crct-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to _____

Commission File Number: 001-40257

Cricut, Inc.

(Exact name of Registrant as specified in its charter)


Delaware						87-0282025
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

10855 South River Front Parkway

South Jordan, Utah 84095

(385) 351-0633

(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share	CRCT	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☐

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 29, 2026, the registrant had 55,019,004 shares of Class A Common Stock, and 154,879,630 shares of Class B Common Stock, outstanding.

TABLE OF CONTENTS


		PAGE
NOTE REGARDING FORWARD-LOOKING STATEMENTS		2
PART I.	FINANCIAL INFORMATION	4
Item 1.	Financial Statements (unaudited)	4
	Condensed Consolidated Balance Sheets (unaudited)	4
	Condensed Consolidated Statements of Operations and Comprehensive Income (unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)	6
	Condensed Consolidated Statements of Cash Flows (unaudited)	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
PART II.	OTHER INFORMATION	31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Default Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
	Signatures	34

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risk and uncertainties. These forward-looking statements, which are subject to a number of risks, uncertainties and assumptions about us, generally relate to future events or our future financial or operating performance. In some cases, you can identify these statements by forward-looking words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” “target,” “project” or “contemplate” or the negative version of these words and other comparable terminology that concern our expectations, strategy, plans, intentions or projections. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

•our ability to attract and engage users, to help people lead creative lives through our creativity platform, and attract and expand our relationships with brick-and-mortar and online retail partners and distributors;

•our future results of operations, including trends in revenue, costs, operating expenses and key metrics;

•our ability to compete successfully in competitive markets in both our platform and products segments;

•our expectations and management of future growth;

•our ability to manage our supply chain, manufacturing, distribution and fulfillment, including the ability to forecast demand and manage our inventory, particularly in light of geopolitical conflict or war;

•our ability to enter new markets and manage our expansion efforts, including internationally;

•our ability to attract and retain management, key employees and qualified personnel;

•our ability to effectively and efficiently protect our brand;

•our ability to maintain, protect and enhance our intellectual property and not infringe upon others’ intellectual property;

•our continued use of open source software;

•our ability to prevent serious errors, defects or vulnerabilities in our products and software;

•the adequacy of our capital resources to fund operations and growth;

•our ability to remain in compliance with laws and regulations that currently apply or become applicable to our business both domestically and internationally;

•Petrus’ significant influence over us and our status as a “controlled company” under the rules of the Nasdaq Global Select Market, or the Exchange;

•expectations regarding the financial condition of our brick-and-mortar and online retail partners, online and e-commerce channels and users;

•risks related to general socio-economic and political conditions, consumer confidence, as well as current macro-economic factors, including the impact of heightened, new, or proposed tariffs; and

•the other factors identified under, or incorporated by reference in, the section titled “Risk Factors” appearing elsewhere in this Quarterly Report on Form 10-Q.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. These statements are only predictions based primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. There are important factors that could cause our actual results, events or circumstances to differ materially from the results, events or circumstances expressed or implied by the forward-looking statements, including those factors discussed, or incorporated by reference, in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. You should specifically consider the numerous risks outlined, or incorporated by reference, in the section titled “Risk Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could

have an impact on the forward-looking statements contained, or incorporated by reference, in this Quarterly Report on Form 10-Q.

Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Moreover, the forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any of these forward-looking statements after the date of this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Cricut, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share)


	As of March 31, 2026		As of December 31, 2025
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	236,499	$	256,216
Marketable securities	19,175		19,434
Accounts receivable, net	67,713		92,011
Inventories	106,038		102,664
Prepaid expenses and other current assets	32,506		29,266
Total current assets	461,931		499,591
Property and equipment, net	44,136		40,260
Operating lease right-of-use asset	10,059		10,880

Deferred tax assets	13,575		13,210
Other assets	14,063		16,865
Total assets	$	543,764	$	580,806
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	57,187	$	71,553
Accrued expenses and other current liabilities	54,384		71,146
Deferred revenue, current portion	54,709		50,409
Operating lease liabilities, current portion	3,577		3,606
Dividends payable, current portion	—		24,361
Total current liabilities	169,857		221,075
Operating lease liabilities, net of current portion	7,118		8,018
Deferred revenue, net of current portion	2,733		2,872

Other non-current liabilities	6,565		5,280
Total liabilities	186,273		237,245
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, par value $0.001 per share, 100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31, 2025.	—		—
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of March 31, 2026, 209,897,286 shares issued and outstanding as of March 31, 2026; 1,250,000,000 shares authorized as of December 31, 2025, 211,336,284 shares issued and outstanding as of December 31, 2025.	210		211
Additional paid-in capital	329,693		339,224
Retained earnings	27,481		3,960
Accumulated other comprehensive income	107		166
Total stockholders’ equity	357,491		343,561
Total liabilities and stockholders’ equity	$	543,764	$	580,806

See accompanying notes to these unaudited condensed consolidated financial statements.

