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, reflecting operational efficiencies and integration synergies.

• Net loss attributable to common shareholders widened to $4.6 million, impacted by higher G&A and integration costs.

• Integration with CDM is largely complete, with $7.5 million of $10 million targeted annual synergies realized and positive operating cash flow for the first half.

• Major customer wins include Albertsons, AMC Theatres, Tennessee Titans, Lexus Toyota Canada, and a national grocery chain, supporting a robust sales pipeline.

Financial highlights

• Q2 revenue reached $21.5 million, up from $13 million in the prior year and $5.1 million sequentially from Q1.

• Service revenue more than doubled to $14 million, while hardware sales rose to $7.5 million.

• Gross margin was 38.6%–39%, nearly flat year-over-year; hardware margin declined to 17.1%–17.2%, and service margin to 50.0%–50.1%.

• Operating loss was $2.7 million, and net loss per diluted share was $0.43.

• Adjusted EBITDA improved to $2.0 million from $1.1 million last year and a loss in Q1.

Outlook and guidance

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

• Gross margin is anticipated to improve in the second half as SaaS and service revenue mix increases.

• Targeting a return to 40%+ gross margin in 2027 as SaaS revenue grows.

• ARR backlog of $4–5 million will be recognized at the start of 2027, boosting high-margin revenue.

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