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Creative Realities Inc (CREX)
NASDAQ:CREX
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Creative Realities
(NASDAQ:CREX)
58Neutral
Creative Realities (CREX) vs. S&P 500 (SPY)
Market Cap
$20.48M
Dividend YieldN/A
Average Volume (3M)55.29K
Price to Earnings (P/E)27.0
Beta (1Y)1.71
Revenue Growth12.59%
EPS Growth18.85%
CountryUS
Employees146
SectorTechnology
Sector Strength44
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.34
Shares Outstanding10,446,659
10 Day Avg. Volume53,204
30 Day Avg. Volume55,290
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.42
Price to Cash Flow (P/CF)-3.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside308.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Creative Realities Business Overview & Revenue Model
Company DescriptionCreative Realities, Inc. (CREX) is a leading provider in the digital signage space, offering innovative technology solutions to enhance customer experiences and engagement. The company operates in the digital out-of-home advertising sector, focusing on creating immersive and interactive digital experiences through a suite of hardware and software products, including digital displays, interactive kiosks, and content management systems.
How the Company Makes MoneyCreative Realities generates revenue primarily through the sale and installation of digital signage solutions and associated software services. The company earns money by offering comprehensive end-to-end solutions, which include consulting, design, hardware installation, software licensing, and ongoing support and maintenance. Key revenue streams include one-time project fees for custom installations and recurring revenue from software subscriptions and managed services. Significant partnerships with hardware manufacturers and software providers enhance the company's offerings, contributing to its overall earnings.
Creative Realities Financial Statement Overview
Summary
Creative Realities demonstrates revenue growth and improved financial structure with reduced leverage. However, ongoing profitability challenges and occasional negative free cash flow impact the financial performance.Income Statement
Creative Realities has demonstrated steady revenue growth over the years, with a notable increase in 2024. However, the company continues to face profitability challenges, as evidenced by negative net income in recent years. The gross profit margin has remained relatively stable, indicating efficient cost management. Despite these strengths, the negative net profit margin highlights ongoing profitability issues.65
Positive
Balance Sheet
The company's balance sheet reflects a strong equity position with a Debt-to-Equity ratio improving significantly over the years, indicating a decrease in leverage and enhanced financial stability. However, the return on equity remains negative due to continued net losses, which impacts overall financial health.70
Positive
Cash Flow
Creative Realities has improved its operating cash flow, showing positive growth and good cash generation. However, free cash flow growth has been inconsistent, with occasional negative free cash flow in prior years. The operating cash flow to net income ratio is strong, suggesting effective cash generation relative to accounting income.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 54.30M | 50.85M | 45.17M | 43.35M | 18.44M | 17.46M | Gross Profit |
| 24.97M | 24.01M | 22.18M | 17.74M | 8.36M | 8.12M | EBIT |
| 3.63M | 938.00K | 1.35M | -2.72M | 782.00K | -5.41M | EBITDA |
| 6.10M | 938.00K | 3.36M | 945.00K | -667.00K | -14.51M | Net Income Common Stockholders |
| 1.13M | -3.51M | -2.94M | 1.88M | 232.00K | -16.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.91M | 1.04M | 2.91M | 1.63M | 2.88M | 1.83M | Total Assets |
| 70.78M | 65.21M | 70.78M | 66.02M | 22.88M | 20.62M | Total Debt |
| 14.56M | 808.00K | 14.56M | 19.16M | 7.53M | 10.84M | Net Debt |
| 11.65M | -229.00K | 11.65M | 17.52M | 4.65M | 9.01M | Total Liabilities |
| 41.95M | 39.75M | 41.95M | 40.44M | 14.15M | 16.28M | Stockholders Equity |
| 28.83M | 25.46M | 28.83M | 25.58M | 8.73M | 4.33M |
| Cash Flow | Free Cash Flow | ||||
| -1.58M | 3.37M | 1.14M | -5.00M | -688.00K | -4.19M | Operating Cash Flow |
| 1.61M | 3.38M | 5.17M | -708.00K | 471.00K | -3.53M | Investing Cash Flow |
| -3.19M | -2.80M | -4.03M | -21.48M | -1.16M | -657.00K | Financing Cash Flow |
| -5.93M | -2.45M | 137.00K | 20.93M | 1.75M | 3.48M |
Creative Realities Technical Analysis
Negative
1.96
Price Trends
2.25
Negative
2.71
Negative
3.61
Negative
Market Momentum
-0.08
Negative
43.60
Neutral
49.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CREX, the sentiment is Negative. The current price of 1.96 is above the 20-day moving average (MA) of 1.92, below the 50-day MA of 2.25, and below the 200-day MA of 3.61, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 49.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CREX.
