# Cricut, Inc. (CRCT)

Informational only - not investment advice.

CIK: 0001828962
SIC: 3559 Special Industry Machinery, NEC
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3559 Special Industry Machinery, NEC](/industry/3559/)
Latest 10-K filed: 2026-03-04
SEC page: https://www.sec.gov/edgar/browse/?CIK=1828962
Filing source: https://www.sec.gov/Archives/edgar/data/1828962/000182896226000010/crct-20251231.htm

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 708780000 | USD | 2025 | 2026-03-04 |
| Net income | 76705000 | USD | 2025 | 2026-03-04 |
| Assets | 580806000 | USD | 2025 | 2026-03-04 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001828962.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 486,554,000 | 959,030,000 | 1,306,227,000 | 886,296,000 | 765,147,000 | 712,538,000 | 708,780,000 |
| Net income |  | 39,211,000 | 154,578,000 | 140,473,000 | 60,666,000 | 53,636,000 | 62,830,000 | 76,705,000 |
| Operating income |  | 53,561,000 | 200,513,000 | 192,405,000 | 79,953,000 | 69,985,000 | 76,110,000 | 96,033,000 |
| Gross profit |  | 142,350,000 | 332,374,000 | 457,450,000 | 349,893,000 | 343,293,000 | 352,788,000 | 390,431,000 |
| Diluted EPS |  | 0.19 | 0.74 | 0.64 | 0.28 | 0.24 | 0.29 | 0.35 |
| Operating cash flow |  | 3,861,000 | 248,227,000 | -104,949,000 | 117,683,000 | 288,097,000 | 264,968,000 | 200,230,000 |
| Dividends paid |  | 0.00 | 51,202,000 | 0.00 | 0.00 | 294,130,000 | 109,972,000 | 202,103,000 |
| Share buybacks |  |  | 0.00 | 0.00 | 18,580,000 | 20,332,000 | 38,493,000 | 24,748,000 |
| Assets |  |  | 581,400,000 | 1,006,250,000 | 949,627,000 | 750,122,000 | 693,035,000 | 580,806,000 |
| Liabilities |  |  | 352,475,000 | 332,274,000 | 276,892,000 | 215,249,000 | 226,274,000 | 237,245,000 |
| Stockholders' equity | 79,766,000 | 121,142,000 | 228,925,000 | 673,976,000 | 672,735,000 | 534,873,000 | 466,761,000 | 343,561,000 |
| Cash and cash equivalents | 6,016,000 | 6,653,000 | 122,215,000 | 241,597,000 | 224,943,000 | 142,187,000 | 232,140,000 | 256,216,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 8.06% | 16.12% | 10.75% | 6.84% | 7.01% | 8.82% | 10.82% |
| Operating margin |  | 11.01% | 20.91% | 14.73% | 9.02% | 9.15% | 10.68% | 13.55% |
| Return on equity |  | 32.37% | 67.52% | 20.84% | 9.02% | 10.03% | 13.46% | 22.33% |
| Return on assets |  |  | 26.59% | 13.96% | 6.39% | 7.15% | 9.07% | 13.21% |
| Liabilities / equity |  |  | 1.54 | 0.49 | 0.41 | 0.40 | 0.48 | 0.69 |
| Current ratio |  |  | 1.55 | 3.01 | 3.19 | 3.16 | 2.85 | 2.26 |

## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001828962.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q1 | 2022-03-31 |  |  | 0.11 | reported discrete quarter |
| 2022-Q2 | 2022-06-30 |  |  | 0.06 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.06 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 | 181,227,000 | 9,099,000 | 0.04 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  | 9,099,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 177,765,000 |  | 0.07 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 16,024,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 174,909,000 |  | 0.08 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 231,246,000 | 11,288,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q2 | 2024-03-31 |  | 19,647,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 167,947,000 |  | 0.09 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 19,769,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 167,890,000 |  | 0.05 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 209,309,000 | 11,926,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2025-03-31 | 162,634,000 | 23,914,000 | 0.11 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 23,914,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 172,112,000 |  | 0.11 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 24,488,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 170,437,000 |  | 0.10 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 203,597,000 | 7,791,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 159,471,000 | 20,318,000 | 0.10 | reported discrete quarter |

