Company: CRCT
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001828962-25-000075
Chunk: 105

Company: Cricut, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 105
---
 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 

26

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$14,853$804 5 %As a percentage of total revenue10 %9 %

Research and development expenses increased by $0.8 million, or 5%, to $15.7 million for the three months ended March 31, 2025 from $14.9 million for the three months ended March 31, 2024. The increase was primarily 

due to a $1.1 million increase in professional services expense and a $0.6 million increase in product development 

expense, partially offset by a decrease in personnel-related expense.

Sales and Marketing

Three Months EndedMarch 31,Change20252024$%(