Cricut shares soar as earnings beat expectations by 83%

Published 05/08/2025, 21:56
Cricut shares soar as earnings beat expectations by 83%

Investing.com -- Cricut Inc. (NASDAQ:CRCT) reported second-quarter earnings that significantly exceeded analyst expectations, sending shares soaring 8.9% as the creative technology company delivered strong profit growth and subscriber gains.

The company reported earnings per share of $0.11 for the quarter ended June 30, 2025, beating analyst estimates of $0.06 by 83%. Revenue came in at $172.1 million, surpassing the consensus estimate of $158.59 million and representing a 2% increase YoY. The company also reported that its paid subscriber base grew 7% YoY to over 3 million subscribers.

"We posted solid results in Q2 with sales growth of 2%, operating income growth of 14%, EPS growth of 22%, and paid subscriber growth of 7% to over 3 million paid subscribers," said Ashish Arora, Chief Executive of Cricut.

Gross margin improved significantly to 59.0%, up from 53.5% in the same quarter last year. Operating income rose 14% to $30.1 million, representing 17.5% of revenue, while net income jumped 24% to $24.5 million compared to the second quarter of 2024.

The company’s platform revenue increased 4% to $80.7 million, while products revenue grew 1% to $91.4 million. International revenue showed particular strength, rising 8% and accounting for 21% of total revenue, up from 20% in the year-ago period.

"We continue to generate healthy cash flow on an annual basis, which funds inventory needs and investments for long-term growth," said Kimball Shill, Chief Financial Officer of Cricut. The company generated $36.2 million in cash from operations during the quarter and ended with $377 million in cash and cash equivalents, remaining debt-free.

After the quarter closed, Cricut paid $181 million in dividends, including a special dividend of $0.75 per share and a recurring semi-annual dividend of $0.10 per share, both paid on July 21, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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