Creative Realities 2025 Q3 Earnings Sharp Net Loss Amid Revenue Decline

Creative Realities reported Q3 2025 earnings that significantly missed expectations, with a net loss of $7.86 million (-7600% change from prior-year profit) and revenue dropping 27% year-over-year. The company provided optimistic guidance tied to its CDM acquisition but offered no specific financial targets.

Revenue

Total revenue fell to $10.55 million in Q3 2025, a 27.0% decline from $14.44 million in the prior-year period. Hardware sales contributed $4.17 million, while services and other revenue totaled $6.38 million. The drop was attributed to a deferred $2 million order, reduced hardware demand due to a one-time prior-year installation, and lower service revenue from SaaS subscription adjustments.

Earnings/Net Income

The company swung to a loss of $0.75 per share, down from $0.01 per share in 2024 Q3, marking a 7600% deterioration. A $5.7 million non-cash software impairment charge and integration costs from the Stellantis wind-down heavily impacted results. Despite the loss, the quarter set a new 9-year record for Q3 net income negativity.

Post-Earnings Price Action Review

The stock experienced mixed post-earnings price action: a 4.69% gain in the latest trading day, a 10.67% decline during the prior full week, and a 3.47% rise month-to-date. The earnings report exacerbated short-term volatility, with the market reacting to both the revenue shortfall and CEO optimism around CDM synergies. Analysts noted the acquisition’s potential to offset near-term losses, though debt concerns and liquidity constraints remain pressing.

CEO Commentary

Rick Mills acknowledged Q3 challenges, including the deferred order and software impairment, but emphasized the CDM acquisition’s potential to double the company’s size and drive cross-selling. He highlighted board additions, including Cineplex’s Dan McGrath, as strategic moves to strengthen leadership. The CEO projected immediate bottom-line improvements post-acquisition and a stronger 2026 outlook.

Guidance

The CEO outlined forward-looking expectations centered on CDM integration, cross-selling, and board expertise, but provided no specific revenue or margin targets. Risks include integration hurdles, debt obligations, and market conditions. The company anticipates “greater returns in fiscal 2026 and beyond” through CDM’s customer base and media network expansion.

Additional News

Creative Realities completed the $42.7 million acquisition of Cineplex Digital Media (CDM), doubling its size and expanding into Canada’s retail media networks. The deal is expected to generate $10 million in annual synergies by 2026 and boost advertising revenue. Concurrently, the company appointed Dan McAllister as Chief Revenue Officer, leveraging his 25 years of experience in digital signage and SaaS. Three new board members, including Cineplex’s Dan McGrath, were added to strengthen leadership.

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