Here's What Analysts Think About Cricut (CRCT)

Cricut, Inc. (NASDAQ:CRCT) is one of the 15 Best Technology Penny Stocks to Buy. On December 5, Barclays analyst Adrienne Yih reiterated a Sell rating on Cricut, Inc. (NASDAQ:CRCT) with a price target of $4.00.

Previously, on November 17, Citi also reduced its price target on Cricut, Inc. (NASDAQ:CRCT) from $4.50 to $4 and maintained its Sell rating. This update came after the company reported its Q3 2025 earnings.

For Q3 2025, Cricut, Inc. (NASDAQ:CRCT) reported revenue of $170.4 million, which represents only a 2% increase year-over-year. Platform revenue grew by 7% compared to Q3 2024 to reach $82.8 million. However, product revenue dropped by 3% to $87.7 million.

Cricut, Inc.’s (NASDAQ:CRCT) net income was $20.5 million, representing 12% of revenue. Impressively, this was a significant improvement of 29% compared to Q3 2024, when the net income was $11.5 million or 6.8% of revenue.

This performance was supported by a 6% year-over-year increase in Paid Subscribers, which reached over 3 million. Cricut, Inc. (NASDAQ:CRCT) reported that the average revenue per user (APRU) increased by 4% to $54.96. However, Active Users remained flat and 90-Day Engaged Users fell 3% year-over-year to 3.4 million.

The company is making efforts to speed up its execution and is increasing investments to support future revenue growth while also navigating the uncertainty introduced by tariffs. These investments focus on hardware product development, materials, engagement, marketing, and raising awareness in its international markets.

Cricut, Inc. (NASDAQ:CRCT) is a creative technology company that provides a platform for do-it-yourself projects. It offers hardware and design software, a diverse collection of materials, smart cutting machines, and other unique tools.

While we acknowledge the potential of CRCT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.