The flat ARR and negative adjusted EBITDA signal that the CDM acquisition has not yet delivered operating leverage. With debt at $47.5M and cash only $1.8M, liquidity is tight. Watch for Q2 organic revenue growth and margin recovery; a secondary offering or debt restructuring is a risk if trends don't reverse.
Price Chart
Executive Summary
Creative Realities reported Q1 2026 revenue of $16.3M (+68% YoY), beating the $16.5M consensus by a narrow margin, but posted a GAAP net loss of $7.5M vs. net income of $3.4M a year ago, driven by acquisition-related costs, lower gross margins (34.2% vs. 45.7%), and a $4.8M prior-year gain that did not repeat. Adjusted EBITDA turned negative at -$0.5M vs. +$0.5M last year, and ARR was flat at $20.1M. The EPS beat of 54.8% ($-0.21 actual vs. $-0.47 consensus) is largely a mechanical artifact of a low base and does not reflect underlying improvement.
Key Financial Metrics
Key Facts
- Revenue $16.3M vs. $9.7M YoY (+68%), but $7.9M came from the CDM acquisition; organic growth was minimal.
- GAAP net loss of $7.5M vs. net income of $3.4M YoY; EPS of -$0.74 vs. +$0.32.
- Adjusted EBITDA turned negative to -$0.5M from +$0.5M YoY.
- Gross margin collapsed to 34.2% from 45.7% YoY, with hardware margin at 14.0% (vs. 32.1%) and service margin at 42.0% (vs. 53.0%).
- ARR flat at $20.1M vs. Dec 2025, indicating no organic subscription growth.
- Debt rose to $47.5M from $44.0M at year-end; cash only $1.8M.
- Operating cash flow negative at -$1.7M.
Financial Impact
Revenue beat consensus by ~1.2% but GAAP net loss swung by $10.9M vs. prior year; Adjusted EBITDA deteriorated by $1.0M.
Risk Factors
- Flat ARR suggests no organic subscription growth; CDM integration may not yield expected synergies.
- Gross margin compression (hardware 14%, services 42%) is structural, not seasonal.
- Debt of $47.5M vs. cash $1.8M creates refinancing risk; interest expense rose 4.6x YoY.
- Negative operating cash flow (-$1.7M) and negative adjusted EBITDA (-$0.5M) indicate cash burn.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3295756 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 13, 2026 10w ago | 8-K | $3.36 | awaiting T+60 | — | $2.09 (−37.80%) |
Aug 13, 2026 10w ago | Press Release | $3.36 | awaiting T+60 | — | $2.09 (−37.80%) |
Aug 4, 2026 12w ago | Press Release | $3.11 | awaiting T+60 | — | $2.09 (−32.80%) |
Jul 2, 2026 16w ago | Insider Cluster | $4.09 $2.52 | ▼ −38.39% | ▼ −41.39% | $2.09 (−48.90%) |
Jun 30, 2026 17w ago | 8-K | $4.13 $2.54 | ▲ +38.50% | ▲ +41.32% | $2.09 (+49.39%) |
Jun 30, 2026 17w ago | 424B5 | $4.13 $2.54 | ▲ +38.50% | ▲ +41.32% | $2.09 (+49.39%) |
Jun 29, 2026 17w ago | Press Release | $4.06 $2.60 | ▲ +35.88% | ▲ +40.27% | $2.09 (+48.46%) |
Jun 29, 2026 17w ago | 8-K | $4.06 $2.60 | ▲ +35.88% | ▲ +40.27% | $2.09 (+48.46%) |
Jun 29, 2026 17w ago | 424B5 | $4.06 $2.60 | ▲ +35.88% | ▲ +40.27% | $2.09 (+48.46%) |
Jun 29, 2026 17w ago | Press Release | $4.06 $2.60 | ▲ +35.88% | ▲ +40.27% | $2.09 (+48.46%) |
US Market Status
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