Cricut, Inc.

Q2 2026 revenue was $156.3 million, down approximately 9% year over year. Net income was $39.1 million, or $0.19 per diluted share, versus $24.5 million, or $0.11 per diluted share, in Q2 2025. Platform revenue increased just over 5% to $85 million, with ARPU up 5% to $56.37 from $53.84, while product revenue declined 22% to $71.3 million. Total gross margin was 74.5%, up over 14% year over year, helped by $17.9 million of IEEPA tariff refunds and a $6.4 million legal settlement reserve release. Operating income was $47.4 million, or 30.3% of revenue, and operating cash flow was $50.4 million. Management did not provide detailed quarterly or annual guidance, but said platform revenue is expected to grow each quarter, subscriber trends should follow normal seasonal softness in Q3, and the company expects to be profitable each quarter and generate cash from operations for full-year 2026. They also said they expect to be active with the $50 million share repurchase program, subject to stock price.

Ashish Arora framed the quarter around Cricut’s platform-first strategy, saying the company is broadening awareness beyond identified crafters and trying to make the experience simpler and more compelling. He highlighted the new global campaign, 'Think It. Make It. Cricut.,' stronger machine sell-out, stable engagement metrics, and early progress in AI and services like Direct-to-Film and Creative Labs. His tone was cautiously optimistic: he said the foundational work is in place and that management is focused on turning it into stronger execution and sustainable growth.

Kimball Shill emphasized the hard numbers behind the quarter: revenue of $156.3 million, gross margin of 74.5%, operating income of $47.4 million, and net income of $39.1 million. He pointed to $20.3 million of IEEPA tariff refunds, a $6.4 million royalty-dispute reserve release, and healthy cash generation of $50.4 million from operations, with $286 million in cash and cash equivalents and no debt. He also said inventory fell $19 million year over year to $106 million, the company repurchased 1.7 million shares for $7.5 million, and $21.6 million remained in the buyback authorization.

Analysts focused on the gap between strong machine sell-out and weak product revenue, especially in international markets and accessories/materials. Management said Europe had a temporary 'air bubble' from a distributor channel change and that the issue should no longer be a Q3 headwind; they also said international would have grown in Q2 even without FX, and that emerging markets like Asia, META, and LATAM are performing well but are still too small to offset larger-market pressure. On DTF and other new monetization efforts, management said adoption is still early, mainly among existing subscribers, and not yet meaningful to ARPU, though they expect to ramp marketing in the second half.