CREX

This article first appeared on GuruFocus. Revenue: $21.5 million in Q2 2026, up 65% year-over-year from $13 million, including $7.4 million from CDM. Gross Profit: $8.3 million in Q2 2026, compared to $5.0 million in the prior year period. Gross Margin: 38.6% in Q2 2026, versus 38.5% in Q2 2025. Hardware Revenue: $7.5 million in Q2 2026, versus $7.1 million in the prior year period. Service Revenue: $14 million in Q2 2026, more than doubled from $6 million in fiscal 2025. Hardware Gross Margin: 17.2% in Q2 2026, compared to 25.1% in the prior year period. Service Gross Margin: 50.1% in Q2 2026, versus 54.4% in Q2 2025. Net Loss: $4.6 million attributable to common shareholders for Q2 2026, compared to a net loss of $1.8 million in the prior year period. Adjusted EBITDA: $2 million in Q2 2026, versus $1.1 million in the prior year period. Annual Recurring Revenue (ARR): $20.5 million as of June 30, 2026, up from $20.1 million last quarter. Cash Position: Approximately $10.7 million as of June 30, 2026, versus $1.6 million at the start of 2026. Debt: $46.6 million at the end of Q2 2026, compared to $44 million at the beginning of the fiscal year. Warning! GuruFocus has detected 7 Warning Signs with CREX. Is CREX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 revenue of $21.5 million, up 65% year-over-year, with expectations for Q3 to be the largest quarter in company history. Adjusted EBITDA more than doubled to $2 million in Q2, up from $1.1 million in the prior year period. Successfully integrated CDM, realizing approximately 75% of the $10 million annualized synergy target. Removal of the going concern language from financial statements, reflecting improved liquidity and confidence in future cash flows. Strong customer wins and pipeline, including major deals with Albertsons, Tennessee Titans, AMC, and two new contracts in final stages. Net loss widened to $4.6 million in Q2 2026, compared to a $1.8 million loss in the prior year period. Hardware gross margins declined to 17.2% from 25.1% year-over-year due to product mix and inflationary pressures. Service gross margins decreased to 50.1% from 54.4% due to the expiration of higher-margin contracts. G&A expenses increased significantly to $9 million, driven by $3.8 million in CDM-related costs, impacting profitability. Debt increased to $46.6 million from $44 million at the start of the year, despite a recent equity raise. Q: Can you talk about what work has been done with Albertsons so far and what impact this large retail media network deal has on the sales pipeline?A: Rick Mills, CEO: We have converted about 3,000 screens across 220 to 250 locations, currently running about a million ads a day. We will take over the full deployment of players and technology over the next 30 days. This strengthens our position as one of the top three providers of retail media networks in North America. Having a customer like Albertsons, along with 7-Eleven, Macy's, and Best Buy using our ad tech, is expected to accelerate our retail media network pipeline. Q: Given the deals you've already won and the deployment pipeline, how does this change your visibility and predictability for 2027?A: Rick Mills, CEO: With seven, eight, or nine additional customers coming on that are doing deployments or SaaS on a consistent monthly basis, we believe we have entered a new stage where revenue entering 2027 will be much more predictable. We are incredibly bullish about 2027. We expect Q3 to be the largest quarter in the company's history, and Q4 to be significantly larger than Q3. Q: With the stronger second-half ramp in revenue, how do you see the split between services and hardware?A: Rick Mills, CEO: We see SaaS continuing to grow from a services perspective. There is some hardware in the second-half growth, but most of it is services related. Tamara Kashowa, CFO, clarified that Q3 will have a higher percentage of hardware revenues given the installs planned, particularly the Tennessee Titans, but Q4 will get back to the level seen in Q2 as the large media revenue base comes online. Q: How are you adjusting prices given inflation and supply chain issues? Will hardware margins recover, and what are the pricing trends on the service side?A: Rick Mills, CEO: There has been some downward pressure on service pricing due to competitors suffering in the marketplace, but we've been able to withstand that. Hardware margins will continue to be under pressure through the balance of this year, but we expect to expand them again in 2027. Q: One of your two pending negotiations is expected to be delivered by the end of September. Is that because you have screens in inventory?A: Rick Mills, CEO: That one is a conversion, not new installs. The customer already has hardware and players in place. We've developed scripts to remotely take over all of their locations, deploying our CMS and new content, which will be done by the end of September. We then expect to pick up new builds and new store openings throughout 2027. Q: Is there a longer-term target gross margin you are after?A: Rick Mills, CEO: Ideally, as we enter 2027, we'd like to get back out of the 30s% into the 40s%. Tamara Kashowa, CFO, added that as the SaaS base builds, we can get back closer to that 40%-plus target, but we'll still be short of that this year. The $4 million of seeded SaaS that turns on January 1 alone could push the composite margin up two points. Q: Any comments on Culver's and the lottery business?A: Rick Mills, CEO: Culver's continues to go well. We continue to deploy every month and are installing new drive-thrus. There is a three-year target to complete all of their restaurants. For the lottery, we are in significant discussions with seven or eight additional lotteries. North Carolina has talked about significant expansion in 2027, and we expect to have announcements closer to year-end about lottery expansion. Q: Regarding SG&A being at $9 million, where do you need to be revenue-wise to cover that, and are there plans to improve efficiency?A: Rick Mills, CEO: We expect the next two quarters to add significant ongoing revenue, getting us north of $25 million, closer to $30 million, if not exceeding $30 million on a quarterly basis. We've taken out $7.5 million in synergies that will show up as we enter 2027, and we have a couple million of additional costs to take out throughout 2027 as we migrate customers from third-party platforms to our own. Tamara Kashowa, CFO, noted that G&A includes a large non-cash amortization expense for leases in the mall network that fluctuates throughout the year. Q: Can you discuss the challenges facing a competitor and the early discussions you're having with customers in the pipeline?A: Rick Mills, CEO: We have two customers in contracting stages right now. One came from that competitor, the other was on a different platform. The pipeline was enhanced as that competitor ran into trouble. We expect to be closing multiple new logos on a quarterly basis going forward. Q: If you had margins in the low 40% range, would you need another $6 million in revenues to break even on an operating basis?A: Tamara Kashowa, CFO: Yes, that's reasonable to assume. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record Q2 revenue of $21.5 million, a 65% year-over-year increase, primarily driven by the integration of CDM and new installations across the legacy business. Completed the majority of CDM integration, realizing approximately 75% of the targeted $10 million in annualized synergies to date. Attributed service revenue growth to the inclusion of $7 million from CDM and positive momentum in legacy CRI installs, despite the expiration of some high-margin contracts. Reported hardware gross margin compression to 17.2% due to product mix, while service margins remained robust at 50.1% despite competitive pricing pressures. Strengthened the balance sheet through a $12 million equity offering, which management intends to use for deleveraging and funding future growth initiatives. Successfully alleviated the 'going concern' qualification on financial statements through a comprehensive financial model reviewed and approved by auditors. Shifted executive focus toward strategic growth areas as new C-suite leadership takes over daily operations to scale the enterprise customer base. Anticipates Q3 2026 will be the largest revenue quarter in company history, with Q4 expected to significantly exceed Q3 levels. Projects an automatic increase in ARR starting January 1, 2027, as approximately $4 million to $5 million in current backlog begins generating recurring revenue. Expects consolidated gross margins to return to the 40% range in 2027 as high-margin SaaS revenue becomes a larger portion of the total mix. Plans to migrate customers from third-party platforms to proprietary CMS platforms in 2027 to eliminate external costs and improve operational efficiency. Assumes continued upward trajectory in the retail media network pipeline, leveraging the Albertsons deployment as a primary reference for blue-chip brands. Albertsons Deployment: Currently running 3,000 screens across 250 locations, representing what management believes is the largest retail media network deployment in the U.S. this year. Tennessee Titans Partnership: On track to realize the majority of the $8.5 million digital signage and IPTV installation revenue within the 2026 calendar year. AMC Theatres Expansion: Moving to full deployment this month across 285 locations in partnership with National CineMedia using proprietary CMS and AdTech stacks. Contracting Stage Wins: Finalizing agreements with a 900-location national cellular organization and a 1,000-unit QSR, both involving conversions to CRI's platform. Management stated the Albertsons deal strengthens their position as a top-3 provider in North America and serves as a critical reference for other blue-chip brands. Confirmed the network is already successful, running approximately 1 million ads per day across the initial 3,000 converted screens. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Noted that challenges facing a specific competitor have enhanced CRI's pipeline, leading to at least one recent customer conversion from that competitor's platform. Management expects to continue closing multiple new 'logos' on a quarterly basis due to this market shift. Q3 is expected to have a higher percentage of hardware revenue due to specific large-scale installs like the Tennessee Titans stadium. Q4 is projected to shift back toward services and media revenue, mirroring the seasonal patterns seen in the CDM business in previous years. Acknowledged downward pricing pressure on services caused by struggling competitors losing market share, though CRI has largely withstood these pressures. Hardware margins are expected to remain under pressure through year-end, with relief and expansion anticipated in 2027. Explained that a pending 1,000-location win involves a software-only conversion using custom scripts to take over existing hardware remotely by the end of September. This strategy allows for rapid SaaS growth without the need for immediate large-scale hardware deployments.

