Crafting platform Cricut hits three-year high as 3Q earnings crush expectations

Shares of Cricut, whose software lets users design craft projects and whose machines can print cards, engrave metal, and emboss leather, surged nearly 50% on Wednesday to a three-year high. Wall Street had expected “a lukewarm quarter” but got “stellar results,” Motley Fool contributing analyst Anders Bylund explains.

Cricut shares jumped 49% on the Nasdaq on Wednesday to $8.88 apiece, their highest level since October 2023. The rally followed the company’s third-quarter financial results. Revenue rose 11% year over year to $188.6 million, while earnings per share increased 30% to $0.13. Both figures beat Wall Street forecasts, Motley Fool contributing analyst Anders Bylund notes. The consensus called for revenue of $164.4 million and EPS of $0.05.

Revenue from paid subscriptions increased nearly 4% year over year to $85.9 million, while product revenue rose 17% to $102.7 million. Users can pay for access to Cricut’s software to design projects such as stickers, T-shirts, custom keychains, or engravings, then use its specialized equipment to make the finished product.

Cricut’s management expects revenue to grow in 2026 for the first time since 2021, according to another Motley Fool article covering the company’s earnings call. It highlights several factors for long-term investors to watch.

First is the expansion beyond its core electronic cutting machines into photo and sticker printing with the StickerPix product line, aimed at attracting new customers and increasing engagement across its ecosystem. StickerPix launched late in the quarter, so its financial impact is still ahead, the article says. Second is the growing contribution of international sales to Cricut’s results: They rose 30% in the quarter and accounted for 28% of total revenue. The Motley Fool also notes that one-time factors, including tariff refunds under the International Emergency Economic Powers Act, helped boost third-quarter gross profit.

Cricut has $272.7 million in cash and no debt, which has allowed it to declare a special dividend of $0.70 per share alongside its semiannual payout of $0.10 per share and replenish its share buyback authorization to $50 million, the article says.

Even after the Wednesday rally, Cricut shares still look affordable at 19.2 times trailing earnings, Bylund argues. “Not bad for a company Wall Street had nearly written off as a pandemic fad in 2021,” he notes. Cricut has three analyst ratings, all “sell.” The average target price of $4.70 per share implies 47% downside from the last closing price.