Company: CRCT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001828962-25-000153
Chunk: 51

Company: Cricut, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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216.8 million for the nine months ended September 30, 2024. The decrease was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.

Gross margin for Products was 29% for the nine months ended September 30, 2025 and 20% for the nine months ended September 30, 2024. The increase was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.

Operating Expenses

Research and Development

Three Months EndedSeptember 30,ChangeNine Months Ended September 30,Change20252024$%20252024$%(dollars in thousands)Research and development$16,865$15,240$1,625 11 %$49,284$44,408$4,876 11 %As a percentage of total revenue10 %9 %10 %9 %

Research and development expenses increased by $1.6 million, or 11%, to $16.9 million for the three months ended September 30, 2025 from $15.2 million for the three months ended September 30, 2024. The increase was primarily due to a $1.3 million increase in product development expense and a $0.2 million increase in personnel-related expense.

Research and development expenses increased by $4.9 million, or 11%, to $49.3 million for the nine months ended September 30, 2025 from $44.4 million for the nine months ended September 30, 2024. The increase was primarily due to a $3.2 million increase in product development expense and a $1.5 million increase in professional services expense.

28

Sales and Marketing

Three Months EndedSeptember 30,ChangeNine Months Ended September 30,Change20252024$%20252024$%(dollars in thousands)Sales and marketing$37,467$35,278$2,189 6 %$110,029$101,662$8,367 8 %As a percentage of total revenue22 %21 %22 %20 %

Sales and marketing expenses increased by $2.2 million, or 6%, to $37.5 million for the three months ended September 30, 2025 from $35.3 million for the three months ended September 30, 2024. The increase was primarily driven by a $1.1 million increase in advertising and other marketing costs