Company: CRCT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001828962-25-000146
Chunk: 40

Company: Cricut, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 the provisions of ASC 280-10-50 as it relates to the information provided to and used by the CODM for evaluating performance and allocating resources to operating segments. The Platform segment derives revenue primarily from monthly and annual subscription fees, purchases of digital content, and a minimal amount of the revenue allocated to unspecified future upgrades and enhancements related to the essential software and access to the Company’s cloud-based services. For the six months ended June 30, 2025, upfront digital content revenue comprised 2% of Platform revenue. The remaining Platform revenue consists of ratably recognized subscription revenue and revenue related to unspecified future upgrades and enhancements related to the essential software and access to the Company’s cloud-based services, which are recognized over the determined service period. 

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The Products segment derives revenue primarily from the sale of its connected machine hardware, and sale of craft, DIY, home décor products and extensions. There are no internal revenue transactions between the Company’s segments.The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis. As of June 30, 2025, long-lived assets located outside the United States, primarily located in Malaysia and China, were $5.2 million. Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows:Three Months Ended June 30,Six Months Ended June 30,2025202420252024(in thousands)Platform:Revenue$80,697 $77,649 $160,683 $155,935 Cost of revenue8,816 8,888 17,484 17,647 Gross profit$71,881 $68,761 $143,199 $138,288 Products:Revenue$91,415 $90,298 $174,063 $179,404 Cost of revenue61,757 69,219 117,375 136,258 Gross profit$29,658 $21,079 $56,688 $43,146 Consolidated:Revenue$172,112 $167,947 $334,746 $335,339 Cost of revenue70,573 78,107 134,859 153,905 Gross profit$101,539 $89,840 $199,887 $181,434 

A reconciliation of our total segment and consolidated gross profit to our income before provision for income taxes is presented in our