Cricut (CRCT) opened 2026 with Q1 revenue of US$159.5 million and basic EPS of US$0.10, as investors weigh these fresh results against a trailing twelve month EPS of US$0.34 on revenue of US$705.6 million and a recent share price around US$4.44. Over the past year, the company has seen earnings grow 9% while net profit margin moved to 10.4% from 9.5%, even as revenue growth of 0.2% stayed close to flat against a much faster 11.3% benchmark for the broader US market. That mix of modest top line progress and better profitability keeps the focus squarely on margins and on how durable this earnings profile really is.
See our full analysis for Cricut.With the latest quarter on the table, the next step is to set these numbers against the dominant stories around Cricut to see which narratives hold up and which start to look out of date.
Curious how numbers become stories that shape markets? Explore Community Narratives
9% EPS Growth Against Flat 0.2% Revenue
- Over the last 12 months, EPS rose 9% while revenue growth stayed at 0.2% to US$705.6 million, so most of the improvement came from profitability rather than sales expansion.
- What stands out for a bullish take is that net income for the trailing 12 months reached US$73.1 million with a 10.4% margin. However, this sits against a 5 year earnings decline of 23.3% per year, which means any optimistic view that the business has turned a corner is leaning heavily on this recent 9% lift rather than a long track record.
- Supporters can point to Q1 2026 net income of US$20.3 million, which is broadly in line with Q3 2025 at US$20.5 million despite lower quarterly revenue than Q4 2025. This suggests cost control has mattered more than top line growth lately.
- At the same time, critics of a bullish angle can highlight that five year revenue and earnings trends are still described as declining, so the recent margin and EPS profile has not yet erased that longer history.
To see how other investors are connecting these recent numbers to the longer term story, check the shared market views in 📊 Read the what the Community is saying about Cricut.
Margins Up To 10.4% While Revenue Lags Market
- Net profit margin over the last year improved to 10.4% from 9.5% while revenue growth of 0.2% stayed well below the 11.3% benchmark for the broader US market. As a result, Cricut’s profitability shift is happening against almost no sales growth.
- Bears argue that such margin gains can be fragile when sales growth is this slow, and the data partly backs that concern because the 0.2% revenue growth and the multi year 23.3% annual earnings decline suggest that the 10.4% margin is being read against a weak longer term backdrop rather than a strong expansion story.
- Q1 2026 revenue of US$159.5 million sits below the recent Q4 2025 level of US$203.6 million, so anyone skeptical of the company’s ability to sustain double digit margins will look closely at how margins behave at different sales levels.
- At the same time, net income of US$73.1 million on US$705.6 million of trailing revenue implies that the current margin level is not a one quarter anomaly. This challenges the more pessimistic version of the bearish view that recent profitability is purely a short term blip.
Mixed Valuation Signals And Stretched Dividend
- The stock trades on a 12.7x P/E versus a 9.1x peer average and 11.6x industry level, yet the share price of about US$4.44 sits well below a DCF fair value of roughly US$8.94, while the stated 21.4% dividend is described as not well covered by free cash flow.
- What is interesting for a bearish narrative is that skeptics can point to the high headline dividend and the weaker cash flow coverage alongside the premium P/E multiple, arguing that the combination of a 21.4% payout and above peer valuation looks exposed if the recent 9% earnings growth does not persist, even though the DCF fair value comparison suggests upside versus US$4.44.
- The gap between the current price and the DCF fair value of US$8.94 creates tension with that bearish view because on this metric the stock looks materially cheaper than its estimated intrinsic value despite trading at a higher P/E than peers.
- However, the same five year 23.3% annual earnings decline that underpins the major risk flag can help explain why the market might still assign a cautious multiple despite the modelled DCF upside, especially with a dividend that is not comfortably covered by free cash flow.
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.
Given the mix of cautious and optimistic signals in these numbers, now is the time to review the data yourself, weigh both sides, and see the 2 key rewards and 2 important warning signs
Explore Alternatives
Cricut’s flat 0.2% revenue growth, multi year earnings decline and a dividend described as not well covered by free cash flow all point to elevated risk.
If you are uneasy about that combination of slow growth and coverage concerns, shift your attention to 74 resilient stocks with low risk scores that focus on stocks with more resilient financial profiles.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com