SOUTH JORDAN, Utah - Cricut, Inc. (NASDAQ:CRCT) announced today the launch of AI Project Designer, a conversational tool that generates personalized designs for its cutting machines.
The tool is integrated into Cricut Design Space, the software that powers the company's product ecosystem. AI Project Designer allows users to describe project ideas in natural language and collaborate with artificial intelligence to create, edit, and refine designs through a chat interface.
The tool supports two-dimensional, single-operation projects including birthday party decorations, custom labels, holiday projects, apparel items, and home decor. The feature does not currently support 3D paper projects, cards, multi-operation designs, or sticker sheets.
"For the past 20 years, we've been focused on one simple idea: making it easy for people to turn their ideas into personalized projects," said Ashish Arora, Cricut CEO. "AI Project Designer turns that intent into action. Instead of navigating tools, you simply describe what you want to make, and Cricut brings it to life."
The product innovation comes as Cricut trades at a P/E ratio of 12.17 while maintaining profitability with earnings of $0.35 per share over the last twelve months. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value, placing it among companies on the Most Undervalued list.
Designs generated through the tool can be further edited on the Design Space Canvas before cutting. The feature works alongside the existing library of 1.7 million images in Cricut Design Space.
AI Project Designer is available to all Cricut Design Space users, according to a press release statement. Free version users receive a one-time deposit of AI Credits, while Cricut Access subscribers receive monthly AI Credits based on their subscription plan. These credits can be used across Cricut's suite of AI tools in Design Space.
InvestingPro subscribers have access to over 10 additional exclusive tips about Cricut's financial health and market position, including detailed analysis in the comprehensive Pro Research Report available for this stock.
In other recent news, Cricut Inc. reported its financial results for the fourth quarter of 2025, surpassing earnings expectations. The company achieved an earnings per share of $0.04, exceeding the projected $0.03, and generated revenue of $203.6 million, slightly above the anticipated $202.47 million. Despite this positive earnings performance, Cricut experienced an 8% decline in its Product segment revenue compared to the previous year. On a more positive note, the Platform segment saw a 6% increase in revenue year-over-year, although there are concerns about potential pressure on subscriptions due to ongoing engagement weakness.
Barclays has maintained its Underweight rating on Cricut with a price target of $4.00, citing the weak performance in the Product segment as a significant factor. The bank's analysis suggests that while there are areas of growth, challenges remain in sustaining subscriber engagement. These developments highlight the mixed performance of Cricut in the recent quarter, with both positive earnings surprises and ongoing challenges in specific segments.
This article was generated with the support of AI and reviewed by an editor.