CRCT Stock: Special Dividends Could Provide Big Boost in Income
August 14, 2025
CRCT’s Flying Under the Radar, But How Long Will It Stay There?
If you’ve been investing for a while, you have probably learned that the best income opportunities don’t always come from the companies making the “loudest” headlines. Sometimes, they come from businesses quietly building a loyal customer base, streamlining operations, and maintaining the kind of financial discipline that income investors love.
One of those under-the-radar names is Cricut Inc (NASDAQ:CRCT).
While it’s not the kind of business that’s going to be on CNBC every day, CRCT stock has a few traits that make it worth a closer look.
What Does Cricut Inc Do?
Headquartered in South Jordan, Utah, Cricut operates as a consumer technology company that focuses on empowering do-it-yourself creators in the U.S., Canada, the U.K., Ireland, Australia, New Zealand, Western Europe, the Middle East, Latin America, South Africa, and Asia. At their core, Cricut’s products allow users to turn their ideas into professional-looking handmade goods.
The company operates through two business segments: Platform and Products.
Cricut offers a variety of connected machines, accessories, and materials. These tools help users create everything from personalized birthday cards and custom mugs to T-shirts and large-scale interior decorations. The machines are designed to cut, write, score, and add decorative effects on a wide range of materials, including paper, leather, wood, adhesive vinyl, and iron-on vinyl.
To complement its products, the company offers “Cricut Design Space,” a cloud-based software that works seamlessly with its connected machines. This platform allows users to create and manage projects across desktop and mobile devices.
Beyond all of this, Cricut also sells a wide range of accessories and materials, including “Cricut EasyPress,” “Cricut Mug Press,” hand tools, machine replacement blades, and project materials like vinyl and iron-on products. (Source: “Profile,” Yahoo! Finance, last accessed August 11, 2025.)
Cricut Financial Performance Remains Robust
Cricut’s second-quarter financial performance was decent to say the least, so it makes the case for a rising CRCT stock price.
The company’s revenue for the quarter amounted to $172.1 million, up two percent year over year. This is certainly not explosive growth; but, in a consumer discretionary space, this increase is good given the overall macro headwinds.
The subscription (platform revenue) grew a respectable four percent to $80.7 million, while hardware and materials (products revenue) inched up by one percent. This split is interesting because it shows there’s some shift towards higher-margin recurring revenue.
Cricut’s net income was $24.5 million, or $0.11 per share.
The company’s number of paid subscribers crossed three million, growing seven percent year over year and its average revenue per user increased two percent to $53.84.
Now let’s look at the balance sheet: Cricut generated $36.2 million in operating cash flow and ended the quarter with $377.0 million cash and zero debt. (Source: “Cricut, Inc. Reports Second Quarter 2025 Financial Results,” Cricut Inc, August 5, 2025.)
CRCT Stock Offers What Many Companies Don’t: A Regular & Special Dividend
While its regular biannual dividend of $0.10 per share gives CRCT stock a yield of about 3.52%, investors shouldn’t overlook Cricut’s history of paying special dividends. The company has used them in the past to return excess cash when its business performance and balance sheet strength allowed.
Special dividends can really provide a big boost to the income from an investment and increase the dividend yield significantly. In July 2025, for instance, Cricut paid a special dividend of $0.75 per share. This boosts the dividend yield to close to 17%.
Chart Courtesy of StockCharts.com
Now, there’s no guarantee that Cricut will issue special dividends regularly, But the combination of healthy free cash flow, low debt, and a growing subscription base makes it possible when the conditions are right.
Lowdown on CRCT Stock
Cricut may not fit the definition of a “buy, hold, and forget stock,” but it has some of the qualities that long-term income investors appreciate:
- Recurring, high-margin subscription revenue
- Loyal, engaged customers
- Conservative balance sheet management
- Willingness to return cash to shareholders—both through regular and special dividends
The current yield might not grab headlines, but when you factor in the potential for occasional special payouts and long-term earnings growth, CRCT stock starts to look like a quiet compounder—the kind of investment that rewards patience.
For an income investor willing to look beyond the usual suspects, Cricut could be worth a spot in the portfolio.
CRCT stock is certainly liked by institutional investors. As per the more recent data, over 42% of all outstanding shares are held by institutional investors. The three of the biggest holders of CRCT stock are Nuveen, LLC, Vanguard Group Inc., and BlackRock Inc. (Source: “Holders,” Yahoo! Finance, last accessed August 11, 2025.)