## Macro Cross-References
- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit
- [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy
- [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index
- [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate
- [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate
- [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio
- [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed
- [CE16OV](/indicator/CE16OV/): Employment Level
- [ICSA](/indicator/ICSA/): Initial Claims
- [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm
- [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate
- [M2SL](/indicator/M2SL/): M2
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States
- [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States
- [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States
- [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States
- [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States
- [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized
- [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized
- [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks
- [GDP](/indicator/GDP/): Gross Domestic Product
- [GPDI](/indicator/GPDI/): Gross Private Domestic Investment
- [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment
- [PCEC](/indicator/PCEC/): Personal Consumption Expenditures
- [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services
- [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt
- [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit
- [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts
- [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures
- [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing
- [USCONS](/indicator/USCONS/): All Employees, Construction
- [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade
- [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities
- [USGOVT](/indicator/USGOVT/): All Employees, Government
- [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private
- [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods
- [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- [BUSINV](/indicator/BUSINV/): Total Business Inventories
- [EXPGS](/indicator/EXPGS/): Exports of Goods and Services
- [IMPGS](/indicator/IMPGS/): Imports of Goods and Services
- [IR](/indicator/IR/): Import Price Index (End Use): All Commodities
- [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1828962/000182896226000039/crct-20260331.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-06
Report date: 2026-03-31

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read together with our interim condensed consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements included in our Annual Report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from these forward-looking statements as a result of many factors, including those discussed, or incorporated by reference, in the sections titled “Risk Factors” and “Note Regarding Forward-Looking Statements.”

20

Overview of Our Business and History

At Cricut, our mission is to help people lead creative lives. We have designed and built a creativity platform that enables our engaged and loyal community of nearly 6.0 million Active Users (as defined below) to turn ideas into professional-looking handmade goods. With our highly versatile Design Space Platform and our products, our users create everything from personalized birthday cards, mugs and T-shirts, to large-scale interior decorations. Our users’ journeys typically begin with the purchase of a connected machine bundle. We currently sell a portfolio of connected machines that cut, write, score and create other decorative effects using a wide variety of materials including paper, adhesive vinyl, iron-on vinyl, pens, and more. Our connected machines are designed in a variety of sizes for a wide range of uses. They are available at multiple price points and in various bundle configurations.

Our platform integrates our design apps and connected machines, allowing our users to create and share seamlessly. Our software is cloud-based, meaning that users can access and work on their projects anywhere, at any time, across desktops or mobile devices. We enable our users to be inspired, to create and share projects with the Cricut community and to follow others doing the same. On our platform, users can find inspiration, purchase or upload content like fonts and images, design a project from scratch or find a vast array of ready-to-make projects. In addition, our AI functionality within our app enables users to generate unique, cut-ready images from text or image prompts for personalized crafting projects like stickers, decals, and more. Users can leverage the full power of our platform by using our connected machines together with our free design apps, in-app purchases and subscription offerings to design and complete projects. All users can access a select number of free images, fonts and projects from our design apps or upload their own. In addition, we offer a wider selection of images, fonts and projects for purchase à la carte, including licensed content from partners with well-known brands and characters, like major motion picture studios. We also have two subscription offerings:

•Cricut Access: Provides a subscription to fonts, images, templates and projects as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. Cricut Access is billed monthly starting at $9.99 per month or annually at $95.88 per year.

•Cricut Access Premium: Includes all of the benefits of Cricut Access as well as additional discounts and AI credits, and is billed monthly starting at $14.99 per month or annually at $119.88 per year.

As of March 31, 2026, we had nearly 3.1 million Paid Subscribers (as defined below) to Cricut Access and Cricut Access Premium.

We sell a broad range of products in the Cricut ecosystem that help bring designs to life. These products work seamlessly and easily together, which helps build brand loyalty among our user base. Cricut products give users peace of mind with a brand they trust for durability, selection, and compliance. Creating projects drives repeat purchases of Cricut products for years after a user first buys a connected machine bundle, demonstrating a growing customer lifetime value through ongoing engagement with our platform.

We design and develop our software and hardware products, and we work with third-party contract manufacturers to source components and finished goods and with third-party logistics companies to warehouse and distribute our products.

We sell our products through our brick-and-mortar and online retail partners, as well as through our website at Cricut.com. Our partners include Amazon, Hobby Lobby, Michaels, Target, Walmart and many others. We also sell our products, including subscriptions to Cricut Access and Cricut Access Premium, on Cricut.com.

Historically, we have experienced the highest revenue levels in the fourth quarter of the year, coinciding with the holiday shopping season in the United States. For example, in 2023, 2024 and 2025, our fourth quarter represented 30%, 29% and 29% of total revenue for the year, respectively. Our promotional discounting activity is higher in the fourth quarter as well, which negatively impacts gross margin during this period. For example, gross margin in the fourth quarter of 2025 was 47%, compared to gross margin of 55% for all of 2025. As we continue to grow internationally, we expect we may experience seasonality in additional markets, which may differ from the seasonality experienced in the United States.

The current global macroeconomic environment, including regulation, tariffs that have materially increased, and may continue to increase, our costs and the potential for further trade barriers, or additional retaliatory changes by U.S. trading partners may impact our business and international expansion. We are also beginning to see potential disruption to our supply chain stemming from the Middle East conflict, driven largely by higher fuel and

21

petrochemical-related input costs. While we continue to evaluate actions to mitigate these pressures, the current environment requires a thoughtful and measured approach given the price sensitivity of the consumer.

On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the U.S. were unauthorized. Following the ruling, U.S. Customs and Border Protection (“CBP”) established a phased refund process through its Consolidated Administration and Processing of Entries (“CAPE”) functionality. In April 2026, we submitted a refund request for eligible IEEPA tariff entries in the initial phase of the process. The ultimate availability, timing, and amount of any refunds remain subject to CBP review and processing, future phases of the CAPE process, and other legal, regulatory and administrative developments. We have not recognized an asset related to potential refunds as of March 31, 2026.

For more information regarding our business model, factors affecting our performance, and seasonality, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report, which is incorporated herein by reference.

Key Business Metrics

In addition to the measures presented in our interim condensed consolidated financial statements, we use the following key metrics to evaluate our business, measure our performance, identify trends and make strategic decisions.

As of March 31,

2026

2025

Active Users (in thousands)

5,969

5,926

90-Day Engaged Users (in thousands)

3,345

3,372

Paid Subscribers (in thousands)

3,078

2,974

Twelve Months Ended March 31,

2026

2025

Platform ARPU

$

55.65 

$

53.10 

Active Users

We define Active Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 365 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total Active Users and the prior owner is removed from the total Active Users if the prior owner does not own any other registered connected machines. Active Users is a key indicator of the health of our business, because changes in the number of Active Users excludes non-users to better represent opportunities for us to drive additional platform and product revenue.

90-Day Engaged Users

We define 90-Day Engaged Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 90 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total 90-Day Engaged Users and the prior owner is removed from the total 90-Day Engaged Users if the prior owner does not own any other registered connected machines. 90-Day Engaged Users excludes non-users to better represent opportunities for us to drive additional platform and product revenue.

Paid Subscribers

We define Paid Subscribers as the number of users with a subscription to Cricut Access or Cricut Access Premium, excluding cancelled, unpaid, paused, or free trial subscriptions, as of the end of a period. Paid Subscribers is a key metric to track growth in our Platform revenue and potential leverage in our gross margin.

22

Platform ARPU

We define Platform ARPU as Platform revenue in a 12-month period divided by Active Users. Platform ARPU allows us to forecast Platform revenue over time and is an indicator of our ability to expand with users and of user engagement with our subscription offerings.

Components of our Results of Operations

We operate and manage our business in two reportable segments: Platform and Products. We identify our reportable segments based on the information used by management to monitor performance and make operating decisions. See Note 15 to our unaudited consolidated financial statements included elsewhere in this filing for additional information regarding our reportable segments.

Revenue

Platform

We generate Platform revenue primarily from sales of subscriptions to Cricut Access and Cricut Access Premium, digital content, and a minimal amount of revenue allocated to the unspecified future upgrades and enhancements related to the essential software and access to our cloud-based services. For a monthly or annual subscription fee, Cricut Access includes a subscription to images, fonts and projects as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. For our annual subscription fee, Cricut Access Premium includes all the benefits of Cricut Access as well as additional discounts and preferred shipping. Digital content includes à la carte digital content purchases, including fonts, images, templates, and projects. Platform revenue is recognized on a ratable basis over time, during the subscription term for subscriptions, and at the point in time when control is transferred for à la carte digital content.

