Cricut enters new $300 million revolving credit facility, ends prior agreement

Cricut, Inc. (NASDAQ:CRCT) announced it has entered into a new five-year, senior secured, multicurrency revolving credit facility totaling $300 million, according to a press release statement based on a filing with the Securities and Exchange Commission.

The new credit agreement, signed Thursday, replaces Cricut’s previous credit agreement dated August 4, 2022. The new facility is led by BMO Bank N.A. as administrative agent and includes other lenders. The revolving credit facility matures on October 22, 2031.

The agreement allows Cricut to use the credit facility for working capital and general corporate purposes, including permitted acquisitions and share repurchases. The facility includes a $35 million letter-of-credit sublimit and a $30 million foreign-currency sublimit. Cricut may borrow, repay, and reborrow funds during the availability period and can prepay borrowings at any time without premium or penalty, subject to standard breakage costs.

Interest on borrowings will be determined by either the Adjusted Term SOFR Rate or an alternative base rate, plus a margin that varies based on Cricut’s net leverage ratio. The company will pay a commitment fee on undrawn commitments, also based on its net leverage ratio. The agreement allows for incremental revolving commitments and/or term loans, with a minimum amount of $25 million, up to the greater of $225 million or 1.5 times consolidated EBITDA.

Cricut’s obligations under the facility are guaranteed by its loan-party subsidiaries and secured by most of its assets, subject to standard exceptions. The agreement includes customary covenants, such as limitations on indebtedness, liens, investments, asset sales, and affiliate transactions. Cricut must maintain a maximum net leverage ratio of 3.00 to 1.00 and a minimum interest coverage ratio of 3.00 to 1.00. The company may increase the net leverage ratio to 3.50 to 1.00 for four quarters after certain acquisitions.

The company terminated its prior credit agreement on Thursday. At the time of termination, there was no principal amount outstanding and no material early termination penalties were incurred. All liens securing the prior agreement were released.

This information is based on a press release statement and Cricut’s filing with the SEC.

In other recent news, Cricut Inc. reported its second-quarter 2026 earnings, revealing diluted earnings of $0.19 per share, significantly surpassing analysts’ expectations of $0.051. However, the company’s revenue fell short, coming in at $156.3 million compared to the anticipated $165.62 million. Part of the earnings strength was attributed to one-time benefits, such as tariff refunds and a royalty settlement reserve release. Meanwhile, Goldman Sachs initiated coverage on Cricut with a Sell rating, citing concerns over discretionary spending among middle-income U.S. consumers, which may impact demand for Cricut’s products. The firm set a price target of $4.50 for the stock. Similarly, Goldman Sachs began coverage on Corsair Gaming Inc. with a Sell rating, setting a price target of $11.00. The firm pointed to intense competition for DRAM and NAND supply due to AI infrastructure demands, potentially affecting PC unit shipments. These developments highlight the challenges facing both companies in the current market environment.