Cricut, Inc.CRCT

Cricut, Inc. Revenue Disclosure

10-KFiled Mar 4, 20262 min read
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. During the twelve months ended December 31, 2025, the Company capitalized $2.7 million of contract costs, and as of December 31, 2025 the unamortized balance was $1.1 million, included in prepaid and other current assets on our consolidated balance sheets. During the twelve months ended December 31, 2024, the Company capitalized $2.7 million of contract costs, and as of December 31, 2024 the unamortized balance was $1.2 million, included in prepaid and other current assets on our consolidated balance sheets. The Company has recognized no contract assets for any of the periods presented.
The following table summarizes the changes in the deferred revenue balance for the periods indicated:
December 31,
202520242023
(in thousands)
Deferred revenue, beginning of period$48,253 $43,235 $38,658 
Recognition of revenue included in beginning of period
deferred revenue
(45,482)(40,304)(34,869)
Revenue deferred, net of revenue recognized on contracts in
the respective period
50,510 45,322 39,446 
Deferred revenue, end of period$53,281 $48,253 $43,235 
As of December 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 December 31, 2025:
Year Ended December 31,
202620272028Total
(in thousands)
Revenue expected to be recognized$50,409 $2,097 $775 $53,281 
Revenue recognized during the years ended December 31, 2025, 2024, and 2023, related to performance obligations satisfied or partially satisfied in prior periods was $8.7 million, $5.7 million and $3.2 million, respectively.
The following table presents the total revenue by geography based on the ship-to address for the periods indicated:
Year Ended December 31,
202520242023
(in thousands)
North America
$539,082 $555,052 $609,933 
International169,698 157,486 155,214 
Total revenue$708,780 $712,538 $765,147 
North America revenue consists of revenues from the United States and Canada. United States represents 96%, 95%, and 95% of North America revenue for the years ended December 31, 2025, 2024, and 2023, respectively.
The following table presents the total revenue by source for the periods indicated:
Year Ended December 31,
202520242023
(in thousands)
Platform
$327,399 $312,976 $309,012 
Connected machines
192,444 192,439 198,312 
Accessories and materials
188,937 207,123 257,823 
Total revenue$708,780 $712,538 $765,147 

Historical Timeline

Fiscal YearFiled
2025Mar 4, 2026Showing above
2024Mar 5, 2025
2023Mar 6, 2024
2022Mar 13, 2023
2021Mar 9, 2022

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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