Cricut, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income

(unaudited)

(in thousands, except share and per share amounts)


	Three Months Ended March 31,
		2026		2025
Revenue:
Platform		$	84,768	$	79,986
Products		74,703		82,648
Total revenue		159,471		162,634
Cost of revenue:
Platform		9,359		8,668
Products		57,414		55,618
Total cost of revenue		66,773		64,286
Gross profit		92,698		98,348
Operating expenses:
Research and development		16,602		15,657
Sales and marketing		36,327		36,685
General and administrative		16,883		16,665
Total operating expenses		69,812		69,007
Income from operations		22,886		29,341
Other income (expense):
Interest income		2,224		3,357
Interest expense		(80)		(79)
Other income		55		2
Total other income, net		2,199		3,280
Income before provision for income taxes		25,085		32,621
Provision for income taxes		4,767		8,707
Net income		$	20,318	$	23,914
Other comprehensive income (loss):
Change in net unrealized gains (losses) on marketable securities, net of tax		$	(18)	$	115
Change in foreign currency translation adjustment, net of tax		(41)		102

Comprehensive income		$	20,259	$	24,131

Earnings per share, basic		$	0.10	$	0.11
Earnings per share, diluted		$	0.10	$	0.11
Weighted-average common shares outstanding, basic		210,524,057		212,445,961
Weighted-average common shares outstanding, diluted		212,547,918		213,839,020

See accompanying notes to these unaudited condensed consolidated financial statements.

Cricut, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands, except share amounts)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2025	211,336,284	$	211	$	339,224	$	3,960	$	166	$	343,561
Net income	—	—		—		20,318		—		20,318
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	1,326,380	1		(4,275)		—		—		(4,274)

Repurchase of common stock	(2,765,378)	(2)		(12,259)		—		—		(12,261)

Dividends and dividend equivalents issued	—	—		—		3,203		—		3,203
Stock-based compensation	—	—		7,003		—		—		7,003
Other comprehensive loss	—	—		—		—		(59)		(59)
Balance as of March 31, 2026	209,897,286	$	210	$	329,693	$	27,481	$	107	$	357,491


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2024	213,295,922	$	213	$	466,554	$	—	$	(6)	$	466,761
Net income	—	—		—		23,914		—		23,914
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	606,114	1		(2,659)		—		—		(2,658)

Repurchase of common stock	(2,126,464)	(2)		(11,998)		—		—		(12,000)
Dividends and dividend equivalents issued	—	—		806		2,083		—		2,889
Stock-based compensation	—	—		11,051		—		—		11,051
Other comprehensive income	—	—		—		—		217		217

Balance as of March 31, 2025	211,775,572	$	212	$	463,754	$	25,997	$	211	$	490,174

See accompanying notes to these unaudited condensed consolidated financial statements.

Cricut, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)


	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities:
Net income	$	20,318	$	23,914
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization (including amortization of debt issuance costs)	5,613		6,105
Bad debt expense (benefit)	57		(1,903)

Stock-based compensation	6,462		10,450
Deferred income tax	(360)		(4,798)
Non-cash lease expense	823		904

Unrealized foreign currency (gain) loss	581		(634)
Provision for inventory obsolescence, net	(1,437)		(4,868)
Other	22		6


Changes in operating assets and liabilities:
Accounts receivable	23,642		32,213
Inventories	920		4,877
Prepaid expenses and other current assets	(3,047)		8,662
Other assets	40		(3,125)
Accounts payable	(14,093)		4,895
Accrued expenses, other current liabilities and other non-current liabilities	(15,918)		(19,979)
Operating lease liabilities	(930)		(1,074)
Deferred revenue	4,160		5,521
Net cash and cash equivalents provided by operating activities	26,853		61,166
Cash flows from investing activities:



Purchases of property and equipment, including capitalized software development costs	(9,130)		(4,892)
Net cash and cash equivalents used in investing activities	(9,130)		(4,892)
Cash flows from financing activities:
Repurchases of common stock	(12,261)		(12,000)

Employee tax withholding payments on stock-based awards	(3,971)		(2,924)





Cash dividend	(21,157)		(21,493)

Net cash and cash equivalents used in financing activities	(37,389)		(36,417)
Effect of exchange rate on changes in cash and cash equivalents	(51)		144
Net increase (decrease) in cash and cash equivalents	(19,717)		20,001
Cash and cash equivalents at beginning of period	256,216		232,140
Cash and cash equivalents at end of period	$	236,499	$	252,141
Supplemental disclosures of cash flow information:

Cash paid during the period for income taxes	$	305	$	279
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	371
Property and equipment included in accounts payable, accrued expenses and other current liabilities	$	3,371	$	2,019
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities	$	350	$	185
Stock-based compensation capitalized for software development costs	$	368	$	423



Dividends declared but unpaid	$	—	$	32

See accompanying notes to these unaudited condensed consolidated financial statements.

Cricut, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1.Description of Business and Basis of Presentation

Nature of Business

Cricut, Inc. (“Cricut” or the “Company”) is a designer and marketer of a creativity platform that enables users to turn ideas into professional-looking handmade goods. Using the Company’s platform, versatile connected machines, and accessories and materials, users create everything from personalized birthday cards, mugs and T-shirts to large-scale interior decorations. The Company’s subscription services and products are primarily marketed under the Cricut brand in the United States, as well as Europe and other countries around the world. Headquartered in South Jordan, Utah, the Company is an innovator in its industry, focused on bringing innovative technology (automation and consumerization of industrial tools) to the craft, DIY, and home décor categories. The Company’s condensed consolidated financial statements include the operations of its wholly owned subsidiaries, which are located throughout Europe and in the Asia-Pacific region.

The Company designs, markets, and distributes the Cricut family of products, including the platform, connected machine bundles and ancillary products. In addition, Cricut sells a broad line of fonts, images, templates, and projects for purchase à la carte.

The Company organizes its business into the following two reportable segments: Platform and Products. See Note 15, Segment Information, for further discussion of the Company’s segment reporting structure.

Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the annual report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report”). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.

The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2025 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2026, or any other period.

Recently Adopted Accounting Pronouncements

In August 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Trade Receivables and Contract Assets. The amendments in ASU 2025-05 permit entities to elect a practical expedient when estimating expected credit losses on accounts receivable and contract assets. Under this election, entities may assume that current conditions as of the balance sheet date do not change for the remaining life of accounts receivable and contract assets when developing forecasts as part of estimating expected credit losses. The Company adopted ASU 2025-05 effective January 1, 2026. The adoption did not have a material effect on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements

In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which removes all references to software development project stages. The ASU requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable that the project will be completed and the software will be used for its intended purpose. This ASU is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. Upon adoption, the guidance can be applied prospectively, retrospectively, or with a modified transition approach. The Company is currently evaluating the impact of this standard on our consolidated financial statements.

In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires entities to disaggregate operating expenses into specific categories such as employee compensation, depreciation, and intangible asset amortization, by relevant expense caption on the statement of operations. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted on either a prospective or retrospective basis. The Company is currently evaluating the impact of this standard on the consolidated financial statements and related disclosures.

2.Summary of Significant Accounting Policies

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and estimating variable consideration such as customer rebates and product returns. Other estimates include the warranty reserve, allowance for credit losses, inventory reserve, long-lived assets valuation, legal contingencies, stock-based compensation, income taxes, deferred tax assets valuation and developed software, among others. These estimates and assumptions are based on the Company’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including any effects of the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from these estimates.

Fair Value Measurement

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

Money market funds are highly liquid investments and are actively traded. The pricing information for these assets is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Marketable securities which include U.S. Treasury securities are valued using observable inputs from similar assets, or from observable data in markets that are not active; these assets are classified as Level 2 of the fair value hierarchy. There were no liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025.

Earnings Per Share

Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period.

Accounts Receivable

Accounts receivable are recorded at original invoice amounts less estimates for credit losses. Management determines the allowance for credit losses by specifically identifying troubled accounts and by using historical write off experience, adjusted for current market conditions and reasonable supportable forecasts of future economic conditions, applied to an aging of all other accounts receivable. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received.

As of March 31, 2026, December 31, 2025, and January 1, 2025, the Company had net accounts receivable balances of $67.7 million, $92.0 million and $102.0 million, respectively. As of March 31, 2026, and December 31, 2025, the Company had an allowance for credit losses against accounts receivable of $1.8 million and $1.7 million, respectively.

