Third Quarter 2026
Filed Nov 3, 2026Q3 2026 revenue of $188.6 million, up 11% compared to Q3 2025; net income of $27.8 million, up 36% compared to Q3 2025; over 3.07 million Paid Subscribers, up 2% over Q3 2025.
Revenue growth accelerated through 17% Products growth, Platform revenue increased, gross margin expanded to 57.7%, operating income rose 50%, and net income rose 36%. Cricut also reported growth in paid subscribers, active users, ARPU and international revenue while authorizing dividends and replenishing its repurchase program.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $188.6M | – | up 11% |
| Platform revenue, three months ended September 30, 2026GAAP | $85.88M | – | up nearly 4% |
| Products revenue, three months ended September 30, 2026GAAP | $102.7M | – | up 17% |
| Total cost of revenue, three months ended September 30, 2026GAAP | $79.74M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $108.9M | – | – |
| Gross margin, Q3 2026GAAP | 57.7% | – | – |
| Research and development expense, three months ended September 30, 2026GAAP | $17.08M | – | – |
| Sales and marketing expense, three months ended September 30, 2026GAAP | $41.21M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $16.70M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $74.99M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $33.89M | – | up 50% |
| Operating margin, Q3 2026GAAP | 18.0% of revenue | – | – |
| Interest income, three months ended September 30, 2026GAAP | $2.08M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$81K | – | – |
| Other income, three months ended September 30, 2026GAAP | $483K | – | – |
| Total other income, net, three months ended September 30, 2026GAAP | $2.48M | – | – |
| Income before provision for income taxes, three months ended September 30, 2026GAAP | $36.37M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | $8.53M | – | – |
| Net income, three months ended September 30, 2026GAAP | $27.84M | – | up 36% |
| Net income margin, Q3 2026GAAP | 14.8% of revenue | – | – |
| Comprehensive income, three months ended September 30, 2026GAAP | $28.13M | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $ 0.13 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.13 | – | – |
| Weighted-average common shares outstanding, basic, three months ended September 30, 2026GAAP | 208,729,496 | – | – |
| Weighted-average common shares outstanding, diluted, three months ended September 30, 2026GAAP | 212,808,854 | – | – |
| International revenue, Q3 2026other | 28% of total revenue | – | increased by 30% |
| Active Users, as of September 30, 2026other | 5,989 | – | grew 2% year-over-year |
| 90-Day Engaged Users, as of September 30, 2026other | 3,466 | – | flat year-over-year |
| Paid Subscribers, as of September 30, 2026other | 3,072 | – | up 2% year-over-year |
| Platform ARPU, twelve months ended September 30, 2026other | $ 56.70 | – | up 3% year-over-year |
| Net cash and cash equivalents provided by operating activities, nine months ended September 30, 2026GAAP | $100.9M | – | – |
| Cash from operations, Q3 2026GAAP | $24M | – | – |
| Cash and cash equivalents, as of September 30, 2026GAAP | $174.6M | – | – |
| Marketable securities, as of September 30, 2026GAAP | $98.12M | – | – |
| Inventories, as of September 30, 2026GAAP | $146.9M | – | – |
| Repurchases of common stock, nine months ended September 30, 2026GAAP | −$25.71M | – | – |
| Cash dividend, nine months ended September 30, 2026GAAP | −$42.09M | – | – |
| Purchases of property and equipment, including capitalized software development costs, nine months ended September 30, 2026GAAP | −$28.46M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PlatformContinued growth in Platform revenue; Platform ARPU increased to $56.70, up 3% year-over-year. | $85.88M | – | up nearly 4% |
| Products17% growth in Products; management cited launches of Maker 5 and StickerPix as expanding the Cricut ecosystem. | $102.7M | – | up 17% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Used $6.5 million to repurchase 1,294,882 shares of common stock in Q3.
- $15.1 million remained on the $50 million authorized stock repurchase program, which the board replenished in May 2025.
- The board approved a recurring semi-annual dividend of $0.10 per share and a special dividend of $0.70 per share to be paid in January 2027.
- The board approved replenishment of the stock repurchase program up to $50 million, incorporating the unused portion from prior approvals.
- Cash dividend for the nine months ended September 30, 2026 was $ (42,088).
What drove it
- Total revenue growth was driven by 17% growth in Products and continued growth in Platform revenue.
- International revenue increased by 30% from Q3 2025 and represented 28% of total revenue, versus 24% in Q3 2025.
- Paid Subscribers increased to 3.07 million, Active Users grew to nearly 6.0 million, and Platform ARPU increased to $56.70.
- Management cited double-digit sell-out growth for the second consecutive quarter and launches of Maker 5 and StickerPix.
Concerns
- 90-Day Engaged Users was described as flat year-over-year at 3.5 million.
- Platform revenue growth of nearly 4% trailed Products revenue growth of 17%.
- Inventories increased to $ 146,905 as of September 30, 2026 from $ 102,664 as of December 31, 2025.
