crct-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to _____

Commission File Number: 001-40257

Cricut, Inc.

(Exact name of Registrant as specified in its charter)


Delaware						87-0282025
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

10855 South River Front Parkway

South Jordan, Utah 84095

(385) 351-0633

(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share	CRCT	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☐

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 30, 2025, the registrant had 51,646,042 shares of Class A Common Stock, and 160,132,507 shares of Class B Common Stock, outstanding.

TABLE OF CONTENTS


		PAGE
NOTE REGARDING FORWARD-LOOKING STATEMENTS		2
PART I.	FINANCIAL INFORMATION	4
Item 1.	Financial Statements (unaudited)	4
	Condensed Consolidated Balance Sheets (unaudited)	4
	Condensed Consolidated Statements of Operations and Comprehensive Income (unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)	6
	Condensed Consolidated Statements of Cash Flows (unaudited)	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
PART II.	OTHER INFORMATION	31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Default Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	34
	Signatures	36

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risk and uncertainties. These forward-looking statements, which are subject to a number of risks, uncertainties and assumptions about us, generally relate to future events or our future financial or operating performance. In some cases, you can identify these statements by forward-looking words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” “target,” “project” or “contemplate” or the negative version of these words and other comparable terminology that concern our expectations, strategy, plans, intentions or projections. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

•our ability to attract and engage users and attract and expand our relationships with brick-and-mortar and online retail partners and distributors;

•our future results of operations, including trends in revenue, costs, operating expenses and key metrics;

•our ability to compete successfully in competitive markets;

•our expectations and management of future growth;

•our ability to manage our supply chain, manufacturing, distribution and fulfillment, including the ability to forecast demand and manage our inventory;

•our ability to enter new markets and manage our expansion efforts, including internationally;

•our ability to attract and retain management, key employees and qualified personnel;

•our ability to effectively and efficiently protect our brand;

•our ability to maintain, protect and enhance our intellectual property and not infringe upon others’ intellectual property;

•our continued use of open source software;

•our estimated Serviceable Addressable Market, or SAM, and Total Addressable Market, or TAM;

•our ability to prevent serious errors, defects or vulnerabilities in our products and software;

•the adequacy of our capital resources to fund operations and growth;

•our ability to remain in compliance with laws and regulations that currently apply or become applicable to our business both domestically and internationally;

•Petrus’ significant influence over us and our status as a “controlled company” under the rules of the Nasdaq Global Select Market, or the Exchange;

•expectations regarding the financial condition of our brick-and-mortar and online retail partners, online and e-commerce channels and users;

•risks related to general socio-economic and political conditions, consumer confidence, as well as current macro-economic factors, including post-COVID-19 factors and the impact of heightened, new, or proposed tariffs; and

•the other factors identified under, or incorporated by reference in, the section titled “Risk Factors” appearing elsewhere in this Quarterly Report on Form 10-Q.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. These statements are only predictions based primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. There are important factors that could cause our actual results, events or circumstances to differ materially from the results, events or circumstances expressed or implied by the forward-looking statements, including those factors discussed, or incorporated by reference, in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. You should specifically consider the numerous risks outlined, or incorporated by reference, in the section titled “Risk

Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained, or incorporated by reference, in this Quarterly Report on Form 10-Q.

Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Moreover, the forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any of these forward-looking statements after the date of this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Cricut, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share)


	As of March 31, 2025		As of December 31, 2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	252,141	$	232,140
Marketable securities	104,527		104,774
Accounts receivable, net	72,325		101,980
Inventories	114,397		115,255
Prepaid expenses and other current assets	17,844		26,065
Total current assets	561,234		580,214
Property and equipment, net	36,804		37,546
Operating lease right-of-use asset	13,427		13,958

Deferred tax assets	44,006		39,186
Other assets	26,183		22,131
Total assets	$	681,654	$	693,035
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	58,269	$	53,373
Accrued expenses and other current liabilities	57,793		76,274
Deferred revenue, current portion	51,056		45,427
Operating lease liabilities, current portion	3,815		3,899
Dividends payable, current portion	32		24,401
Total current liabilities	170,965		203,374
Operating lease liabilities, net of current portion	10,692		11,310
Deferred revenue, net of current portion	2,717		2,826

Other non-current liabilities	7,106		8,764
Total liabilities	191,480		226,274
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, par value $0.001 per share, 100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024.	—		—
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of March 31, 2025, 211,775,572 shares issued and outstanding as of March 31, 2025; 1,250,000,000 shares authorized as of December 31, 2024, 213,295,922 shares issued and outstanding as of December 31, 2024.	212		213
Additional paid-in capital	463,754		466,554
Retained earnings	25,997		—
Accumulated other comprehensive income (loss)	211		(6)
Total stockholders’ equity	490,174		466,761
Total liabilities and stockholders’ equity	$	681,654	$	693,035

See accompanying notes to these unaudited condensed consolidated financial statements.

