<span item_type="fundamental" item_id="39cabe93cdd80ff153975040864cbf60" counter_id="ST/US/CREX" env="prod"></span><span item_type="announcement" item_id="648610306786268417" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 16.35 M, missing the estimate of USD 16.52 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD -0.74, missing the estimate of USD -0.465.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -4.741 M.</p><p></p><h4>Revenue</h4><p>Creative Realities, Inc. reported total revenue of $16.3 million for the fiscal 2026 first quarter, an increase from $9.7 million in the prior-year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. This includes approximately $7.9 million from the acquisition of Cineplex Digital Media (CDM) in the current quarter <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. Hardware revenue rose to $4.6 million in Q1 2026, compared to $3.4 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. Service revenue increased to $11.8 million in Q1 2026, up from $6.3 million in Q1 2025, primarily due to the CDM transaction and deployment timing <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. Total sales declined sequentially from the fiscal 2025 fourth quarter due to seasonal factors and installation delays caused by extreme weather <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Gross Profit and Margin</h4><p>Consolidated gross profit for the fiscal 2026 first quarter was $5.6 million, compared to $4.5 million in the prior-year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. The consolidated gross margin was 34.2% in Q1 2026, down from 45.7% in Q1 2025, reflecting a higher percentage of lower-margin hardware revenue <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. Hardware gross margin was 14.0% in Q1 2026, a decrease from 32.1% in the prior-year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. Service gross margin declined to 42.0% in Q1 2026 from 53.0% in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Operating Costs</h4><p>Sales and marketing expenses increased to $2.9 million in Q1 2026, from $1.2 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. General and administrative (G&amp;A) expenses rose to $8.9 million in Q1 2026, compared to $3.9 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Operating Loss</h4><p>The company reported an operating loss of - $6.2 million in the first quarter of fiscal 2026, compared to an operating loss of - $0.7 million in the first quarter of fiscal 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Net Income/Loss</h4><p>Creative Realities, Inc. posted a net loss of - $7.5 million and a net loss attributable to common stockholders of - $7.9 million for the quarter ended March 31, 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. This contrasts with a net income of $3.4 million in the prior-year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. Basic and diluted net loss per common share was - $0.74 in Q1 2026, compared to a net income per diluted share of $0.32 in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA was - $0.5 million in the first quarter of 2026, down from $0.5 million in the prior-year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Cash Flow</h4><p>Net cash used in operating activities was - $1.723 million for the three months ended March 31, 2026, an improvement from - $2.449 million in the same period of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Balance Sheet Highlights</h4><p>As of March 31, 2026, Creative Realities, Inc. had cash on hand of approximately $1.8 million, an increase from $1.6 million at December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. Outstanding debt was approximately $47.5 million as of March 31, 2026, up from $44.0 million at the start of the fiscal year <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Annualized Recurring Revenue (ARR)</h4><p>Annualized recurring revenue (ARR) was approximately $20.1 million at both the end of the first quarter of 2026 and as of December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p><h4>Outlook</h4><p>Creative Realities, Inc. anticipates stronger sales for the remainder of fiscal 2026, driven by its current book of business, a robust pipeline of new opportunities, and growth from the CDM acquisition <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. The company is investing in personnel and business development to accelerate revenue trajectory and improve profit margins through synergy realization and cost leverage <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>. Management expects fiscal 2026 to be its best year ever, with a higher level of success in upcoming quarters <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1356093/000143774926017218/ex_962960.htm"></span>.</p>

Creative Realities | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 16.35 M