Cricut, Inc.

Good day, and thank you for standing by. Welcome to the Cricket Q3 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, Please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Chris Belfiore, Director of Investor Relations.

Thank you, operator, and good afternoon, everyone. Thank you for joining us on Cricket's third quarter 2026 earnings call. Please note that today's call is being webcast and recorded on the investor relations section of the company's website. A replay of the webcast will also be available following today's call. For your reference, accompanying slides used on today's call, along with a supplemental data sheet, have been posted to the investor relations section of the company's website, investor.cricket.com. Joining me on the call today are Ashish Arora, Chief Executive Officer, and Kimball Shill, Chief Financial Officer. Today's prepared remarks have been recorded after which Ashish and Kimball will host a live Q&A. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements and management may make additional forward-looking statements, including statements regarding our strategies, business, expenses, tariffs, capital allocation, and results of operations in response to your questions. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risk and uncertainties, including those identified in the risk factor section of Cricket's most recently filed Form 10-K or Form 10-Q that we have filed with the Securities and Exchange Commission. Actual events or results could differ materially. This call also contains time-sensitive information that is accurate only as of the date of this broadcast, November 3, 2026. Cricket assumes no obligation to update any forward-looking projection that may be made in today's release or call. I will now turn the call over to Ashish.

Thank you, Chris. We are pleased to start the second half on a strong note, with Q3 revenue up approximately 11% year-on-year, driven by new product launches and continued strength in the platform. Our investments in innovation are translating into meaningful progress. We launched Maker 5, our newest flagship cutting machine, and entered an exciting new category with the Sticker Pitch product line, our first new connected machine category since 2014. These product launches are important catalysts for our flywheel. They broaden the funnel for new customers, strengthen our ecosystem, and create more opportunities to expand engagement and improve platform value over time. Early response has been encouraging. with strong enthusiasm from consumers, including meaningful engagement across social media. Machine sellout remains strong in our core cutting machine segment and further helped by our new sticker picks category, increasing double digits for the second straight quarter. Platform revenue increased approximately 4% year-on-year to $85.9 million, while products revenue grew approximately 17% to $102.7 million. International revenue increased 30% year-on-year to $52.8 million and represented 28% of the business. Active users continued to increase, up 2% year-on-year, while 90-day engaged users remained flat. Paid subscribers grew 2% year-on-year but declined sequentially as expected. We are excited about the opportunity ahead. Our investments are working to create a more compelling accessible cricket experience. This year, we have launched three new cutting machines with all new architectures and a more compelling value proposition. We are expanding the value of our platform for both new and existing users through continued innovation in content, AI power tools, and services. With Cricut Sticker Picks, we entered a new category that lets users make custom stickers and photo prints at home in minutes. We are focused on translating this broader innovation pipeline into stronger execution. accelerating development cycles, expanding awareness, and sharpening our value proposition across products and price points. We are continuing our investments to accelerate product innovation, platform, and awareness. Our goal is simple, to reach the right consumer with products and experiences that make creating easy and joyful at the right price, while strengthening our competitive position and building a more durable path to long-term growth. Let me talk about our priorities. In Q3, we continue to invest in marketing to broaden our audience and deepen engagement with the Cricket brand. We continue to see strong traffic at Cricket.com as more consumers continue to learn about our products and platform. We're also seeing encouraging early signs from our Think It, Make It Cricket brand campaign. The campaign brings our broader creativity platform position to life showing how Cricut can help anyone turn an idea into something personal and meaningful. Our goal is to make the brand feel more relevant, approachable, and accessible to a broader audience while strengthening engagement with our existing community. A significant part of our marketing efforts this quarter was the introduction of Cricut sticker picks, our new line of machines that enables users to create high-quality, full-color stickers at home in minutes. We supported the launch with one of our largest influencer activations to date, engaging creators alongside a robust paid media campaign. During the launch period, these efforts generated significant awareness and excitement around sticker pics while introducing Cricket to new audiences at scale. The increased awareness and new product activity supported a strong consumer response. Connected Machine Sellout grew double digits year-on-year in Q3, building on the momentum we saw in the first half and benefiting from our newest connected machine launches. Sellout is a key measure of consumer demand and the effectiveness of our marketing investments. Recall, we don't have perfect coverage for sellout data in all channels, so treat this as directional. We continue to work hard to build momentum and engagement across our platform. Active users grew approximately 2% year-on-year, and 90-day engaged users were approximately flat for the same period. These results reflect the cumulative impact of our