CREX · Creative Realities, Inc.

Creative Realities' Q1 2026 results showed strong top-line growth with total sales reaching $16.3 million, a 68% increase from $9.7 million in Q1 2025, primarily driven by the CDM acquisition contributing approximately $7.9 million. Hardware revenue grew to $4.6 million from $3.4 million, while services revenue surged to $11.8 million from $6.3 million, reflecting both acquisition impact and deployment timing. However, gross margins compressed to 34.2% from 45.7%, with hardware margins dropping to 14.0% due to a high mix of lower-margin QSR deployments and $0.5 million in one-time transition costs for a CDM customer, and services margins falling to 42.0% from contract expirations. Sales and marketing expenses doubled to $2.9 million and G&A rose sharply to $8.9 million, largely from CDM inclusion, leading to an operating loss of $6.2 million versus $0.7 million prior year. The net loss of $7.9 million or $(0.74) per share contrasted with prior-year net income of $3.4 million, which benefited from a $4.8 million contingent liability settlement. Adjusted EBITDA turned negative at $(0.5) million from $0.5 million. ARR held steady at $20.1 million. Balance sheet showed cash at $1.8 million, up slightly from $1.6 million at year-end, but debt increased to $47.5 million from $44.0 million. CEO Rick Mills noted seasonal weather impacts but highlighted CDM integration progress, strong pipeline, and expectations for accelerating growth and margin improvement in the remainder of 2026, positioning for a record year.