Products

We generate Products revenue from sales of connected machine bundles and ancillary products, net of sales discounts, rebates and returns. Our connected machines portfolio consists of machines in four product families: Cricut Maker, which includes Maker, Maker 3, and Maker 4; Cricut Explore, which includes Explore Air 2, Explore 3, Explore 4, and Explore 5; Cricut Joy, which includes Joy, Joy Xtra, and Joy 2; and Cricut Venture. Our ancillary products include Cricut EasyPress, Cricut MugPress, hand tools, machine

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high

Results of Operations

The following table is presented in thousands:

Year Ended December 31,

2025

2024

2023

(in thousands)

Revenue:

Platform

$

327,399 

$

312,976 

$

309,012 

Products

381,381 

399,562 

456,135 

Total revenue

708,780 

712,538 

765,147 

Cost of revenue:

Platform(1)

35,990 

37,288 

32,804 

Products(1)

282,359 

322,462 

389,050 

Total cost of revenue

318,349 

359,750 

421,854 

Gross profit

390,431 

352,788 

343,293 

Operating expenses:

Research and development(1)

66,522 

60,399 

65,048 

Sales and marketing(1)

159,412 

143,294 

123,169 

General and administrative(1)

68,464 

72,985 

85,091 

Total operating expenses

294,398 

276,678 

273,308 

Income from operations

96,033 

76,110 

69,985 

Other income (expense):

Interest income

11,389 

11,016 

7,976 

Interest expense

(567)

(326)

(323)

Other income

1,038 

2,077 

2,145 

Total other income, net

11,860 

12,767 

9,798 

Income before provision for income taxes

107,893 

88,877 

79,783 

Provision for income taxes

31,188 

26,047 

26,147 

Net income

$

76,705 

$

62,830 

$

53,636 

(1)    Includes stock-based compensation expense as follows:

Year Ended December 31,

2025

2024

2023

(in thousands)

Cost of revenue

Platform

$

1,052 

$

1,192 

$

926 

Products

46 

712 

1,505 

Total cost of revenue

1,098 

1,904 

2,431 

Research and development

12,047 

15,620 

18,169 

Sales and marketing

10,065 

12,825 

12,740 

General and administrative

11,581 

14,718 

13,986 

Total stock-based compensation expense

$

34,791 

$

45,067 

$

47,326 

73

Table of Contents

Comparison of the years ended December 31, 2025 and 2024

Revenue

Years Ended December 31,

Change

Change

2025

$

%

2024

$

%

2023

(in thousands)

Revenue:

Platform

$

327,399 

$

14,423 

5 

%

$

312,976 

$

3,964 

1 

%

$

309,012 

Products

381,381 

(18,181)

(5)

%

399,562 

(56,573)

(12)

%

456,135 

Total revenue

$

708,780 

$

(3,758)

(1)

%

$

712,538 

$

(52,609)

(7)

%

$

765,147 

Platform revenue increased by $14.4 million, or 5%, to $327.4 million for the year ended December 31, 2025 from $313.0 million for the year ended December 31, 2024. The increase was primarily driven by growth of 4% in the number of Paid Subscribers from 3.0 million as of December 31, 2024 to just over 3.09 million as of December 31, 2025.

Products revenue decreased by $18.2 million, or 5%, to $381.4 million for the year ended December 31, 2025 from $399.6 million for the year ended December 31, 2024. The decrease was primarily driven by fewer units of accessories and materials sold and at a lower average selling price.

