Creative Realities 2025 Q1 Earnings Profitable Turnaround with Net Income Up 3189.9%

Creative Realities (CREX) reported its fiscal 2025 Q1 earnings on May 14th. Despite a 20.8% decline in revenue year-over-year, the company returned to profitability with an EPS of $0.32, surpassing analyst expectations for an EPS of $-0.12. Creative Realities' net income set a record high for fiscal Q1, marking a 3189.9% positive swing from the previous year's loss. The company remains optimistic, projecting strong growth in the latter half of 2025.

Revenue
Creative Realities experienced a notable reduction in revenue to $9.73 million in Q1 2025, down from $12.29 million in Q1 2024. This decrease was influenced by installation timing issues across both hardware, which generated $3.4 million, and services, which contributed $6.3 million.

Earnings/Net Income
Creative Realities achieved a significant turnaround with EPS of $0.32 in Q1 2025, compared to a loss of $0.01 per share in Q1 2024. This impressive recovery indicates strong fiscal management.

Price Action
The stock price of Creative Realities has edged up 2.14% during the latest trading day, has surged 18.63% during the most recent full trading week, and has surged 34.51% month-to-date.

Post-Earnings Price Action Review
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CEO Commentary
“First quarter revenue continued to be impacted by near-term issues related to installation timing, but after the period, we announced a big win with a very well-known restaurant chain whereby we’ll be transforming hundreds of locations across the U.S. We’re delivering a unique, turnkey solution, powered by our proprietary CMS platform - ClarityTM. Contracts such as this underscore our growing leadership position in the market, and combined with other installations scheduled for the coming quarters, we remain on track for our best year ever. Overall, we are in great shape for the remainder of this year and beyond,” said Rick Mills, Chief Executive Officer.

Guidance
“We continue to believe the second half of 2025 will show strong growth and momentum. In conjunction with our prior settlement of the contingent consideration liability, we will once again focus on using cash flow to reduce debt and maintain an optimal capital structure in support of growth.”

Additional News
Creative Realities has recently secured a substantial contract with a major restaurant chain, set to transform over 1,000 locations across more than 25 states. This new partnership is expected to significantly boost the company's market presence and drive future growth. Additionally, the firm announced its exit from media sales effective October 2024, allowing them to concentrate on core business areas and optimize service offerings. The company continues to position itself strategically for record performance throughout 2025, leveraging new client deployments and enhanced product offerings.