Cricut Reports 2% Revenue Growth to $170.4 Million in Q3 2025

Cricut, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $170.4 million, a 2% increase from $167.9 million in the same period last year. The company's platform revenue grew by 7% to $82.8 million, driven by an increase in paid subscribers, which rose to 3.0 million from 2.8 million year-over-year. However, product revenue declined by 3% to $87.7 million, attributed to lower sales of accessories and materials, despite an increase in connected machine sales at higher average prices. For the nine months ending September 30, 2025, total revenue reached $505.2 million, slightly up from $503.2 million in the prior year.

Cricut's gross profit for the third quarter increased significantly to $94.1 million, up 22% from $77.4 million a year earlier, with gross margins improving across both segments. The platform segment's gross margin rose to 89%, while the products segment saw a substantial increase to 23% from 11% in the previous year, primarily due to reduced inventory impairment charges and lower procurement costs. Operating expenses also increased, totaling $71.4 million for the quarter, up from $66.8 million, driven by higher research and development, sales and marketing, and general administrative costs.

The company reported a net income of $20.5 million for the third quarter, compared to $11.5 million in the same period last year, reflecting a 79% increase. This growth in profitability was supported by a decrease in total cost of revenue, which fell by 16% to $76.3 million, primarily due to lower costs associated with product sales. The provision for income taxes also increased significantly, reflecting higher pre-tax income.

Cricut's operational metrics indicate a strong user engagement, with 5.9 million active users as of September 30, 2025. The company continues to expand its market presence, particularly in international markets, and has reported a steady increase in its paid subscriber base for its Cricut Access and Cricut Access Premium services. The company is also focused on enhancing its product offerings and expanding its geographic reach, which is expected to contribute to future growth.

Looking ahead, Cricut anticipates continued growth in its platform revenue driven by increased user engagement and subscription services. The company remains cautious about potential macroeconomic challenges, including regulatory uncertainties and trade conditions, which could impact its operations. Cricut's management is committed to leveraging its strong cash position, with $187.9 million in cash and cash equivalents, to support ongoing investments in product development and market expansion.