Cost of Revenue, Gross Profit and Gross Margin

Years Ended December 31,

Change

Change

2025

$

%

2024

$

%

2023

(dollars in thousands)

Cost of Revenue:

Platform

$

35,990 

$

(1,298)

(3)

%

$

37,288 

$

4,484 

14 

%

$

32,804 

Products

282,359 

(40,103)

(12)

%

322,462 

(66,588)

(17)

%

389,050 

Total cost revenue

$

318,349 

$

(41,401)

(12)

%

$

359,750 

$

(62,104)

(15)

%

$

421,854 

Gross Profit:

Platform

$

291,409 

$

15,721 

6 

%

$

275,688 

$

(520)

— 

%

$

276,208 

Products

99,022 

21,922 

28 

%

77,100 

10,015 

15 

%

67,085 

Total gross profit

$

390,431 

$

37,643 

11 

%

$

352,788 

$

9,495 

3 

%

$

343,293 

Gross Margin

Platform

89 

%

88 

%

89 

%

Products

26 

%

19 

%

15 

%

Platform cost of revenue decreased by $1.3 million, or 3%, to $36.0 million for the year ended December 31, 2025 from $37.3 million for the year ended December 31, 2024. The decrease was primarily driven by lower amortization of capitalized software development costs.

Gross margin for Platform increased to 89% for the year ended December 31, 2025 from 88% for the year ended December 31, 2024. The increase was primarily driven by decreases in amortization of capitalized software development costs.

Products cost of revenue decreased by $40.1 million, or 12%, to $282.4 million for the year ended December 31, 2025 from $322.5 million for the year ended December 31, 2024. The decrease was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.

Gross margin for Products increased to 26% for the year ended December 31, 2025 from 19% for the year ended December 31, 2024. The increase was primarily driven by a reduction in net inventory impairment charges and lower inventory procurement costs.

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Operating Expenses

Research and Development

Years Ended December 31,

Change

Change

2025

$

%

2024

$

%

2023

(dollars in thousands)

Research and development

$

66,522 

$

6,123 

10 

%

$

60,399 

$

(4,649)

(7)

%

$

65,048 

As a percentage of total revenue

9 

%

8 

%

9 

%

Research and development expenses increased by $6.1 million, or 10%, to $66.5 million for the year ended December 31, 2025 from $60.4 million for the year ended December 31, 2024. The increase was primarily due to a $4.7 million increase in product development expense and a $1.0 million increase primarily from software development contractors.

Sales and Marketing

Years Ended December 31,

Change

Change

2025

$

%

2024

$

%

2023

(dollars in thousands)

Sales and marketing

$

159,412

$

16,118 

11 

%

$

143,294

$

20,125 

16 

%

$

123,169

As a percentage of total revenue

22 

%

20 

%

16%

Sales and marketing expenses increased by $16.1 million, or 11%, to $159.4 million for the year ended December 31, 2025 from $143.3 million for the year ended December 31, 2024. The increase was primarily due to a $16.0 million increase in advertising and other marketing expense.

General and Administrative

Years Ended December 31,

Change

Change

2025

$

%

2024

$

%

2023

(dollars in thousands)

General and administrative

$

68,464

$

(4,521)

(6)

%

$

72,985

$

(12,106)

(14)

%

$

85,091

As a percentage of total revenue

10 

%

10 

%

11%

General and administrative expenses decreased by $4.5 million, or 6%, to $68.5 million for the year ended December 31, 2025 from $73.0 million for the year ended December 31, 2024. The decrease was primarily due to a $4.7 million net reversal of bad debt.

Other Income

Years Ended December 31,

Change

Change

2025

$

%

2024

$

%

2023

(dollars in thousands)

Other income, net

$

11,860 

$

(907)

(7)

%

$

12,767 

$

2,969 

30 

%

$

9,798 

Other income, net decreased by $0.9 million, or 7%, to $11.9 million for the year ended December 31, 2025 from $12.8 million for the year ended December 31, 2024. The change was primarily related to a decrease in interest from marketable securities due to less favorable rates and lower marketable security balances in 2025.

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Provision for Income Taxes

Years Ended December 31,

Change

Change

2025

$

%

2024

$

%

2023

(dollars in thousands)

Provision for income taxes

$

31,188 

$

5,141 

20 

%

$

26,047 

$

(100)

— 

%

$

26,147 

Provision for income taxes increased by $5.1 million, or 20%, to $31.2 million for the year ended December 31, 2025 from $26.0 million for the year ended December 31, 2024. This represents an effective tax rate of 28.9% and 29.3% for the years ended December 31, 2025 and 2024, respectively. The decrease in the tax rate is due mainly to a decrease in stock based compensation differences attributable to the decrease in stock price upon vesting versus the stock price at the grant date.

