CRCT on Nasdaq

Cricut

Logo: cricut.com5

American-based brand of cutting plotter

Cricut, Inc. is an American brand of cutting plotters, or computer-controlled cutting machines, designed for home crafters. The machines are used for cutting paper, felt, vinyl, fabric and other materials such as leather, matboard, and wood.3 It is headquartered in South Jordan, United States.1 Its shares trade on Nasdaq under the symbol CRCT.1 Wikipedia text CC BY-SA 4.0

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Last updated Oct 20, 2026.

Overview

$708.8MRevenue, fiscal 20256
$76.7MNet income, fiscal 20256

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  • TickerCRCT on Nasdaq1
  • Industryconsumer electronics industry1
  • HeadquartersSouth Jordan, United States1
  • Websitecricut.com/en
  • Slogan“Live your most creative life.”1
  • Incorporated inDE7
  • Business address10855 South River Front Parkway, South Jordan, Ut 840957
  • Filer categoryAccelerated filer7
  • Legal formCorporation4
  • LEI254900R3DKAJ28MC0Q394
  • StatusActive4
  • LEI statusLapsed (not renewed)4
  • Registered addressc/o THE CORPORATION TRUST COMPANY, 19801 Wilmington, United States4
  • Registered withDivision of Corporations, Department of State, 35830304

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Cricut, Inc. is an American brand of cutting plotters, or computer-controlled cutting machines, designed for home crafters. The machines are used for cutting paper, felt, vinyl, fabric and other materials such as leather, matboard, and wood.3

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

55.1%Gross margin6
13.5%Operating margin6
10.8%Net margin6
-0.5%Revenue growth, 20256
22.3%Return on equity6

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Products and services

Platform brought in 46% of the revenue Cricut broke down this way in fiscal 2025.

  1. Platform$327.4M646%up 5% from 2024
  2. Connected Machines$192.4M627%up 0% from 2024
  3. Accessories And Materials$188.9M627%down 9% from 2024
Products and services by year
Products and services202320242025
Platform$309.0M$313.0M$327.4M
Connected Machines$198.3M$192.4M$192.4M
Accessories And Materials$257.8M$207.1M$188.9M

Business segments

Accessories And Materials brought in 54% of the revenue Cricut broke down this way in fiscal 2025.

  1. Accessories And Materials$381.4M654%down 5% from 2024
  2. Subscriptions$327.4M646%up 5% from 2024
Business segments by year
Business segments202320242025
Accessories And Materials$456.1M$399.6M$381.4M
Subscriptions$309.0M$313.0M$327.4M

Regions

North America brought in 76% of the revenue Cricut broke down this way in fiscal 2025.

  1. North America$539.1M676%down 3% from 2024
  2. International$169.7M624%up 8% from 2024
Regions by year
Regions202320242025
North America$609.9M$555.1M$539.1M
International$155.2M$157.5M$169.7M

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue45¢$318.3M
  • Research and development9¢$66.5M
  • Other costs30¢$215.4M
  • Interest0¢$567.0K
  • Income tax4¢$31.2M
  • Profit11¢$76.7M

