Key Highlights

  • Net income rose 36% to USD 27.8 million in the third quarter of 2026, or USD 0.13 per diluted share, on Revenue of USD 188.6 million, up 11% from USD 170.4 million.
  • Products revenue grew 17% to USD 102.7 million while Platform revenue rose nearly 4% to USD 85.9 million, and international sales climbed 30% to 28% of the total.
  • Gross Margin widened to 57.7% from 55.2%, and Operating Income rose 50% to USD 33.9 million, or 18.0% of revenue.
  • A recurring USD 0.10 Dividend and a USD 0.70 Special Dividend are due in January 2027, alongside a repurchase program replenished to USD 50 million.

Cricut Reports 11% Revenue Growth and 36% Profit Gain

Cricut (NASDAQ:CRCT) released third quarter 2026 results on November 3, 2026, with revenue of USD 188.6 million, up 11%, and Net Income of USD 27.8 million, up from USD 20.5 million. The company sells connected cutting and crafting machines, accessories and materials, and earns subscription income from its design software. Products revenue rose 17% to USD 102.7 million, helped by the Maker 5 and StickerPix launches and double-digit sell-out growth for a second straight quarter. Platform revenue, which includes subscriptions, grew nearly 4% to USD 85.9 million. International revenue rose 30%, lifting its share of sales to 28% from 24%. Diluted Earnings per Share were USD 0.13 against USD 0.10, helped by a lower share count of about 212.8 million diluted shares against 215.3 million.

Margin Mix Explains Profit Outrunning Sales

Profit grew three times faster than revenue because margins widened. Gross Profit was USD 108.9 million, and gross margin reached 57.7% against 55.2%. Our arithmetic on the reported cost lines shows Products gross margin near 30.8% against 23.1% a year earlier, while Platform stayed near 90%. Operating expenses rose only about 5% to USD 75.0 million, which let operating income climb 50% to USD 33.9 million. The tax provision took 23.5% of pretax income against 20.0% (own arithmetic), a modest drag. Cash from operations was about USD 24 million, and cash ended at USD 273 million. Interest income eased to USD 2.1 million from USD 2.3 million, so the profit gain came from operations rather than financial items.

Special Dividend, Subscriber Growth and Open Questions

The board approved a USD 0.10 recurring dividend and a USD 0.70 special dividend, payable in January 2027. At roughly 208.7 million weighted basic shares, USD 0.80 per share implies about USD 167 million, simple arithmetic that excludes the share-class split and dividend equivalents. Paid subscribers rose 2% to 3.07 million and active users reached nearly 6.0 million, but 90-day engaged users were flat at 3.5 million. Cricut repurchased 1,294,882 shares for USD 6.5 million in the quarter. Risks include tariffs, retail partner dependence and reliance on its chief executive; no forward guidance appeared in the release extract, so the durability of the margin gain is not addressed.

Where Things Stand

Net income rose 36% on 11% revenue growth because higher gross margin, mainly from Products, and slower expense growth flowed through to operating income, which rose 50%. Cricut (NASDAQ:CRCT) also moved to return cash, though subscriber growth of 2% and flat engaged users show the platform base is expanding slowly. Watch the January 2027 dividend payment, the pace of the repurchase program, Tariff costs, and whether the Maker 5 launch keeps Products growth in double digits.