Company: CRCT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001828962-25-000146
Chunk: 86

Company: Cricut, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 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, 2024 was due to a decrease in purchases of marketable securities.

Financing Activities

The change in net cash flows from financing activities for the six months ended June 30, 2025 compared to six months ended June 30, 2024 was primarily due to dividend payments of $21.5 million in 2025 compared to $1.5 million in 2024. 

Critical Accounting Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances