Company: CRCT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001828962-25-000146
Chunk: 49

Company: Cricut, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 5 %143,199138,2884,911 4 %Products29,65821,0798,579 41 %56,68843,14613,542 31 %Total gross profit$101,539$89,840$11,699 13 %$199,887$181,434$18,453 10 %Gross MarginPlatform89 %89 %89 %89 %Products32 %23 %33 %24 %

Three Months Ended June 30, 2025 and 2024

Platform cost of revenue decreased by $0.1 million, or 1%, to $8.8 million for the three months ended June 30, 2025, from $8.9 million for the three months ended June 30, 2024. The decrease was primarily driven by lower amortization of capitalized software development costs partially offset by increased external digital content costs.

Gross margin for Platform was 89% for the three months ended June 30, 2025, and 89% for the three months ended June 30, 2024.

Products cost of revenue decreased by $7.5 million, or 11%, to $61.8 million for the three months ended June 30, 2025, from $69.2 million for the three months ended June 30, 2024. The decrease was primarily driven by fewer units of connected machines sold, lower inventory procurement costs, and a reduction in net inventory impairment charges, partially offset by more units of accessories and materials sold.

Gross margin for Products was 32% for the three months ended June 30, 2025 and 23% for the three months ended June 30, 2024. The increase was primarily driven by lower inventory procurement costs, a reduction in net inventory impairment charges, and improved product margins.

Six Months Ended June 30, 2025 and 2024

Platform cost of revenue decreased by $0.2 million, or 1%, to $17.5 million for the six months ended June 30, 2025, from $17.6 million for the six months ended June 30, 2024. The decrease was primarily driven by lower amortization of capitalized software development costs partially offset by increased platform hosting fees.

Gross margin for Platform was 89% for the six months ended June 30, 2025, and 89% for the