Overview

• US digital signage provider's fiscal Q1 revenue rose yr/yr, driven by Cineplex Digital Media acquisition

• Adjusted EBITDA for fiscal Q1 turned negative

• Company says winter storms and seasonal factors negatively impacted Q1 revenue

Outlook

• Company expects stronger sales for the remainder of fiscal 2026 based on current pipeline

• Creative Realities investing in business development to accelerate revenue and improve profit margins

• Company says second quarter is off to a strong start in installations and customer engagement

Result Drivers

• CDM ACQUISITION - Revenue growth driven by contribution from Cineplex Digital Media acquisition

• SEASONAL AND WEATHER IMPACTS - Revenue negatively affected by winter storms and seasonal factors causing installation delays

• LOWER GROSS MARGINS - Gross margin declined due to higher mix of lower-margin hardware sales and one-time costs related to installer transition

Company press release: ID:nGNXb5m6z1

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$16.35 mln	$16.52 mln (2 Analysts)
Q1 EPS		-$0.74
Q1 Adjusted EBITDA		-$500,000
Q1 ARR		$20.10 mln
Q1 Gross Profit		$5.60 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Creative Realities Inc is $8.50, about 132.9% above its May 14 closing price of $3.65

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