Slide 1: Q1 2025 Financial Results
NASDAQ : CRCT replace Financial Results Q1 2025 May 6, 2025 Q1 2025 Financial Results 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Se
Slide 3: I want to make…
I want to make… Apparel & Everyday Cards Décor Accessories Items From idea Back to Flowers to I did it. School Mugs & Stickers Gifts Parties 3 Drinkware & Labels Q1 2025 Financial Results
Slide 4: Q1 2025 Highlights
Q1 2025 Highlights Sales • Total sales decreased 3% YoY • International sales increased 8% YoY Discover Profitability C • Operating income of $29.3M or 18% of sales • Operating income increased 16% YoY Content Subscriptions Growth • Just over 2.97M Paid Subscribers, increased 6% YoY Portfolio Mix •
Slide 5: Growth opportunities as the category leader
Growth opportunities as the category leader Clear opportunities to reaccelerate consumer excitement for the brand and category • Attract more new users to buy connected machines • Reverse weakening engagement trends • Re-inject enthusiasm among our users • Become more effective competitors in access
Slide 6: New product launches empower creators to elevate their projects
New product launches empower creators to elevate their projects Faster, more cost effective, and easier than ever— right out of the box • Up to 2x faster than earlier models • Tools and materials included for 10 projects • Essential Bundle adds more value and materials for up to 100 projects for onl
Slide 7: New User Acquisition
New User Acquisition • Launched next generation of our most popular cutting machines → Cricut Explore 4 → Cricut Maker 4 • Tailoring our paid social content across Meta, Pinterest, and TikTok to drive users further down the funnel Q1 2025 Financial Results 7
Slide 8: Maximizing engagement for Onboarders & Subscribers
Maximizing engagement Cricut Maker 3 connected! for Onboarders & Subscribers • Making it easier for Onboarders to make projects right out of the box • More suggestions and guidance for sizing and project types within Design Space • Continued dedication to simplify our design process to maintain and
Slide 9: Positive outlook on subscriptions
Positive outlook on subscriptions Recommended 2.97M Paid subscribers 6% YoY à Are you sure you want to cancel? • Paid subscribers up 177K YoY, Enjoy 50% off your up 15K sequentially in Q1 next 3 months Keep it going—for less • Effectively converting onboarders to subscribers • Increasing the value p
Slide 10: Accessories & Materials
Accessories & Materials Continued transformation through innovation and investments • Additional Cricut Value Material SKUs launched due to consumer demand • Products that prioritize affordability that work seamlessly with our machines • Additional innovation, products and cost reductions coming in
Slide 11: Financial Results
Financial Results Q1 2025 Financial Results 11
Slide 12: Q1 2025 financial highlights
Q1 2025 financial highlights Revenue Operating Income 1 Net Income $162.6M $29.3M $23.9M -3% 16% 22% YoY Decrease YoY Increase YoY Increase 18.0% 14.7% of Total Revenue of Total Revenue 1. Q1 2025 Operating Income includes $10.5 million of stock-based compensation expense. Q1 2025 Financial Results
Slide 13: Revenue breakdown
Revenue breakdown • Platform revenue increased 2% YoY • Products revenue declined 7% YoY $167.4M $162.6M • Connected Machines revenue increased 4% YoY • Accessories & Materials revenue declined 15% YoY • International revenue increased 8% YoY Q1 2024 Q1 2025 -8% YoY Growth Rates -3% Q1 2025 Financia
Slide 14: User base dynamics
User base dynamics 90-Day Active Users Paid Subscribers Engaged Users 5.95M 5.93M 3.53M 3.37M 2.97M 2.80M Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2025 Financial Results 14
Slide 15: Gross margin
Gross margin Q1 Contributing Factors Total Gross Margin Platform Margins 54.7% 60.5% • Slight increase due to lower amortization of software development costs 100% 90% Products Margins 80% 70% • Increase due to selling previously reserved 60% inventory and more favorable product mix as we launched n
Slide 16: Operating expense
Operating expense • Increased marketing spend of $20 million in 2024 to drive excitement and engagement and continued at similar $69.0M $66.4M rate through Q1 40% 42% • Continued investments in physical products and platform 10% 11% 23% 20% 9% 10% Q1 2024 Q1 2025 R&D S&M G&A % = % of total revenue Q
Slide 17: Operating income and net income
Operating income and net income Operating Income Net Income $29.3M $25.2M $23.9M $19.6M Q1 2024 Q1 2025 Q1 2024 Q1 2025 Operating Net Income 15.1% Margins 18.0% 11.7% Margins 14.7% 139% YoY $ Growth 16% 116% YoY $ Growth 22% Q1 2025 Financial Results 17
Slide 18: Q1 2025 Balance Sheet and Cash Flow highlights
Q1 2025 Balance Sheet and Cash Flow highlights Cash, equivalents as of 3/31/25 $356.7M $300.0M Cash, cash equivalents, marketable securities Untapped credit line Cash Flow generated from Operations 3/31/25 YTD $61.2M vs $56.7M PY YTD Share Repurchase Program & Dividends $12M $21M Used during Q1 2025
Slide 19: Capital allocation update
Capital allocation update Approved Recurring Stock Repurchase One-time dividend semi-annual dividend Program $0.75 $0.10 $50M per share* per share* stock repurchase program incorporates remaining from prior authorizations. * Both dividends are payable on July 21, 2025 for shareholders of record on J
Slide 20: Forward looking commentary
Forward looking commentary Expect total company sales to decline YoY in the first half of 2025 compared to the first half of 2024 due to continued pressure in accessories and materials. Expect that the rate of sales decline should be less than the rates we posted in the first half of 2024. Working w