Cricut Expects Annual Revenue to Return to Growth, Declares Special $0.70-Per-Share Dividend
Key Facts
Cricut expects full-year revenue to grow for the first time since 2021, alongside its announcement of a semiannual dividend of $0.10 per share and a special dividend of $0.70, both payable in January 2027. The CFO said in remarks on the third-quarter results that the company expects annual revenue growth, without specifying a numerical range for its outlook. That expectation puts a return to annual growth at the forefront of the company's results, after years of declining revenue. Cricut announced the dividends as part of its third-quarter results, including an exceptional payment alongside the regular dividend. Cash and cash equivalents stood at $273 million on September 30, and management said the company carries no debt.
Third-quarter revenue was $188.6 million, up 11% from the same period a year earlier. Net income rose to $27.8 million, or $0.13 per diluted share, compared with $20.5 million and $0.10 per share a year earlier. Investing.com reported that earnings per share exceeded the average analyst estimate of $0.05, while revenue topped the consensus estimate of $164.36 million. Results also showed gross margin improving to 57.7% from 55.2% a year earlier. Operating income rose 50% to $33.9 million.
Most of the revenue growth came from products, which increased 17% to $102.7 million, while platform revenue rose about 4% to $85.9 million. Management attributed product growth to higher connected-device volumes and new product launches. The CEO said sell-through of devices posted double-digit growth for the second consecutive quarter, as the number of active users increased and paid subscriptions exceeded 3.07 million. The company said the launches of Maker 5 and StickerPix support the expansion of its ecosystem. The split in growth between products and the platform indicates that the quarter benefited from device sales and recurring activity tied to the platform.
International markets were another notable driver; sales there reached $52.8 million, up 30% year over year, according to management's remarks. International revenue rose to 28% of total quarterly revenue, compared with 24% in the third quarter of 2025. The company attributed the growth to new product launches in more mature markets and continued expansion in emerging markets. The increase represents a larger contribution from international business alongside growth in product and platform revenue. According to the company, strong international sales came amid continued growth in connected-device volumes and product launches.
The annual growth outlook takes on added significance in light of the revenue trajectory reported in the company's 2025 annual report: revenue was $765.1 million in 2023, then $712.5 million in 2024 and $708.8 million in 2025. The figures show consecutive annual declines over those years, making management's 2026 outlook a potential reversal in the trend. Management did not provide annual numerical guidance that would allow the scale of expected growth to be measured. The announcement therefore confirms an expected direction, rather than setting a specific financial target. CRCT shares closed at $5.97 on November 3, 2026.
Management said it expects to be profitable in the fourth quarter and generate substantial positive cash flow for the year, supported by its latest products and continued platform strength. It noted, however, that the fourth quarter is typically the most promotion-dependent quarter of the year, a seasonal factor to consider when assessing the outlook. In addition to the two dividends, the board renewed its share repurchase program, with a limit of up to $50 million, including the unused amount from previous authorizations. These decisions link returning capital to shareholders with the cash balance the company reported at quarter-end. The fourth quarter is the next milestone for assessing management's outlook for profitability and cash flow.