Out of $708.8M in revenue.6

Where each dollar of operating cash went, fiscal 2025

  • Dividends paid89¢$202.1M
  • Share buybacks11¢$24.7M

Out of $200.2M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.6

Financial statements

Revenue91011126$708.8M in 2025+46% since 2019
0$500.0M$1.0B$1.5B2019: $486.6M$486.6M20192020: $959.0M$959.0M2020+97%2021: $1.3B$1.3B2021+36%2022: $886.3M$886.3M2022−32%2023: $765.1M$765.1M2023−14%2024: $712.5M$712.5M2024−7%2025: $708.8M$708.8M2025−1%
Gross profit91011126$390.4M in 2025+174% since 2019
0$200.0M$400.0M$600.0M2019: $142.3M$142.3M20192020: $332.4M$332.4M2020+133%2021: $457.4M$457.4M2021+38%2022: $349.9M$349.9M2022−24%2023: $343.3M$343.3M2023−2%2024: $352.8M$352.8M2024+3%2025: $390.4M$390.4M2025+11%
Operating income91011126$96.0M in 2025+79% since 2019
0$100.0M$200.0M$300.0M2019: $53.6M$53.6M20192020: $200.5M$200.5M2020+274%2021: $192.4M$192.4M2021−4%2022: $80.0M$80.0M2022−58%2023: $70.0M$70.0M2023−12%2024: $76.1M$76.1M2024+9%2025: $96.0M$96.0M2025+26%
Net income91011126$76.7M in 2025+96% since 2019
0$50.0M$100.0M$150.0M$200.0M2019: $39.2M$39.2M20192020: $154.6M$154.6M2020+294%2021: $140.5M$140.5M2021−9%2022: $60.7M$60.7M2022−57%2023: $53.6M$53.6M2023−12%2024: $62.8M$62.8M2024+17%2025: $76.7M$76.7M2025+22%
Fiscal year20182019202020212022202320242025
Revenue$486.6M9$959.0M10$1.3B11$886.3M12$765.1M6$712.5M6$708.8M6
Cost of revenue$344.2M9$626.7M10$848.8M11$536.4M12$421.9M6$359.8M6$318.3M6
Gross profit$142.3M9$332.4M10$457.4M11$349.9M12$343.3M6$352.8M6$390.4M6
Research and development$26.7M9$38.9M10$79.8M11$76.9M12$65.0M6$60.4M6$66.5M6
Operating expenses$265.0M11$269.9M12$273.3M6$276.7M6$294.4M6
Operating income$53.6M9$200.5M10$192.4M11$80.0M12$70.0M6$76.1M6$96.0M6
Interest$298.0K11$289.0K12$323.0K6$326.0K6$567.0K6
Income before tax$192.4M11$82.0M12$79.8M6$88.9M6$107.9M6
Income tax$11.1M9$44.6M10$51.9M11$21.3M12$26.1M6$26.0M6$31.2M6
Net income$39.2M9$154.6M10$140.5M11$60.7M12$53.6M6$62.8M6$76.7M6
Earnings per share$0.199$0.7410$0.6711$0.2812$0.256$0.296$0.366
Earnings per share (diluted)$0.199$0.7410$0.6411$0.2812$0.246$0.296$0.356
Shares (weighted, basic)208.8M shares11214.5M shares12216.9M shares6215.1M shares6215.2M shares6
Shares (weighted, diluted)219.8M shares11220.6M shares12219.7M shares6215.6M shares6217.3M shares6

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Corporate structure

Cricut sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Cricut

  • Steve Blasnik Filed SCHEDULE 13G on Cricut, latest Sep 21, 2026
  • BlackRock Filed SCHEDULE 13G/A on Cricut, latest Jul 27, 2026
  • Arora Ashish Filed SCHEDULE 13G/A on Cricut, latest May 12, 2026 (4 filings since Feb 14, 2022)
  • Petrus Trust Company, LTA Filed SCHEDULE 13G/A on Cricut, latest Apr 10, 2026 (6 filings since Feb 14, 2022)
  • VANGUARD GROUP INC Filed SCHEDULE 13G/A on Cricut, latest Mar 26, 2026 (6 filings since Feb 9, 2022)
  • Abdiel Qualified Master Fund LP Filed SC 13G/A on Cricut, latest Mar 11, 2024 (21 filings since Nov 12, 2021)
  • Morgan Stanley Filed SC 13G/A on Cricut, latest Feb 8, 2024 (3 filings since Feb 10, 2022)
  • Granahan Investment Management, LLC Filed SC 13G/A on Cricut, latest Feb 14, 2022
  • Cricut South Jordan, Utah, United States

Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What Cricut reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$178.7M6 Dec 31, 2025$161.2M6 Dec 31, 2024+10.9%
Accumulated depreciation$138.5M6 Dec 31, 2025$123.6M6 Dec 31, 2024+12.0%
Property and equipment, net$40.3M6 Dec 31, 2025$37.5M6 Dec 31, 2024+7.2%
Operating-lease assets (leased space)$10.9M6 Dec 31, 2025$14.0M6 Dec 31, 2024−22.1%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$256.2M6 Dec 31, 2025$232.1M6 Dec 31, 2024+10.4%
Marketable securities, current$19.4M6 Dec 31, 2025$104.8M6 Dec 31, 2024−81.5%