Record Second Quarter Revenue and Improved Outlook as Company Continues Transformation LOUISVILLE, Ky., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX), a leading provider of digital signage, media and AdTech solutions, today announced its financial results for the fiscal second quarter ended June 30, 2026. Highlights: Second quarter revenue of $21.5 million versus $13.0 million in the prior-year period. Gross profit of $8.3 million for the three months ended June 30, 2026 versus $5.0 million in the second quarter of fiscal 2025. Adjusted EBITDA* of $2.0 million for the second quarter of 2026 versus $1.1 million in the prior-year period. Annualized recurring revenue (“ARR”)** of approximately $20.5 million at the end of the second quarter versus $20.1 million as of March 31, 2026. The Company successfully completed a public offering that raised net proceeds of approximately $12.2 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us and the exercise of the underwriter's overallotment option, for growth capital and to reduce debt. Creative Realities has been selected by a leading national grocery chain, with over 2,000 stores, to deploy one of the most sophisticated Retail Media Networks in North America. The initial rollout is anticipated to include over 800 locations this year, where CRI will provide the hardware, CMS and AdTech applications in a contract estimated at greater than $10 million in aggregate – generating upwards of $4 million in ARR by the end of 2027. “Second quarter results point to the progress we’ve made growing the business and consolidating our entire organization, including CDM, to transform the Company into a higher-performing enterprise,” said Rick Mills, Chief Executive Officer. “Compared to both last year and the first quarter of fiscal 2026, we saw revenue expansion, margin improvement, and increased Adjusted EBITDA. This reflects both the hard work of our staff as well as the strong, enduring demand for our services – which we believe will only accelerate going forward. We booked several new wins this quarter, including being selected as the digital signage provider for the Tennessee Titans' New Nissan Stadium. In addition, we have substantial opportunities in our pipeline and in the next 30 days expect to announce two additional new clients with greater than 1,000 locations each. Given these successes and recognition in the marketplace as the clear leader in providing CMS and AdTech applications at scale, our future is bright. Creative Realities remains on a path to record performance this year – positioning us well for fiscal 2027 and beyond.” *Adjusted EBITDA is a non-GAAP financial measure. A reconciliation is provided in the tables of this press release.**Annualized Recurring Revenue, or ARR, is a non-GAAP operating metric that is described below. 2026 Second Quarter Financial Results Sales were $21.5 million for the fiscal 2026 second quarter as compared to $13.0 million in the same period in fiscal 2025, with approximately $7.4 million in the current year quarter from the acquisition of Cineplex Digital Media (“CDM”). Hardware sales rose to $7.5 million, versus $7.1 million in the prior-year period, while service revenue more than doubled to $14.0 million from $6.0 million in fiscal 2025, reflecting the CDM transaction as well as deployment timing. As previously noted, some sales originally planned for the first quarter were pushed into the current period due to adverse weather conditions in the former. Consolidated gross profit was $8.3 million for the fiscal 2026 second quarter versus $5.0 million in the prior-year period, and consolidated gross margin was 38.6% versus 38.5% in the fiscal 2025 second quarter. Gross margin on hardware revenue was 17.1% in fiscal 2026 as compared to 25.1% in the prior-year period, while gross margin on services amounted to 50.0%, versus 54.4% in the fiscal 2025 second quarter. Hardware gross margin decreased year-over-year primarily due to mix, while service gross margin declined due to the expiration of certain customer contracts in 2025. The Company ended the 2026 second quarter with ARR of approximately $20.5 million. Sales and marketing expenses in the second quarter rose to $2.0 million, versus $1.2 million in the prior-year period, while general and administrative (G&A) expenses increased to $9.0 million versus $5.2 million in the second quarter of fiscal 2025, primarily a result of the inclusion of CDM. The Company posted an operating loss of approximately $2.7 million in the second quarter of fiscal 2026 compared to an operating loss of $1.3 million in the second quarter of fiscal 2025. CRI reported a net loss of $4.2 million and a net loss attributable to common stockholders of $4.3 million, or $(0.41) per diluted share, in the quarter ended June 30, 2026 versus a net loss of $1.8 million, or $(0.17) per diluted share, in the prior-year period. Adjusted EBITDA (defined later in this release) was $2.0 million in the second quarter of 2026 as compared to $1.1 million in the prior-year period. Balance SheetAs of June 30, 2026, the Company had cash on hand of approximately $10.7 million, versus $1.6 million at December 31, 2025. The Company had outstanding debt of approximately $46.6 million versus $44.0 million at the start of the fiscal year. Conference Call DetailsThe Company will host a conference call to review the results of the second quarter of 2026, and provide additional commentary about recent performance, today, August 13, at 9:00 am Eastern Time, which will include prepared remarks and materials from management, followed by a live Q&A. The call will be hosted by Rick Mills, Chief Executive Officer, Tamra Koshewa, Chief Financial Officer, and George Sautter, Chief Strategy Officer. Prior to the call, participants should register at https://bit.ly/CREXearnings2Q2026. Once registered, participants can use the weblink provided in the registration email to participate in the live webcast. An archived edition of the earnings conference call will be posted on the Company’s website after the call and will remain available for one year. Use of Non-GAAP MeasuresThe Company prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding “EBITDA” and “Adjusted EBITDA.” The Company defines “EBITDA” as earnings before interest, income taxes, depreciation and amortization of intangibles. The Company defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, fair value adjustments and both cash and non-cash non-recurring gains and charges. EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, EBITDA and Adjusted EBITDA are used internally in planning and evaluating the Company’s operating performance. Accordingly, management believes that disclosure of these metrics offers investors, bankers and other stakeholders an additional view of the Company’s operations that, when coupled with the GAAP results, provides a more complete understanding of the Company’s financial results. EBITDA and Adjusted EBITDA should not be considered as an alternative to net income/(loss) or to net cash used in operating activities as measures of operating results or liquidity. Our calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures used by other companies, and the measures exclude financial information that some may consider important in evaluating the Company’s performance. A reconciliation of GAAP net income/(loss) to EBITDA and Adjusted EBITDA is included in the accompanying financial schedules. For further information, please refer to the Company’s filings available online at www.sec.gov, including its Annual Report on Form 10-K for 2025 filed with the Securities and Exchange Commission. Annualized recurring revenue, or “ARR,” represents the annualized revenue run rate of our subscription (1) software-as-a-service (“SaaS”) contracts, (2) maintenance and support of perpetual license contracts, and (3) content management service contracts at the end of the final calendar month included in a reporting period, assuming these contracts are renewed on their existing terms for customers that are under subscription contracts with us. This gives us an indication of the revenue that can be earned in the following 12-month period from our existing client base, assuming no cancellations or price changes occur during that period. We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription customers and to maintain and expand our relationship with existing subscription customers. ARR should be viewed independently of revenue and deferred revenue as ARR is a performance metric and is not intended to be combined with any of these items. For further information, please refer to the Company’s filings available online at www.sec.gov, including its Annual Report on Form 10-K for 2025 filed with the Securities and Exchange Commission. About Creative Realities, Inc.Creative Realities designs, develops and deploys digital signage-based experiences for enterprise-level networks utilizing its Clarity™, ReflectView™, and iShowroom™ Content Management System (CMS) platforms. The Company is actively providing recurring SaaS and support services across diverse vertical markets, including, but not limited to, retail, automotive, digital out-of-home (DOOH) advertising networks, convenience stores, foodservice/QSR, gaming, theater, and stadium venues. In addition, the Company assists clients in utilizing place-based digital media to achieve business objectives such as increased revenue, enhanced customer experiences, and improved productivity. This includes the design, deployment, and day-to-day management of retail media networks to monetize on-premise foot traffic utilizing its AdLogic™ and CPM+™ programmatic advertising platforms. Cautionary Note on Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and includes, among other things, discussions of our business strategies, product releases, future operations and capital resources. Words such as "estimates," "projects," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance, conditions or results. They are based on the opinions, estimates and beliefs of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors, many of which are outside of our control, that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some of these risks are discussed in the “Risk Factors” section contained in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and in any subsequent filings with the U.S. Securities and Exchange Commission. Important factors, among others, that may affect actual results or outcomes include: our ability to integrate the acquired business of Cineplex Digital Media Inc. (“CDM”) into our own, maintain or improve the financial performance of CDM’s business and realize anticipated synergies, our strategy for customer retention, growth, product development, market position, financial results and reserves, our ability to execute on our business plan, our ability to retain key personnel, our ability to remain listed on the Nasdaq Capital Market, our ability to realize the revenues included in our future guidance and backlog reports, our ability to satisfy our upcoming debt obligations and other liabilities, the ability of the Company to continue as a going concern, potential litigation, supply chain shortages, and general economic and market conditions impacting demand for our products and services. