Share count
217Mpeak FY2022
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CRCT, Cricut Inc.
Semiconductor Equipment capital-intensive
Cricut Design Space, giving users access to create and work on their projects anywhere, at any time, across desktop and mobile devices.
Our creativity platform enables our engaged and loyal community of nearly 5.9 million Active Users, as of December 31, 2025, to turn ideas into DIY goods from custom greeting cards and apparel to on-demand gifts and large-scale decor.
We designed and built our ecosystem of connected cutting machines, accessories, and materials for scalability and seamless integration, allowing us to both introduce new products as well as continuously update the functionality and features of existing physical and digital products.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$709M
−0.5% YoY · −6% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $706M 5-yr avg $876M
Revenue $159M −1.9% vs yr-ago qtr
Operating margin 14.4% yr-ago 18.0%
Net income $20M yr-ago $24M
Net margin 12.7% yr-ago 14.7%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- Revenue is Products (54%) and Platform (46%).
- What moves the needle
- Gross margin has run about 39% and operating margin about 11% through the cycle, a solid spread between what it charges and what the product costs to make. The operating margin has swung widely — from 9.0% to 21% over the years — so the through-cycle figure carries more than any single year, and the worst year more than the best. Inventory runs near 26% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the capital-goods cycle and the aftermarket. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has run high across the record (median 32%, above 15% in 5 of 7 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 10-K →Revenue spreads across 2 segments, the largest Products at 54%.
Revenue by reportable segment, FY2025
- Products54%$381M
- Platform46%$327M
By geographyNorth America76%International24%
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2019–2025
realized figures from each filing · older years to the left| 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||
| $487M | $959M | $1.3B | $886M | $765M | $713M | $709M | $706M | RevenueRevenue |
| 29% | 35% | 35% | 39% | 45% | 50% | 55% | 55% | Gross marginGross mgn |
| 5% | 3% | 4% | 7% | 11% | 10% | 10% | 10% | SG&A / revenueSG&A/rev |
| 5% | 4% | 6% | 9% | 9% | 8% | 9% | 10% | R&D / revenueR&D/rev |
| $54M | $201M | $192M | $80M | $70M | $76M | $96M | $90M | Operating incomeOp. inc. |
| 11.0% | 20.9% | 14.7% | 9.0% | 9.1% | 10.7% | 13.5% | 12.7% | Operating marginOp. mgn |
| $39M | $155M | $140M | $61M | $54M | $63M | $77M | $73M | Net incomeNet inc. |
| 22% | 22% | 27% | 26% | 33% | 29% | 29% | 27% | Effective tax rateTax rate |
| Cash flow & returns | ||||||||
| $4M | $248M | ($105M) | $118M | $288M | $265M | $200M | $166M | Operating cash flowOp. cash |
| $9M | $14M | $19M | $27M | $30M | $29M | $24M | $24M | DepreciationDeprec. |
| ($46M) | $70M | ($303M) | ($11M) | $157M | $128M | $64M | $38M | Working capital & otherWC & other |
| $0 | $51M | $0 | $0 | $294M | $110M | $202M | $202M | Dividends paidDiv. paid |
| — | $0 | $0 | $19M | $20M | $38M | $25M | — | BuybacksBuybacks |
| 36% | 146% | 32% | 13% | 12% | 23% | 78% | 54% | ROICROIC |
| 32% | 68% | 21% | 9% | 10% | 13% | 22% | 20% | Return on equityROE |
| 32% | 45% | 21% | 9% | −45% | −10% | −36% | −36% | Retained to equityRetained/eq |
| Balance sheet | ||||||||
| $7M | $122M | $242M | $299M | $245M | $337M | $276M | $256M | Cash & investmentsCash+inv |
| — | $163M | $200M | $137M | $111M | $102M | $92M | $68M | ReceivablesReceiv. |
| — | $249M | $454M | $381M | $278M | $134M | $114M | $114M | InventoryInvent. |
| — | $252M | $205M | $63M | $77M | $53M | $72M | $57M | Accounts payablePayables |
| — | $160M | $449M | $455M | $312M | $183M | $134M | $125M | Operating working capitalOper. WC |
| — | $539M | $928M | $811M | $620M | $580M | $500M | $462M | Current assetsCur. assets |