Cricut, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income

(unaudited)

(in thousands, except share and per share amounts)


	Three Months Ended March 31,
	2025		2024
Revenue:
Platform	$	79,986	$	78,286
Products	82,648		89,106
Total revenue	162,634		167,392
Cost of revenue:
Platform	8,668		8,759
Products	55,618		67,039
Total cost of revenue	64,286		75,798
Gross profit	98,348		91,594
Operating expenses:
Research and development	15,657		14,853
Sales and marketing	36,685		33,030
General and administrative	16,665		18,506
Total operating expenses	69,007		66,389
Income from operations	29,341		25,205
Other income (expense):
Interest income	3,357		2,418
Interest expense	(79)		(81)
Other income	2		748
Total other income, net	3,280		3,085
Income before provision for income taxes	32,621		28,290
Provision for income taxes	8,707		8,643
Net income	$	23,914	$	19,647
Other comprehensive income (loss):
Change in net unrealized gains (losses) on marketable securities, net of tax	$	115	$	(288)
Change in foreign currency translation adjustment, net of tax	102		(88)

Comprehensive income	$	24,131	$	19,271

Earnings per share, basic	$	0.11	$	0.09
Earnings per share, diluted	$	0.11	$	0.09
Weighted-average common shares outstanding, basic	212,445,961		215,549,467
Weighted-average common shares outstanding, diluted	213,839,020		216,865,052

See accompanying notes to these unaudited condensed consolidated financial statements.

Cricut, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands, except share amounts)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2024	213,295,922	$	213	$	466,554	$	—	$	(6)	$	466,761
Net income	—	—		—		23,914		—		23,914
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	606,114	1		(2,659)		—		—		(2,658)

Repurchase of common stock	(2,126,464)	(2)		(11,998)		—		—		(12,000)

Dividends and dividend equivalents issued	—	—		806		2,083		—		2,889
Stock-based compensation	—	—		11,051		—		—		11,051
Other comprehensive income	—	—		—		—		217		217
Balance as of March 31, 2025	211,775,572	$	212	$	463,754	$	25,997	$	211	$	490,174


	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2023	217,915,713	$	218	$	505,864	$	28,514	$	277	$	534,873
Net income	—	—		—		19,647		—		19,647
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	548,344	1		(2,324)		—		—		(2,323)
Forfeiture of unvested common stock and dividend equivalents	(64,001)	—		73		—		—		73
Repurchase of common stock	(1,697,272)	(2)		(10,793)		—		—		(10,795)

Stock-based compensation	—	—		11,473		—		—		11,473
Other comprehensive loss	—	—		—		—		(376)		(376)

Balance as of March 31, 2024	216,702,784	$	217	$	504,293	$	48,161	$	(99)	$	552,572

See accompanying notes to these unaudited condensed consolidated financial statements.

Cricut, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income	$	23,914	$	19,647
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:
Depreciation and amortization (including amortization of debt issuance costs)	6,105		7,496
Bad debt expense (benefit)	(1,903)		992

Stock-based compensation	10,450		10,757
Deferred income tax	(4,798)		(4,140)
Non-cash lease expense	904		1,272

Unrealized foreign currency (gain) loss	(634)		605
Provision for inventory obsolescence, net	(4,868)		563
Other	6		(739)


Changes in operating assets and liabilities:
Accounts receivable	32,213		32,011
Inventories	4,877		20,849
Prepaid expenses and other current assets	8,662		8,497
Other assets	(3,125)		259
Accounts payable	4,895		(31,096)
Accrued expenses, other current liabilities and other non-current liabilities	(19,979)		(12,280)
Operating lease liabilities	(1,074)		(1,403)
Deferred revenue	5,521		3,398
Net cash and cash equivalents provided by operating activities	61,166		56,688
Cash flows from investing activities:
Purchases of marketable securities	—		(25,442)
Proceeds from maturities of marketable securities	—		25,440

