Company: CRCT
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001828962-25-000075
Chunk: 57

Company: Cricut, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 was primarily driven by fewer units of accessories and materials sold and increased promotional activity compared to the prior year. 

Cost of Revenue, Gross Profit and Gross Margin

Three Months EndedMarch 31,Change20252024$%(dollars in thousands)Cost of Revenue:Platform$8,668$8,759$(91)(1)%Products55,61867,039(11,421)(17)%Total cost revenue$64,286$75,798$(11,512)(15)%Gross Profit:Platform71,31869,5271,791 3 %Products27,03022,0674,963 22 %Total gross profit$98,348$91,594$6,754 7 %Gross MarginPlatform89 %89 %Products33 %25 %

Three Months Ended March 31, 2025 and 2024

Platform cost of revenue decreased by $0.1 million, or 1%, to $8.7 million for the three months ended March 31, 2025, from $8.8 million for the three months ended March 31, 2024. The decrease was primarily driven by decreases in the amortization of capitalized software development costs and external digital content costs.

Gross margin for Platform was 89% for the three months ended March 31, 2025, and 89% for the three months ended March 31, 2024. Equivalent platform margin compared to prior year is driven by lower amortization of capitalized software development costs partially offset by increased platform hosting fees.

Products cost of revenue decreased by $11.4 million, or 17%, to $55.6 million for the three months ended March 31, 2025, from $67.0 million for the three months ended March 31, 2024. The decrease was primarily driven 

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by a reduction in net inventory impairment charges, fewer units of accessories and materials sold, and lower warehousing and operations costs compared to the prior year.

Gross margin for Products was 33% for the three months ended March 31, 2025 and 25% for the three months ended March 31, 2024. The increase was primarily driven by a reduction in net inventory impairment charges compared to prior year, partially offset by increased promotional activity.

Operating Expenses

Research and Development

Three Months EndedMarch 31,Change20252024$%(dollars in thousands)Research and development$15,657$