Company: CRCT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001828962-25-000153
Chunk: 87

Company: Cricut, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 that current and anticipated future sources of liquidity are insufficient to fund our future business activities and requirements, we may be required to seek additional equity or debt financing. The sale of additional equity would result in 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.

Cash Flows

Nine Months Ended September 30,20252024(in thousands)Net cash flows provided by operating activities$117,798 $161,885 Net cash flows provided by (used in) investing activities67,891 (14,436)Net cash flows used in financing activities(230,483)(147,402)

Operating Activities

The change in net cash flows from operating activities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 is due to a net decrease in operating assets and liabilities of $34.2 million in 2025 compared to $65.5 million in 2024, in addition to a reduction in non-cash adjustments of $14.7 million in 2025 compared to $45.5 million in 2024 due primarily to a reduction of the provision for inventory 

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obsolescence, a decrease in stock-based compensation and a decrease in depreciation and amortization. These were partially offset by an increase in net income. 

Investing Activities

 The change in net cash flows from investing activities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due primarily to proceeds from maturities of marketable securities in 2025 not used to purchase new securities.

Financing Activities

The change in net cash flows from financing activities for the nine months ended September 30, 2025 compared to nine months ended September 30, 2024 was primarily due to dividend payments of $202.1 million in 2025 compared to $109.8 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