Cricut, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $162.6 million, a decrease of 3% from $167.4 million in the same period last year. The company's revenue is divided into two segments: Platform and Products. Platform revenue increased by 2% to $80.0 million, driven by a rise in paid subscribers, which grew from approximately 2.8 million to nearly 3.0 million. In contrast, Products revenue fell by 7% to $82.6 million, primarily due to a decline in sales of accessories and materials and increased promotional activities.
The company's gross profit for the quarter was $98.3 million, up 7% from $91.6 million in the prior year, with a gross margin improvement in the Products segment, which rose to 33% from 25%. This increase was attributed to a reduction in inventory impairment charges. Operating expenses totaled $69.0 million, reflecting a slight increase from $66.4 million a year earlier, driven by higher sales and marketing costs. However, net income for the quarter rose to $23.9 million, compared to $19.6 million in the previous year, resulting in earnings per share of $0.11, up from $0.09.
Cricut's operational metrics indicate a strong user engagement, with 5.9 million active users as of March 31, 2025. The company continues to expand its geographic reach and product offerings, with a focus on enhancing its creativity platform. The filing noted that the company is actively managing its supply chain and inventory levels, which have shown improvements, particularly in reducing excess inventory reserves.
In terms of strategic developments, Cricut announced a special dividend of $0.75 per share and a recurring semi-annual dividend of $0.10 per share, reflecting its commitment to returning value to shareholders. The company also replenished its stock repurchase program by an additional $50 million. Looking ahead, Cricut anticipates continued growth in its subscriber base and revenue, although it acknowledges potential challenges from macroeconomic factors and competitive pressures in the market. The company remains focused on leveraging its platform to drive user engagement and expand its market presence.
About Cricut, Inc.
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