Inventory

ItemLatestA year beforeChange
Inventory, total$113.5M6 Dec 31, 2025$134.3M6 Dec 31, 2024−15.4%
Raw materials$25.6M6 Dec 31, 2025$38.7M6 Dec 31, 2024−33.6%
Work in process$012 Dec 31, 2024$100.0K12 Dec 31, 2023−100.0%
Finished goods$117.2M6 Dec 31, 2025$144.6M6 Dec 31, 2024−19.0%

Properties, in its own words

Our corporate headquarters are in South Jordan, Utah under operating leases that expire in May 2029. We also lease offices elsewhere in Utah, China and Malaysia. All of our offices are leased and we do not own any real property.

We believe that our existing facilities are sufficient for our current needs. In the future, we may need to add new facilities and expand our existing facilities as we add employees, grow our infrastructure and evolve our business, and we believe that suitable additional or substitute space will be available on commercially reasonable terms to meet our future needs.

Item 2 of the 10-K filed Mar 4, 2026.17

Leadership

Who has led Cricut, and when. Pick a name to see everywhere that person has worked.

Chief executive

  1. Arora Ashish2021–now

Chief financial officer

  1. Martin F. Petersen2021
  2. Kimball C. Shill2022–now
2025
Board members and other officers (12)

Products and brands

  • cutting plotter
  • plotter

Listed on Wikidata.1

Models

The original Cricut machine has cutting mats of 150 mm × 300 mm (6 in × 12 in), the larger Cricut Explore allows mats of 300 mm × 300 mm, and 300 mm × 610 mm (12 in × 12 in, and 12 in × 24 in). The largest machine will produce letters from a 13 to 597 mm (0.5 to 23.5 in) high. Both the Cricut and Cricut Explore Air 2 require mats and blades which can be adjusted to cut through various types of paper, vinyl and other sheet products. The Cricut operates as a paper cutter based upon cutting parameters programmed into the machine, and resembles a desktop printer.

Software

Proprietary

To use Cricut cutters, users must use the company's own web-based design software, Design Space, which allows users to draw designs, select and combine designs from its own online library, or upload vector or bitmap files they have created in other software.

Past software

Cricut's first software was Cricut design studio. Released November 15, 2005, it allowed users to combine images from different cartridges, merge images, and stretch/rotate images; it does not allow for the creation of arbitrary designs. Support was dropped sometime in 2013.

The Cricut Craft Room software enabled users to combine images from different cartridges, merge images, and stretch/rotate images; it does not allow for the creation of arbitrary designs. It also enables the user to view the images displayed on-screen before beginning the cutting process, so the result can be seen in advance.

Read the full text

Citing Adobe's abandonment of Flash, Cricut announced it would be closing Cricut Craft Room on July 15, 2018. Users of "legacy" machines were offered a discount to update to models compatible with Design Space, however, made legacy machines incompatible with Design Space only usable as a standalone device with cartridges. As of July 16, 2018, Design Space is the only official software available to compose projects. Some third party programs are available and can be used to input the files into Design Space.

From Wikipedia’s article on Cricut, shared under CC BY-SA 4.0.8

Former names

  • Cricut IncNov 10, 2020 to Nov 10, 20207

Timeline

  1. Aug 4, 20268-K Results of operations; Regulation FD disclosure32
  2. Jun 4, 20268-K Shareholder vote33
  3. May 5, 20268-K Results of operations; Regulation FD disclosure34
  4. Mar 3, 20268-K Results of operations; Regulation FD disclosure35
  5. Nov 4, 20258-K Results of operations; Regulation FD disclosure36
  6. Aug 5, 20258-K Results of operations; Regulation FD disclosure37
  7. Jun 2, 20258-K Bylaws or fiscal year changed; Shareholder vote38
  8. May 6, 20258-K Results of operations; Regulation FD disclosure; Other events39
  9. May 5, 20258-K Executive or director change40
  10. Mar 4, 20258-K Results of operations; Executive or director change; Regulation FD disclosure41
  11. Nov 5, 20248-K Results of operations; Regulation FD disclosure42
  12. Sep 30, 20248-K Executive or director change43
  13. Mar 25, 2021New chief executive Arora Ashish becomes CEO18
  14. Jun 6, 1969Founded Cricut is founded4

