Company: CRCT
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001828962-25-000075
Chunk: 60

Company: Cricut, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 to raise capital would adversely affect our ability to achieve our business objectives.

Cash Flows

Three Months Ended March 31,20252024(in thousands)Net cash flows provided by operating activities$61,166 $56,688 Net cash flows used in investing activities(4,892)(5,119)Net cash flows used in financing activities(36,417)(14,642)

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Operating Activities

The change in net cash flows from operating activities for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 is due to a net increase in operating assets and liabilities of $32.0 million in 2025 compared to $20.2 million in 2024, and an increase in net income. These were partially offset by a reduction in non-cash adjustments of $5.3 million in 2025 compared to $16.8 million in 2024 due primarily to a reduction of the provision for inventory obsolescence and a benefit in bad debt expense.

Investing Activities

 The change in net cash flows from investing activities for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was due to a decrease in purchases of property and equipment, including capitalized software and development costs.

Financing Activities

The change in net cash flows from financing activities for the three months ended March 31, 2025 compared to three months ended March 31, 2024 was primarily due to dividend payments of $1.4 million in 2024 compared to the dividend payment in 2025 of $21.5 million. 

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. Actual results may differ from these estimates under different assumptions or conditions. The critical accounting policies that reflect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements include those described in Note 2 of the notes to our condensed consolidated financial statements in