| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 73 | 13.1x | 17.8x | Top tier | |
Growth | 17 | -3.1% | 7.1% | Bottom tier | |
Quality | 94 | 21.8% | 4.5% | Top tier | |
Safety | 91 | — | 2.6x | Top tier | |
Capital Return | 75 | 17.02% | 2.12% | Top tier | |
Momentum | 69 | 3.2% | 2.9% | Top tier | |
Sentiment | 22 | 2 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Cricut operates an interconnected creative ecosystem that combines cutting and heat press machines with the Design Space platform, paid subscriptions, accessories, and materials. The company generates revenue through two main streams: the Platform business, which includes high-margin subscriptions and digital services, and the Products business, which includes machines, accessories, and materials; it is also testing additional services such as Direct-to-Film, but their financial contribution was not material through August 4, 2026.
In Q2 of fiscal 2026, revenue was $156.3 million, down approximately 9% year over year, while net income was $39.1 million and diluted earnings per share were $0.19. Platform revenue reached $85 million, or approximately 54% of the total, and grew slightly more than 5%, while Products revenue declined 22% to $71.3 million, or approximately 46% of the total, due to lower volumes, promotional pricing, and a comparison with tariff-related purchase pull-forwards in the prior period.
Gross margin was 74.5% and operating margin was 30.3% in Q2 of fiscal 2026, but both benefited significantly from nonrecurring amounts that included a $17.9 million IEEPA tariff refund and $6.4 million from the settlement of an intellectual property dispute. Excluding these items, gross margin would have been approximately 58.9%, operating margin would have been 14.7%, and operating income would have been approximately $23 million instead of $47.4 million.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $4.07, between a low target of $3.70 and a high target of $4.50, and the average falls within the 52-week range of $3.735–$6.93 and is approximately 41% below its peak. The analyst consensus is “Sell,” and the high target, which is approximately 35% below the peak of the 52-week range, reflects a revaluation associated with declining revenue, weakness in Products, and the dependence of Q2 fiscal 2026 profitability on nonrecurring items.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Total revenue declined approximately 9% to $156.3 million, and Products revenue fell 22% to $71.3 million. This occurred despite double-digit growth in machine units sold to consumers and units sold into channels because the mix of Cricut Joy 2 and Cricut Explore 5 was lower-priced than the prior year's launch mix. Increased promotions, lower accessories and materials volumes and prices, and the comparison with tariff-related purchase pull-forwards in Q2 of fiscal 2025 also contributed.
Platform revenue was $85 million in Q2 of fiscal 2026, up slightly more than 5%, and represented approximately 54% of total revenue. Paid subscribers exceeded 3.1 million, an increase of 93 thousand year over year and 25 thousand sequentially, while average revenue per user increased to $56.37. Reported Platform gross margin was 93%, but it benefited from a nonrecurring intellectual property settlement, and management cautioned that the cost of AI features could pressure margin in the future.
Cricut reported net income of $39.1 million and diluted earnings per share of $0.19, with a gross margin of 74.5% and an operating margin of 30.3%. The results included a $17.9 million IEEPA tariff refund and $6.4 million from the settlement of an intellectual property dispute. Management explained that excluding these items would have reduced gross margin to approximately 58.9%, operating margin to 14.7%, and operating income to approximately $23 million.
Cricut Joy 2 and Cricut Explore 5 bundles were key drivers of double-digit growth in machine units during the first half of fiscal 2026. In July 2026, the company launched the new generation of AutoPress and expanded its AI-powered Cricut Creative Labs tools and premium subscription plan starting at $14.99 per month. The Direct-to-Film service was still at an early stage and was not financially material as of the August 4, 2026 call, and most of its users were existing subscribers.
Cricut ended Q2 of fiscal 2026 with $286 million in cash and cash equivalents and no debt. Operating cash flow increased to $50.4 million from $36.2 million in Q2 of fiscal 2025, and inventory declined by $19 million to $106 million. The company repurchased 1.7 million shares for $7.5 million during the quarter, and $21.6 million remained under the authorized $50 million repurchase program.
The main operating risk is continued weakness in Products after its revenue declined 22% during Q2 of fiscal 2026 amid competition, promotions, and pressure on accessories and materials. The company also faces existing tariffs, higher input costs, supply chain dynamics, and consumer caution in certain markets, so it did not quantify the impact of tariffs on margins. The analyst consensus of “Sell,” with an average target of $4.07, and insider net sales of $2.2 million over three months add pressure to sentiment, while recognizing that insider sales may be prearranged.