Calendar

Coming up

  1. Nov 3, 2026 · After the closeReports results for the quarter ending Sep/2026 A year earlier it reported $0.10 a share, on Nov 4, 2025.44

When it reported results

  1. Aug 4, 2026Reported quarterly or annual results32
  2. May 5, 2026Reported quarterly or annual results34
  3. Mar 3, 2026Reported quarterly or annual results35
  4. Nov 4, 2025Reported quarterly or annual results36
  5. Aug 5, 2025Reported quarterly or annual results37
  6. May 6, 2025Reported quarterly or annual results39
  7. Mar 4, 2025Reported quarterly or annual results41
  8. Nov 5, 2024Reported quarterly or annual results42

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

415 filings to the SEC since October 2021: 6 annual reports, 15 quarterly reports, 29 major events, 252 insider forms, 45 large holders, 68 other. The latest 20:

  1. Oct 7, 20264 EDGAR
  2. Oct 5, 20264 EDGAR
  3. Oct 5, 20264 EDGAR
  4. Oct 1, 2026144 EDGAR
  5. Sep 21, 2026SCHEDULE 13G EDGAR
  6. Sep 17, 20264 EDGAR
  7. Sep 15, 2026144 EDGAR
  8. Sep 8, 20264 EDGAR
  9. Sep 3, 20264 EDGAR
  10. Sep 2, 2026144 EDGAR
  11. Aug 26, 20264 EDGAR
  12. Aug 25, 2026144 EDGAR
  13. Aug 21, 20264 EDGAR
  14. Aug 19, 2026144 EDGAR
  15. Aug 19, 20264 EDGAR
  16. Aug 18, 2026144 EDGAR
  17. Aug 17, 2026144 EDGAR
  18. Aug 17, 20264 EDGAR
  19. Aug 13, 2026144 EDGAR
  20. Aug 5, 2026144 EDGAR

The 415 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

260 open-market trades by officers, directors and large owners since October 2021: 102 buys and 158 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Sep 17, 2026Ashish AroraChief Executive OfficerSale60,000$5.68$340.8KForm 4
Sep 16, 2026Ashish AroraChief Executive OfficerSale60,000$5.55$333.0KForm 4
Sep 15, 2026Ashish AroraChief Executive OfficerSale60,000$5.62$337.2KForm 4
Sep 4, 2026Ashish AroraChief Executive OfficerSale60,000$5.61$336.6KForm 4
Sep 3, 2026Ashish AroraChief Executive OfficerSale60,000$5.85$351.0KForm 4
Sep 2, 2026Ashish AroraChief Executive OfficerSale60,000$5.79$347.4KForm 4
Aug 25, 2026Harmer RyanPrincipal Accounting OfficerSale10,000$5.70$57.0KForm 4
Aug 19, 2026Ashish AroraChief Executive OfficerSale60,000$5.48$328.8KForm 4
Aug 18, 2026Ashish AroraChief Executive OfficerSale60,000$5.53$331.8KForm 4
Aug 17, 2026Ashish AroraChief Executive OfficerSale60,000$5.60$336.0KForm 4
Aug 13, 2026Harmer RyanPrincipal Accounting OfficerSale5,000$6.00$30.0KForm 4
Aug 5, 2026Ashish AroraChief Executive OfficerSale60,000$5.99$359.3KForm 4
Aug 4, 2026Ashish AroraChief Executive OfficerSale60,000$4.89$293.4KForm 4
Aug 3, 2026Ashish AroraChief Executive OfficerSale60,000$4.77$286.2KForm 4
Jul 17, 2026Ashish AroraChief Executive OfficerSale2,282$4.75$10.8KForm 4
Jul 15, 2026Ashish AroraChief Executive OfficerSale1,051$4.75$5.0KForm 4
Jun 1, 2026Ashish AroraChief Executive OfficerSale16,366$4.30$70.4KForm 4
May 28, 2026Harmer RyanPrincipal Accounting OfficerSale17,267$4.12$71.1KForm 4
May 22, 2026Ashish AroraChief Executive OfficerSale60,000$3.98$238.8KForm 4
May 21, 2026Ashish AroraChief Executive OfficerSale60,000$3.95$237.0KForm 4

