Cricut Q2 2026 profit jumps as IEEPA tariff refunds, royalty settlement lift margins, company says
CRCT•Q2 revenue declines, but platform growth continues
Cricut posted Q2 2026 revenue of $156.3 million, down 9%, citing a tougher comparison from tariff-related pull-forward demand a year earlier.
Platform revenue rose 5% to $85 million as paid subscribers increased 3% to just over 3.1 million; ARPU climbed 5% to $56.37.
Products revenue falls on lower volumes and promotions
Products revenue fell 22% to $71.3 million on lower volumes and promotional pricing, despite double-digit cutting machine sell-through growth led by Joy 2 and Explore 5 bundles.
Margins and profit benefit from refunds and reserve release
Gross margin widened to 74.5% on $17.9 million of tariff refunds and a $6.4 million release of royalty-related reserves; net income was $39.1 million.
Outlook points to continued platform growth and profitability
Management expects platform revenue to grow sequentially through 2026, with typical seasonal subscriber softness in Q3, while remaining profitable each quarter.
