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 Sheet
As 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 Details
The 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 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.
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