All 260 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2025Ashish Arora58$530.2K$13.4M53
2025Kimball Shill62$435.5K$3.7M53
2025Matt Tuttle48$291.0K$1.7M53
2025Donald B. Olsen$164.5K$1.7M53
2024Chief Executive Officer$509.9K$21.7M53
2024Chief Financial Officer$341.3K$5.0M53
2024Former EVPGeneral Counsel, & Corporate Secretary$270.7K$2.9M53
2023Chief Executive Officer$490.3K$18.2M53
2023Chief Financial Officer$321.4K$2.8M53
2023Former EVPGeneral Counsel, & Corporate Secretary$256.2K$1.5M53

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
BlackRock, Inc.4,274,040$18.8M0.0%+597,343
Vanguard Portfolio Management LLC2,351,910$10.3M0.0%+284,384
American Century Companies Inc2,103,364$9.2M0.0%+161,524
Vanguard Capital Management LLC2,072,157$9.1M0.0%+53,922
Geode Capital Management, LLC1,760,322$7.7M0.0%+155,402
State Street Corp1,216,063$5.3M0.0%−27,186
Dimensional Fund Advisors LP1,125,763$4.9M0.0%+139,895
Aqr Capital Management LLC1,106,836$4.9M0.0%+370,135
D. E. Shaw & Co., Inc.976,355$4.3M0.0%+47,334
Goldman Sachs Group Inc971,396$4.3M0.0%+543,828
Jacobs Levy Equity Management, Inc894,149$3.9M0.0%−56,155
Renaissance Technologies LLC886,943$3.9M0.0%+7,800
Morgan Stanley757,394$3.3M0.0%−108,578
Algert Global LLC718,423$3.2M0.0%+84,443
Bank of New York Mellon Corp548,703$2.4M0.0%−8,656
Northern Trust Corp495,749$2.2M0.0%+34,622
Tudor Investment Corp Et Al458,934$2.0M0.0%New
Arrowstreet Capital, Limited Partnership387,957$1.7M0.0%+113,749
Millennium Management LLC333,457$1.5M0.0%−359,323
Citadel Advisors LLC329,694$1.4M0.0%−11,597
Vanguard Fiduciary Trust Co324,999$1.4M0.0%+21,710
UBS Group AG278,173$1.2M0.0%+207,884
Allianz Asset Management GmbH229,168$1.0M0.0%+59,436
Victory Capital Management Inc196,521$862.7K0.0%−32,047
Commonwealth Equity Services, LLC173,290$760.7K0.0%−2,230

13F reports cover disclosed long positions in U.S. stocks only.

SEC filer profile

How Cricut is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARCricut, Inc.2
  • CIK0001828962
  • Employer ID (EIN)87-028202517
  • Filer statusAccelerated filer not an emerging growth company; not a smaller reporting company; not a shell company17
  • Incorporated inDelaware17
  • Fiscal year endsDecember 312
  • Industry code (SIC)3559 Special Industry Machinery, NEC2
  • SEC reviewing officeOffice of Technology, Division of Corporation Finance2
  • Business address10855 South River Front Parkway, South Jordan, UT 840952
  • Phone877-727-42882
  • Shares outstanding56,748,942 Common Class A shares; 155,032,336 Common Class B shares as of Feb 27, 202617
  • Public float$333.4M as of Jun 30, 202517
  • AuditorBDO USA, P.C., Salt Lake City, Utah PCAOB ID 243; no auditor attestation of internal control over financial reporting17
  • On EDGAR sinceNov 10, 20202
  • Filings527 in all: 4 (298), 144 (45), 8-K (31), SC 13D/A (31), 10-Q (17), SC 13G/A (17), 3 (16), SC 13G (9)2
    All 33 form types