- Net cash and cash equivalents provided by operating activities for the nine months ended September 30, 2026 was $ 100,878, compared with $ 117,798 in the prior-year period.
What to watch
- Whether Products growth and double-digit sell-out growth continue following the Maker 5 and StickerPix launches.
- Progress in Platform revenue, paid subscriber growth, Platform ARPU and 90-Day Engaged Users.
- International revenue growth and the mix of international revenue as a percentage of total revenue.
- Inventory levels, which were $ 146,905 as of September 30, 2026.
- Execution of the recurring semi-annual dividend, special dividend and replenished $50 million repurchase program.
Balance sheet and cash flow
- Cricut ended Q3 with $273 million in cash and cash equivalents, according to the CFO commentary.
- Cash and cash equivalents were $ 174,578 and marketable securities were $ 98,124 as of September 30, 2026.
- Net cash and cash equivalents provided by operating activities for the nine months ended September 30, 2026 was $ 100,878, compared with $ 117,798 in the prior-year period.
- Net cash and cash equivalents used in investing activities for the nine months ended September 30, 2026 was $ (107,323), compared with net cash and cash equivalents provided by investing activities of $ 67,891 in the prior-year period.
- Net cash and cash equivalents used in financing activities for the nine months ended September 30, 2026 was $ (75,082), compared with $ (230,483) in the prior-year period.
- Inventories were $ 146,905 as of September 30, 2026, compared with $ 102,664 as of December 31, 2025.
- Total assets were $ 650,573 and total liabilities were $ 251,191 as of September 30, 2026.
Analysis
Cricut reported a strong third quarter ended September 30, 2026. Total revenue was $188.6 million, up 11% from Q3 2025, with Products revenue up 17% to $102.7 million and Platform revenue up nearly 4% to $85.9 million. International revenue increased by 30% and represented 28% of total revenue, compared with 24% in Q3 2025. Management attributed the quarter to double-digit sell-out growth for the second consecutive quarter, rising active users, and the Maker 5 and StickerPix launches.
Profitability expanded materially. Gross margin was 57.7%, compared with 55.2% in Q3 2025. Income from operations was $33.9 million, or 18.0% of revenue, versus $22.7 million, or 13.3% of revenue, in Q3 2025. Net income was $27.8 million, or 14.8% of revenue, compared with $20.5 million, or 12.0% of revenue. Diluted earnings per share was $0.13, up from $0.10 per share.
User and monetization measures improved, although engagement did not advance at the same pace. Paid Subscribers increased 2% year-over-year to 3.07 million, Active Users grew 2% to nearly 6.0 million, and Platform ARPU increased 3% to $56.70. In contrast, 90-Day Engaged Users was described as flat year-over-year at 3.5 million. Platform growth also remained slower than Products growth, making subscription monetization and engagement important operating measures to follow.
Cricut generated $24 million in cash from operations in Q3 and reported $273 million in cash and cash equivalents in CFO commentary. For the nine months ended September 30, 2026, net cash provided by operating activities was $100.9 million, while purchases of property and equipment, including capitalized software development costs, were $28.5 million. Inventories rose to $146.9 million from $102.7 million as of December 31, 2025. Capital allocation included $6.5 million used to repurchase 1,294,882 shares in Q3, a recurring semi-annual dividend of $0.10 per share, a special dividend of $0.70 per share payable in January 2027, and replenishment of the repurchase program up to $50 million.
The release provided no numerical forward financial guidance. The central items for the next period are the durability of Products and international growth, conversion of the expanding user base into Platform growth, engagement trends, inventory levels, and deployment of the repurchase authorization and announced dividends.
Management, verbatim
We delivered a strong third quarter, with revenue up 11% year-over-year, driven by 17% growth in Products and continued growth in Platform revenue.
Ashish Arora, Chief Executive Officer
Double-digit sell-out growth for the second consecutive quarter, rising active users, and more than 3.07 million paid subscribers reflect the progress we are making to broaden our reach and deepen engagement.
Ashish Arora, Chief Executive Officer
We generated $23.7 million in cash from operations during the quarter and ended Q3 with $273 million in cash and cash equivalents.
Kimball Shill, Chief Financial Officer
Not in the filing
stated, not guessed- Forward revenue guidance was not provided.
- Forward gross-margin guidance was not provided.
- Forward operating-expense guidance was not provided.
- Forward tax-rate guidance was not provided.
- Non-GAAP financial measures, including non-GAAP earnings per share, were not provided.
- Free cash flow was not provided.
- Total debt was not provided.
- Quarterly cash flow from operations exact financial-statement amount was not provided; the release states $24 million and CFO commentary states $23.7 million.
- Prior-quarter comparative figures were not provided for the three-month income-statement metrics.
- A numerical year-over-year percentage change was not provided for gross profit, operating expenses, interest income, interest expense, income before taxes, tax provision, comprehensive income, or earnings per share.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.