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances after the date hereof. All forward looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Contacts Media:Idea [email protected] Investor Relations:Chris [email protected] [email protected]://investors.cri.com/ RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA(in thousands, unaudited) Creative Realities, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding “EBITDA” and “Adjusted EBITDA.” CRI defines “EBITDA” as earnings before interest, income taxes, depreciation and amortization of intangibles. CRI defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, fair value adjustments and both cash and non-cash non-recurring gains and charges. EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered as a substitute for net income (loss), operating income (loss) or any other performance measure derived in accordance with United States generally accepted accounting principles (“GAAP”) or as an alternative to net cash provided by operating activities as a measure of CRI’s profitability or liquidity. CRI’s management believes EBITDA and Adjusted EBITDA are useful financial metrics because they allow external users of CRI’s financial statements, such as industry analysts, investors, lenders and rating agencies, to more effectively evaluate CRI’s operating performance, compare the results of its operations from period to period and against CRI’s peers and because it highlights trends in CRI’s business that may not otherwise be apparent when relying solely on GAAP measures. CRI also presents EBITDA and Adjusted EBITDA because it believes EBITDA and Adjusted EBITDA are important supplemental measures of its performance that are frequently used by others in evaluating companies in its industry. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income (loss) and may vary among companies, the EBITDA and Adjusted EBITDA CRI presents may not be comparable to similarly titled measures of other companies. The following table presents a reconciliation of EBITDA and Adjusted EBITDA from net (loss) income, CRI’s most directly comparable financial measure calculated and presented in accordance with GAAP.

LOUISVILLE, Ky., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (NASDAQ: CREX), a leading provider of digital signage and media solutions, announced today that it will release its financial results for the three months ended June 30, 2026 before the market open on Thursday, August 13, 2026. A conference call to review the results is scheduled for Thursday, August 13, 2026, at 9:00 am Eastern Time, which will include prepared remarks and materials from management followed by a live Q&A. The call will be hosted by Rick Mills, Chairman and Chief Executive Officer, Tamra Koshewa, Chief Financial Officer and George Sautter, Chief Strategy Officer. Prior to the call, participants should register at https://bit.ly/CREXearnings2Q2026. Once registered, participants can use the weblink provided in the registration email to participate in the live webcast. An archived edition of the earnings conference call will be posted on our website and will remain available for one year. About Creative Realities, Inc.Creative Realities designs, develops and deploys digital signage-based experiences for enterprise-level networks utilizing its Clarity™, ReflectView™, and iShowroom™ Content Management System (CMS) platforms. The Company is actively providing recurring SaaS and support services across diverse vertical markets, including but not limited to retail, automotive, digital-out-of-home (DOOH) advertising networks, convenience stores, foodservice/QSR, gaming, theater, and stadium venues. In addition, the Company assists clients in utilizing place-based digital media to achieve business objectives such as increased revenue, enhanced customer experiences, and improved productivity. This includes the design, deployment, and day to day management of Retail Media Networks to monetize on-premise foot traffic utilizing its AdLogic™ and AdLogic CPM+™ programmatic advertising platforms. Cautionary Note on Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and includes, among other things, discussions of our business strategies, product releases, future operations and capital resources. Words such as "estimates," "projects," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance, conditions or results. They are based on the opinions, estimates and beliefs of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors, many of which are outside of our control, that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some of these risks are discussed in the “Risk Factors” section contained in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s subsequent filings with the U.S. Securities and Exchange Commission. Important factors, among others, that may affect actual results or outcomes include: our ability to integrate the acquired business operations of Cineplex Digital Media Inc. (“CDM”) into our own, maintain or improve the financial performance of CDM’s business and realize anticipated synergies, our strategy for customer retention, growth, product development, market position, financial results and reserves, our ability to execute on our business plan, our ability to retain key personnel, our ability to remain listed on the Nasdaq Capital Market, our ability to realize the revenues included in our future guidance and backlog reports, our ability to satisfy our upcoming debt obligations and other liabilities, the ability of the Company to continue as a going concern, potential litigation, supply chain shortages, and general economic and market conditions impacting demand for our products and services. Readers should not place undue reliance upon any forward-looking statements. We assume no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Contacts: Media:Idea [email protected] Investor Relations:Chris Witty, Darrow [email protected] [email protected]://investors.cri.com

This article first appeared on GuruFocus. Revenue: $16.3 million in Q1 2026, up from $9.7 million in Q1 2025. Gross Profit: $5.6 million in Q1 2026, compared to $4.5 million in Q1 2025. Gross Margin: 34.2% in Q1 2026, down from 45.7% in Q1 2025. Net Loss: $7.9 million for Q1 2026, compared to net income of $3.4 million in Q1 2025. Adjusted EBITDA: Negative $0.5 million in Q1 2026, compared to positive $0.5 million in Q1 2025. Annual Recurring Revenue (ARR): $20.1 million as of March 31, 2026, with an additional $4 million contracted to start at year-end. Cash on Hand: $2.3 million as of March 31, 2026. Debt: $47.5 million as of March 31, 2026. Sales and Marketing Expenses: $2.9 million in Q1 2026, up from $1.2 million in Q1 2025. General and Administrative Expenses: $8.9 million in Q1 2026, up from $3.9 million in Q1 2025. Hardware Revenue: $4.6 million in Q1 2026, up from $3.4 million in Q1 2025. Service Revenue: $11.8 million in Q1 2026, up from $6.3 million in Q1 2025. Warning! GuruFocus has detected 8 Warning Signs with CREX. Is CREX fairly valued? Test your thesis with our free DCF calculator. Release Date: May 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Creative Realities Inc (NASDAQ:CREX) reported a significant increase in revenue for Q1 2026, reaching $16.3 million compared to $9.7 million in the prior year period. The company secured a major contract as the official digital signage provider for the Tennessee Titans and the new Nissan Stadium, valued at $8.5 million. Creative Realities Inc (NASDAQ:CREX) announced a partnership with Dairy Queen in North America, which is expected to expand annual revenue by $1 million to $2 million. The company is in the final stages of contracting for a significant retail media network deployment, which could result in substantial sales of hardware, SaaS, and AdTech revenue. Creative Realities Inc (NASDAQ:CREX) remains on track to achieve premerger cost savings of at least $10 million on an annualized basis by the end of 2026. The company's Q1 2026 revenue was negatively impacted by approximately $4 million due to extreme cold weather in the Southeast US, delaying new construction projects. Creative Realities Inc (NASDAQ:CREX) reported a net loss of $7.9 million for the three months ended March 31, 2026, compared to net income of $3.4 million in the prior year period. Adjusted EBITDA was negative $0.5 million for Q1 2026, a decline from a positive $0.5 million in the previous year. The company's gross margin decreased to 34.2% from 45.7% in the prior year period, affected by a onetime event involving the termination of a CDM legacy subcontractor. Sales and marketing expenses rose significantly to $2.9 million in Q1 2026 from $1.2 million in the prior year, contributing to the operating loss. Q: Can you discuss the opportunity in football stadiums following your win with the Tennessee Titans? A: Richard Mills, CEO: We are pleased to have landed the Tennessee Titans stadium, marking our second NFL stadium project. Our first was with the Dallas Cowboys, where we manage 3,300 screens. Cracking the NFL is significant, and we are pursuing multiple other NFL teams for stadium upgrades or menu board operations. Our IPTV group is on track to double this year. Q: Regarding the Retail Media Network (RMN) opportunity, is this a new customer, and when do you expect the project to start? A: Richard Mills, CEO: The process is no longer competitive; we have received a verbal award. We anticipate deploying in June or shipping products in June and deploying in July. We took over the project from a competitor and successfully completed a total store takeover recently. Q: What are the potential costs and benefits of the RMN deal for CRI? A: Richard Mills, CEO: The referenceability of this project is significant. If successful, it will be a top-tier retail media network with full closed-loop attribution at the cash register, a first in the US. This positions CRI as a leader in retail media networks. Q: Can you size the Total Contract Value (TCV) and recurring revenue opportunity for the RMN project? A: Richard Mills, CEO: This year, we expect to deploy 10,000 screens and 20,000 data-gathering devices, expanding to 60,000 devices by mid-2027. The ongoing SaaS revenue is expected to be in the $6 million to $8 million range when fully deployed. Q: What is the current revenue contribution from the Dairy Queen contract, and how does it compare to previous contributions? A: Richard Mills, CEO: Previously, the revenue was about $2 million to $2.5 million annually. With the expansion to include Drive-Thru, we expect it to grow to $4 million to $5 million, driven by additional SaaS and hardware installations. Q: What percentage of QSRs in North America have digital drive-thrus, and what is the growth potential? A: Richard Mills, CEO: There are approximately 210,000 to 220,000 QSRs with drive-thrus in the US, with less than 40% penetration of digital drive-thrus. McDonald's and Taco Bell, who have fully rolled out digital, make up the largest component of the installed base. Q: How does CRI engage with franchisees who did not initially opt into digital programs? A: Richard Mills, CEO: We work jointly with the franchisor to engage franchisees who have not installed digital solutions. Installing digital improves throughput and profitability, benefiting both franchisees and franchisors. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Company on Path for Growth Acceleration and Record Year of Performance LOUISVILLE, Ky., May 15, 2026 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX), a leading provider of digital signage, media and AdTech solutions, today announced its financial results for the fiscal first quarter ended March 31, 2026. Highlights: First quarter revenue of $16.3 million versus $9.7 million in the prior-year period. Gross profit of $5.6 million for the three months ended March 31, 2026 versus $4.5 million in the first quarter of fiscal 2025. Adjusted EBITDA* of $(0.5) million for the first quarter of 2026 versus $0.5 million in the prior-year period. Annualized recurring revenue (“ARR”)** of approximately $20.1 million at both the end of the first quarter and as of December 31, 2025. “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, Chief Executive Officer. “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.” *Adjusted EBITDA is a non-GAAP financial measure. A reconciliation is provided in the tables of this press release. **Annualized Recurring Revenue is a non-GAAP operating metric 2026 First Quarter Financial Results Sales were $16.3 million for the fiscal 2026 first quarter as compared to $9.7 million in the same period in fiscal 2025, with approximately $7.9 million in the current year quarter from the acquisition of Cineplex Digital Media (“CDM”). Hardware revenue rose to $4.6 million, versus $3.4 million in the prior-year period, while service revenue increased to $11.8 million from $6.3 million in fiscal 2025, largely reflecting the impact of the CDM transaction as well as deployment timing. Total sales declined sequentially from the fiscal 2025 fourth quarter due to normal seasonal factors along with installation delays tied to extreme weather conditions impacting parts of North America. Consolidated gross profit was $5.6 million for the fiscal 2026 first quarter versus $4.5 million in the prior-year period, and consolidated gross margin was 34.2% versus 45.7% in the fiscal 2025 first quarter, reflecting a higher percentage of lower-margin hardware revenue compared to the prior-year period. Gross margin on hardware revenue was 14.0% in fiscal 2026 as compared to 32.1% in the prior-year period, while gross margin on services amounted to 42.0%, versus 53.0% in the fiscal 2025 first quarter. Hardware gross margin decreased year-over-year primarily due to an unusually high mix of QSR deployments during the period and significant one-time costs ($0.5 million) associated with transitioning away from an outsourced installer of a large CDM customer. Service gross margin declined year-over-year largely due to the expiration of certain customer contracts in 2025. The Company ended the 2026 first quarter with ARR of approximately $20.1 million. Sales and marketing expenses in the first quarter rose to $2.9 million, versus $1.2 million in the prior-year period, while general and administrative (G&A) expenses increased to $8.9 million versus $3.9 million in the first quarter of fiscal 2025, primarily a result of the inclusion of CDM. The Company posted an operating loss of approximately $6.2 million in the first quarter of fiscal 2026 compared to an operating loss of $0.7 million in the first quarter of fiscal 2025. CRI reported a net loss of $7.5 million and a net loss attributable to common stockholders of $7.9 million, or $(0.74) per diluted share, in the quarter ended March 31, 2026 versus net income of $3.4 million, or $0.32 per diluted share, in the prior-year period. The fiscal 2025 first quarter included a $4.8 million gain on the settlement of a contingent liability. Adjusted EBITDA (defined later in this release) was $(0.5) million in the first quarter of 2026 as compared to $0.5 million in the prior-year period. Balance Sheet As of March 31, 2026, the Company had cash on hand of approximately $1.8 million, versus $1.6 million at December 31, 2025. The Company had outstanding debt of approximately $47.5 million versus $44.0 million at the start of the fiscal year. Conference Call Details The Company will host a conference call to review the results of the first quarter of 2026, and provide additional commentary about recent performance, on May 15 at 9:00 am Eastern Time, which will include prepared remarks and materials from management, followed by a live Q&A. The call will be hosted by Rick Mills, Chief Executive Officer, Tamra Koshewa, Chief Financial Officer, and George Sautter, Chief Strategy Officer. Prior to the call, participants should register at https://bit.ly/CREXearnings1Q2026. Once registered, participants can use the weblink provided in the registration email to participate in the live webcast. An archived edition of the earnings conference call will also be posted on the Company’s website later today and will remain available for one year. Use of Non-GAAP Measures The Company prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding “EBITDA” and “Adjusted EBITDA.” The Company defines “EBITDA” as earnings before interest, income taxes, depreciation and amortization of intangibles. The Company defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, fair value adjustments and both cash and non-cash non-recurring gains and charges. EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, EBITDA and Adjusted EBITDA are used internally in planning and evaluating the Company’s operating performance. Accordingly, management believes that disclosure of these metrics offers investors, bankers and other stakeholders an additional view of the Company’s operations that, when coupled with the GAAP results, provides a more complete understanding of the Company’s financial results. EBITDA and Adjusted EBITDA should not be considered as an alternative to net income/(loss) or to net cash used in operating activities as measures of operating results or liquidity. Our calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures used by other companies, and the measures exclude financial information that some may consider important in evaluating the Company’s performance. A reconciliation of GAAP net income/(loss) to EBITDA and Adjusted EBITDA is included in the accompanying financial schedules. For further information, please refer to the Company’s filings available online at www.sec.gov, including its Annual Report on Form 10-K for 2025 filed with the Securities and Exchange Commission. Annualized recurring revenue, or “ARR,” represents the annualized revenue run rate of our subscription (1) software-as-a-service (“SaaS”) contracts, (2) maintenance and support of perpetual license contracts, and (3) content management service contracts at the end of the final calendar month included in a reporting period, assuming these contracts are renewed on their existing terms for customers that are under subscription contracts with us. This gives us an indication of the revenue that can be earned in the following 12-month period from our existing client base, assuming no cancellations or price changes occur during that period. We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription customers and to maintain and expand our relationship with existing subscription customers. ARR should be viewed independently of revenue and deferred revenue as ARR is a performance metric and is not intended to be combined with any of these items. For further information, please refer to the Company’s filings available online at www.sec.gov, including its Annual Report on Form 10-K for 2025 filed with the Securities and Exchange Commission. About Creative Realities, Inc. Creative Realities designs, develops and deploys digital signage-based experiences for enterprise-level networks utilizing its Clarity™, ReflectView™, and iShowroom™ Content Management System (CMS) platforms. The Company is actively providing recurring SaaS and support services across diverse vertical markets, including, but not limited to, retail, automotive, digital out-of-home (DOOH) advertising networks, convenience stores, foodservice/QSR, gaming, theater, and stadium venues. In addition, the Company assists clients in utilizing place-based digital media to achieve business objectives such as increased revenue, enhanced customer experiences, and improved productivity. This includes the design, deployment, and day-to-day management of retail media networks to monetize on-premise foot traffic utilizing its AdLogic™ and CPM+™ programmatic advertising platforms. Cautionary Note on Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and includes, among other things, discussions of our business strategies, product releases, future operations and capital resources. Words such as "estimates," "projects," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance, conditions or results. They are based on the opinions, estimates and beliefs of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors, many of which are outside