Cricut (NASDAQ:CRCT) Posts Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Cricut (NASDAQ:CRCT) posted its quarterly earnings data on Tuesday. The company reported $0.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $0.13, FiscalAI reports. The company had revenue of $156.28 million for the quarter, compared to the consensus estimate of $159.95 million. Cricut had a net margin of 10.36% and a return on equity of 21.37%.

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 Up 2.3%

NASDAQ CRCT opened at $4.90 on Wednesday. Cricut has a twelve month low of $3.73 and a twelve month high of $6.93. The business has a 50-day moving average price of $4.45 and a 200-day moving average price of $4.33. The firm has a market cap of $1.03 billion, a price-to-earnings ratio of 14.00 and a beta of 0.19.

Insiders Place Their Bets

In other Cricut news, CEO Arora Ashish sold 60,000 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $3.95, for a total transaction of $237,000.00. Following the completion of the sale, the chief executive officer directly owned 4,461,592 shares of the company’s stock, valued at $17,623,288.40. This trade represents a 1.33% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ryan Harmer sold 17,267 shares of Cricut stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $4.12, for a total transaction of $71,140.04. Following the sale, the insider owned 325,579 shares in the company, valued at approximately $1,341,385.48. The trade was a 5.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 93,633 shares of company stock worth $378,514 in the last three months. 16.48% of the stock is owned by company insiders.

Institutional Trading of Cricut

Hedge funds have recently bought and sold shares of the stock. Jane Street Group LLC boosted its holdings in shares of Cricut by 43.7% during the 1st quarter. Jane Street Group LLC now owns 20,176 shares of the company’s stock valued at $104,000 after purchasing an additional 6,140 shares during the last quarter. Legal & General Group Plc lifted its position in shares of Cricut by 15.8% in the second quarter. Legal & General Group Plc now owns 59,246 shares of the company’s stock worth $401,000 after buying an additional 8,095 shares in the last quarter. Franklin Resources Inc. purchased a new stake in shares of Cricut in the second quarter worth about $232,000. Russell Investments Group Ltd. boosted its stake in Cricut by 288.7% during the second quarter. Russell Investments Group Ltd. now owns 21,017 shares of the company’s stock valued at $142,000 after buying an additional 15,610 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in Cricut by 20.9% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 911,221 shares of the company’s stock valued at $6,169,000 after buying an additional 157,448 shares in the last quarter. Hedge funds and other institutional investors own 19.60% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. The Goldman Sachs Group reiterated a “sell” rating and issued a $3.75 price target on shares of Cricut in a research report on Wednesday, May 6th. Weiss Ratings raised Cricut from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Cricut currently has a consensus rating of “Strong Sell” and an average price target of $3.88.

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.