CRCT earnings analysis
What we found in CRCT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Cricut delivered Q2 revenue of $156.285 million, down 9% year over year and below the supplied $161.531 million consensus, but diluted EPS of $0.19 rose from $0.11 a year ago and exceeded the supplied $0.05 estimate. Reported margin expansion was exceptional, with gross margin reaching 74.5% and operating margin 30.3%, although the result was materially aided by $20.3 million of IEEPA tariff refunds and a $6.4 million legal-settlement release. Platform growth and net-cash liquidity are constructive, but the 22% Products revenue decline, promotion-led pricing pressure, and lower six-month free cash flow support a neutral trend assessment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS nearly doubled year over year
- Q2 diluted EPS increased to $0.19 from $0.11 a year ago and $0.10 in Q1 2026. Net income rose $14.566 million year over year to $39.054 million despite a $15.827 million revenue decline.
- Margins expanded sharply
- Gross margin expanded to 74.5% from 59.0% a year ago and 58.1% in Q1 2026, while operating margin rose to 30.3% from 17.5% and 14.4%, respectively. Operating income increased $17.313 million year over year to $47.418 million.
- Recurring platform revenue continued growing
- Platform revenue grew $4.312 million, or 5%, to $85.009 million, supported by Paid Subscribers increasing to 3.103 million from 3.010 million. Platform gross margin improved to 93% from 89%.
- Tariff refunds boosted reported profitability
- The company received $20.3 million of approved IEEPA tariff refunds, including $17.9 million recognized as a reduction in product cost of revenue, $1.7 million reducing inventory, and $0.7 million of interest income.
- Net-cash balance sheet and full revolver access
- Liquidity remained substantial: cash increased $10.695 million from December 31 to $266.911 million, marketable securities were $19.354 million, and the $300.0 million revolver was fully undrawn at June 30.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue contraction persisted
- Total revenue fell $15.827 million, or 9%, year over year to $156.285 million and declined $3.186 million from Q1 2026 revenue of $159.471 million. North America revenue declined $15.460 million to $120.365 million.
- Products demand and pricing remained weak
- Products revenue fell $20.139 million, or 22%, to $71.276 million, driven by lower sales volume and lower average selling prices from increased promotional activity. The segment's revenue decline was much larger than Platform's $4.312 million increase.
- Margin gains were materially non-recurring
- The 74.5% consolidated gross margin includes discrete benefits: $17.9 million of tariff refunds reduced product cost of revenue and a $6.4 million legal-claim settlement release reduced Platform and Products cost of revenue by $3.2 million each. These items make the quarter's margin less representative of underlying run-rate profitability.
- Cash conversion and capex intensity worsened
- Six-month operating cash flow declined to $77.204 million from $97.323 million, while capex rose to $18.634 million from $10.594 million. Six-month free cash flow was therefore $58.570 million, down from $86.729 million, and capex intensity rose to 5.9% of revenue from 3.2%.
- Tariff and input-cost uncertainty remains
- Management cites supply-chain cost pressure from the Middle East conflict, particularly fuel and petrochemical inputs, and says tariffs may continue to increase even after IEEPA tariffs were rescinded. The company recorded $3.5 million of approved tariff refunds still receivable at June 30.
- No material risk-factor updates disclosed
- Item 1A states there were no material changes to risks previously disclosed in the December 31, 2025 Form 10-K and the March 31, 2026 Form 10-Q. Thus, the filing adds no new quantified risk-factor disclosure despite the operational headwinds above.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.19
- Gross margin
- 74.5%
- Operating margin
- 30.3%
- Segment
- Platform revenue: $85.009 million (+$4.312 million, +5% YoY); gross profit: $79.045 million
- Segment
- Products revenue: $71.276 million (-$20.139 million, -22% YoY); gross profit: $37.363 million
What they said about what is next.
The 10-Q provides no numeric revenue or EPS outlook. Management says cash, marketable securities and available borrowing capacity should be sufficient for the next 12 months and beyond, but flags regulatory uncertainty, tariffs, Middle East-related fuel and petrochemical input costs, and consumer price sensitivity.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- Cricut, Inc. reported Q1 2026 revenue of $159.5 million, down 2% from $162.6 million in the same quarter last year, and diluted EPS of $0.10, compared to $0.11 in Q1 2025. The company's revenue was below consensus…
- 10-K · March 4, 2026
- Cricut describes a vertically integrated hardware + software platform with nearly 5.9 million Active Users and 3.09 million paid subscribers (Dec 31, 2025). Revenue was essentially flat at $708.8M in 2025 (-1% Y/Y)…
- 10-Q · August 6, 2025
- Cricut reported Q2 (ended June 30, 2025) revenue of $172,112,000 (up $4,165,000 vs Q2 2024) and diluted EPS of $0.11 (vs $0.09 Y/Y), with gross profit of $101,539,000 (implying ~59.0% gross margin) and operating income…
- 10-K · March 5, 2025
- Cricut positions itself as a vertically integrated creativity platform combining connected cutting machines, cloud-based Design Space software, paid content and consumables to monetize an engaged community. The 10-K…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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