Cricut Q2 Revenue Misses Estimates by 4.3% as Product Sales Plunge 22%
CRCT sits 36% above its 52-week low of $3.735.
Summary
Cricut's Q2 revenue fell 9% year-over-year to $156.3 million, missing the $163.3 million consensus, driven by a 22% plunge in product sales. Platform revenue grew over 5%, supported by higher paid subscribers and ARPU, but couldn't offset the hardware weakness. Net income jumped 59% to $39.1 million, or $0.19 per share, helped by improved gross margins and share buybacks. The company repurchased 1.7 million shares for $7.5 million during the quarter. No guidance was provided, leaving the outlook uncertain. This follows a Q1 where revenue also declined 2% with margin pressure in products, indicating a deepening hardware slump. With the stock trading at 25 times forward earnings and a median analyst price target of $3.75—well below the recent $4.79 close—the revenue miss reinforces bearish sentiment.
At the time of this announcement, CRCT was trading at $5.07 on NASDAQ in the Technology sector, with a market capitalization of approximately $1B. The 52-week trading range was $3.74 to $6.93. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.