3.Revenue and Deferred Revenue

Deferred revenue relates to performance obligations for which payments have been received from the customer prior to revenue recognition. Deferred revenue primarily consists of deferred subscription-based services. Deferred revenue also includes amounts allocated from the sale of a connected machine bundle to the unspecified upgrades and enhancements and the Company’s cloud-based services. Contract costs consist of amounts paid to obtain contracts with customers in connection with sales of subscriptions through third-party apps. Contract costs are amortized over the subscription term. As of March 31, 2026 and December 31, 2025 the Company had $1.2 million and $1.1 million recorded for capitalized contract costs, respectively.

The following table summarizes the changes in the deferred revenue balance for the three months ended March 31, 2026 and 2025:


	Three Months Ended March 31,
	2026		2025
(in thousands)
Deferred revenue, beginning of period	$	53,281	$	48,253
Recognition of revenue included in beginning of period deferred revenue	(27,802)		(24,890)
Revenue deferred, net of revenue recognized on contracts in the respective period	31,963		30,410
Deferred revenue, end of period	$	57,442	$	53,773

As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was equal to the deferred revenue balance.

The Company expects the following recognition of deferred revenue as of March 31, 2026:


	Year Ended December 31,
	2026 (remainder of year)		2027		2028		2029		Total
(in thousands)
Revenue expected to be recognized	$	51,333	$	5,039	$	1,035	$	35	$	57,442

The Company’s revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 15, Segment Information.

Revenue recognized during the three months ended March 31, 2026 related to performance obligations satisfied or partially satisfied was $3.9 million.

The following table presents the total revenue by geography based on the ship-to address for the periods indicated:


	Three Months Ended March 31,
	2026		2025
(in thousands)
North America*	$	118,602	$	127,569
International	40,869		35,065
Total revenue	$	159,471	$	162,634
*North America revenue consists of revenues from the United States and Canada.

4.Cash, Cash Equivalents, and Financial Instruments

The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of March 31, 2026 and December 31, 2025:


	As of March 31, 2026
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	193,430	$	—	$	193,430	$	193,430	$	—
Level 1:
Money market funds	43,069		—		43,069		43,069		—
Level 2:
U.S. treasury securities	19,170		5		19,175		—		19,175
Total	$	255,669	$	5	$	255,674	$	236,499	$	19,175


	As of December 31, 2025
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	194,182	$	—	$	194,182	$	194,182	$	—
Level 1:
Money market funds	62,034		—		62,034		62,034		—
Level 2:
U.S. treasury securities	19,405		29		19,434		—		19,434
Total	$	275,621	$	29	$	275,650	$	256,216	$	19,434

Marketable securities held as of March 31, 2026 generally mature over the next 12 months. As of March 31, 2026 and December 31, 2025 all securities were in an unrealized gain position. The Company determined that an allowance for credit losses was unnecessary for the periods presented.

5.Inventories

Inventories are comprised of the following:


	As of March 31, 2026		As of December 31, 2025
(in thousands)
Raw materials	$	24,673	$	25,650
Finished goods	117,416		117,185
Total inventories	142,089		142,835
Less: reserves	(27,873)		(29,309)
Total inventories, net	$	114,216	$	113,526
Inventories current	$	106,038	$	102,664
Inventories non-current (included in Other assets)	$	8,178	$	10,862

The Company’s recorded inventory reserves as of March 31, 2026 consisted of $19.9 million related to finished goods inventory and $8.0 million related to raw materials components. Amounts charged to the reserve account are recorded primarily in cost of revenues.

6. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	As of March 31, 2026		As of December 31, 2025
(in thousands)
Customer rebates	$	26,571	$	37,627
Other accrued liabilities and other current liabilities	27,813		33,519
Total accrued expenses	$	54,384	$	71,146

7. Revolving Credit Facility

On August 4, 2022, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A, Citigroup N.A., PNC Bank, N.A., KeyBank, N.A., and other parties. The Credit Agreement provides for a five-year revolving credit facility (the “Credit Facility”) of up to $300.0 million, maturing on August 4, 2027. In addition, during the term of the Credit Agreement, the Company may increase the aggregate amount of the Credit Facility by up to an additional $150.0 million, (for maximum aggregate lender commitments of up to $450.0 million), subject to customary conditions under the Credit Agreement, including obtaining a consent from participating lenders (or another lender, if applicable) to such increase. The Credit Facility may be used to issue letters of credit and for other business purposes, including working capital needs. The current unused fee rate is 0.175% on per annum basis.

