Cricut Beats Third-Quarter Earnings Estimates as CRCT Shares Rise in After-Hours Trading
Key Facts
Revenue came in above analysts’ estimate of $164.4 million, while earnings per share also exceeded their forecast of $0.05, according to estimates cited by Reuters via Investing.com before the results announcement. Net income rose 36% year over year to $27.8 million. The results showed year-over-year growth in revenue, net income and diluted earnings per share. The company had scheduled the announcement for after the market close on November 3, while EL7 data showed the stock closed at $6.04 on November 2, before the results were released.
Revenue growth reflected uneven expansion across the company’s two segments: product revenue rose 17% year over year to $102.7 million in the third quarter. Platform revenue increased about 4% to $85.9 million. The chief executive said revenue grew 11% year over year, driven by product growth and continued growth in platform revenue. This puts products at the forefront of quarterly growth drivers, while the platform continued to contribute at a slower pace. Paid subscribers totaled 3.07 million, up 2% from the third quarter of 2025.
Profitability metrics improved alongside revenue growth, with gross margin rising to 57.7% from 55.2% in the third quarter of 2025. Operating income increased 50% year over year to $33.9 million, equal to 18.0% of revenue, according to the company’s statement. Net income was $27.8 million, compared with $20.5 million in the third quarter of 2025, according to the year-over-year comparison in the results. Diluted earnings per share were $0.10 in the same quarter last year, while the available figures did not include the actual figure for the current quarter. This follows a second quarter in which revenue fell 9% year over year to $156.3 million, despite a 59% increase in net income to $39.1 million.
The subscriber base stands out among the activity metrics reported by the company, with paid subscribers exceeding 3.07 million in the third quarter, up 2% year over year. In its second-quarter results, the chief executive said subscriptions exceeded 3.1 million and that the company had seen improving user engagement trends and double-digit growth in global device sales. The executive also noted that the company’s revenue fell 9% that quarter, making the third-quarter results a different picture in terms of annual revenue. Cricut announced the launch of its Cricut Rewards loyalty program in the United States and Canada on October 27. In late October, the company also entered into a $300 million revolving credit facility.
The company announced a recurring semiannual cash dividend of $0.10 per share, along with a special dividend of $0.70 per share, with both dividends payable in January 2027. Cricut scheduled a call to discuss its third-quarter results for November 3, 2026, at 5 p.m. Eastern Time. The call provides a publicly announced time to discuss the results after their release, while the announced cash dividends are an additional element of the company’s quarterly statement. The available figures did not include documented share-price movement after the November 3 close or the stock’s trading range during that session. The latest reported closing price was $6.04 on November 2, before the results announcement.