CREX Creative Realities
Price Chart
Executive Summary
Creative Realities reported Q1 2026 revenue of $16.3M (+68% YoY), beating the $16.5M consensus by a narrow margin, but posted a GAAP net loss of $7.5M vs. net income of $3.4M a year ago, driven by acquisition-related costs, lower gross margins (34.2% vs. 45.7%), and a $4.8M prior-year gain that did not repeat. Adjusted EBITDA turned negative at -$0.5M vs. +$0.5M last year, and ARR was flat at $20.1M. The EPS beat of 54.8% ($-0.21 actual vs. $-0.47 consensus) is largely a mechanical artifact of a low base and does not reflect underlying improvement.
Key Financial Metrics
Actionable Insight
The flat ARR and negative adjusted EBITDA signal that the CDM acquisition has not yet delivered operating leverage. With debt at $47.5M and cash only $1.8M, liquidity is tight. Watch for Q2 organic revenue growth and margin recovery; a secondary offering or debt restructuring is a risk if trends don't reverse.
Key Facts
- Revenue $16.3M vs. $9.7M YoY (+68%), but $7.9M came from the CDM acquisition; organic growth was minimal.
- GAAP net loss of $7.5M vs. net income of $3.4M YoY; EPS of -$0.74 vs. +$0.32.
- Adjusted EBITDA turned negative to -$0.5M from +$0.5M YoY.
- Gross margin collapsed to 34.2% from 45.7% YoY, with hardware margin at 14.0% (vs. 32.1%) and service margin at 42.0% (vs. 53.0%).
- ARR flat at $20.1M vs. Dec 2025, indicating no organic subscription growth.
- Debt rose to $47.5M from $44.0M at year-end; cash only $1.8M.
- Operating cash flow negative at -$1.7M.
Financial Impact
Revenue beat consensus by ~1.2% but GAAP net loss swung by $10.9M vs. prior year; Adjusted EBITDA deteriorated by $1.0M.
Risk Factors
- Flat ARR suggests no organic subscription growth; CDM integration may not yield expected synergies.
- Gross margin compression (hardware 14%, services 42%) is structural, not seasonal.
- Debt of $47.5M vs. cash $1.8M creates refinancing risk; interest expense rose 4.6x YoY.
- Negative operating cash flow (-$1.7M) and negative adjusted EBITDA (-$0.5M) indicate cash burn.
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3295756 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 9, 2026
3d ago
|
Press Release
| $3.91 awaiting T+5 | awaiting T+5 | — | $3.61 (−7.67%) |
|
Jun 4, 2026
8d ago
|
S-3
| $4.08 awaiting T+5 | awaiting T+5 | — | $3.61 (+11.52%) |
|
May 15, 2026
29d ago
|
8-K
| $3.75 $3.78 | ▼ −0.80% | ▲ +0.16% | $3.61 (+3.73%) |
|
May 15, 2026
29d ago
|
Press Release
| $3.75 $3.78 | ▼ −0.80% | ▲ +0.16% | $3.61 (+3.73%) |
|
Apr 14, 2026
8w ago
|
8-K
| $3.85 $4.15 | ▲ +7.79% | ▲ +6.40% | $3.61 (−6.23%) |
|
Apr 14, 2026
8w ago
|
Press Release
| $3.85 $4.15 | ▼ −7.79% | ▼ −6.40% | $3.61 (+6.23%) |
|
Apr 7, 2026
9w ago
|
Press Release
| $3.43 $3.85 | ▼ −12.24% | ▼ −6.92% | $3.61 (−5.25%) |
US Market Status
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