Creative Realities, Inc.

Second-quarter revenue was $21.5 million, up from $13 million in the prior-year period; management said this included roughly $7.4 million from CDM and was 65% higher year over year. Gross profit was $8.3 million versus $5.0 million a year ago, and consolidated gross margin was 38.6% versus 38.5% in the prior-year quarter. Net loss attributable to common shareholders was $4.6 million, or $0.43 per diluted share, versus a net loss of $1.8 million, or $0.17 per diluted share, last year. Adjusted EBITDA was $2 million versus $1.1 million in the prior-year quarter, and cash on hand was about $10.7 million at June 30, 2026, with debt at $46.6 million and about $12.8 million of available liquidity under the revolver. For guidance, management said Q3 is expected to be the largest revenue quarter in company history and to significantly exceed Q4 2025 revenue of $23.9 million; it also said Q4 2026 should significantly exceed Q3 2026, with strong momentum into 2027.

Rick Mills was upbeat and confident, emphasizing that the company is entering a new phase of more predictable growth driven by enterprise customers, recurring revenue, and the CDM integration. He said the business has “tremendous upward momentum” and that Q3 and Q4 should be the two biggest quarters in company history, supported by major wins like Albertsons, the Titans, AMC, and additional pending deals. He also framed the follow-on offering and his own participation as evidence of commitment to the strategy.

Tamra Koshewa focused on the mechanics of the quarter: revenue rose to $21.5 million, gross profit to $8.3 million, and adjusted EBITDA to $2 million, while gross margin held at 38.6%. She broke out that hardware margin was 17.2% versus 25.1% last year and services margin was 50.1% versus 54.4%, citing mix pressure and the expiration of higher-margin contracts. On the balance sheet, she noted $10.7 million in cash, $46.6 million of debt, $12 million of net proceeds from the equity raise, and the removal of going-concern language after auditors reviewed the company’s plan; she said cash generation and the raise will support growth, capex, and debt reduction.

Analysts pressed on how the Albertsons win translates into future pipeline activity, and management said it strengthens CRI’s position as a top retail media network provider and should accelerate opportunities, especially with blue-chip references like 7-Eleven, Macy’s, and Best Buy. Questions also focused on the revenue mix and margins; management said Q3 will have a higher hardware mix because of installs like the Tennessee Titans, while Q4 should shift back toward services and media revenue, with a gross margin target of getting back into the 40s in 2027 as more SaaS flows through. Another question asked about breakeven leverage, and management said the math around a low-40% margin profile and additional revenue would be reasonable, while also noting ongoing SG&A reductions and noncash amortization effects in G&A.