    CORRESP (6), SCHEDULE 13G/A (6), 10-K (5), DEF 14A (5), DEFA14A (5), S-8 (5), ARS (4), SD (4), S-1/A (3), UPLOAD (3), 4/A (2), DRS/A (2), 10-K/A (1), 3/A (1), 424B4 (1), 8-A12B (1), 8-K/A (1), CERT (1), DRS (1), DRSLTR (1), EFFECT (1), PRE 14A (1), S-1 (1), SC 13D (1), SCHEDULE 13G (1)

  • Latest filingsAnnual report (10-K) Mar 4, 2026
    Quarterly report (10-Q) Aug 5, 2026
    Proxy statement (DEF 14A) Apr 21, 2026
    Latest 8-K (8-K) Aug 4, 2026

Securities registered for trading

ClassSymbolExchange
Class A Common Stock, par value $0.001 per shareCRCTThe Nasdaq Global Select Market

From the cover page of the 10-K filed Mar 4, 2026 (Section 12(b) of the Exchange Act).17

Risk factors and legal proceedings

The risks Cricut names in Item 1A of its 10-K filed Mar 4, 2026: 73 risks under these headings, as written.17

  • Risks Related to Our Industry and Business
  • If we are not able to attract and engage with our users, our business and rate of growth could be adversely affected.
  • Our revenue growth rate and financial performance have fluctuated in recent periods and may not be indicative of our future performance, and we expect our revenue growth rate to be lower than growth rates we experienced in prior years.
  • If we are unable to anticipate user preferences and successfully develop and introduce new, innovative and updated products in a timely manner, our business may be adversely affected.
  • We derive a significant portion of our revenue from sales of products, particularly our connected machines, and a decline in sales of our connected machines would adversely affect our future revenue and results of operations.
  • Our results of operations could be adversely affected if we are unable to accurately forecast consumer demand for our products or adequately manage our inventory, the manufacturing capacity of our contract manufacturers or their component supply.
  • We depend on sales to brick-and-mortar and online retail partners, including a limited number of sophisticated key brick-and-mortar and online retail partners. The loss or substantial decline in volume of sales to any of our key brick-and-mortar and online retail partners could adversely affect our financial performance.
  • Our long-term growth is dependent upon our ability to increase online sales through the websites of our brick-and-mortar and online retail partners as well as through our own website. If we do not effectively grow our online channels while reducing our reliance on our other sales channels, our business, financial condition, results of operations and profitability could be harmed.
  • If we are unable to maintain or increase our subscriptions, or if existing users do not renew their subscriptions, our future revenue and results of operations could be harmed.
  • We operate in a highly competitive market and we may be unable to compete successfully against existing and future competitors.
  • Sales of copycat products or unauthorized “gray market” products by brick-and-mortar and online retail partners or distributors could adversely affect our authorized distribution channels and harm our reputation, business and results of operations.
  • Competitive pricing pressures, including with respect to our platform services, products, and shipping, may harm our business and results of operations.
The other 62 risks
  • If we are not able to accurately estimate variable consideration from customer rebates each quarter, it could affect revenue in future periods.
  • We have grown rapidly in prior years and face risks associated with the growth of our business. If we are unable to manage our growth and the complexity of our business effectively, our brand, company culture and financial performance may suffer.
  • Our business is affected by seasonality.
  • Our quarterly results of operations and other operating metrics may fluctuate from quarter to quarter, which makes these metrics difficult to predict.
  • Our future growth depends in part on further penetrating our SAM and TAM and we may not be successful in doing so.
  • Our focus on delivering a high-quality product, which may not maximize short-term financial results, may yield results that conflict with the market’s expectations and could result in our stock price being negatively affected.
  • Any failure to successfully implement new technology or upgrade our information technology systems, or any major disruption or failure of our information technology systems or websites, could adversely affect our business and operations.
  • Our sales to brick-and-mortar and online retail partners can be subject to lower gross margins, heightened product or packaging requirements or long ramp up times.
  • We rely on a limited number of distributors to generate a portion of our sales, particularly in our international target markets. The loss of, or a substantial decline in, volume of sales from any of our key distributors could adversely affect our financial performance.
  • Our future success depends on the continuing efforts of our key employees and our ability to attract and retain highly skilled personnel and senior management.
  • Our success depends on our ability to maintain the value and reputation of the Cricut brand.
  • We rely on Amazon Web Services for a substantial portion of our computing, storage, data processing, networking and other services. Any disruption of or interference with our use of Amazon Web Services or other third-party services could adversely affect our business, financial condition and results of operations.
