Company Reports Q1 Revenue of $16.35M
Reports Q1 revenue $16.35M vs. $9.73M last year. "The first quarter played out largely as expected, with top line growth year-over-year but, as previously discussed, revenue was negatively impacted by several winter storms and other seasonal factors across much of our operating footprint," said Rick Mills, CEO. "We expect the remainder of fiscal 2026 to show stronger sales based on our current book of business, a strong pipeline of new opportunities and growth from the acquisition of CDM. With the integration of this transaction substantially complete, we are investing in our people and business development initiatives with the goals of accelerating the Company's revenue trajectory and improving profit margins through both synergy realization and cost leverage. We're excited by the growth we see on the horizon, and the second quarter is already off to a great start in terms of new installations and customer engagement. Overall, we continue to be positioned for our best year ever and look forward to achieving a higher level of success in the quarters to come."
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- Investor Conference Participation: Creative Realities will engage in one-on-one meetings with institutional investors at the Craig-Hallum Investor Conference on May 28 in Minneapolis, showcasing its leadership in digital signage and AdTech to attract more investor interest in the company's future growth.
- Diverse Products and Services: The company actively provides SaaS and support services across various sectors, including retail and automotive, utilizing its Clarity™, ReflectView™, and iShowroom™ CMS platforms, which is expected to enhance customer experience and revenue.
- Market Strategy and Growth: Creative Realities is leveraging its AdLogic™ and AdLogic CPM+™ platforms to help clients monetize on-premise foot traffic through Retail Media Networks, which is anticipated to boost the company's competitiveness in the rapidly evolving digital advertising market.
- Caution on Forward-Looking Statements: The press release includes cautionary notes on forward-looking statements, highlighting business strategies and market risks, reminding investors to consider potential uncertainties and risk factors to ensure reasonable expectations for future performance.
- Revenue and Profit Overview: Creative Realities reported Q1 2026 revenue of $16.3 million, with $7.9 million from the CDM acquisition, while extreme cold weather delayed about $4 million in revenue to later quarters, resulting in a gross profit of $5.6 million and a gross margin of 34.2%.
- Customer Expansion and New Contracts: The company announced an $8.5 million digital signage deal with the Tennessee Titans and Nissan Stadium, alongside winning Dairy Queen in North America, expecting annual revenue growth of $1 million to $2 million, highlighting its market expansion potential in sports and fast food sectors.
- Future Outlook and Cost Savings: CEO Mills reiterated that despite Q1 installation delays due to weather, Q2 results are expected to improve, with overall revenue projected to exceed $100 million in 2026 and adjusted EBITDA margins anticipated to reach above 20%, reflecting confidence in future growth.
- Financial Status and Risk Management: CFO Koshewa reported an operating loss of approximately $6.2 million and a net loss of $7.9 million in Q1, yet the company plans to use improved cash flow to deleverage, with current debt at $47.5 million and liquidity of about $13 million, indicating efforts towards financial flexibility.
- Disappointing Earnings: Creative Realities reported a Q1 GAAP EPS of -$0.74, missing expectations by $0.27, indicating pressure on profitability that could undermine investor confidence.
- Weak Revenue Growth: Despite a 68.0% year-over-year revenue increase to $16.35M, it fell short of expectations by $0.17M, reflecting market demand volatility and intensified competition.
- Adjusted EBITDA Loss: The adjusted EBITDA for Q1 was -$0.5M compared to a $0.5M profit in the prior year, highlighting challenges in cost control and profitability that may affect future investment decisions.
- Stable ARR: The annual recurring revenue (ARR) stood at approximately $20.1M at both the end of Q1 and December 31, 2025, indicating efforts for revenue stability, but the lack of growth potential may limit market performance.
- Earnings Release Schedule: Creative Realities will announce its financial results for the quarter ending March 31, 2026, before market open on May 15, 2026, providing critical financial data for investor analysis.
- Conference Call Details: A conference call is scheduled for the same day at 9:00 AM Eastern Time, where management will deliver prepared remarks and engage in a Q&A session, enhancing transparency and communication efficiency.
- Registration Requirement: Participants must register in advance to obtain the conference link, ensuring smooth and timely information dissemination, reflecting the company's commitment to investor relations.
- Digital Signage Solutions: Creative Realities offers a range of digital signage and AdTech solutions across various sectors, including retail and automotive, aimed at driving revenue growth by enhancing customer experiences and operational efficiency.
- Improved Financial Performance: Creative Realities reported a fourth-quarter loss of $1.965 million, or $0.21 per share, which is an improvement from last year's loss of $2.838 million and $0.27 per share, indicating progress in financial management.
- Significant Revenue Growth: The company's revenue surged to $23.921 million in the fourth quarter, up 117.2% from $11.012 million last year, reflecting successful market demand and sales strategies.
- Cost Synergies Achieved: CEO Rick Mills noted that Creative Realities has already realized $6.4 million in annualized cost synergies and expects to reach $10 million by year-end, driven by operational efficiencies and margin enhancement strategies.
- Optimistic Future Outlook: The company anticipates fiscal 2026 to be its best year ever, planning to leverage organizational resources for higher top-line growth and expanded margins, demonstrating management's confidence in future performance.
- Earnings Performance: Creative Realities reported a Q4 GAAP EPS of -$0.21, missing expectations by $0.18, indicating challenges in profitability that may affect investor confidence.
- Revenue Growth: The company achieved revenue of $23.92 million in Q4, representing a 117.3% year-over-year increase, exceeding expectations by $0.89 million, reflecting strong market demand and the positive impact of the CDM acquisition.
- Sales Composition: Of the $23.9 million in sales, approximately $13.6 million came from CDM, with hardware revenue rising to $6.6 million and service revenue increasing significantly from $7.2 million to $17.3 million, showcasing rapid expansion in service offerings.
- Stock Price Reaction: Following the earnings release, Creative Realities' shares rose by 3.5%, indicating a positive market reaction to the revenue growth despite the earnings miss.








