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CRCT Stock Analysis - Cricut, Inc. AI Rating

CRCT Nasdaq Special Industry Machinery, NEC DE CIK: 0001828962
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
BUY
78% Confidence

📊 CRCT Key Takeaways

Revenue: $708.8M
Net Margin: 10.8%
Free Cash Flow: $200.2M
Current Ratio: 2.26x
Debt/Equity: 0.00x
EPS: $0.35
AI Rating: BUY with 78% confidence

Investment Thesis

Cricut demonstrates strong operational leverage and cash generation despite flat revenue, with net income growing 22.1% YoY and exceptional free cash flow conversion (28.2% FCF margin). The company maintains fortress-like financial health with zero debt, substantial cash reserves ($256.2M), and excellent liquidity ratios, positioning it well for strategic investments or shareholder returns.

CRCT Strengths

  • + Outstanding cash generation with $200.2M operating cash flow and 28.2% FCF margin indicating high-quality earnings
  • + Significant profitability expansion with net income up 22.1% YoY despite flat revenue, demonstrating operational leverage and margin improvement
  • + Exceptional financial fortress: zero long-term debt, debt/equity ratio of 0.00x, current ratio of 2.26x, and $256.2M cash representing 44% of total assets
  • + Strong return metrics with ROE of 22.3% and ROA of 13.2%, indicating efficient capital deployment
  • + Healthy gross margin of 55.1% provides pricing power and product-mix flexibility

CRCT Risks

  • ! Revenue growth stalled with -0.5% YoY decline, indicating market saturation or demand weakness in core products
  • ! High insider trading activity (17 Form 4 filings in 90 days) warrants monitoring for potential concerns about management confidence
  • ! Operating margin of 13.5% leaves limited cushion if revenue declines persist and company cannot maintain cost discipline
  • ! Concentration in specialty machinery sector with potential vulnerability to consumer discretionary spending cycles

Key Metrics to Watch

CRCT Financial Metrics

Revenue
$708.8M
Net Income
$76.7M
EPS (Diluted)
$0.35
Free Cash Flow
$200.2M
Total Assets
$580.8M
Cash Position
$256.2M

💡 AI Analyst Insight

The 28.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.26x current ratio provides a solid financial cushion.

CRCT Profitability Ratios

Gross Margin 55.1%
Operating Margin 13.5%
Net Margin 10.8%
ROE 22.3%
ROA 13.2%
FCF Margin 28.2%

CRCT vs Industrial Sector

How Cricut, Inc. compares to Industrial sector averages

Net Margin
CRCT 10.8%
vs
Sector Avg 10.0%
CRCT Sector
ROE
CRCT 22.3%
vs
Sector Avg 15.0%
CRCT Sector
Current Ratio
CRCT 2.3x
vs
Sector Avg 1.8x
CRCT Sector
Debt/Equity
CRCT 0.0x
vs
Sector Avg 0.7x
CRCT Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CRCT Balance Sheet & Liquidity

Current Ratio
2.26x
Quick Ratio
1.75x
Debt/Equity
0.00x
Debt/Assets
40.8%
Interest Coverage
169.37x
Long-term Debt
N/A

CRCT 5-Year Financial Trend

CRCT 5-year financial data: Year 2021: Revenue $1.3B, Net Income $39.2M, EPS $0.19. Year 2022: Revenue $1.3B, Net Income $154.6M, EPS $0.74. Year 2023: Revenue $1.3B, Net Income $140.5M, EPS $0.64. Year 2024: Revenue $886.3M, Net Income $60.7M, EPS $0.28. Year 2025: Revenue $765.1M, Net Income $53.6M, EPS $0.24.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Cricut, Inc.'s revenue has declined by 41% over the 5-year period, indicating business contraction. The most recent EPS of $0.24 reflects profitable operations.

CRCT Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
28.2%
Free cash flow / Revenue

CRCT Quarterly Performance

Quarterly financial performance data for Cricut, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $167.9M $11.5M $0.05
Q2 2025 $167.9M $19.6M $0.09
Q3 2024 $167.9M $9.1M $0.05
Q2 2024 $167.9M $9.1M $0.07
Q1 2024 $162.6M $9.1M $0.04
Q3 2023 $174.9M $9.1M $0.06
Q2 2023 $177.8M $9.1M $0.06
Q1 2023 $181.2M $9.1M $0.04

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CRCT Capital Allocation

Operating Cash Flow
$200.2M
Cash generated from operations
Stock Buybacks
$24.7M
Shares repurchased (TTM)
Dividends Paid
$202.1M
Returned to shareholders

CRCT SEC Filings

Access official SEC EDGAR filings for Cricut, Inc. (CIK: 0001828962)

📋 Recent SEC Filings

Date Form Document Action
Mar 6, 2026 10-K/A crct-20251231.htm View →
Mar 4, 2026 4 xslF345X05/wk-form4_1772666636.xml View →
Mar 4, 2026 10-K crct-20251231.htm View →
Mar 3, 2026 8-K crct-20260303.htm View →
Feb 23, 2026 4 xslF345X05/wk-form4_1771887709.xml View →

Frequently Asked Questions about CRCT

What is the AI rating for CRCT?

Cricut, Inc. (CRCT) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CRCT's key strengths?

Outstanding cash generation with $200.2M operating cash flow and 28.2% FCF margin indicating high-quality earnings. Significant profitability expansion with net income up 22.1% YoY despite flat revenue, demonstrating operational leverage and margin improvement.

What are the risks of investing in CRCT?

Revenue growth stalled with -0.5% YoY decline, indicating market saturation or demand weakness in core products. High insider trading activity (17 Form 4 filings in 90 days) warrants monitoring for potential concerns about management confidence.

What is CRCT's revenue and growth?

Cricut, Inc. reported revenue of $708.8M.

Does CRCT pay dividends?

Cricut, Inc. pays dividends, with $202.1M distributed to shareholders in the trailing twelve months.

Where can I find CRCT SEC filings?

Official SEC filings for Cricut, Inc. (CIK: 0001828962) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CRCT's EPS?

Cricut, Inc. has a diluted EPS of $0.35.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI