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

Creative Realities (NASDAQ:CREX) issued its quarterly earnings results on Thursday. The company reported ($0.41) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.29) by ($0.12), FiscalAI reports. Creative Realities had a negative net margin of 29.92% and a negative return on equity of 59.08%. The company had revenue of $21.51 million during the quarter, compared to analyst estimates 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 12.0%

Shares of CREX traded up $0.36 during trading hours on Thursday, reaching $3.36. The stock had a trading volume of 151,329 shares, compared to its average volume of 50,643. The company has a quick ratio of 0.55, a current ratio of 0.73 and a debt-to-equity ratio of 3.70. Creative Realities has a 52 week low of $2.19 and a 52 week high of $4.42. The firm has a 50-day moving average of $3.59 and a 200 day moving average of $3.57. The company has a market cap of $35.52 million, a P/E ratio of -1.80 and a beta of 1.50.

Wall Street Analysts Forecast Growth

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

Insider Activity

In other Creative Realities news, CEO Richard C. Mills purchased 200,000 shares of the stock in a transaction on Tuesday, June 30th. The stock was bought at an average cost of $3.50 per share, for a total transaction of $700,000.00. Following the completion of the acquisition, the chief executive officer directly owned 952,601 shares of the company’s stock, valued at $3,334,103.50. The trade was a 26.57% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Tamra L. Koshewa purchased 28,571 shares of the company’s stock in a transaction dated Tuesday, June 30th. The shares were acquired at an average cost of $3.50 per share, for a total transaction of $99,998.50. Following the transaction, the chief financial officer owned 28,571 shares of the company’s stock, valued at $99,998.50. This trade represents a ? increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 26.77% of the company’s stock.

Institutional Trading of Creative Realities

Large investors have recently bought and sold shares of the business. XTX Topco Ltd acquired a new stake in Creative Realities during the 4th quarter worth approximately $66,000. Bridgeway Capital Management LLC acquired a new position in shares of Creative Realities in the fourth quarter valued at approximately $26,000. Advisory Services Network LLC bought a new stake in shares of Creative Realities during the fourth quarter worth $209,000. Rothschild Wealth LLC bought a new stake in shares of Creative Realities during the fourth quarter worth $587,000. Finally, Goldman Sachs Group Inc. increased its position in shares of Creative Realities by 21.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 34,714 shares of the company’s stock worth $91,000 after acquiring an additional 6,122 shares in the last quarter. 41.32% of the stock is owned by institutional investors.

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.