Stock of the Day

June 28, 2023

Cricut (CRCT)

$5.90
+$0.10 (+1.7%)
Market Cap: $1.21B

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

Today's Trend

Cricut, Inc. (NASDAQ: CRCT) shares have risen sharply recently as investors weigh a significant earnings beat and improved profitability against weaker revenue, insider selling and cautious analyst ratings.

  • Q2 earnings exceeded expectations: Cricut reported adjusted earnings of $0.19 per share, well above the roughly $0.04–$0.06 analyst consensus and up from $0.11 a year earlier. Cricut Tops Q2 Earnings Estimates
  • Profitability strengthened: Net income increased 59% year over year to $39.1 million, supporting the view that cost controls are offsetting some sales pressure. Cricut Reports Second Quarter 2026 Financial Results
  • Recurring subscriber base grew: Paid subscribers surpassed 3.1 million, up 3% from the prior year, providing support for Cricut’s subscription revenue model. Cricut Q2 2026 Earnings Call Transcript
  • Dividend supports the value case: Cricut paid its recurring semiannual dividend of $0.10 per share in July, which may appeal to income-oriented investors. Cricut Is Crafting Value Where It Matters Most
  • Several institutional investors increased their holdings during the first and second quarters, including Arrowstreet Capital, Russell Investments and Jane Street, although institutional ownership remains about 19.6%.
  • Revenue missed estimates: Q2 revenue declined 9% year over year to approximately $156.3 million, below the $159.95 million consensus, signaling continued demand pressure despite the earnings beat. Cricut Q2 2026 Results Presentation
  • CEO selling adds a sentiment overhang: CEO Ashish Arora sold 60,000 shares at $4.77 and another 60,000 at $5.98. Both transactions were conducted under a pre-arranged Rule 10b5-1 plan, and he still owns more than 4.2 million shares, reducing—but not eliminating—the concern. Cricut Insider Selling
  • Analyst outlook remains bearish: Morgan Stanley maintained an underweight rating with a $3.70 target, while the consensus remains “Strong Sell” with an average target of $3.82. Cricut Analyst Ratings
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