Purchases of property and equipment, including capitalized software development costs	(4,892)		(5,117)
Net cash and cash equivalents used in investing activities	(4,892)		(5,119)
Cash flows from financing activities:
Repurchases of common stock	(12,000)		(10,795)

Employee tax withholding payments on stock-based awards	(2,924)		(2,408)





Cash dividend	(21,493)		(1,439)

Net cash and cash equivalents used in financing activities	(36,417)		(14,642)
Effect of exchange rate on changes in cash and cash equivalents	144		(122)
Net increase in cash and cash equivalents	20,001		36,805
Cash and cash equivalents at beginning of period	232,140		142,187
Cash and cash equivalents at end of period	$	252,141	$	178,992
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	—	$	—
Cash paid during the period for income taxes	$	279	$	151
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	371	$	—
Property and equipment included in accounts payable and accrued expenses and other current liabilities	$	2,019	$	1,786
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities	$	185	$	367
Stock-based compensation capitalized for software development costs	$	423	$	330



Dividends declared but unpaid	$	32	$	831

See accompanying notes to these unaudited condensed consolidated financial statements.

Cricut, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1.Description of Business and Basis of Presentation

Nature of Business

Cricut, Inc. (“Cricut” or the “Company”) is a designer and marketer of a creativity platform that enables users to turn ideas into professional-looking handmade goods. Using the Company’s platform, versatile connected machines, and accessories and materials, users create everything from personalized birthday cards, mugs and T-shirts to large-scale interior decorations. The Company’s subscription services, connected machines and related accessories and materials are primarily marketed under the Cricut brand in the United States, as well as Europe and other countries around the world. Headquartered in South Jordan, Utah, the Company is an innovator in its industry, focused on bringing innovative technology (automation and consumerization of industrial tools) to the craft, DIY, and home décor categories. The Company’s condensed consolidated financial statements include the operations of its wholly owned subsidiaries, which are located throughout Europe and in the Asia-Pacific region.

The Company designs, markets, and distributes the Cricut family of products, including the platform, connected machines, and accessories and materials. In addition, Cricut sells a broad line of images, fonts, and projects for purchase à la carte.

The Company organizes its business into the following two reportable segments: Platform and Products. See Note 15, Segment Information, for further discussion of the Company’s segment reporting structure.

Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the annual report on Form 10-K for the fiscal year ended December 31, 2024 (the “Annual Report”). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.

The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2024 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2025, or any other period.

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires entities to disaggregate operating expenses into specific categories such as employee compensation, depreciation, and intangible asset amortization, by relevant expense caption on the statement of operations. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted on either a prospective or retrospective basis. The Company is currently evaluating the impact of this standard on the consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. Public business entities must apply the ASU’s guidance to annual periods beginning after December 15, 2024 (2025 for calendar-year-end Public business entities). The Company is currently evaluating the impact of this standard on the consolidated financial statements.

2.Summary of Significant Accounting Policies

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and estimating variable consideration such as customer rebates and product returns. Other estimates include the warranty reserve, allowance for credit losses, inventory reserve, intangible assets and other long-lived assets valuation, legal contingencies, stock-based compensation, income taxes, deferred tax assets valuation and developed software, among others. These estimates and assumptions are based on the Company’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including any effects of the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from these estimates.

Fair Value Measurement

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

Money market funds are highly liquid investments and are actively traded. The pricing information for these assets is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Marketable securities which include U.S. Treasury securities are valued using observable inputs from similar assets, or from observable data in markets that are not active; these assets are classified as Level 2 of the fair value hierarchy. There were no liabilities measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024.

Earnings Per Share

Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period.

Accounts Receivable

Accounts receivable are recorded at original invoice amounts less estimates for credit losses. Management determines the allowance for credit losses by specifically identifying troubled accounts and by using historical write off experience, adjusted for current market conditions and reasonable supportable forecasts of future economic conditions, applied to an aging of all other accounts receivable. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received.