As of March 31, 2026, and December 31, 2025 total unamortized debt issuance costs were $0.4 million and $0.5 million, respectively.

The Credit Agreement is collateralized by substantially all of the Company’s assets and contains affirmative and negative covenants, representations and warranties, events of default and other terms customary for loans of this nature. In particular, the Credit Agreement will not permit the leverage ratio to be greater than 3.0 to 1.0, measured on the last day of any fiscal quarter. In addition, the Credit Agreement will not permit the interest coverage ratio to be less than 3.0 to 1.0, for any period of four consecutive quarters, measured on the last day of any fiscal quarter. Management has determined that the Company was in compliance with all financial and non-financial debt covenants as of March 31, 2026. As of March 31, 2026 and December 31, 2025, no amounts were outstanding under the Credit Agreement and available borrowings were $300.0 million.

Generally, borrowings under the Credit Agreement bear interest at a rate based on an alternative base rate (“ABR”), plus, in each case, an applicable margin. The applicable margin will range from (a) borrowings bearing interest at the ABR plus 2.00%, and (b) borrowings bearing interest at the Adjusted Term Secured Overnight

Financing Rate, the Adjusted Australian Dollar Rate, the Adjusted Canadian Dollar Offered Rate or the Adjusted New Zealand Dollar Rate, as applicable for the interest period in effect for such borrowing plus the applicable rate.

8.Income Taxes

The Company computes interim period income taxes by applying an estimated annual effective tax rate to our year-to-date income from operations before income taxes, except for significant unusual or infrequently occurring items. The estimated effective tax rate is adjusted each quarter.

The estimated effective tax rate was 19.0% and 26.7% for the three months ended March 31, 2026 and 2025, respectively. The Company’s provision for income taxes was $4.8 million and $8.7 million for the three months ended March 31, 2026 and 2025, respectively. The provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the three months ended March 31, 2026, primarily due to an increase in the deduction related to foreign derived deduction eligible income and an increase in the research and development credit.

The Company reviews its deferred tax assets for realization based upon historical taxable income, prudent and feasible tax planning strategies, the expected timing of the reversals of existing temporary differences and expected future taxable income. The Company has concluded that it is more likely than not that the net deferred tax assets will be realized. Accordingly, the Company has not recorded a valuation allowance against net deferred tax assets for any of the periods presented.

9.Capital Structure

As of March 31, 2026, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001 per share, and 1,250,000,000 shares of common stock, par value $0.001 per share, which was divided between two series: Class A common stock and Class B common stock. As of March 31, 2026, the Company had 1,000,000,000 shares of Class A common stock and 250,000,000 shares of Class B common stock authorized and 55,017,656 shares of Class A common stock and 154,879,630 shares of Class B common stock issued and outstanding. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to five votes per share and is convertible at any time into one share of Class A common stock. During the three months ended March 31, 2026 and 2025, 1,058,778 and 703,636 shares of Class B common stock were converted to Class A common stock, respectively.

Stock Repurchase Program

On May 2, 2025 the Board of Directors approved replenishing the repurchase program up to an aggregate transactional value of $50 million to purchase shares of its outstanding Class A common stock depending on the Company’s continuing analysis of market, financial, and other factors. The share repurchase program may be suspended or discontinued at any time and does not have a predetermined expiration date.

During the three months ended March 31, 2026, the Company repurchased and retired 2,765,378 shares of its Class A common stock for $12.2 million.

Dividends

On October 31, 2025, the Company declared a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on January 20, 2026 to shareholders of record as of January 6, 2026. As part of the dividends, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $0.10 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $24.3 million was to be satisfied in cash of $21.1 million payable to holders of Class A and Class B common stock with the remaining $3.2 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On May 2, 2025, the Company declared a special dividend of $0.75 per share and a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on July 21, 2025 to shareholders of record as of July 7, 2025. As part of the dividends, and pursuant to the underlying award agreements, holders of RSUs and PRSUs received a dividend equivalent of $0.85 per unit in the form of additional RSUs and PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $204.8 million was to be satisfied in cash of $180.6 million payable to holders of Class A and Class B common stock with the remaining

$24.2 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On November 1, 2024, the Company declared a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on January 21, 2025 to shareholders of record as of January 7, 2025. As part of the dividends, and pursuant to the underlying award agreements, holders of RSUs and PRSUs received a dividend equivalent of $0.10 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $24.2 million was to be satisfied in cash of $21.3 million payable to holders of Class A and Class B common stock with the remaining $2.9 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

During the three months ended March 31, 2026, an aggregate of $21.2 million was paid in cash and $3.2 million was satisfied in the form of dividend equivalents to RSU or PRSU holders. During the three months ended March 31, 2025, $21.5 million was paid in cash and $2.9 million was satisfied in the form of dividend equivalents to RSU or PRSU holders.

