, Russell Investments and Jane Street, indicating some professional-investor interest. However, institutional ownership remains relatively limited at about 19.6%.
• Negative Sentiment: Revenue declined and missed estimates: Second-quarter revenue fell 9% year over year to $156.3 million, below the roughly $160 million consensus forecast. This suggests that earnings growth was driven more by profitability and cost control than by sales growth. Cricut Earnings Report
• Negative Sentiment: CEO sales may weigh on sentiment: CEO Ashish Arora sold 60,000 shares on both August 3 and August 5, for combined proceeds of approximately $645,000. Both transactions were made under a pre-arranged Rule 10b5-1 plan, and he still owns more than 4.2 million shares, moderating—but not eliminating—the bearish signal. Cricut Insider Trading
• Negative Sentiment: Analyst sentiment remains weak: Cricut has a consensus “Strong Sell” rating, with an average price target of $3.82. Morgan Stanley maintained an Underweight rating with a $3.70 target, while Goldman Sachs maintained a Sell rating with a $3.75 target.

Analysts Set New Price Targets

CRCT has been the subject of several research reports. Morgan Stanley reissued an “underweight” rating and issued a $3.70 price objective on shares of Cricut in a research report on Wednesday. The Goldman Sachs Group restated a “sell” rating and issued a $3.75 price objective on shares of Cricut in a research note on Wednesday, May 6th. Finally, Weiss Ratings raised Cricut from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, Cricut presently has an average rating of “Strong Sell” and an average price target of $3.82.

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.