Cricut Inc

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in Part I. Item 1A Risk Factors in our Annual Report on Form 10-K for the period ended December 31, 2025, filed on March 4, 2026, which are hereby incorporated by reference. The risks and uncertainties described in such risk factors and elsewhere in this report have the potential to materially affect our business, financial condition, results of operations, cash flows, projected results and future prospects. Except as indicated below, we do not believe that there have been any material changes to the risk factors previously disclosed in our recent SEC filings, including our previously filed and in Part II. Item 1A Risk Factors in our Quarterly Report on Form 10-K, as referenced above.

Managing our inventory supply chain, including manufacturing and component lead time, is complex and exposes us to risk.

To ensure adequate inventory supply, we must forecast inventory needs and expenses and place orders with our contract manufacturers and component suppliers sufficiently in advanceQ for the period ended March 31, 2026, filed on May 6, 2026, based on our estimatesoth of future demand for particular products. Failuwhich are to accurately forecast our needs may result in manufacturing delays, increased costs or excess inventory. Because we bear supplhereby incorporated by risk under our contract manufacturing arrangements, any such delays, increased costs or excess inventory could negatively impact our business. We are beginning to see potential disruption to our supply chain, driven largely by higher fuel and petrochemical-related input costs stemming from the Middle East conflict. While we coeference. The risks and uncertaintinue to evaluate actions to mitigate these pressures, the current environment requires a thoughtful and measured approaes described in such given the price sensitivity of the consumer. Failure to forecast appropriate demand, lead times, significant price fluctuations or shortages in materials or components,risk factors and elsewhere including the costs to transport such materials or components, the uncertainty of currency fluctuations against the U.S. dollar, increases in labor rates, limitations on the availability of labor, trade duties or tariffs, armed conflicts, and/or tis report have the introduction of new and expensive raw materpotentials could adversely affect our contract manufacturers ability to manufacture our products in sufficient quantity and within sufficient time to meet our consumer demand, which would adverse to materially affect our business, financial condition and operational r, results.

If we overestimate our product of operation requirements, we or our contract manufacturers may purchase excess components and build excess inventory. If we, or our contract manufacturers at our request, purchase excess componencash flows, projected results that are unique to ourand future products or build excess products, we could be required to pay for these excess components or products. In limited circumstances, we spects. We do not believe that there have agreed to reimburse our manufacturers for purchased components that were not used as a result of our decision to discontinue products or tbeen any material changes to the use of particular components. If we incur costs to cover excess supply commitments, this would harm our business. If we underestimate our product requirements, our contract manufacturers may have inadequate component inventory, which could interrupt the manufacturing of our products and result in delays or cancellation of orders from brick-and-mortar and onrisk factors previously disclosed in our recent SEC filine retail partnergs, distributors and online sales channels. We may be required to incur higher costs to secure the necessary production capacity and components to meet unanticipated demand, which could result in lower margins. While supply chain conditions improved during 2023, 2024 including our previously filed Form 10-K and 2025, if our supply chain faces challenges again, it could put pressure on margins10-Q, as referenced above.