Creative Realities (CREX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $21.5 million, up 65% year-over-year, driven by the CDM acquisition and service growth.

• Gross profit rose to $8.3 million, with adjusted EBITDA improving to $2.0 million from $1.1 million last year.

• Net loss attributable to common shareholders widened to $4.6 million, with reported figures ranging from $3.9 million to $4.3 million, reflecting higher operating and interest expenses post-acquisition.

• Integration of CDM is largely complete, with realized cost synergies and positive operating cash flow for the six months ended June 30, 2026.

• Raised $12.2 million in a public equity offering to strengthen liquidity, fund growth, and reduce debt.

Financial highlights

• Service revenue more than doubled to $14.0 million, driven by CDM and new installs, while hardware sales increased to $7.5 million.

• Gross margin was stable at 38.6%–39% year-over-year; hardware margin declined to about 17%, service margin to about 50%.

• Operating loss was $2.7 million, compared to $1.3 million in the prior year.

• Cash on hand increased to $10.7 million, with debt at $46.6 million.

• Total sales for the six months ended June 30, 2026 were $37.9 million, up 66% year-over-year.

Outlook and guidance

• Q3 expected to be the largest revenue quarter in company history, with Q4 to exceed Q3.

• ARR at $20.5 million, with $4–5 million in backlog to be recognized in 2027.

• Gross margin anticipated to improve in Q3 and Q4 due to higher service mix; targeting gross margins above 40% in 2027 as SaaS revenue grows.

• Management expects sufficient liquidity for at least twelve months, supported by cash, operating cash flow, and available credit.

• No longer a going concern per auditor review; confident in profitable growth and liquidity.