---
title: "Creative Realities | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 21.51 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295792096.md"
datetime: "2026-08-13T11:42:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295792096.md)
  - [en](https://longbridge.com/en/news/295792096.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295792096.md)
generator: "portal-rs"
---

# Creative Realities | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 21.51 M

Revenue: As of FY2026 Q2, the actual value is USD 21.51 M, missing the estimate of USD 21.74 M.

EPS: As of FY2026 Q2, the actual value is USD -0.41, missing the estimate of USD -0.2467.

EBIT: As of FY2026 Q2, the actual value is USD -2.785 M.

### Financial Highlights for the Three Months Ended June 30, 2026

#### Revenue

Creative Realities, Inc. reported second quarter revenue of $21.5 million, an increase from $13.0 million in the prior-year period. This includes approximately $7.4 million from the acquisition of Cineplex Digital Media (“CDM”). Hardware sales rose to $7.5 million, up from $7.1 million in fiscal 2025, while service revenue more than doubled to $14.0 million from $6.0 million in fiscal 2025. 

#### Gross Profit and Margin

Consolidated gross profit for the second quarter of fiscal 2026 was $8.3 million, up from $5.0 million in the prior-year period. The consolidated gross margin was 38.6%, a slight increase from 38.5% in the fiscal 2025 second quarter. Hardware gross margin decreased to 17.1% in fiscal 2026 from 25.1% in the prior-year period, while service gross margin declined to 50.0% from 54.4%. 

#### Operating Expenses and Loss

Sales and marketing expenses in the second quarter rose to $2.0 million, compared to $1.2 million in the prior-year period. General and administrative (G&A) expenses increased to $9.0 million from $5.2 million, primarily due to the inclusion of CDM. Creative Realities, Inc. posted an operating loss of - $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. 

#### Net Loss and Adjusted EBITDA

The Company reported a net loss of - $4.2 million and a net loss attributable to common stockholders of - $4.3 million for the second quarter ended June 30, 2026, versus a net loss of - $1.8 million in the prior-year period. Adjusted EBITDA for the second quarter of 2026 was $2.0 million, an increase from $1.1 million in the prior-year period. 

#### Unique Metrics: Annualized Recurring Revenue (ARR)

Annualized recurring revenue (ARR) was approximately $20.5 million at the end of the second quarter of fiscal 2026, an increase from approximately $20.1 million as of March 31, 2026. 

### Financial Highlights for the Six Months Ended June 30, 2026

#### Revenue

Total sales for the six months ended June 30, 2026, were $37.853 million, compared to $22.764 million in the same period of 2025. Hardware sales for the six months were $12.032 million (2026) versus $10.467 million (2025), and services and other sales were $25.821 million (2026) versus $12.297 million (2025). 

#### Gross Profit

Gross profit for the six months ended June 30, 2026, was $13.893 million, compared to $9.470 million in the prior-year period. 

#### Operating Loss

For the six months ended June 30, 2026, the operating loss was - $8.951 million, compared to - $2.053 million in the prior-year period. 

#### Net Loss

For the six months ended June 30, 2026, the net loss was - $11.357 million, compared to net income of $1.551 million in the prior-year period. 

#### Balance Sheet

As of June 30, 2026, Creative Realities, Inc. had cash on hand of $10.7 million, significantly up from $1.6 million at December 31, 2025. Total outstanding debt was approximately $46.6 million as of June 30, 2026, compared to $44.0 million at the start of the fiscal year. 

#### Cash Flow

For the six months ended June 30, 2026, net cash provided by operating activities was $1.003 million, compared to $773 thousand in the prior-year period. Net cash used in investing activities was - $3.220 million, versus - $1.264 million in the prior-year period. Net cash provided by financing activities was $11.325 million, compared to $23 thousand in the prior-year period. The net increase in cash and cash equivalents for the six months was $9.144 million. 

### Outlook / Guidance

Creative Realities, Inc. anticipates continued business growth, margin improvement, and increased Adjusted EBITDA, reflecting strong demand for its services. The Company expects to announce two additional new clients with over 1,000 locations each within the next 30 days. Creative Realities, Inc. remains on track for record performance this year, positioning it well for fiscal 2027 and beyond.

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## Related News & Research

- [Creative Realities Q2 revenue rises on CDM acquisition](https://longbridge.com/en/news/295792492.md)
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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**