Shares of Cricut, Inc. (NASDAQ: CRCT) are soaring 13.21% in Wednesday's trading session, building on the pre-market momentum following the company's impressive first-quarter 2025 financial results and shareholder-friendly initiatives announcement.

The creative technology company reported earnings per share of $0.11 for Q1 2025, significantly beating the analyst consensus estimate of $0.07. Revenue came in at $162.6 million, surpassing the FactSet estimate of $154.7 million, despite a slight year-over-year decline. Cricut's profitability showed notable improvement, with net income rising 22% to $23.9 million compared to the same period last year. Additionally, the company's paid subscriber base grew by 6% year-over-year, reaching just over 2.97 million subscribers.

Investors were particularly enthused by Cricut's capital allocation announcements, which likely contributed to the stock's surge. The company's board of directors approved a special dividend of $0.75 per share, a recurring semi-annual dividend of $0.10 per share, and a $50 million stock repurchase program. These moves, coupled with Cricut's strong cash position of $357 million and debt-free status, signal confidence in the company's financial health and commitment to shareholder value. The focus on international growth, evidenced by an 8% year-over-year increase in international revenue, suggests potential for future expansion and market penetration.