GET DAILY SIGNALSCricut (CRCT) Reports Strong Q3 2026 Results with Revenue Up 11% and EPS at $0.13
Key Takeaways
- Cricut, Inc. (CRCT) reported third quarter 2026 revenue of $188.6 million, up 11% year over year and above analyst expectations.
- Diluted earnings per share (EPS) came in at $0.13, up from $0.10 in the prior-year quarter and well ahead of consensus estimates.
- Products revenue surged 17% to $102.7 million, helped by the launches of the Cricut Maker 5 and StickerPix lines, while Platform revenue rose nearly 4%.
- Paid subscribers grew 2% to 3.07 million, and platform average revenue per user (ARPU) rose 3% to $56.70.
- The board approved a recurring $0.10 semi-annual dividend plus a $0.70 special dividend, and replenished the $50 million stock repurchase program.
Why This Earnings Report Matters
Cricut's third quarter 2026 report matters because it tests whether the creative technology company can sustain a reacceleration in its core products business after a period of uneven demand. The quarter included two significant product launches — the Maker 5 cutting machine and the new StickerPix line — giving investors a first read on how innovation is translating into sell-through. With platform subscriptions and ARPU representing higher-margin recurring revenue, the report also sheds light on Cricut's ability to convert machine buyers into long-term subscribers. Strong cash generation and a newly announced special dividend further signal management's confidence in the balance sheet and its commitment to returning capital to shareholders. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Numbers
For the third quarter ended September 30, 2026, Cricut reported total revenue of $188.6 million, an 11% increase from $170.4 million a year earlier and ahead of the consensus estimate of roughly $164 million. Platform revenue grew nearly 4% to $85.9 million, while Products revenue climbed 17% to $102.7 million. International revenue rose 30% and represented 28% of total revenue, up from 24% a year ago.
Diluted EPS was $0.13, up from $0.10 in Q3 2025 and above the analyst consensus of approximately $0.05. Gross margin expanded to 57.7% from 55.2%, and operating income rose 50% to $33.9 million, or 18.0% of revenue. Net income increased 36% to $27.8 million, or 14.8% of revenue.
Key operating metrics showed steady engagement: paid subscribers rose 2% to 3.07 million, active users grew 2% to nearly 6.0 million, and 90-day engaged users were flat at 3.5 million. Platform ARPU (average revenue per user) increased 3% to $56.70. The company generated $24 million in cash from operations and ended the quarter with $273 million in cash and cash equivalents.
Market Reaction and Investor Sentiment
Despite a clear beat on both the top and bottom lines, Cricut shares were modestly lower following the report, suggesting investors had already priced in much of the recent momentum. The stock closed near $5.97 on the day of the announcement and has advanced more than 15% over the trailing twelve months. The mixed intraday reaction reflects a market weighing strong product growth and margin expansion against the reality that platform engagement metrics — such as flat 90-day engaged users — remain subdued. The announcement of a special dividend and a replenished buyback program was generally viewed as a positive signal of financial strength, even as the initial share move remained muted.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should watch whether Cricut's product momentum can carry into the holiday quarter and beyond. Management has indicated it expects platform revenue growth to continue through the end of the year, supported by the recent product launches and international expansion. The company's international business, which grew 30% and now accounts for 28% of revenue, is emerging as a meaningful growth driver worth monitoring.
Engagement metrics will be a key area of focus. While paid subscribers and ARPU moved higher, 90-day engaged users were flat year over year, highlighting the importance of converting new machine buyers into active, repeat users. Sustained improvement in this metric would support the higher-margin platform business over time.
Finally, capital allocation decisions — including the $0.70 special dividend payable in January 2027 and the replenished $50 million repurchase program — signal confidence but also raise the bar for operational execution. Investors will want to see continued margin discipline, stable cash generation, and evidence that new product categories like StickerPix broaden the company's addressable market without pressuring profitability.
Using AI Tools for Deeper Analysis
In my own research process, Tickeron's AI Screener has become a reliable way to scan for patterns and compare fundamentals across similar names. It helps surface ideas efficiently when I'm evaluating how a company like CRCT fits into the broader market. The tool's customizable filters on technicals, trends, and performance metrics add a useful layer to traditional analysis without replacing judgment.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CRCT's RSI Indicator leaves overbought zone
The 10-day RSI Indicator for CRCT moved out of overbought territory on October 16, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 23 instances where the indicator moved out of the overbought zone. In 21 of the 23 cases the stock moved lower in the days that followed. This puts the odds of a move down at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 23, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CRCT as a result. In 65 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 80%.
The Moving Average Convergence Divergence Histogram (MACD) for CRCT turned negative on October 16, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 37 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
CRCT moved below its 50-day moving average on November 02, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRCT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.50% 3-day Advance, the price is estimated to grow further. Considering data from situations where CRCT advanced for three days, in 214 of 295 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
CRCT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 105 of 152 cases where CRCT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 69%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 37 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 38 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.396) is normal, around the industry mean (-6.276). P/E Ratio (14.561) is within average values for comparable stocks, (-3.480). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (23.994). CRCT's Dividend Yield (0.067) is considerably higher than the industry average of (0.012). P/S Ratio (1.750) is also within normal values, averaging (51.774).
The Tickeron PE Growth Rating for this company is 38 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. CRCT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CRCT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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