As of March 31, 2025, December 31, 2024, and January 1, 2024, the Company had net accounts receivable balances of $72.3 million, $102.0 million and $111.2 million, respectively. As of March 31, 2025, and December 31, 2024, the Company had an allowance for credit losses against accounts receivable of $1.3 million and $2.6 million, respectively.

3.Revenue and Deferred Revenue

Deferred revenue relates to performance obligations for which payments have been received from the customer prior to revenue recognition. Deferred revenue primarily consists of deferred subscription-based services. Deferred revenue also includes amounts allocated from the sale of a connected machine to the unspecified upgrades and enhancements and the Company’s cloud-based services. Contract costs consist of amounts paid to obtain contracts with customers in connection with sales of subscriptions through third-party apps. Contract costs are amortized over the subscription term. As of March 31, 2025 and December 31, 2024 the Company had $1.5 million and $1.2 million recorded for capitalized contract costs, respectively.

The following table summarizes the changes in the deferred revenue balance for the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
	2025		2024
(in thousands)
Deferred revenue, beginning of period	$	48,253	$	43,235
Recognition of revenue included in beginning of period deferred revenue	(24,890)		(23,479)
Revenue deferred, net of revenue recognized on contracts in the respective period	30,410		26,877
Deferred revenue, end of period	$	53,773	$	46,633

As of March 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was equal to the deferred revenue balance.

The Company expects the following recognition of deferred revenue as of March 31, 2025:


	Year Ended December 31,
	2025 (remainder of year)		2026		2027		2028		Total
(in thousands)
Revenue expected to be recognized	$	47,896	$	4,819	$	1,021	$	37	$	53,773

The Company’s revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 15, Segment Information.

Revenue recognized during the three months ended March 31, 2025 related to performance obligations satisfied or partially satisfied was $4.6 million.

The following table presents the total revenue by geography based on the ship-to address for the periods indicated:


	Three Months Ended March 31,
	2025		2024
(in thousands)
North America*	$	127,569	$	134,835
International	35,065		32,557
Total revenue	$	162,634	$	167,392
*North America revenue consists of revenues from the United States and Canada.

The following table presents the total revenue by source for the periods indicated:


	Three Months Ended March 31,
	2025		2024
(in thousands)
Platform	$	79,986	$	78,286
Connected machines	38,461		36,948
Accessories and materials	44,187		52,158
Total revenue	$	162,634	$	167,392

4.Cash, Cash Equivalents, and Financial Instruments

The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of March 31, 2025 and December 31, 2024:


	As of March 31, 2025
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	126,787	$	—	$	126,787	$	126,787	$	—
Level 1:
Money market funds	125,354		—		125,354		125,354		—
Level 2:
U.S. treasury securities	104,013		514		104,527		—		104,527
Total	$	356,154	$	514	$	356,668	$	252,141	$	104,527


	As of December 31, 2024
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	161,248	$	—	$	161,248	$	161,248	$	—
Level 1:
Money market funds	70,892		—		70,892		70,892		—
Level 2:
U.S. treasury securities	104,413		361		104,774		—		104,774
Total	$	336,553	$	361	$	336,914	$	232,140	$	104,774

Marketable securities held as of March 31, 2025 generally mature over the next 24 months. As of March 31, 2025 and December 31, 2024 all securities were in an unrealized gain position. The Company determined that an allowance for credit losses was unnecessary for the periods presented.

5.Inventories

Inventories are comprised of the following:


	As of March 31, 2025		As of December 31, 2024
(in thousands)
Raw materials	$	36,894	$	38,652
Finished goods	141,691		144,630
Total inventories	178,585		183,282
Less: reserves	(44,147)		(49,015)
Total inventories, net	$	134,438	$	134,267
Inventories current	$	114,397	$	115,255
Inventories non-current (included in Other assets)	$	20,041	$	19,012

The Company’s recorded inventory reserves as of March 31, 2025 consisted of $2.4 million related to excess connected machine inventory, $34.1 million related to excess accessories and materials inventory, and $7.6 million related to raw material components. Amounts charged to the reserve account are recorded primarily in cost of revenues.

6. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	As of March 31, 2025		As of December 31, 2024
(in thousands)
Customer rebates	$	28,635	$	38,756
Other accrued liabilities and other current liabilities	29,158		37,518
Total accrued expenses	$	57,793	$	76,274

SEC Form 10-Q filed by Cricut Inc.