Company: CRCT
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001828962-25-000039
Chunk: 144

Company: Cricut, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 7
Chunk 144
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$%2022(dollars in thousands)Cost of Revenue:Platform$37,288 $4,484 14 %$32,804 $6,128 23 %$26,676 Products322,462 (66,588)(17)%389,050 (120,677)(24)%509,727 Total cost revenue$359,750 $(62,104)(15)%$421,854 $(114,549)(21)%$536,403 Gross Profit:Platform$275,688 $(520)— %$276,208 $24,238 10 %$251,970 Products77,100 10,015 15 %67,085 (30,838)(31)%97,923 Total gross profit$352,788 $9,495 3 %$343,293 $(6,600)(2)%$349,893 Gross MarginPlatform88 %89 %90 %Products19 %15 %16 %

Platform cost of revenue increased by $4.5 million, or 14%, to $37.3 million for the year ended December 31, 2024 from $32.8 million for the year ended December 31, 2023. The increase was primarily driven by increases in software development costs and hosting fees.

Gross margin for Platform decreased to 88% for the year ended December 31, 2024 from 89% for the year ended December 31, 2023. The decrease was primarily driven by increases in software development costs and hosting fees. 

Products cost of revenue decreased by $66.6 million, or 17%, to $322.5 million for the year ended December 31, 2024 from $389.1 million for the year ended December 31, 2023. The decrease was primarily driven by a reduction in inventory impairment charges compared to prior year and fewer units of Accessories & Materials sold during the period.

Gross margin for Products increased to 19% for the year ended December 31, 2024 from 15% for the year ended December 31, 2023. The increase was primarily driven by a reduction in inventory impairment charges compared to prior year, partially offset by increased promotional activity.

74

Operating Expenses

Research and Development

Years Ended December 31,ChangeChange2024$%2023$%2022(dollars in thousands