How Did Cricut (NASDAQ:CRCT) Shares Rise 13.74% After Its Third-Quarter Results?

Vinay Lochav

04 November 2026 11:32 PM AEDT

How Did Cricut (NASDAQ:CRCT) Shares Rise 13.74% After Its Third-Quarter Results?

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Key Highlights

Third quarter 2026 Revenue reached USD 188.6 million, up 11% from USD 170.4 million.
Gross Margin expanded to 57.7% from 55.2% a year earlier.
Net income climbed 36% to USD 27.8 million, or USD 0.13 per diluted share.
Products revenue increased 17% to USD 102.7 million, while international revenue grew 30%.
The company declared a Special Dividend of USD 0.70 per share alongside a USD 0.10 semi-annual dividend.

Cricut Price Action Before the Open (up USD 0.8202, 13.74%)

Cricut (NASDAQ:CRCT) rose USD 0.8202, or 13.74%, to USD 6.79 in pre-market trading on November 4, 2026. The gain followed third-quarter 2026 financial results released on November 3, 2026, which beat on revenue and Earnings and included a special dividend.

The chief executive described a strong quarter, with revenue up 11% and double-digit growth in consumer purchases at retail for a second straight quarter.

Earnings Breakdown

Revenue came in at USD 188.6 million, compared with USD 170.4 million in the third quarter of 2025. Platform revenue, which covers subscriptions, software and related services, reached USD 85.9 million, up about 4% from USD 82.8 million. Products revenue rose 17% to USD 102.7 million from USD 87.7 million. International revenue grew 30% and accounted for 28% of the total, compared with 24% a year earlier.

Gross profit totaled USD 108.9 million, against USD 94.1 million. Operating Income climbed 50% to USD 33.9 million, an 18.0% margin, from USD 22.7 million, or 13.3%. Net Income was USD 27.8 million, a 14.8% margin, compared with USD 20.5 million, or 12.0%, and diluted EPS came in at USD 0.13 versus USD 0.10.

Company Profile and Users

Cricut manufactures connected cutting machines, plus the accessories, materials and design software used for crafting and personalization. Its Platform segment relies on engaged users who subscribe to and buy digital content.

As of September 30, 2026, paid subscribers stood at 3.07 million, up 2% from 3.00 million, and active users reached 5.99 million, up about 2% from 5.88 million. Ninety-day engaged users were roughly flat at 3.47 million. Platform average revenue per user over twelve months increased 3% to USD 56.70 from USD 54.88.

Capital Returns, Balance Sheet and Risk Factors

The company declared a recurring semi-annual dividend of USD 0.10 a share and a special dividend of USD 0.70 a share, both payable in January 2027. Combined, they total USD 0.80 a share, or about 11.8% of the pre-market price (calculated), although dividends are not guaranteed to continue.

During the quarter the company bought back 1,294,882 shares for USD 6.5 million, leaving USD 15.1 million under its USD 50 million program. Cash and cash equivalents stood at USD 174.6 million, with marketable securities of USD 98.1 million, compared with cash of USD 256.2 million at year-end 2025. Inventories climbed to USD 146.9 million from USD 102.7 million, and nine-month Operating Cash Flow came in at USD 100.9 million versus USD 117.8 million.

The release gave no full-year guidance. Risks include slow subscriber growth, higher inventory levels and consumer Demand for discretionary craft products.

Key Items to Monitor

Investors will focus on Earnings Call remarks, the Form 10-Q and any comments on holiday-season demand, inventory and platform growth. Sustained gross margin gains and subscriber trends will count. Pre-market gains can shift once regular trading begins on November 4, 2026.

FAQs

Q: What drove the pre-market move on November 4, 2026?

A: The company released third-quarter 2026 results on November 3, 2026, showing revenue of USD 188.6 million, up 11%, net income of USD 27.8 million and a special dividend of USD 0.70 a share.

Q: How did margins move?

A: Gross margin was 57.7% compared with 55.2%, and operating margin was 18.0% compared with 13.3% a year earlier.

Q: How much cash does the company have on hand?

A: Cash and cash equivalents totaled USD 174.6 million, and marketable securities were USD 98.1 million, on September 30, 2026.

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