Liquidity and Capital Resources

Our operations during the periods presented have been financed primarily through cash flows from operating activities and the net proceeds from our initial public offering in March of 2021. We believe our balances of cash and cash equivalents, which totaled $256.2 million as of December 31, 2025, along with forecasted cash expected to be generated by ongoing operations and $300.0 million in available borrowings and the option to increase the aggregate amount of our credit facility by up to an additional $150.0 million (see Note 8) will be sufficient to satisfy our cash requirements over the next 12 months and beyond.

Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our rate of revenue growth, the timing and extent of spending on research and development efforts and other growth initiatives, the expansion of sales and marketing activities, the timing of new product introductions, market acceptance of our products and overall economic conditions. To the extent 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.

Our material cash requirements include the following contractual and other obligations:

Employee Compensation

Compensation for employees include fixed (salaried and hourly) and variable (commissions, bonuses, etc.) elements as well as the cost of benefits and many fluctuate with sales, financial results, hiring and retention activity and payment of withholding taxes on vested stock-based awards.

Inventory and Supply Chain

We utilize third-party contract manufacturers to source components and finished goods and third-party logistics companies to warehouse and distribute our products. As of December 31, 2025, we had component purchase obligations of $4.9 million, with $2.4 million payable within 12 months in addition to ongoing inventory purchases of finished goods from our contract manufacturers. These manufacturing purchase obligations are primarily noncancellable. Actual inventory purchases will vary based on current and forecasted demand for our products. Payments to third-party logistics companies are largely variable and are primarily driven by inventory levels and receiving and shipping activity levels.

Leases

As of December 31, 2025, we had fixed lease payment obligations of $12.7 million, with $4.1 million payable within 12 months primarily for corporate and other office space. See Note 13 of the notes to our consolidated financial statements for additional information.

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Stock Repurchase Program

On May 2, 2025, the board of directors approved a replenishing of the share repurchase program authorizing the Company to purchase up to an aggregate of $50 million of its outstanding Class A common stock depending on the Company’s continuing analysis of market, financial, and other factors. The share repurchase program may be suspended or discontinued at any time and does not have a predetermined expiration date.

During the twelve months ended December 31, 2025, we repurchased and retired 4,577,893 shares of our Class A common stock for $24.6 million under this program.

Dividends

On October 31, 2025, the Company declared a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on January 20, 2026 to shareholders of record as of January 6, 2026. As part of the dividends, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $0.10 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $24.3 million was to be satisfied in cash of $21.1 million payable to holders of Class A and Class B common stock with the remaining $3.2 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On May 2, 2025, the Company declared a special dividend of $0.75 per share and a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on July 21, 2025 to shareholders of record as of July 7, 2025. As part of the dividends, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $0.85 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $204.8 million was to be satisfied in cash of $180.6 million payable to holders of Class A and Class B common stock with the remaining $24.2 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On November 1, 2024, the board of directors declared a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on January 21, 2025 to shareholders of record as of January 7, 2025. As part of the dividends, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $0.10 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $24.2 million was to be satisfied in cash of $21.3 million payable to holders of Class A and Class B common stock with the remaining $2.9 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On May 6, 2024, the Company declared a special dividend of $0.40 per share and a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on July 19, 2024 to shareholders of record as of July 2, 2024. As part of the dividends, and pursuant to the underlying award agreements, holders of RSUs and PRSUs received a dividend equivalent of $0.50 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $121.7 million was to be satisfied in cash of $108.2 million payable to holders of Class A and Class B common stock with the remaining $13.5 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On May 18, 2023, the Company declared a special dividend of $1.00 per share on its Class A and Class B common stock, payable on July 17, 2023 to shareholders of record as of July 3, 2023. As part of the dividend, and pursuant to the underlying award agreements, holders of RSUs and PRSUs received dividend equivalents of $1.00 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $234.6 million was to be satisfied in cash of $219.8 million payable to holders of Class A and Class B common stock with the remaining $14.8 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

During the twelve months ended December 31, 2025, an aggregate of $202.1 million was paid in cash, and $26.3 million was satisfied in the form of dividend equivalents to RSU or PRSU holders.