| — | $347M | $308M | $254M | $196M | $203M | $221M | $170M | Current liabilitiesCur. liab. |
| — | 1.6× | 3.0× | 3.2× | 3.2× | 2.9× | 2.3× | 2.7× | Current ratioCurr. ratio |
| — | $581M | $1.0B | $950M | $750M | $693M | $581M | $544M | Total assetsAssets |
| ($7M) | ($122M) | ($242M) | ($299M) | ($245M) | ($337M) | ($276M) | ($256M) | Net debt / (cash)Net debt |
| — | — | 645.7× | 276.7× | 216.7× | 233.5× | 169.4× | 157.7× | Interest coverageInt. cov. |
| $121M | $229M | $674M | $673M | $535M | $467M | $344M | $357M | Shareholders’ equityEquity |
| 0.4% | 1.0% | 2.9% | 4.6% | 6.2% | 6.3% | 4.9% | 4.4% | Stock comp / revenueSBC/rev |
| Per share | ||||||||
| 208M | 208M | 220M | 221M | 220M | 216M | 217M | 213M | Shares out (diluted)Shares |
| $2.34 | $4.61 | $5.94 | $4.02 | $3.48 | $3.30 | $3.26 | $3.32 | Revenue / shareRev/sh |
| $0.19 | $0.74 | $0.64 | $0.28 | $0.24 | $0.29 | $0.35 | $0.34 | EPS (diluted)EPS |
| $0.00 | $0.25 | $0.00 | $0.00 | $1.34 | $0.51 | $0.93 | $0.95 | Dividends / shareDiv/sh |
| $0.58 | $1.10 | $3.07 | $3.05 | $2.43 | $2.16 | $1.58 | $1.68 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 6-yr | 5-yr | |
|---|---|---|
| Revenue / share | +5.7%/yr | −6.7%/yr |
| EPS | +11.0%/yr | −13.8%/yr |
| Dividends / share | — | +30.5%/yr |
| Book value / share | +18.1%/yr | +7.5%/yr |
The year, in the company's words
the filing →Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.
- Products-4.6%
“Products revenue decreased by $18.2 million, or 5%, to $381.4 million for the year ended December 31, 2025 from $399.6 million for the year ended December 31, 2024. The decrease was primarily driven by fewer units of accessories and materials sold and at a lower average selling price.”
✓ figure matches the filed record - Products-8.8%
“Products cost of revenue decreased by $40.1 million, or 12%, to $282.4 million for the year ended December 31, 2025 from $322.5 million for the year ended December 31, 2024. The decrease was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.”
✓ direction matches the filed record
The record, charted
FY2019–2025Each measure over its full record; the current point and the worst year marked.
ROIC
78%low FY2023
Gross margin
55%low FY2019
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2019FY2025
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? 169.4×ComfortableOperating income $96M ÷ interest expense $567K
What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
- Net cash, debt-freeCash $256M + ST investments $19M − debt $0
What this means
Cash and short-term investments exceed every dollar of debt by $276M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Long (60+ days)DSO 47 + DIO 130 − DPO 82 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Not enough dataIndustry peers: median 12%
What this means
The filing data didn't include the inputs for this check.
- Not enough dataIndustry peers: median 6%
What this means
The filing data didn't include the inputs for this check.
- Cash-backedCash from ops $200M ÷ net income $77M
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? —Not enough data
What this means
The filing data didn't include the inputs for this check.
Graham’s defensive tests · 2 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $709M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 2.26×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Earnings stability PassA profit every year (7-yr record) · no losses
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · 4 of 7 yrs
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth MissEarnings +33% over the record · −42%
What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.31/share (latest year $0.37), the averaged base the calculator's gate runs on, and book value is $1.64/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2019–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 7 of 7
What this means
Never lost money over the record, the earnings stability Graham insisted on.
