Cricut, Inc. reported its financial results for the first quarter of 2026, revealing a total revenue of $159.5 million, a decrease of 2% from $162.6 million in the same period last year. The company's revenue is divided into two segments: Platform and Products. Platform revenue increased by 6% to $84.8 million, driven by a rise in Paid Subscribers, which grew from 3.0 million to nearly 3.1 million. In contrast, Products revenue fell by 10% to $74.7 million, primarily due to lower average selling prices compared to the previous year.
The company's gross profit for the quarter was $92.7 million, down from $98.3 million in Q1 2025, resulting in a gross margin of 58% compared to 60% a year earlier. The cost of revenue increased to $66.8 million, up 4% from $64.3 million, with both segments experiencing higher costs. Operating expenses remained relatively stable at $69.8 million, leading to an operating income of $22.9 million, down from $29.3 million in the prior year. Net income for the quarter was $20.3 million, or $0.10 per diluted share, compared to $23.9 million, or $0.11 per diluted share, in Q1 2025.
Cricut's operational metrics indicate a strong user engagement, with nearly 6 million Active Users utilizing the platform to create projects. The company continues to expand its geographic reach and product offerings, although it faces challenges from increased tariffs and supply chain disruptions. As of March 31, 2026, Cricut had cash and cash equivalents of $236.5 million and marketable securities of $19.2 million, providing a solid liquidity position to support ongoing operations and growth initiatives.
Looking ahead, Cricut anticipates continued growth in its Platform segment, driven by an increase in Paid Subscribers and engagement with its digital content offerings. However, the company acknowledges potential risks from macroeconomic factors, including geopolitical tensions and regulatory changes that could impact its supply chain and cost structure. Cricut remains committed to enhancing its product lines and expanding its market presence while managing operational efficiencies to navigate these challenges effectively.
About Cricut, Inc.
Cricut, Inc. develops a creative platform combining connected cutting machines, cloud-based design software, and a broad ecosystem of materials and accessories. Serving a global community of millions, it enables personalized DIY projects, from greeting cards to home decor. The company's business model relies on hardware sales, subscriptions, and consumables, fostering strong user engagement, community sharing, and continuous product innovation.
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