Cricut announced the launch of its new Joy 2 and Explore 5 cutting machines, which will ship on February 27 in the U.S. and Canada through Cricut.com and Michaels and in most international markets where the company sells. The Joy 2 is a compact, portable machine that adds a Print‑Then‑Cut sensor to support full‑color stickers and comes in three colors, including a Jade Green exclusive to Michaels. The Explore 5 is a 30 % smaller, more powerful version of the existing Explore line, featuring a snap‑in pen loader, improved writing and drawing capabilities, and new color options such as Taupe and a Michaels‑exclusive Teal. Pricing ranges from $99 to $229 for the Joy 2 and $199 to $349 for the Explore 5, with bundled options that include cutting tools, materials, and accessories to simplify the buying experience.
The launch is part of Cricut’s broader strategy to drive higher‑margin platform revenue while maintaining a strong hardware presence. The company’s Design Space platform now offers guided flows that help users select the right materials and tools for each project and a new Create AI feature that generates cut‑ready designs for paid subscribers. “Our users have consistently told us they want products that are easier to use and more affordable. We listened and simplified the entire experience end‑to‑end. From the moment they open the box, everything required to be successful is included. We guide them through a reimagined onboarding and design experience with intuitive, guided flows that take the guesswork out of making and make it easier than ever to go from idea to finished project with confidence,” said CEO Ashish Arora.
Cricut’s competitive position remains strong, with a 65‑70 % share of the North American market and a high‑margin subscription model that fuels its platform revenue. The company’s debt‑free balance sheet, $357 million in cash and cash equivalents, provides flexibility to invest in product innovation and ecosystem expansion. However, investor sentiment has been cautious in recent weeks due to insider selling by CEO Arora, who sold approximately $821,664 of shares between February 19 and February 23 under a Rule 10b5‑1 plan, and the upcoming Q4 2025 earnings release. The company’s strategy to broaden its product line is expected to support continued growth in both hardware sales and subscription revenue, but the market remains attentive to the company’s ability to sustain margin expansion amid competitive pressures.
Cricut’s new machines reinforce its ecosystem advantage, offering users a seamless blend of hardware, software, and content that creates high switching costs and customer loyalty. The Joy 2’s full‑color sticker capability and the Explore 5’s improved pen loader are designed to attract both hobbyists and small‑business creators, expanding the company’s addressable market. By bundling tools and materials, Cricut lowers the barrier to entry and encourages repeat purchases, which can translate into higher subscription uptake for its Design Space platform. The company’s focus on affordability and ease of use aligns with customer demand and positions Cricut to capture additional market share from competitors such as Siser and Brother while maintaining a profitable, high‑margin revenue mix.
The product launch signals Cricut’s continued commitment to innovation and ecosystem growth. While the company’s financials remain solid, the market’s focus on insider activity and upcoming earnings highlights the importance of sustained performance and margin discipline. The new Joy 2 and Explore 5 machines are expected to contribute to both short‑term hardware revenue and long‑term platform growth, supporting Cricut’s strategy to balance hardware sales with high‑margin subscription services.
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