  • If we fail to offer high-quality customer support, our business and reputation will suffer.
  • Our business depends on the integration of our software across a wide range of desktop and mobile devices and operating systems that are outside of our control.
  • Failures in Internet infrastructure or interference with broadband access, including regulatory actions, could cause current or potential users to believe that our platform system or design apps are unreliable, possibly leading our users to switch to our competitors or to avoid using our products and platform.
  • We may be subject to warranty claims and brick-and-mortar and online retail partner return policies that could result in significant direct or indirect costs, or we could experience greater product returns than expected, either of which could adversely affect our business, financial condition and results of operations.
  • Product recalls and/or product liability, as well as changes in product safety and other consumer protection laws, may adversely affect our operations, merchandise offerings, reputation, results of operations, cash flow and financial condition.
  • Changes in how we market our products could adversely affect our marketing expenses and revenue.
  • User metrics and other estimates are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics could harm our business, revenue and financial results.
  • An economic downturn or economic uncertainty may adversely affect consumer discretionary spending and demand for our products and platform services.
  • Our potential indebtedness could materially adversely affect our financial health, limit our ability to finance future acquisitions and capital expenditures and prevent us from fulfilling our financial obligations. Much of our debt is secured by a substantial portion of our assets. Much of our debt has a variable interest rate component that may significantly increase our interest costs in a rising rate environment.
  • We may not be able to satisfy our debt obligations upon the occurrence of a change in control under the Credit Agreement.
  • We may require additional capital to support business growth and objectives, and this capital may not be available to us on reasonable terms, if at all, and could result in stockholder dilution.
  • We may experience fluctuations in our tax obligations and effective tax rate.
  • We may incur significant losses from fraud.
  • Risks Related to Manufacturing, Supply Chain and Fulfillment
  • We depend upon three contract manufacturers, and our operations would be disrupted if we encountered problems with our contract manufacturers.
  • If our third-party contract manufacturers are unable to meet our needs, as a result of operational issues or other factors, our business would be harmed. The locations of our third-party manufacturers may exacerbate some of these risks.
  • We rely on a limited number of third-party suppliers, some of which are sole-source suppliers, and many of which are located internationally, to provide components to our manufacturers, as well as to source our accessories and materials, which may lead to supply shortages, long lead times for components and supply changes, any of which could disrupt our supply chain and may negatively affect our business.
  • Managing our inventory supply chain, including manufacturing and component lead time, is complex and exposes us to risk.
  • The failure of our third-party logistics partners to adequately and effectively staff could adversely affect our brick-and-mortar and online retail partner and user experience and results of operations.
  • A disruption in the service, a significant increase in the cost of our primary delivery and shipping services for our products or a significant disruption at shipping ports could adversely affect our business.
  • We have limited control over our contract manufacturers, component suppliers and third-party logistics partners, which may subject us to significant risks, including the potential inability to produce or obtain quality products on a timely basis or in sufficient quantity, which could adversely affect our business, financial condition and results of operations.
  • Our products may be affected from time to time by design and manufacturing defects, and we may face claims related to such defects, either of which could adversely affect our business and result in harm to our reputation.
  • Regulations related to conflict minerals may cause us to incur additional expenses and could limit the supply and increase the costs of certain metals used in the manufacturing of our products.
  • Significant increases in inflation, commodity prices or transportation costs may adversely affect the costs of our component suppliers and contract manufacturers, and we may be unable to pass on these higher costs to our brick-and-mortar and online retail partners or users.
  • Developments in the social, political, regulatory and economic environment in Malaysia may have a material adverse impact on us.
  • We may be affected by recent and possible future political, social and economic conditions in China.
  • Recent additional changes in U.S. taxes, tariffs, trade restrictions, or other trade policies affecting products produced in other countries, or similar recent or additional retaliatory changes by U.S. trading partners in response to these measures, could adversely affect our business.
  • Risks Related to Privacy, Data Protection and Cybersecurity
  • Our actual or perceived failure to comply with privacy, data protection and information security laws, regulations and obligations could harm our business.