However, we have not adopted a dividend policy. Any future determination to pay dividends on our common stock will be made at the discretion of our board of directors subject to applicable laws, and will depend upon,

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among other factors, our results of operations, financial condition, contractual restrictions and capital requirements. Our ability to pay cash dividends on our capital stock may also be limited by the terms of our Credit Agreement and the terms of any future debt or preferred securities or future indebtedness.

Cash Flows

Year Ended December 31,

2025

2024

2023

(in thousands)

Net cash flows provided by (used in) operating activities

$

200,230 

$

264,968 

$

288,097 

Net cash flows used in investing activities

60,657 

(18,328)

(48,778)

Net cash flows (used in) provided by financing activities

(237,445)

(156,435)

(322,185)

Operating Activities

The change in net cash flows from operating activities for the year ended December 31, 2025 compared to year ended December 31, 2024 is due to a net decrease in operating assets and liabilities of $57.3 million in 2025 compared to $130.0 million in 2024, due primarily to a reduction in inventory due to lower inventory purchases in 2025. In addition, there were non-cash adjustments of $66.3 million in 2025 compared to $72.1 million in 2024, due primarily to a decrease in the provision for inventory obsolescence in 2025 and a decrease in stock-based compensation in 2025, offset by an increase in deferred income tax in 2025.

Investing Activities

The change in net cash flows from investing activities for the year ended December 31, 2025 compared to year ended December 31, 2024 was primarily due 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 year ended December 31, 2025 compared to year ended December 31, 2024 was primarily due to dividend payments of $202.1 million in 2025 compared to $110.0 million paid in 2024.

Critical Accounting Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our 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 consolidated financial statements include those described in Note 2 of the notes to our consolidated financial statements in the section titled “—Summary of Significant Accounting Policies” in Item 8 of this Annual Report on Form 10-K.

During the past three fiscal years, we have not made any material changes to the accounting methodologies used to assess the areas discussed below, unless noted otherwise. We believe that our significant accounting estimates involve a higher degree of judgment and/or complexity for the reasons discussed below.

Customer rebates

We recognize revenue at the net sales price, which includes certain estimates for variable consideration related to customer rebates with our key brick-and-mortar and online retail partners. These promotional programs are designed to enhance the sale of our products and consist of incentives to our customers. The promotional programs include advertising allowances, volume and growth incentives, business development, product damage allowances and point-of-sale support. Customer rebates are considered to be variable consideration, which we

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estimate using the expected value method or most likely amount, based upon the nature of the incentive. Sales are reduced by the cost of these promotional and rebate programs and we record a related customer rebate liability in our consolidated balance sheets at the date of the transaction. Certain customer rebate programs are estimates at period end due to the nature of the incentives or expected and yet-to-be announced incentive programs that apply to current period revenue transactions. These estimates are based on our incentive program experience, historical and projected sales data and current contractual terms. The remaining portion of this liability is based on contractual amounts and does not require estimation.

In limited cases where the customer rebate is specifically for co-operative marketing or advertising campaigns, we classify these expenditures as selling and marketing expenses only if they meet the criteria of being a distinct good or service, are distinct within the context of the contract and the fair value is readily estimable. While management believes estimated amounts are reasonable, actual results may vary from our estimates due to uncertainty regarding forecasted volume, product damage claims, or qualifying activities by our customers.

Inventories

Inventories consist of finished goods and raw materials, which we purchase from contract manufacturers. We value our inventory at the lower of average cost or net realizable value. When our expectations indicate that average cost of inventory may exceed its net realizable value, we write down our inventory to establish a new cost basis. We also periodically assess the value of our on-hand inventory for potential excess and/or obsolete inventory and when necessary, will write down the value to account for estimated excess and/or obsolete inventory. We determine excess or obsolete inventory based on market conditions, age of inventory, an estimate of the future demand for our products within a specified time horizon, generally the greater of 24 months or remaining life of the product, and product life cycle status. Inventory write-downs are recorded as a component of cost of revenue in our consolidated statements of operations and comprehensive income. If actual demand is lower than our estimated demand, we could be required to write down the value of additional inventory, which would have a negative effect on our gross profit.