investments to improve onboarding and make the Cricket experience simpler and more compelling throughout the user journey on our platform. Improving onboarding remains one of our highest priorities because an early successful creative experience is critical to long-term engagement. We continue to see progress in engagement among new users during their first weeks with Cricket. During the quarter, we further strengthened onboarding across our cutting machine portfolio by making educational content more visible, like pop-up training videos, and introducing features that help users explore, learn, and complete their first projects with greater confidence. We also enhanced our AI-powered chatbot to provide more accurate, useful support. Adoption of guided flows continues to increase, particularly among new users. As we expand the supporting template library internationally, improved search and localized language template discovery are making it easier for users to find relevant projects and inspiration. Together, these investments are helping reduce friction and make Cricket more approachable. A major focus for our platform and engagement teams in Q3 was supporting the launch of our newest connected machine. For StickerPix Print and StickerPix Print and Cut, we introduced a redesigned end-to-end experience in design space that builds on platform capabilities developed over the past several years. We also expanded the creative possibilities within our platform with new photo, sticker, and card project types. AI power tools can now turn a consumer's own photo and a simple prop into polished, ready-to-print sticker sheets and photo prints. And with machine interactions purpose-built for dye sublimation, we are making the experience feel less like printing a picture and more like preserving a moment. That is a meaningful distinction. While most photo printers offer utility, Cricket and Sticker Picks help people create something personal, expressive, and worth keeping. As we move into the fourth quarter, we are pleased with the return to year-on-year growth in active users and stability with 90-day engaged users. While there is still work to do, we believe our continued investments in onboarding, localized content, and AI-powered creative experiences are building a stronger foundation for sustainable engagement and long-term growth. Our platform business continues to build momentum, with revenue of $85.9 million, increasing approximately 4% year-on-year in the quarter. Premium tier plans are contributing positively, and we expanded their rollout across our largest international markets at the end of the quarter. Adoption has been encouraging, with limited impact on overall subscription sign-ups. As we move forward, we will continue scaling premium plans testing additional offerings and pricing structures and expanding the AI-powered tools and benefits that differentiate our subscription experience. These investments are designed to improve member value and support continued platform growth over time. Paid subscribers increased by approximately 2% year-on-year to just over 3.07 million and declined modestly quarter-on-quarter in line with our seasonal expectations. We continue to expect to grow paid subscribers and platform revenue in Q4 and for the full year. We continue to invest in making our subscription more valuable and more central to the Cricket experience. For sticker pics, we introduced AI-powered templates that make it easy for members to create personalized photo and sticker sheets using the credits included with their subscriptions. We also launched a dedicated library of sticker pics templates that simplifies the creation of photo collages and custom stickers. Beyond sticker pics, our Creative Labs team introduced an exclusive library of crochet patterns from leading fiber art designers, along with an AI-powered tool that creates personalized paint-by-number sheets. These additions reflect our focus on delivering a steady pipeline of differentiated tools and many more. Looking ahead, we see significant opportunity to drive platform growth by expanding premium offerings and delivering an increasingly differentiated subscription experience through AI powered tools, curated content and new product experiences. Our accessories and materials business remains challenging. We continue to work our plan to strengthen our product portfolio and improve our competitive position. While the category remains highly competitive, we continue to gain share in some segments, including printables and Cricut accessories. Printables remains our fastest-growing category, reflecting growing consumer demand for personalized stickers, labels, photos, and gifts. We expect to see help in this category as adoption of our new StickerPix product line drives consumables. Our Q3 innovation also supported the broader machine ecosystem. We introduced engravable blanks designed for Maker 5, taking advantage of its expanded material capabilities and improved engraving experience. We also introduced the StickerPix ecosystem with refill packs that support photo printing and personalized sticker creation. Through quickest software experience and materials innovation, including die-cut shapes, we believe StickerPix brings differentiated capabilities to the die sublimation printer category. Looking ahead, we will remain focused on pricing and promotions. As consumers continue to prioritize value, while expanding our presence internationally through localized assortments and stronger channel execution. We saw momentum in Q3 across our business. We saw strong machine sellout and ongoing platform growth, continuing stabilization and engagement, and promising early response to sticker picks. Innovation across products, content, AI-powered experiences, and services, combined with more effective marketing, is building a broader, more compelling cricket ecosystem that can attract new users and deepen engagement with our existing community. We believe this strategy positions cricket to deliver sustainable, profitable growth and create long-term value for our shareholders. With that, I will turn the call over to Kimball.