Creative Realities (NASDAQ:CREX – Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.41) earnings per share for the quarter, missing the consensus estimate of ($0.29) by ($0.12), FiscalAI reports. The firm had revenue of $21.51 million for the quarter, compared to analysts’ expectations of $21.73 million. Creative Realities had a negative net margin of 29.92% and a negative return on equity of 59.08%.
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%
NASDAQ CREX traded up $0.33 during trading on Thursday, hitting $3.33. The company had a trading volume of 130,134 shares, compared to its average volume of 50,410. Creative Realities has a one year low of $2.19 and a one year high of $4.42. The company has a market cap of $35.20 million, a price-to-earnings ratio of -1.78 and a beta of 1.50. The company’s fifty day moving average is $3.59 and its 200-day moving average 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.
Analysts Set New Price Targets
Get Our Latest Stock Report on Creative Realities
Insider Activity at Creative Realities
In other news, CEO Richard C. Mills acquired 200,000 shares of the business’s stock in a transaction on Tuesday, June 30th. The shares were acquired at an average cost of $3.50 per share, with a total value of $700,000.00. Following the transaction, the chief executive officer owned 952,601 shares in the company, valued at $3,334,103.50. The trade was a 26.57% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Tamra L. Koshewa bought 28,571 shares of Creative Realities stock in a transaction on Tuesday, June 30th. The shares were purchased at an average price of $3.50 per share, for a total transaction of $99,998.50. Following the acquisition, the chief financial officer directly owned 28,571 shares in the company, valued at approximately $99,998.50. This trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 26.77% of the company’s stock.
Hedge Funds Weigh In On Creative Realities
A number of institutional investors have recently added to or reduced their stakes in the company. Cerity Partners LLC lifted its position in Creative Realities by 5.1% during the second quarter. Cerity Partners LLC now owns 331,926 shares of the company’s stock valued at $1,119,000 after buying an additional 16,000 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Creative Realities by 18.6% in the 3rd quarter. Dimensional Fund Advisors LP now owns 48,131 shares of the company’s stock worth $110,000 after buying an additional 7,560 shares during the period. Citadel Advisors LLC bought a new position in shares of Creative Realities in the 3rd quarter worth about $141,000. Goldman Sachs Group Inc. increased its stake in shares of Creative Realities by 21.4% in the 4th 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. Finally, Rothschild Wealth LLC purchased a new position in Creative Realities during the 4th quarter valued at about $587,000. Institutional investors own 41.32% of the company’s stock.
Creative Realities Company Profile
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.
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