of our control, that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some of these risks are discussed in the “Risk Factors” section contained in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s subsequent filings with the U.S. Securities and Exchange Commission. Important factors, among others, that may affect actual results or outcomes include: our ability to integrate the recently acquired business of Cineplex Digital Media Inc. (“CDM”) into our own, maintain or improve the financial performance of CDM’s business and realize anticipated synergies, our strategy for customer retention, growth, product development, market position, financial results and reserves, our ability to execute on our business plan, our ability to retain key personnel, our ability to remain listed on the Nasdaq Capital Market, our ability to realize the revenues included in our future guidance and backlog reports, our ability to satisfy our upcoming debt obligations and other liabilities, the ability of the Company to continue as a going concern, potential litigation, supply chain shortages, and general economic and market conditions impacting demand for our products and services. Readers should not place undue reliance upon any forward-looking statements. We assume no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Contacts Media: Idea Grove [email protected] Investor Relations: Chris Witty [email protected] 646-438-9385 [email protected] https://investors.cri.com/ RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (in thousands, unaudited) Creative Realities, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding “EBITDA” and “Adjusted EBITDA.” CRI defines “EBITDA” as earnings before interest, income taxes, depreciation and amortization of intangibles. CRI defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, fair value adjustments and both cash and non-cash non-recurring gains and charges. EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered as a substitute for net income (loss), operating income (loss) or any other performance measure derived in accordance with United States generally accepted accounting principles (“GAAP”) or as an alternative to net cash provided by operating activities as a measure of CRI’s profitability or liquidity. CRI’s management believes EBITDA and Adjusted EBITDA are useful financial metrics because they allow external users of CRI’s financial statements, such as industry analysts, investors, lenders and rating agencies, to more effectively evaluate CRI’s operating performance, compare the results of its operations from period to period and against CRI’s peers and because it highlights trends in CRI’s business that may not otherwise be apparent when relying solely on GAAP measures. CRI also presents EBITDA and Adjusted EBITDA because it believes EBITDA and Adjusted EBITDA are important supplemental measures of its performance that are frequently used by others in evaluating companies in its industry. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income (loss) and may vary among companies, the EBITDA and Adjusted EBITDA CRI presents may not be comparable to similarly titled measures of other companies. The following table presents a reconciliation of EBITDA and Adjusted EBITDA from net (loss) income, CRI’s most directly comparable financial measure calculated and presented in accordance with GAAP.

LOUISVILLE, Ky., May 12, 2026 (GLOBE NEWSWIRE) -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (NASDAQ: CREX), a leading provider of digital signage, media and AdTech solutions, announced today that it will release its financial results for the three months ended March 31, 2026 before the market opens on Friday, May 15, 2026. A conference call to review the results is scheduled for Friday, May 15, 2026, at 9:00 am Eastern Time, which will include prepared remarks and materials from management followed by a live Q&A. The call will be hosted by Rick Mills, Chief Executive Officer, George Sautter, Chief Strategy Officer, and Tamra Koshewa, Chief Financial Officer. Prior to the call, participants should register at https://bit.ly/CREXearnings1Q2026. Once registered, participants can use the weblink provided in the registration email to participate in the live webcast. An archived edition of the earnings conference call will be posted on our website and will remain available for one year. About Creative Realities, Inc. Creative Realities designs, develops and deploys digital signage-based experiences for enterprise-level networks utilizing its Clarity™, ReflectView™, and iShowroom™ Content Management System (CMS) platforms. The Company is actively providing recurring SaaS and support services across diverse vertical markets, including but not limited to retail, automotive, digital-out-of-home (DOOH) advertising networks, convenience stores, foodservice/QSR, gaming, theater, and stadium venues. In addition, the Company assists clients in utilizing place-based digital media to achieve business objectives such as increased revenue, enhanced customer experiences, and improved productivity. This includes the design, deployment, and day to day management of Retail Media Networks to monetize on-premise foot traffic utilizing its AdLogic™ and AdLogic CPM+™ programmatic advertising platforms. Cautionary Note on Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and includes, among other things, discussions of our business strategies, product releases, future operations and capital resources. Words such as "estimates," "projects," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance, conditions or results. They are based on the opinions, estimates and beliefs of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors, many of which are outside of our control, that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some of these risks are discussed in the “Risk Factors” section contained in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s subsequent filings with the U.S. Securities and Exchange Commission. Important factors, among others, that may affect actual results or outcomes include: our ability to integrate the recently acquired business of Cineplex Digital Media Inc. (“CDM”) into our own, maintain or improve the financial performance of CDM’s business and realize anticipated synergies, our strategy for customer retention, growth, product development, market position, financial results and reserves, our ability to execute on our business plan, our ability to retain key personnel, our ability to remain listed on the Nasdaq Capital Market, our ability to realize the revenues included in our future guidance and backlog reports, our ability to satisfy our upcoming debt obligations and other liabilities, the ability of the Company to continue as a going concern, potential litigation, supply chain shortages, and general economic and market conditions impacting demand for our products and services. Readers should not place undue reliance upon any forward-looking statements. We assume no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Contacts Media: Idea Grove [email protected] Investor Relations: Chris Witty, Darrow Associates 646-438-9385 [email protected] [email protected] https://investors.cri.com

Image source: The Motley Fool. Wednesday, August 13, 2025 at 9 a.m. ET Chairman and Chief Executive Officer — Richard C. Mills Chief Strategy Officer and Head of Corporate Development — George Sautter Interim Chief Financial Officer — David Ryan Mudd Operator: Good morning. At this time, I would like to welcome everyone to Creative Realitie's 2025 Second Quarter Earnings Conference Call. This call will be recorded, and a copy will be available on the company's website at cri.com following its completion. Creative Realities has prepared remarks summarizing the interim results of the quarter, along with additional industry and company updates. Joining the call today is Rick Mills, Chairman and Chief Executive Officer; George Sautter, Chief Strategy Officer and Head of Corporate Development; and Ryan Mudd, Interim Chief Financial Officer. Mr. Mudd, you may proceed. David Ryan Mudd: Thank you, and good morning, everyone. Welcome to our earnings call for the second quarter ended June 30, 2025. I would like to take this opportunity to remind you that remarks today will include forward-looking statements. The words anticipated, will, believes, expects, intends, plans, estimates, projects, should, may, propose and similar expressions or the negative version of such words or expressions as they relate to us or our management are intended to identify forward-looking statements. Actual results may differ materially from those contemplated by such statements. Factors that could cause these results to differ materially are set forth in our Form 10-K and other filings with the SEC. Any forward-looking statements we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our public filings and in our earnings release that was issued this morning. We believe the use of certain non-GAAP measures such as adjusted EBITDA and several other important KPIs represent meaningful ways to track our performance. It is now my pleasure to introduce Rick Mills, CEO of Creative Realities. Richard C. Mills: Thanks, Ryan. Good morning, everybody. Thank you for joining the call. I'll start by giving some details of our Q2 financials. We posted revenue of $13 million in the second quarter, up 34% versus Q1 and roughly flat year-over-year. While gross profit was $5 million, in 2025 Q2 versus $6.8 million in Q2 2024. Q2 2024 gross margin of 6.8% was inflated due to the inclusion of $815,000 in media sales revenue as we exited the media sales business. Our consolidated gross margin was 39% versus 52% in the prior year period, with the lower profitability largely due to changes in revenue mix of more hardware versus services. This was driven by a few customers who chose to purchase hardware in advance due to the uncertainty of tariffs. We expect margins to rise in the third and fourth quarters as we are installing those products previously purchased in bulk. As of June 30, 2025, we had an annual recurring revenue run rate, or ARR, of $18.1 million versus $17.3 million at the end of the first quarter. As we have previously discussed, new deployments have a follow-on effect of growing SaaS-based ARR. Adjusted EBITDA rose to $1.2 million for the second quarter of 2025 from $0.5 million in Q1 and was down slightly versus last year's $1.5 million. We anticipate this will improve further going forward as revenue