Creative Realities (CREX) investor relations material

Executive summary

• Q1 2026 revenue rose 68% year-over-year to $16.3 million, driven by the CDM acquisition and new contracts, with CDM contributing $7.9 million.

• Net loss attributable to common shareholders was $7.9 million (or $(0.74) per diluted share), compared to net income of $3.4 million in Q1 2025, reflecting higher operating expenses and integration costs.

• Adjusted EBITDA was -$0.5 million, down from $0.5 million in the prior year period.

• Major integration of CRI and CDM workforces completed, with ongoing ERP migration and synergy realization.

• Significant new contracts include Tennessee Titans stadium, Dairy Queen, AMC Theatres, and a large retail media network.

Financial highlights

• Gross profit was $5.6 million, up from $4.5 million year-over-year, but gross margin declined to 34.2% from 45.7% due to one-time costs and revenue mix.

• Hardware revenue increased to $4.6 million from $3.4 million; service revenue rose 86% to $11.8 million.

• Operating loss widened to $6.2 million from $0.7 million in Q1 2025.

• Cash on hand was $1.8 million–$2.3 million at quarter-end, with $47.5 million in debt and $13 million available liquidity.

• Interest expense rose 356% to $1.5 million due to new debt from the CDM acquisition.

Outlook and guidance

• Management expects stronger sales and improved margins for the remainder of 2026, with full-year revenue projected to exceed $100 million.

• Adjusted EBITDA margins targeted in the high teens, with potential to surpass 20% as synergies are realized.

• Free cash flow generation expected to support debt reduction and deleveraging.

• Substantial doubt remains about the ability to continue as a going concern without further improvements in cash flow or additional liquidity.