GICS Sector : Technology
Creative Realities, Inc., together with its subsidiaries, provides digital marketing technology and solutions to retail companies, individual retail brands, enterprises, and organizations in the United States and internationally.Its technology and solutions include digital merchandising systems and omni-channel customer engagement systems; interactive digital shopping assistants; advisors and kiosks; and other interactive marketing technologies, such as mobile, social media, point-of-sale transactions, beaconing, and Web-based media that enables its customers to engage with their consumers.The company also provides system hardware; professional and implementation services; software design and development; and software licensing, deployment, and maintenance and support services, as well as media management and distribution software platforms and networks; device and product management; and customized software service layers, systems, experiences, workflows, and integrated solutions.
Creative Realities posted a striking Q4 revenue of $23.9 million, more than doubling the $11 million seen a year earlier, largely buoyed by CDM’s $13.6 million contribution. Gross profit hit $11.5 million, giving a 47.9% gross margin, while adjusted EBITDA rose to $5.2 million. The company’s diluted EPS was –$0.141, trailing the –$0.07 estimate [Rick Mills]. Valuation multiples reflect the negative earnings: a P/E of –5.54 and an EV/EBITDA of –16.23.
Publication Date: Apr -17
The CDM purchase more than doubled Creative’s scale, injecting Canadian market penetration and a robust retail media foothold. Integration has progressed rapidly, with synergies projected at $10 million by year‑end, setting the stage for the anticipated $100 million revenue target in 2026.
Key revenue engines include the IPTV division, slated to double to $17 million, and the QSR/fast‑casual segment, now reaping gains from a next‑gen modular drive‑thru menu board. New media contracts—$6 million with AMC and $54 million with NC Lottery—further diversify the pipeline.
With integration gains and higher‑margin media contracts, adjusted EBITDA margins are expected to climb into the mid‑teens by year‑end. The company projects a 20% margin, a substantial lift from Q4’s 21.7% adjusted EBITDA margin, driven by operational efficiencies and cost discipline.
Cash on hand sits at $1.6 million against $43.3 million of gross debt. The management plan is to use incremental cash generation to reduce debt and transition to a leaner capital structure, improving net debt/EBITDA from –10.03 to a more sustainable figure.
The sales team has tripled, reorganized into vertical units, and is aggressively courting large grocery and convenience‑store chains. A recent QSR win and a 7‑figure AMC contract signal strong pipeline momentum.
Deployments with the NC Lottery and AMC are creating network effects, with the lottery customer reporting measurable sales lift. The company anticipates that Q3 hardware shipments and Q4 media revenue will solidify its market leadership in digital signage.
Unseasonal weather in early 2026 delayed construction, shifting roughly $4 million of revenue from Q1 to later quarters. Despite this, the outlook remains bullish: revenue is projected to exceed $100 million, with a backlog that should cushion the impact of any subsequent delays.
Current multiples—P/E –5.54, EV/EBITDA –16.23, and P/S 0.69—reflect the company’s current loss profile but also its rapid growth trajectory. As the firm moves toward profitability, these ratios are poised to normalize, potentially unlocking significant upside for investors.
Creative Realities Q4 Earnings Call Highlights
Apr -16
Creative Realities, Inc. (CREX) Q4 2025 Earnings Call Transcript
Apr -14
Creative Realities Reports Fiscal 2025 Fourth Quarter Results
Apr -14
Creative Realities, Inc. Announces Fourth Quarter and Full Year 2025 Earnings Release Date and Conference Call Information
Apr -07
Creative Realities Appoints Jackie Walker as CXO to Lead Experience Strategy and Next Generation SaaS Platform Vision
Mar -25
Creative Realities Announces Repurchase of Slipstream Warrants
Feb -18
Is Creative Realities, Inc. (CREX) Stock Outpacing Its Computer and Technology Peers This Year?
Jan -16
Creative Realities Launches Digital Drive-Thru 2.0, a Modular, Scalable Solution Designed to Improve Drive-Thru Efficiency and Flexibility
Jan -07
Creative Realities' 9.9% growth in Hardware is driven by increasing demand for digital signage and interactive kiosks, expansion into new markets, and strategic partnerships. The company's focus on innovative display technologies, such as LED and OLED, also contributes to its growth. Additionally, the rising need for immersive customer experiences in retail and entertainment industries fuels the demand for Creative Realities' hardware solutions.
Creative Realities' Managed Services segment growth of 12.03% is driven by increasing demand for digital signage and experiential solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on providing comprehensive services, including installation, maintenance, and content management, has led to higher customer retention and upselling opportunities, contributing to the segment's growth.
Creative Realities' Installation Services growth is driven by increasing demand for digital signage and experiential displays, expansion into new markets, and strategic partnerships. The company's expertise in designing and installing complex display systems, combined with its ability to provide comprehensive services, has enabled it to capitalize on the growing need for immersive brand experiences.
Creative Realities' 9.98% growth in Other Services is driven by increasing demand for digital signage and experiential marketing solutions, expansion into new markets, and strategic partnerships. The company's focus on innovative technologies, such as augmented reality and artificial intelligence, also contributes to its growth.
Creative Realities' digital signage solutions provide engaging and interactive experiences for customers, employees, and visitors across various industries.
Self-service kiosks and interactive displays designed to provide customers with easy access to information, products, and services.
Digital menu boards designed to display menu items, prices, and nutritional information in a clear and visually appealing way.
Interactive wayfinding and directory solutions that provide visitors with easy navigation and information about a location.
A cloud-based content management system that enables users to create, schedule, and distribute content across multiple screens and locations.
Data analytics and insights solutions that provide businesses with valuable insights into customer behavior and engagement.
The threat of substitutes for Creative Realities, Inc. is medium due to the availability of alternative digital signage solutions.
The bargaining power of customers is low due to the specialized nature of Creative Realities' products and services.
The bargaining power of suppliers is medium due to the availability of multiple suppliers for the company's hardware and software components.
The threat of new entrants is high due to the relatively low barriers to entry in the digital signage industry.
The intensity of rivalry is high due to the competitive nature of the digital signage industry and the presence of several established players.
| Value | |
|---|---|
| Debt Weight | 32.72% |
| Debt Cost | 19.86% |
| Equity Weight | 67.28% |
| Equity Cost | 19.86% |
| WACC | 19.86% |
| Leverage | 48.64% |
Value: 8.5
Growth: 4.2
Quality: 5.7
Yield: 0.0
Momentum: 8.0
Volatility: 2.7
1-Year Total Return ->
Value: 7.7
Growth: 4.9
Quality: 5.6
Yield: 0.0
Momentum: 8.0
Volatility: 2.0
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Value: 3.6
Growth: 6.1
Quality: 5.8
Yield: 0.0
Momentum: 6.0
Volatility: 3.7
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Value: 4.6
Growth: 5.4
Quality: 4.3
Yield: 0.0
Momentum: 5.0
Volatility: 4.0
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Value: 9.2
Growth: 2.8
Quality: 5.0
Yield: 0.0
Momentum: 5.0
Volatility: 1.3
1-Year Total Return ->
Value: 5.5
Growth: 5.9
Quality: 4.0
Yield: 0.0
Momentum: 1.0
Volatility: 3.3
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