Cricut 2025 Q2 Earnings Strong Performance as Net Income Surges 24%

Cricut reported results that exceeded expectations, with revenue growth and net income both showing notable improvements. The company did not provide quantitative guidance but reiterated its commitment to long-term growth and capital allocation through dividends and buybacks.

Revenue
Cricut’s total revenue rose 2% year-over-year to $172.11 million in the second quarter of 2025, with Platform revenue contributing $80.70 million and Products revenue reaching $91.42 million. International revenue saw a stronger performance, growing 8% year-over-year to represent 21% of total revenue.

Earnings/Net Income
Cricut’s net income surged 24% year-over-year to $24.49 million, while diluted EPS increased 33.3% to $0.11. This marked the company’s sixth consecutive year of profitability for the period, reflecting a stable and improving business performance. The earnings trend indicates a strong and consistent profitability trajectory.

Price Action
The stock of Cricut edged up 2.72% during the latest trading day, surged 15.24% during the most recent full trading week, but dropped 7.80% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Cricut shares 30 days after a quarter-over-quarter revenue increase on the earnings release date yielded moderate returns but underperformed the benchmark. The strategy’s CAGR was 2.39%, lagging the benchmark by 40.49%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.16, the strategy indicated low risk but limited upside potential.

CEO Commentary
CEO Ashish Arora highlighted Q2’s solid performance, with 2% revenue growth, 14% operating income growth, 22% EPS growth, and 7% paid subscriber growth. He emphasized ongoing investments in hardware, materials, and marketing, despite challenges from tariffs. Arora expressed confidence in the company’s execution speed and long-term growth prospects.

Guidance
Cricut did not provide specific future revenue or earnings guidance, stating a focus on accelerating investments in key areas such as hardware development, marketing, and engagement. The company also highlighted its commitment to capital allocation through dividends and stock repurchases.

Additional News
Cricut recently paid out $181 million in dividends, including a special dividend of $0.75 per share and a recurring semi-annual dividend of $0.10 per share. The company repurchased 917,000 shares for $4.7 million in Q2 and has $49 million remaining on its $50 million share repurchase program. These moves underscore Cricut’s focus on returning value to shareholders while investing in growth.