Cricut Q3 Revenue Rises 11% on Product Growth

Cricut Inc. (NASDAQ: CRCT) reported an 11% year-over-year increase in third-quarter 2026 revenue, as stronger Products sales and international growth helped lift operating income by 50%. The company also recorded higher gross and operating margins while continuing to invest in product launches, marketing and its design platform.

Revenue rose to $188.6 million from $170.4 million in the prior-year quarter. Products revenue increased 17%, Platform revenue grew 4%, and international revenue advanced 30%. Cricut said sell-out growth remained in the double digits for a second consecutive quarter, reflecting demand for its machines and support from marketing initiatives.

Operating income increased to $33.9 million from $22.7 million, with operating margin expanding to 18.0% from 13.3%. Net income rose 36% to $27.8 million from $20.5 million, while net margin reached 14.8%, compared with 12.0% a year earlier.

Gross margin improved to 57.7% from 55.2%. Cricut attributed the increase primarily to scale from Products growth, monetization of E&O and the final IEEPA tariff refunds.

Operating expenses increased to $75.0 million from $71.4 million as the company continued investing in physical products and its platform. However, operating expenses declined as a share of revenue to 39.8% from 41.9%.

Product launches support ecosystem growth

Cricut launched its flagship Maker 5 cutting machine during the quarter and entered a new category with the StickerPix product line. The company said Maker 5 supported continued momentum in cutting machines, while StickerPix expanded its printable-materials offering through personalized photo and sticker creation.

The company is also working to strengthen its Accessories and Materials business by broadening the Maker 5 materials ecosystem and improving its product portfolio. Cricut said it was gaining share in key categories, including printables and accessories.

Marketing investments focused on expanding brand awareness and attracting new users, including the “Think it. Make it. Cricut.” campaign. The StickerPix launch was supported by influencer activity and paid media, while promotions remained part of the company’s effort to support affordability.

Subscribers and active users increase

Cricut ended the quarter with 3.07 million paid subscribers, up from 3.00 million a year earlier, an increase of 68,000. Active users rose 2% to 5.99 million from 5.88 million, while 90-day engaged users were broadly stable at 3.47 million compared with 3.45 million.

The company continued rolling out premium subscriptions across its largest international markets and adding AI-powered tools and exclusive content. Platform investments included improved onboarding, guided workflows, templates, localized discovery and support for Maker 5 and StickerPix within Design Space. Cricut also expanded Creative Labs with crochet patterns and AI-powered paint-by-number tools.

Outlook and capital allocation

For the fourth quarter, management expects sequential and year-over-year growth in Platform revenue and paid subscribers. Cricut said encouraging sell-out trends support sequential Products revenue growth in the quarter.

The company expects full-year revenue growth, fourth-quarter profitability and significant positive cash flow. Its growth priorities include increased research and development, additional product launches, marketing and international expansion.

Cricut generated $23.7 million in operating cash flow during the quarter, compared with $20.5 million a year earlier. It ended September with $272.7 million in cash, cash equivalents and marketable securities. A $300 million untapped credit line was renewed after quarter-end.

During the quarter, Cricut spent $6.5 million to repurchase 1.3 million shares and had $15.1 million remaining under its previous $50 million authorization, which was renewed after the quarter. The company also paid a semiannual dividend of $0.10 per share, totaling $21 million, on July 21.

The presentation identified tariffs and other trade barriers, supply-chain and manufacturing disruptions, dependence on retail partners, competition, international regulation, cybersecurity, product quality and fluctuating quarterly results among the principal uncertainties facing the business. Cricut also cautioned that geopolitical events and broader economic pressures could affect its operations and future performance.