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Cricut (CRCT) just wrapped up FY 2025 with fourth quarter revenue of US$203.6 million and basic EPS of US$0.04, alongside net income of US$7.8 million, setting the tone for how the full year is being read by the market. The company has seen quarterly revenue shift from US$209.3 million with EPS of US$0.06 in Q4 2024 to US$203.6 million with EPS of US$0.04 in Q4 2025. Trailing twelve month EPS sits at US$0.36 on revenue of US$708.8 million, and that mix of steady top line and improving profitability metrics is putting the focus squarely on margins and how durable they look from here.

With the headline numbers on the table, the next step is to set them against the main stories investors have been telling about Cricut, and see where the fresh margin and earnings trends back those narratives or push against them.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Steady At 10.8% On TTM Basis

• On a trailing twelve month view, Cricut converted US$708.8 million of revenue into US$76.7 million of net income, which works out to a 10.8% net margin versus 8.8% a year earlier in the dataset.
• What stands out for a bullish take is that this margin level sits alongside trailing EPS of US$0.36, yet the broader data also shows earnings having declined by 25% per year over the last five years, so any bullish claim about a clean turnaround in profitability has to reckon with that longer multi year track record.

22.1% Earnings Growth Against Five Year Decline

• The risk and reward summary flags a 22.1% earnings increase over the last year, while over the past five years earnings fell by 25% per year on average, so the recent improvement sits against a much weaker long run trend.
• Bears argue that the multi year earnings decline is the key signal, and that one stronger year is not enough on its own, which is where the numbers pull in two directions:
  • On one hand, trailing net income of US$76.7 million is higher than the US$62.8 million level a year earlier in the dataset, which supports the idea that profitability has recently been firmer.
  • On the other hand, revenue expectations of 0.5% growth per year versus a 10.2% US market benchmark show why critics still point to limited top line momentum even as recent profit metrics look better.

DCF Fair Value Of US$11.14 Versus US$4.52 Price

• The valuation data shows Cricut on a P/E of 12.5x compared with a US Consumer Durables industry average of 12.8x and a peer average of 8.3x, while a DCF fair value of about US$11.14 sits well above the current share price of US$4.52.
• What is tricky for any bullish narrative that leans heavily on that DCF gap is that other parts of the dataset flag pressure points, so the upside story is not just about a low share price:
  • The same analysis that points to the stock trading around 59.4% below DCF fair value also notes that revenue is expected to grow only 0.5% per year compared with 10.2% for the broader US market.
  • In addition, the reported dividend yield of 21.02% is described as not being well covered by free cash flow, which is an important check for anyone treating the low price and DCF fair value gap as a simple signal of mispricing.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Cricut's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Seen enough to form a view, or still on the fence about Cricut after this mix of pressure points and brighter spots in the numbers? If you want to move quickly and weigh those trade offs for yourself, it is worth checking our breakdown of 2 key rewards and 2 important warning signs.

See What Else Is Out There

Cricut pairs modest 0.5% revenue growth expectations with questions around dividend coverage and a mixed multi year earnings record, which can leave income focused investors hesitant.

If you want income that looks more robust, check out our 14 dividend fortresses today so you can quickly size up alternatives with yields that aim to be more resilient.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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