increases and we continue to manage overhead expenses. In fact, we expect adjusted EBITDA as a percent of revenue rising back to 15% by year-end. Notably, we were able to reduce approximately $3.1 million in debt this quarter due to operating cash generated during the period. While some short-term working capital issues impacted Q1, as previously discussed, we're pleased to now be able to once again focus on strategically using cash flow to pay down debt and delever the company whenever possible. Let me take this opportunity to address a question that we sometimes get. We have a lot of credit with a sweep account. At the end of Q2, the balance on that account was $16.1 million, down $3.1 million from the end of Q1 due to the cash generation that I just outlined. At the end of Q2, we had $600,000 in cash on hand with additional availability of $6 million. We do not keep excess cash on hand and the cash we have on hand at any point is not a proxy for our true working capital capacity. As stated last quarter, we have a very robust pipeline of opportunities on which we're bidding, reflecting strong demand for our technology as well as generally good economic conditions within our customer base. During Q2, we announced a significant engagement with a well-known upscale quick service restaurant chain with over 1,000 locations across more than 25 states. We're currently implementing a pilot program in select locations during Q3 and Q4 and expect a national rollout to begin immediately following the completion of the pilot. This is another example of our ability to digitally transform an establishment menu boards inside and out, shifting from static displays to dynamic digital engagement while increasing basket size and profitability and increase throughput in the drive-thru operations. We are delivering a 100% turnkey solution, all powered by our proprietary CMS platform, Clarity, along with consulting, content strategy, hardware provisioning, deployment support and ongoing day 2 service. I'll keep everyone updated on the progress of this important implementation, which will result in a more agile connected restaurant environment that meets guest expectations and provides flexibility for enhanced applications in the future. Our AdLogic CPM+ platform continues to impress customers due to its power and flexibility, gives clients the tools to deliver targeted campaigns at significantly reduced cost, combining programming capabilities with a self-serve interface that simplifies campaign execution, enhances targeting precision and eliminates unnecessary intermediation fees. This past quarter, we saw increased traction and interest from existing and new customers. We currently have three customers who are in the testing evaluation phase of the platform, which, if chosen, would power their in-store retail media networks. We have been in the Retail Media Network business for some time and are currently delivering greater than 25 million ads daily. We expect in-store Retail Media Network to grow our revenue and recurring SaaS in 2026 and beyond. The bottom line is that we remain on track for another year of solid performance. As stated last quarter we expect revenue to accelerate in the second half backlog to grow and margins to improve, putting us in position for tremendous results in 2026. I'll turn it back over to Ryan to share some additional comments on our financials. David Ryan Mudd: Thank you, Rick. An overview of our financial results for the second quarter of 2025 was provided in our earnings release and Form 10-Q, which included the condensed consolidated balance sheet as of June 30, 2025, the statements of operations for the 3 and 6 months ended June 30, 2025, the statement of cash flows for the 6 months ended June 30, 2025, and a detailed reconciliation of net income to EBITDA and adjusted EBITDA for the quarter ended June 30, 2025, as well as the preceding 4 quarters. While Rick reviewed our operational results in detail, let me provide a couple of points of context related to our balance sheet. As of June 30, 2025, the company had cash on hand of approximately $600,000 versus $1 million at the start of 2025. As previously mentioned, our consolidated balance sheet reflects minimal cash on hand as the company has set up a sweep instrument to apply cash against the revolving debt facility to further manage our interest expense. Our gross and net debt stood at approximately $20.1 million and $19.5 million, respectively, at the end of the second quarter as compared to $13 million and $12 million, respectively, at the start of 2025. Our debt level was reduced by approximately $3.1 million during the period, as Rick previously discussed, due to operating cash flow as we continue to delever the company whenever possible to strengthen the balance sheet. At the end of the second quarter, our leverage on a gross and net basis was 4.53 and 4.4, respectively, versus 2.59 and 2.39 at the beginning of fiscal 2025. The increase in the leverage was caused by the settlement of the contingent liability in Q1 of 2025. We see this as continuing to improve going forward and remain dedicated to managing our debt as we evaluate and migrate to an optimized capital structure in support of our growth. I will now turn it back to Rick for additional comments on our results and customer activities. Richard C. Mills: Thanks, Ryan. In closing here, our engagement with prospects is at an all-time high. We are pleased with the pipeline and the sheer number of discussions going on with potential prospects. We continue to focus on our primary four vertical markets: QSR, C-store, retail, sports and entertainment. The demand for improved drive-thru performance in the QSR vertical continues to accelerate. We have introduced our latest drive-thru hardware and software solution, which features a 1-by-3 55-inch digital display at a market price of $14,999 fully installed. This represents a new price point in the drive-thru industry and a price reduction of 20% below most of our competitors. This will allow the smaller mid-market regional QSRs to adopt and implement digital drive-thrus. In the C-store vertical, our long-time customer, 7-Eleven, stated in a news release on August 6, -- it plans to open 1,100 new restaurants in its U.S. stores by 2030. The aggressive investment in restaurants is part of an updated transformation plan released by the retailers' Tokyo-based parent company, Seven & i Holdings. In addition to adding more than 1,000 restaurants over the next five years, 7-Eleven said it intends to open a total of 1,300 new larger format stores during that time frame, all of them with an enhanced focus on food service. Assuming this occurs and 7-Eleven continues as a customer, we would expect this to add an additional 17,000-plus displays, generating $30 million in revenue and an additional $5 million annually in SaaS over a 5-year period. One additional note on the C-store vertical, we did deploy our first C-store in Mexico. This is a proof of concept for Circle K Mexico. More to come on that opportunity in 2026. As the transition to digital continues to move forward in our key verticals, the adoption and conversion opportunities continue to grow in scope and complexity. This leads to increasingly long sales cycles and requires patience and persistence. As CRI's market share and influence continues to grow, we expect to be the provider of choice. Other areas of continued growth are coming from our live venue IPTV team. Along with growing our existing live venue customers through seasonal projects, highlights of Q2 would include the conversion of a large D1 college campus stretching across six athletic venues, the expansion of club level enhancements for two different NHL arenas and one NBA arena. And finally, the successful IPTV deployment to our first soccer stadium in Mexico. Menu board mobile phone to screen language translation for an NFL stadium that will be a host venue for several World Cup matches. And by the way, it's the first stadium to deploy this type of fan experience in the U.S. And finally, the award of two additional Minor League Baseball stadiums. With more than 12 net new logos or customers in the first half of the year, we expect to continue to secure our portion of the live venue market by providing IPTV solutions, digital signage and content strategies throughout the United States as well as we will build on the recent wins in Canada and Mexico. One additional network we have previously announced is the Digi Point Media Network. This is a retail media network on ICE boxes across groceries and C-stores. The anticipated deployment, which we originally estimated to begin in Q3 is behind schedule. We now expect this network to begin deployment in Q4 of this year. This is expected to be approximately 2,000 sites and generate in excess of $4 million in hardware and installation revenue with additional SaaS revenue from our CMS and ad tech software solutions. One quick update on our SOC Type 2 certification. We achieved SOC 2 Type 1 compliance in Q1 and have now achieved SOC 2 Type 2 certification. This compliance is a valuable credential that demonstrates the trustworthiness and credibility of our products to enterprise customer. This is yet another indicator of our acceleration in the marketplace. We remained well positioned in the digital transformation landscape and look forward to delivering further improved operating results. With that, we'll now move to the Q&A portion of the call. Please go ahead, operator. Operator: [Operator Instructions] And my first question today will be coming from the line of Jason Kreyer of Craig-Hallum. Jason Michael Kreyer: Great. So Rick, for the last few quarters, we've talked about this growing pipeline and a bunch of volume kind of getting jammed up at the one yard line. It was great to see last quarter, you get that QSR win. Just curious if you can give general updates on the progression of those deals through the pipeline and any visibility in any unlock? Richard C. Mills: Jason, great question. Everything continues to move forward. They move forward, it seems like an inch at a time. The quality of our top 10 is really spectacular. But we just simply do not have anything that we are comfortable announcing at this time, but we do expect to make some announcements in this calendar year. Jason Michael Kreyer: That's good to hear. So when you talk about the acceleration in the back half of the year in terms of revenue and profitability, what is that predicated on? Is that visibility that