Company: CRCT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001828962-25-000146
Chunk: 50

Company: Cricut, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 six months ended June 30, 2024.

Products cost of revenue decreased by $18.9 million, or 14%, to $117.4 million for the six months ended June 30, 2025, from $136.3 million for the six months ended June 30, 2024. The decrease was primarily driven by a reduction in net inventory impairment charges, lower inventory procurement costs, and fewer units of connected machines sold.

Gross margin for Products was 33% for the six months ended June 30, 2025 and 24% for the six months ended June 30, 2024. The increase was primarily driven by a reduction in net inventory impairment charges, lower inventory procurement costs, and improved product margins.

27

Operating Expenses

Research and Development

Three Months EndedJune 30,ChangeSix Months Ended June 30,Change20252024$%20252024$%(dollars in thousands)Research and development$16,762$14,315$2,447 17 %$32,419$29,168$3,251 11 %As a percentage of total revenue10 %9 %10 %9 %

Research and development expenses increased by $2.4 million, or 17%, to $16.8 million for the three months ended June 30, 2025 from $14.3 million for the three months ended June 30, 2024. The increase was primarily due to a $1.2 million increase in product development expense, a $0.7 million increase in personnel-related expense, and a $0.4 million increase in professional services expense.

Research and development expenses increased by $3.3 million, or 11%, to $32.4 million for the six months ended June 30, 2025 from $29.2 million for the six months ended June 30, 2024. The increase was primarily due to a $1.9 million increase in product development expense and a $1.4 million increase in professional services expense.

Sales and Marketing

Three Months EndedJune 30,ChangeSix Months Ended June 30,Change20252024$%20252024$%(dollars in thousands)Sales and marketing$35,877$33,354$2,523 8 %$72,562$66,384$6,178 9 %As a percentage of total revenue21 %20 %22 %20