  • Cybersecurity risks could adversely affect our business and disrupt our operations.
  • If the use of “cookie” tracking technologies is further restricted, regulated or blocked, or if changes in technology cause cookies to become less reliable or acceptable as a means of tracking consumer behavior, the amount or accuracy of Internet user information we collect would decrease, which could harm our business and results of operations.
  • Risks Related to Foreign Operations
  • We plan to further expand into international target markets, which will expose us to significant risks.
  • We are subject to governmental export and import controls and economic sanctions laws that could subject us to liability and impair our ability to compete in international target markets.
  • Failure to comply with anti-corruption, anti-bribery, and anti-money laundering laws, including the FCPA and similar laws associated with our activities outside of the United States, could subject us to penalties and other adverse consequences.
  • Changes in legislation in U.S. and foreign taxation of international business activities or the adoption of other tax reform policies, as well as the application of such laws, could adversely impact our financial position and results of operations.
  • We may face exposure to foreign currency exchange rate fluctuations.
  • Risks Related to our Intellectual Property
  • Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products, services and brand.
  • We have faced threats, and in the future may be threatened, by third parties for alleged infringement of their proprietary rights.
  • We depend upon third-party licenses and the purchase of third-party works for the use of digital content. An adverse change to, loss of or claim that we do not hold necessary licenses or rights may adversely affect our business, results of operations and financial condition.
  • Legislation regarding copyright protection or content review could impose complex and costly constraints on our business model.
  • Some of our products contain open source software, which may pose particular risks to our proprietary software, technologies, products and services in a manner that could harm our business.
  • Risks Related to the Ownership of Our Class A Common Stock
  • The dual class structure of our common stock has the effect of concentrating voting power with our pre-initial public offering stockholders, which limits their ability to influence the outcome of matters submitted to our stockholders for approval, including the election of our board of directors, the adoption of amendments to our certificate of incorporation and bylaws, and the approval of any merger, consolidation, sale of all or substantially all of our assets or other major corporate transaction.
  • We cannot predict the effect our dual class structure may have on the market price of our Class A common stock.
  • The stock price of our Class A common stock may be volatile or may decline regardless of our operating performance.
  • Our directors, executive officers and holders of 5% or more of our common stock hold approximately 93% of the total voting power of our common stock and are able to exert significant control over us, which will limit your ability to influence the outcome of important transactions, including a change of control.
  • We are a “controlled company” within the meaning of the Exchange rules and, as a result, are entitled to rely on exemptions from certain corporate governance requirements that are designed to provide protection to stockholders of companies that are not “controlled companies.”
  • If securities or industry analysts do not publish research, or publish inaccurate or unfavorable research, about our business, the price of our Class A common stock and trading volume could decline.
  • Future sales of our Class A common stock, or the perception in the public markets that these sales may occur, may depress our stock price.
  • We may reduce or discontinue the payment of cash dividends in the future.
  • Provisions in our charter documents and under Delaware law could make an acquisition of us difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our Class A common stock.
  • Our charter documents provide that the Court of Chancery of the State of Delaware and the federal district courts of the United States will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
  • General Risk Factors
  • From time to time, we are subject to legal proceedings, regulatory disputes, audits and governmental inquiries that could cause us to incur significant expenses, divert our management’s attention and materially harm our business, results of operations and financial condition.

Legal proceedings

We are not presently a party to any material pending legal proceedings. We are, from time to time, subject to legal proceedings and claims, as well as regulatory disputes, audits, government inquiries and other proceedings, arising from the normal course of business activities, and an unfavorable resolution of any of these matters could materially affect our business, results of operations, financial condition or cash flows.

Litigation may be necessary, among other things, to defend ourselves or our users by determining the scope, enforceability and validity of third-party proprietary rights, to establish our proprietary rights, or to address royalty payments we make. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

The opening of Item 3, Legal Proceedings.17

Sources

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