Cricut, Inc. reported fourth‑quarter and full‑year 2025 results that highlighted a shift toward higher‑margin platform services and a continued focus on cash generation. The company posted a fourth‑quarter net income of $7.8 million, a 34% decline from the $11.9 million earned in the same period a year earlier, and a full‑year net income of $76.7 million, up 22% from $63.0 million in 2024.
Revenue for the year was $708.8 million, a 0.6% decline from $714.5 million in 2024. The drop was driven by an 8% decline in product revenue, including a 13% fall in accessories and materials, while platform revenue grew 6% to $83.9 million. The mix shift toward platform services helped offset the product decline and contributed to a gross margin expansion to 55.1% from 49.5% a year earlier.
The company’s cash from operations for 2025 rose to $200 million, up from $140 million in 2024, underscoring its ability to fund growth and shareholder returns. Cash and cash equivalents at year‑end were $276 million, unchanged from the prior year, and the company remains debt‑free.
Earnings per share for the quarter were $0.04, matching the consensus estimate of $0.04 and reflecting disciplined cost management amid a weaker product mix. Full‑year EPS was $0.04, up 22% from $0.03 in 2024, driven by the higher margin platform business and improved operating leverage.
Management noted that while the company is pleased with profitability and cash generation, it remains disappointed in the lack of sales growth. CEO Ashish Arora said the firm is “working with urgency and focus to drive a mass‑market experience, accelerating our development cycles, and competing better.” CFO Kimball Shill added that the company expects to be profitable each quarter and generate positive cash flow from operations in 2026, even as tariff uncertainty limits detailed guidance.
The results were well received by investors, with the stock rising 0.7% in after‑market trading. Analysts highlighted the margin expansion and cash flow strength as key positives, while noting the continued pressure on product sales and the need for continued investment in AI and new product roadmaps.
The earnings release signals that Cricut is sustaining profitability and cash generation as it navigates competitive pressures and tariff headwinds in its products segment, while continuing to invest in AI‑driven features and a subscription‑based model to drive future growth.
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