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

Creative Realities (NASDAQ:CREX) announced its 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. Creative Realities had a negative net margin of 29.92% and a negative return on equity of 59.08%. The firm had revenue of $21.51 million for the quarter, compared to the consensus estimate 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 2.4%

Shares of Creative Realities stock traded up $0.08 on Friday, reaching $3.44. 7,087 shares of the company were exchanged, compared to its average volume of 50,328. Creative Realities has a fifty-two week low of $2.19 and a fifty-two week high of $4.42. The firm has a market capitalization of $36.36 million, a price-to-earnings ratio of -1.84 and a beta of 1.50. The company has a current ratio of 0.73, a quick ratio of 0.55 and a debt-to-equity ratio of 3.70. The stock has a fifty day moving average price of $3.58 and a 200-day moving average price of $3.57.

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

In related news, CFO Tamra L. Koshewa purchased 28,571 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The shares were purchased at an average price of $3.50 per share, with a total value of $99,998.50. Following the purchase, 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 position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Richard C. Mills acquired 200,000 shares of the business’s stock in a transaction on Tuesday, June 30th. The shares were bought at an average price of $3.50 per share, for a total transaction of $700,000.00. Following the acquisition, the chief executive officer owned 952,601 shares in the company, valued at approximately $3,334,103.50. This trade represents a 26.57% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 26.77% of the company’s stock.

Institutional Investors Weigh In On Creative Realities

A number of large investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. boosted its stake in 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 purchasing an additional 6,122 shares during the period. Dimensional Fund Advisors LP raised its stake in Creative Realities by 18.6% during the 3rd 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 period. Bridgeway Capital Management LLC purchased a new stake in shares of Creative Realities in the fourth quarter valued at $26,000. Cerity Partners LLC lifted its holdings in shares of Creative Realities by 5.1% in the second quarter. Cerity Partners LLC now owns 331,926 shares of the company’s stock valued at $1,119,000 after purchasing an additional 16,000 shares in the last quarter. Finally, XTX Topco Ltd acquired a new stake in shares of Creative Realities in the fourth quarter worth $66,000. Institutional investors and hedge funds own 41.32% of the company’s stock.

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.