you have to those deals getting through? Is that pipeline of new wins that are going to roll out? Like just trying to understand what gives you that confidence. Richard C. Mills: What gives us the confidence is when we announced the QSR wins last quarter or the quarter before, those -- all of those are now piling up. We had expected to be installing some of those right at the end of Q2. That didn't happen. It turned out in that particular instance that every one of those restaurants had to actually pour a new footer for their drive-thru. So that is now getting caught up in the next month, we begin deploying a significant quantity of new sites. So it's been kind of just held up. And then when that comes, when that catches up, we'll be installing just tremendous amounts of locations. So there's that. There's a couple of stadium announcements. So those are the things that give us confidence. And just to be clear, Jason, we don't -- if we get some wins this year that we announced, we -- these things from announcement to actually deploying generally takes a number of months. Jason Michael Kreyer: Got it. Okay. Last question for me. So if you look across the different verticals that you serve, where do you see the most pressure on businesses to kind of modernize their technology and adopt the digital solutions that you guys can provide? Richard C. Mills: Clearly, that would be QSR drive-thru. The post-pandemic, the drive-thru in the QSR business really matters. Transitioning to digital can improve drive-thru times 10, 15, 20 seconds per car. Well, you add that up to six hours of a packed drive-thru line queue, it really makes a significant difference in revenue for the QSR operator. So tremendous pressure, if you will, for them to update and innovate. So that's number one in the QSR. Number two, I would tell you, retail media networks, everybody is circling it. In-store digital is a game changer. However, in-store digital takes a tremendous investment in your physical retail presence, and it takes a tremendous amount of time to get ready to deploy it just internally, forget a supplier like myself. So we're talking with 3, 4 -- we have three pilots underway now or three test cases, probably got six other retailers in the queue. And we believe in 2026, we will actually execute or land our first large new Retail Media Network. And those Retail Media Networks, Jason, are in the tens of millions of dollars of deployment. Jason Michael Kreyer: Looking forward to tearing more about those as they come through. Operator: And the next question will be coming from the line of Brian Kinstlinger of Alliance Global Partners. Brian David Kinstlinger: Just a follow-up. I was confused. The QSR installs in the second half of the year that give you confidence, is that 1,000 store location that you recently announced because I thought that was a pilot? Or is that a different one? I'm just trying to understand what the driver of that is. Richard C. Mills: No, that's -- the driver of that, Brian, is the customer. Yes, we are deploying 50 POC locations, but we already have a queue of locations behind that. We're already getting sign-ups, deposits, et cetera. So that's not like we're going to deploy x number of locations and then they're going to evaluate. That's not how that is being framed. It's really they're going full steam ahead because that project from the customer was delayed a year. So they feel like they're already a year behind. So that is moving forward with relatively consistent speed once we got through the construction hiccup of everybody has to pour new footers at the drive-thru. Brian David Kinstlinger: Got it. And then I think last time we talked, there was an initial survey that had 600 locations on board or opting in. Has there been another survey? Has there been more commitments? Just kind of where are you with opt-ins? Richard C. Mills: I don't have an update on that, Brian, but it's still very consistent. So I can reach out to you and get an update, but I believe it is very consistent. Brian David Kinstlinger: Okay. And then as it relates to sports and entertainment, clearly, we've got baseball, the only really sport going on right now, NHL and NBA obviously, are in the off-season. Does that drive increased installs opportunities in the short term? Or is the sales cycle too long in the installation process? I'm just trying to understand how that impacts revenues in the short term? Richard C. Mills: Yes. No, we would expect to -- in the off-season for those sports is typically when we have engagements. We have a number of proposals out, and it just depends upon who finds budget. And those happen relatively quickly. It would be they make a decision, sign it and 60 days later, we're actually installing. It's not like they sign in nine months later. Those tend to happen relatively quickly. Brian David Kinstlinger: And my last question is, you clearly had customers buying screens ahead of tariffs. How are tariffs now that are in place impacting decisions? Is it leading to longer sales cycles? Is it not impacting that much? Just trying to frame for how that changes, if at all, the discussions you're having right now. Richard C. Mills: We had a couple of customers who were concerned around the uncertainty of tariffs. So a couple of customers made some bulk-buys of screens just to give them some comfort through the balance of this year. Number one. Number two, at this point in time, none of the manufacturers whose screens we deploy have risen -- have raised their price due to tariffs at this time. Now I believe we are ultimately coming to the end of the tariff -- our tariffs on the uncertainty period. It appears that there is some finalization of tariffs spreading across the various countries. So there could be some impacts in the future. We just do not know what they are. Operator: [Operator Instructions] And the next question is coming from the line of Jon Hickman of Ladenburg. Jon Robert Hickman: Rick, could you -- I want to follow up on Brian's question. The pre-buys of the screens, does that put pressure on the next couple of quarters on the hardware side? Richard C. Mills: It certainly puts a little bit of pressure on the hardware side, Jon, not going to -- but it also -- you'll see increased services because of we're now deploying screens in subsequent quarters, right, that we didn't take the services revenue because we hadn't performed the service yet. Jon Robert Hickman: Okay. So that doesn't affect your guidance for increased revenues over the back half of this year? Richard C. Mills: Not significantly. No. Jon Robert Hickman: Okay. So could you -- I think I missed it, but the 7-Eleven deployments, that's over -- you're counting on that over a 5-year period? Richard C. Mills: Yes. Jon Robert Hickman: The new--Okay. Richard C. Mills: So that was an announcement 7-Eleven made, okay? They put new -- once the bid from Couche-Tard, whatever the takeover ended, right, didn't happen. 7-Eleven put new management on August 6. 7-Eleven made a number of announcements to the market over the leadership, if you will. And so it was 1,100 new restaurants, I believe, inside the 7-Eleven stores, which we service today and then 1,300 additional locations that they call new enhanced stores. Now they started the new enhanced store footprint in 2024. So we've been installing new enhanced store footprints for about the last year, 1.5 years, approximately. Jon Robert Hickman: Okay. So you're expecting that to happen over the next kind of some measured way over the next five years? Richard C. Mills: That is correct. Yes, they've been a very consistent customer. As we have mentioned in the past, every single business day in the -- here in the U.S., we typically would install one new -- or between 1 and 3 stores every single business day. That's either a new store location or a remodel or a restaurant brand popping up inside of an enhanced 7-Eleven. Jon Robert Hickman: Okay. And then any word -- any updates that you want to share on the Bowling Alley customer? Richard C. Mills: The Bowling Alley customer has in effect -- I want to say they are currently not rolling out any additional sites I believe the Bowling -- we've deployed $330 million to $350 million ballpark is the range. I believe they have -- because it has taken them the Bowling Center project, they have taken so long to roll it out. I believe that has potentially caused some funding issues between them and the private equity partner, but I'm not involved in those discussions. But we currently have no Bowling centers on the schedule on a go- forward basis. Operator: And our next question will come from the line of Howard Halpern of Taglich Brothers. Howard Allen Halpern: Congratulations on a great Q2. In terms of the digital retail networks, your expectations for 2026, what type of leverage can we expect even if one large deployment occurs? Richard C. Mills: When you say what kind of leverage? Howard Allen Halpern: How does it drop to the bottom line or operating line? Richard C. Mills: Significant. I mean, because, again, we know of two Retail Media Networks currently on the books for folks across the United States. So we know of two being rolled out. Each of them, well, one was an expected $180 million project over 24 months. The other is a $100 million project being rolled out in a 6-month period. So we obviously did not win those. We came very close second on one of them. So those are the first two we know that are being broadly deployed in the U.S., but you can see the dollar volume is highly concentrated and there would be tremendous flow-through to the bottom line just because of pure volume. Howard Allen Halpern: Okay. And -- so circling back, I guess, maybe to ARR, with deployments occurring now and the day 2 revenue coming in, in the second half, should we expect by the run rate by the end of the year somewhere north of $19 million? Richard C. Mills: That's a great question. We've had some lumpiness in the ARR as some -- we had one customer that had a medical network that had been deployed in the field for a number of years, and they decided to end of life some of their experiences in their customer locations. So at this point in time, we're not predicting or not giving forecast around potential growth of ARR. Howard Allen Halpern: Okay. Okay. Now in terms of the Circle K in Mexico, how important is that project? And how important is that project to potentially moving to other countries in Latin America? Richard C. Mills: We would not -- we are in discussions