Creative Realities (NASDAQ:CREX) Announces Earnings Results, Misses Expectations By $0.12 EPS

Creative Realities (NASDAQ:CREX) released its quarterly earnings results on Thursday. The company reported ($0.41) EPS for the quarter, missing analysts’ consensus estimates of ($0.29) by ($0.12), FiscalAI reports. Creative Realities had a negative return on equity of 59.08% and a negative net margin of 29.92%.The company had revenue of $21.51 million during the quarter, compared to analysts’ expectations of $21.73 million.

Here are the key takeaways from Creative Realities’ conference call:

• Positive Sentiment: Q2 revenue rose 65% year over year to a record $21.5 million, while adjusted EBITDA increased to $2.0 million from $1.1 million. Management expects Q3 to be the largest quarter in company history and Q4 to exceed Q3.
• Positive Sentiment: The company has realized approximately $7.5 million of its targeted $10 million in annual CDM integration synergies and expects further margin improvement as revenue scales. ARR reached $20.5 million, with an additional $4 million–$5 million expected to come online in 2027.
• Positive Sentiment: New and expanding customer programs include Albertsons’ large retail media network, the Tennessee Titans’ approximately $8.5 million stadium deployment, AMC’s 285-location rollout, and pending conversions for a national cellular retailer and a QSR chain. Management said these wins strengthen its pipeline and improve revenue visibility for 2027.
• Positive Sentiment: A $12 million net equity offering increased cash to approximately $10.7 million and allowed the company to address liquidity concerns; management said the going-concern qualification will be removed from the upcoming 10-Q. Proceeds are intended to fund growth, capital expenditures, and debt reduction.
• Negative Sentiment: Despite improved adjusted EBITDA, the company reported a $4.6 million net loss attributable to common shareholders, compared with a $1.8 million loss a year earlier, while debt rose to $46.6 million. Hardware and service gross margins both declined year over year, and management does not expect hardware margins to recover materially until 2027.

Creative Realities Trading Up 11.0%

Shares of CREX traded up $0.33 during mid-day trading on Thursday, reaching $3.33. The company’s stock had a trading volume of 130,134 shares, compared to its average volume of 50,410. Creative Realities has a 52 week low of $2.19 and a 52 week high of $4.42. The stock has a market cap of $35.20 million, a PE ratio of -1.78 and a beta of 1.50. The company’s fifty day moving average price is $3.59 and its two-hundred day moving average price is $3.57. The company has a current ratio of 0.73, a quick ratio of 0.55 and a debt-to-equity ratio of 3.70.

Insiders Place Their Bets

In other Creative Realities news, CFO Tamra L. Koshewa purchased 28,571 shares of the business’s stock in a transaction on Tuesday, June 30th. The stock was acquired at an average cost of $3.50 per share, for a total transaction of $99,998.50. Following the completion of the transaction, the chief financial officer directly owned 28,571 shares in the company, valued at approximately $99,998.50. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Richard C. Mills acquired 200,000 shares of Creative Realities stock in a transaction dated Tuesday, June 30th. The shares were bought at an average cost of $3.50 per share, for a total transaction of $700,000.00. Following the completion of the purchase, the chief executive officer directly owned 952,601 shares of the company’s stock, valued at approximately $3,334,103.50. The trade was a 26.57% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 26.77% of the stock is owned by company insiders.

Institutional Investors Weigh In On Creative Realities

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Bridgeway Capital Management LLC bought a new position in Creative Realities during the 4th quarter worth approximately $26,000. XTX Topco Ltd bought a new stake in Creative Realities in the fourth quarter valued at approximately $66,000. Goldman Sachs Group Inc. lifted its position in Creative Realities by 21.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 34,714 shares of the company’s stock valued at $91,000 after purchasing an additional 6,122 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in Creative Realities by 18.6% in the third quarter. Dimensional Fund Advisors LP now owns 48,131 shares of the company’s stock valued at $110,000 after purchasing an additional 7,560 shares during the last quarter. Finally, Citadel Advisors LLC purchased a new stake in shares of Creative Realities during the third quarter valued at approximately $141,000. Institutional investors own 41.32% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on CREX. Alliance Global Partners restated a “buy” rating on shares of Creative Realities in a research report on Friday, July 24th. Zacks Research cut Creative Realities from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 28th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Creative Realities in a research report on Friday, July 17th. One research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce”.

About Creative Realities

Creative Realities, Inc (NASDAQ: CREX) is a technology company specializing in digital engagement solutions for retail, restaurant, corporate and public-facing environments. Headquartered in Dallas, Texas, the company develops and delivers integrated hardware and software platforms designed to create dynamic, interactive experiences. Its offerings include digital signage networks, interactive kiosks and video training systems, all powered by an enterprise-grade content management system that enables clients to deploy, schedule and monitor multimedia content across multiple locations.

The company’s flagship software platform provides real-time analytics, remote asset management and customizable user interfaces that support both touchscreen and traditional display formats.