Company: CRCT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001828962-25-000146
Chunk: 104

Company: Cricut, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 104
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 materially since our Annual Report.

During the six months ended June 30, 2025, we paid a dividend of $21.5 million to holders of Class A and Class B common stock. On July 21, 2025, we paid a dividend of $180.6 million to holders of Class A and Class B common stock.

Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our rate of revenue growth, the timing and extent of spending on research and development efforts and other growth initiatives, the expansion of sales and marketing activities, the timing of new product introductions, market acceptance of our products and overall economic conditions, including the impact of regulatory and economic uncertainty, as well as heightened, new, or proposed tariffs. To the extent that current and anticipated future sources of liquidity are insufficient to fund our future business activities and requirements, we may be required to seek additional equity or debt financing. The sale of additional equity would result in additional dilution to our stockholders. The incurrence of debt financing would result in debt service obligations, and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations. There can be no assurances that we will be able to raise additional capital. The inability to raise capital would adversely affect our ability to achieve our business objectives.

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Cash Flows

Six Months Ended June 30,20252024(in thousands)Net cash flows provided by operating activities$97,323 $91,648 Net cash flows provided by (used in) investing activities15,520 (9,965)Net cash flows used in financing activities(47,549)(28,191)

Operating Activities

The change in net cash flows from operating activities for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is due to a net increase in operating assets and liabilities of $38.9 million in 2025 compared to $26.6 million in 2024, and an increase in net income. These were partially offset by a reduction in non-cash adjustments of $10.0 million in 2025 compared to $25.6 million in 2024 due primarily to a reduction of the provision for inventory obsolescence and a decrease in depreciation and amortization.

Investing Activities

 The change in net cash flows from investing activities for the six months ended June 30, 2025 compared to the six months ended June 30,