with a couple of other retailers that have operations across Central America, but nothing specific. So -- and for example, that's a true POC where they want to understand how the network in that store, the signage in that network moves their revenue needle and basket size. So for example, we do not expect any additional Circle K deployments until potentially 2026 in Mexico. But also, I would note -- I mean, we've done certainly this quarter, past quarter, we did a Mexican stadium. I think it was a soccer stadium, is IPTV. So we've got several bids in on multiple stadiums in and around in Mexico. So we expect a combination of sports and entertainment and C-store will be the focus in Mexico. Operator: And the next question will be coming from the line of [ Kevin Sullivan ], private investor. Unidentified Analyst: I wanted to touch based on the last call, you had mentioned about being aggressive in the acquisition marketplace. And now I was wondering if there was any update on anything like that, that's occurring? Richard C. Mills: Kevin, it's a great question. We have been very blunt about our desire to accomplish an acquisition. And I would tell you that we are -- we still have the same mindset. It's got to be the right fit for the company. And it is still our desire to accomplish something this year, but I have nothing that we could discuss. Nothing to discuss at this time. Unidentified Analyst: I appreciate that. The second question real quick. Based upon your debt reduction over the second quarter, can you -- is it safe to project that out through the end of the year and you're looking at probably another $6 million taken off the debt? Richard C. Mills: I don't know if we would reduce debt that drastically throughout the rest of the year. That's just the timing between payables and receivables. We do -- we generated cash in Q2. We expect to generate cash in future quarters. And we have -- we don't have any increased investment plans -- so whatever cash we generate will be used to reduce our credit facility. And then I'd also ask George Sautter, who is our Chief Strategy Officer. George, anything to add or comment on that? George Sautter: No. As we stated, Kevin, great. Thank you for the questions. As we've stated, we continue to work towards what we deem to be the optimal cap structure. And it is a function of our working capital needs and reinvestment into the business, obviously, to drive organic growth. But it's fair to say that if there's any excess cash, and we talked about that earlier on the call, that essentially, we're going to be paying down the balance on the line of credit. We pursued a very disciplined strategy and financial management over the past couple of years to decrease our leverage, and that works hand in glove with pursuing those strategic opportunities that you alluded to. So we obviously want all the tools in the tool chest to pursue both strategic and organic growth. And part of that playbook is maintaining an appropriate leverage ratio. But we also know that debt is one of the most inexpensive ways to finance the activities of the company. So it's not a 0 debt thing. It's the optimal cap structure, but a great question. Unidentified Analyst: And my last question is, you talked about the SOC 2 compliance. Based upon your competition, how many of your competitors do you think are at that same level of SOC 2 compliance versus yourselves percentage-wise or number-wise, I'm fairly flexible. Richard C. Mills: That's a great question, Kevin. And this answer would -- is coming from my gut. I don't have anything other than that to tell you. The top 2 or 3 or 4 competitive CMSs have -- are at the same level and have achieved it. Where you will see companies that have not achieved it is all of the mom-and-pop CMSs around the country. It's an $8 million, $10 million CMS company that's got $7 million, $8 million in revenue, they just simply do not have enough staying power to get that type of certification. So the bottom 80% don't. The top 20%, which is 4 or 5 or 6 of us have achieved it. That's what my gut is telling me. George Sautter: And Rick, maybe I should add on to that because we do deem it to be a competitive advantage. And per Rick's comments, the fact that so many companies that are in the industry will never achieve it, simply don't have the resources, don't have the competencies to achieve it means that for the types of enterprise clients that we're dealing with, the types of processes that we're in, particularly with respect to retail media networks, it's just the smaller population of industry constituents who can actually go after that type of business. So there are a number of smaller companies out there that actually do have very large customers. And we think when those opportunities are presented again when those contracts expire, that we're going to be in a terrific position to compete tenaciously with that business. Unidentified Analyst: I totally agree that I believe it is a competitive advantage. I don't disagree with that. And my last question is, do you have a speculation as to when you'll first get to your breakeven quarter? Richard C. Mills: We think as we exit this year, Kevin, we will have achieved that. And it's through a combination of increased revenue and also operating efficiency. You look at our last six quarters, we've continued to manage our SG&A expenses down. And it's not managing people out of the business. What it is? It's a consolidation of our multiple systems into one. We talked a lot about a year, 1.5 years ago, the conversion to NetSuite. So today, we're already full lap. We're in our second year on our full ERP, our shipping software and our shipping solutions. So all of those things, we're managing those and becoming much more efficient along with revenue growth has us achieving that as we exit this year. Operator: And this does conclude today's Q&A session. I would like to go ahead and turn the call back over to Rick Mills for closing remarks. Please go ahead. Richard C. Mills: Well, first, let me conclude the call by thanking all the shareholders, clients, partners and our employees for the continuing efforts, commitment and support as we work together to transform CRI into the leading brand in digital signage solutions. We look forward to speaking with everyone again in the next quarter. Thank you. Operator: Thank you all for joining today's conference call. This does conclude today's meeting. You may now disconnect. Before you buy stock in Creative Realities, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Creative Realities wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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The acquisition of CDM in November 2025 more than doubled the company's size, significantly increasing market penetration in Canada and strengthening retail media network capabilities. Management is transitioning the company into a software-first platform powered by data analytics and AI, moving away from a hardware-centric legacy model. The sales organization was restructured into six specialized vertical teams, tripling the sales force to 42 personnel to drive targeted growth in high-value markets. Revenue growth in Q4 was primarily driven by the CDM contribution, while legacy business saw a 6% decline due to project timing and decreased hardware activity. Gross margin expansion to 47.9% reflects an improved service mix and the positive structural impact of integrating CDM's higher-margin business lines. The company added key leadership in finance, revenue, and experience roles to manage the complex integration of CDM and accelerate the consulting practice. Management successfully eliminated potential stock overhang by repurchasing 1.7 million outstanding warrants from Slipstream in February. Management maintains a 2026 revenue target exceeding $100 million with adjusted EBITDA margins in the mid-teens, and expects margins to surpass 20% once all synergies are realized. The company anticipates achieving $10 million in annualized synergies by the end of 2026, with over 60% of that goal already secured. Q1 2026 revenue of approximately $4 million was delayed into Q2 and Q3 due to historic winter weather disrupting construction and installations across North America. Strategic focus is shifting toward deleveraging the balance sheet through significant free cash flow generation once integration-related investments stabilize. The IPTV division is projected to double its revenue to over $17 million in 2026, supported by a new $8 million stadium project and Major League Baseball refreshes. Indebtedness increased to $43.3 million at year-end, primarily to finance the CDM acquisition through a $36 million term loan; the acquisition was further supported by $30 million in preferred equity. G&A expenses included $1.2 million in one-time costs related to legal, accounting, and transaction fees for the CDM closing. The company utilizes a cash sweep instrument against its revolving debt facility to minimize interest expense, maintaining a lean cash balance of $1.6 million. A $6 million media network project with AMC Theatres will utilize proprietary Reflect CMS and AdLogic software, featuring a five-year revenue-sharing model. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management stated they are now viewed at the 'top of the food chain' in the QSR vertical, enabling serious conversations with large brands that were previously inaccessible. The company's increased stature as a market leader provides a strategic advantage for end-users seeking stable, large-scale suppliers. A contract for over 4,000 QSR locations is expected to be signed within weeks after a lengthy negotiation process following an RFP win. Retail media network tests are underway with a major grocer, a large C-store chain, and luxury beauty retailers, with 3-4 deployments expected in late 2026. While 7-8 large RFPs were expected in 2026, they have yet to materialize, though the company is actively participating in one and discussing West Coast opportunities. Management is using data from the North Carolina Lottery deployment to prove 'significant lift' in ticket sales to potential customers. Management expects the impact of 600 store closures to be 'de minimis' as new store openings typically feature larger formats with more digital signage needs. The company is in the final stages of a three-year contract renewal with 7-Eleven and does not anticipate a change in its preferred vendor status. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.