CREX · Creative Realities, Inc.

Creative Realities' Q4 2025 results reflect the transformative impact of the November 7, 2025 acquisition of Cineplex Digital Media (CDM) for approximately USD $42.8 million, contributing $13.6 million to the quarter's $23.9 million revenue, more than doubling the prior-year figure of $11.0 million. Hardware revenue increased to $6.6 million from $3.9 million, while service revenue surged to $17.3 million from $7.2 million, driven by CDM and deployment timing. Gross margins expanded to 47.9% from 44.2%, with service margins at 55.7% (up from 53.9%) due to favorable mix. Adjusted EBITDA jumped to $5.2 million from $0.5 million, highlighting operational leverage despite elevated G&A expenses to $8.9 million (vs. $4.2 million), including $1.2 million in one-time acquisition costs. ARR grew to $20.1 million from $12.3 million at Q3 end, signaling recurring revenue momentum. Balance sheet shows cash at $1.6 million (up from $1.0 million year-end 2024) but debt rose to $44.0 million from $13.0 million due to the deal. CEO Rick Mills emphasized CDM integration on track, $6.4 million in cost synergies realized toward $10 million target, and new leadership including CFO Tamra Koshewa. Post-quarter, warrant repurchase from Slipstream and AMC/NCM partnership signal strategic progress. Management anticipates fiscal 2026 as 'best year ever' with top-line growth and margin expansion, though not formalized as numerical guidance.