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Dec 31, 2025
Cricut Q4 2025 Earnings Report
Cricut Q4 2025 Earnings Report
Key Takeaways
Cricut reported a slight decline in Q4 revenue and net income despite a 6% growth in Platform revenue and improved gross margins. While the company achieved its 9th consecutive year of profitability and grew its paid subscriber base to over 3 million, management expressed disappointment in the lack of total sales growth and is focusing on accelerating product development and simplifying user experience to drive future mass-market adoption.
Net income for Q4 decreased to $7.8 million compared to $11.9 million in the prior year period.
Platform revenue grew 6% to $83.9 million, while Products revenue declined 8% to $119.7 million.
Paid subscribers increased by over 4% year-over-year, reaching 3.09 million.
Gross margin improved significantly to 47.4% in Q4 2025 from 44.9% in Q4 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cricut expects to remain profitable and cash flow positive throughout 2026 while investing in long-term growth initiatives.
Positive Outlook
- Expectation to be profitable in each quarter of 2026.
- Anticipated positive cash flow from operations during 2026.
- Launched two next-generation cutting machines and new heat presses in early 2026.
- Introduction of a new Direct To Film (DTF) service.
- Remaining $41.3 million authorized for stock repurchases.
Challenges Ahead
- Urgent need to address lack of total company sales growth.
- Ongoing pressure to accelerate development cycles to compete better.
- Dependence on successful rollout of new project guided flows to entire user base.
- Exposure to international trade risks and potential tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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