Shares of Cricut, Inc. (CRCT) plummeted 6.73% in after-hours trading on Tuesday following the release of its third quarter 2025 financial results. The creative technology company, known for its connected platforms for making, failed to impress investors despite posting year-over-year growth in revenue and earnings.
For Q3 2025, Cricut reported revenue of $170.4 million, up 2% compared to the same period last year. While this marks the second consecutive quarter of sales growth, it fell short of analysts' expectations. The company's net income surged 79% to $20.5 million, or $0.10 per diluted share, up from $0.05 per share in Q3 2024.
Despite the bottom-line improvement, investors appeared concerned about the slow pace of revenue growth and potential headwinds. Cricut CEO Ashish Arora highlighted the company's focus on increasing execution speed and accelerating investments to drive future revenue growth. However, he also noted the "uncertainty introduced by tariffs," which may be contributing to investor unease.
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