- Operating margin 16% → 11% (3-yr avg ends)
What this means
Through the cycle the operating margin slipped — about 16% early to 11% lately, median 11% — competition or costs are biting in.
- Worst year 2022 · 9.0% op. margin
What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
- Share count +0.7%/yr
What this means
Roughly flat share count, little dilution, little buyback.
- Dividend record rising
What this means
Paid and raised the dividend across the record, the continuity Graham prized.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Raised, but not as a competitor
The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$462M
- Cash & short-term investments$256M
- Receivables$68M
- Inventory$114M
- Other current assets$24M
Current liabilities$170M
- Accounts payable$57M
- Other current liabilities$113M
Current ratio2.72×all current assets ÷ what's due · Graham looked for 2×
Quick ratio2.05×stricter: inventory excluded
Cash ratio1.51×strictest: cash alone against what's due
Working capital$292Mthe cushion left after near-term bills
Revenue, latest quarter vs. a year ago−1.9%the freshest read on whether the business is still growing
Current ratio, recent quarters2.2× → 2.7×
Deeper floors
Tangible book value$357Mequity stripped of goodwill & intangibles
Net current asset value$276MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$11M$11M of it operating leases
Deferred revenue$57Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Net income |
|---|---|---|---|---|
| 2021 | Ashish Arora | $39.1M | $106.5M | $140M |
| 2022 | Ashish Arora | $49.6M | −$63.9M | $61M |
| 2023 | Ashish Arora | $18.2M | $17.5M | $54M |
| 2024 | Ashish Arora | $21.7M | $15.1M | $63M |
| 2025 | Ashish Arora | $13.4M | $13.5M | $77M |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Net income is the whole business's, as filed, for the same fiscal years.
- Insider ownership5%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- CEO pay ratio145:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
- Stock-based compensation$35M
The slice of the business handed to employees in shares this year, 5% of revenue, equal to 36% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Inverting the record
Invert: instead of why Cricut Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2019–2025.
2 of the 3 tests turned up something to look into; the other 1 came back clean.
- Look hereIs it less profitable than it was?11.1% vs 15.5%
The operating margin averaged 15.5% early in the record and 11.1% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
- Look hereAre "one-time" charges a yearly habit?4 of 7 years
Management took an impairment or write-down in 4 of the last 7 years, $14M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.
And these came back clean
- Did reported profit become cash?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Revenue recognition, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Semiconductor Equipment
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| KAIKadant | $1.1B | 44% | 14.0% | 12% | 12% |
| ACMRACM Research Inc. | $901M | 47% | 14.3% | 20% | -12% |
| ACLSAxcelis Technologies | $839M | 43% | 13.9% | 21% | 13% |
| PSIXPower Solutions International Inc. | $722M | 16% | -0.6% | 15% | 0% |
| CRCTCricut Inc. | $709M | 39% | 11.0% | 32% | — |
| GRCGorman-Rupp Company (The) | $682M | 26% | 11.0% | 11% | 11% |
| VECOVeeco Instruments Inc. | $664M | 40% | 5.2% | -1% | 6% |
| AZTAAzenta Inc. | $594M | 44% | -6.1% | -3% | 6% |
| Group median | — | 42% | 11.0% | 14% | — |
The price
What a price has to assume.
What the price implies
reverse-DCFCricut Inc. is profitable, but its owner-earnings base could not be formed from this filing’s tagged data (operating cash flow or capital spending is missing), so the owner-earnings reverse-DCF has no base to grow. We read the price from both ends instead: type a price to see the profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
$
The assumptions
Revenue, delivered−9%/yr’20→’25
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today—
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "Cricut Inc. (CRCT), the owner's record," https://ownerscorecard.com/c/CRCT, data as of 2026-07-09.
Manual order: ← CRCL its page in the Manual CRDO →
Industry order: ← AZTA the Semiconductor Equipment chapter ERII →