10.Stock-Based Compensation

Stock-Based Compensation Cost

The following table shows the stock-based compensation cost by award type for the periods indicated:


	Three Months Ended March 31,
	2026		2025
(in thousands)
Equity classified awards
Restricted stock units	$	6,987	$	10,788

Class B common stock	16		263
Liability-classified awards	—		2
Total stock-based compensation	$	7,003	$	11,053

The following table sets forth the total stock-based compensation cost included in the Company’s condensed consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated:


	Three Months Ended March 31,
	2026		2025
(in thousands)
Cost of revenue
Platform	$	192	$	267
Products	19		6
Total cost of revenue	211		273
Research and development	2,388		3,437
Sales and marketing	1,854		3,114
General and administrative	2,009		3,626
Total stock-based compensation expense	$	6,462	$	10,450
Capitalized for software development costs	368		423
Capitalized to inventories	173		180
Total stock-based compensation	$	7,003	$	11,053

As of March 31, 2026, there was $42.7 million of unrecognized stock-based compensation cost related to service-based awards, which is expected to be recognized over a weighted-average period of 2.3 years. The total unrecognized compensation expense related to unvested PRSUs that are not probable of vesting was $71.9 million as of March 31, 2026.

2021 Equity Incentive Plan

In March 2021, the Company’s 2021 Equity Incentive Plan became effective. The 2021 Equity Incentive Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants and our parent and subsidiary corporations’ employees and consultants. Outstanding restricted stock units and performance units are entitled to dividend equivalents in the form of additional unvested restricted stock units or unvested performance units equal in value to the amount of any declared dividend based on the closing price of the Company’s Class A stock on the dividend payment date. Dividend equivalents are forfeited if the underlying award does not vest. As of March 31, 2026, 46,589,348 shares of Class A common stock were reserved for issuance under this plan including shares reserved for previously granted awards discussed below as well as shares reserved for issuance of future awards under the plan.

A summary of the Company’s service-based RSU activity under the 2021 Equity Incentive Plan is as follows:


	Number of RSUs	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2025	13,045,511	$	7.13
Granted	104,000	$	4.28
Dividend equivalent grants	308,414	—
Vested	(2,237,774)	$	7.64
Forfeited / cancelled	(274,554)	$	6.74
Outstanding at March 31, 2026	10,945,597	$	6.70

The Company has granted PRSUs under the 2021 Equity Incentive Plan to certain employees of the Company that represent shares potentially issuable in the future. In July 2024, the Company granted PRSUs by which the first tranche of 30% and the second tranche of 70% will vest upon the Company achieving certain adjusted operating income targets during any four consecutive quarters of the respective performance periods, subject to employees remaining with the Company through the vesting date. The performance periods for the first and second tranches is 4 and 5 years, respectively. Adjusted operating income means GAAP operating income adjusted to exclude stock-based compensation expense and payroll expense specifically related to these PRSU awards.

In 2022, the Company granted PRSUs that vest in two equal tranches subject to the Company achieving certain cumulative adjusted earnings per share over eight quarters at any point during the 5-year performance period, subject to employees remaining with the Company through the vesting date. Adjusted earnings per share means GAAP net income adjusted to exclude income tax expenses, as well as stock-based compensation expense and payroll tax expense specifically related to these PRSU awards.

A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows:


	Number of PRSUs (a)	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2025	18,985,312	$	13.13

Dividend equivalent grants	448,845	$	—

Forfeited / cancelled	(207,935)	$	10.57
Outstanding at March 31, 2026	19,226,222	$	13.15

a.Represents the maximum number of PRSUs assuming all performance targets are achieved.

The expense recognized each period for the PRSUs is primarily dependent upon the Company’s estimate of the probability of achieving the performance targets during the performance period. At March 31, 2026, the

Company determined it was not probable any performance conditions would be achieved so no stock-based compensation was recorded for these PRSUs during the three months ended March 31, 2026.

Options under the 2021 Equity Incentive Plan have a contractual term of 10 years. The exercise price of an incentive stock option and non-qualified stock option shall not be less than 100% of the fair market value of the shares on the date of grant.

A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows:

Number of

Options

Weighted-

Average

SEC Form 10-Q filed by Cricut Inc.