Creative Realities Risk Analysis
Creative Realities disclosed 39 risk factors in its most recent earnings report. Creative Realities reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Creative Realities Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $20.48M | 27.05 | -12.92% | ― | 12.59% | 18.85% | |
58 Neutral | $21.03B | 10.58 | -16.29% | 2.47% | 4.38% | -23.63% | |
49 Neutral | $10.45M | ― | -193.25% | ― | -23.75% | 34.05% | |
47 Neutral | $113.72M | ― | -365.12% | ― | -13.43% | 15.63% | |
46 Neutral | $2.69B | ― | -17.12% | ― | 11.86% | -140.69% | |
36 Underperform | $3.73M | ― | -21.91% | ― | -76.66% | 47.08% | |
28 Underperform | $2.55M | ― | 65.81% | ― | -20.21% | 51.45% |
* Technology Sector Average
Performance Comparison
CREX
Creative Realities
1.96
-1.77
-47.45%
GSAT
Globalstar
21.28
1.03
5.09%
MARK
Remark Holdings
0.04
-0.19
-82.61%
AYRO
AYRO
0.55
-1.11
-66.87%
POAI
Predictive Oncology
1.45
-0.82
-36.12%
VERI
Veritone
2.55
-2.81
-52.43%
Creative Realities Earnings Call Summary
Earnings Call Date: Mar 14, 2025 | % Change Since: 4.26% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Creative Realities' record-breaking year and strategic advancements, including the resolution of a major liability and the launch of a promising new platform. However, the fourth quarter showed a decline in revenue and ARR, and there are concerns about rising debt levels and project delays due to external factors.Highlights
Record-Breaking Revenue and Growth
Creative Realities closed out its best year in company history, with revenue exceeding $50 million and an adjusted EBITDA of 10%.
Resolution of Contingent Liability
The company resolved its outstanding contingent liability from the purchase of Reflect systems in 2022, which was a significant concern for investors.
Introduction of AdLogic CPM+ Platform
The new AdLogic CPM+ platform is expected to drive top-line growth and improve operating results, offering customers a comprehensive AdTech solution.
SOC 2 Compliance Achieved
The company received SOC 2, Type 1 compliance and certification, enhancing its credibility and trustworthiness for enterprise customers.
Strong Pipeline and Expansion in Sports Sector
The company has numerous large opportunities in the pipeline and has expanded its sports and entertainment team, with several MLB projects already awarded.
Lowlights
Fourth Quarter Revenue Decline
Fourth quarter revenue decreased to $11 million from $14.5 million year-over-year, with gross profit also declining from $7.5 million to $4.9 million.
Debt Levels and Cash Reserves
The company's cash on hand decreased to approximately $1 million from $2.9 million at the end of 2023, and debt levels are expected to rise in the first half of 2025.
Decline in Annual Recurring Revenue (ARR)
ARR decreased to $16.8 million from $18.1 million, due to adjustments by two large customers in their SaaS contracts.
Frozen Pipeline and Tariff Concerns
Some customer projects have been delayed due to uncertainties surrounding tariffs and broader strategic planning, impacting the timing of revenue recognition.
Company Guidance
In the fourth quarter earnings call for Creative Realities, CEO Rick Mills highlighted several key metrics and strategic developments. The company achieved a record year with revenue surpassing $50 million and an adjusted EBITDA margin of 10%. However, fourth-quarter revenue declined to $11 million from $14.5 million the previous year, with gross profit at $4.9 million compared to $7.5 million in 2023. Adjusted EBITDA decreased to $0.5 million from $2.8 million a year ago. The annual recurring revenue (ARR) was reported at $16.8 million. The company anticipates a stronger second half in fiscal 2025, with revenue acceleration driven by their new AdLogic CPM+ platform, which enhances advertising capabilities and cost-efficiency. Additionally, Creative Realities resolved a contingent liability from the 2022 Reflect Systems acquisition, involving a $3 million cash payment and a $4 million promissory note. Looking forward, they aim for an adjusted EBITDA margin of 15% by year-end, leveraging economies of scale and their expanding pipeline.Creative Realities Corporate Events
M&A TransactionsLegal Proceedings
Creative Realities Resolves Merger Dispute with Settlement
Positive
Mar 17, 2025
Creative Realities, Inc. announced a settlement agreement with former stockholders of Reflect Systems, Inc., resolving a dispute over contingent supplemental cash payments related to their merger. The settlement, finalized on March 14, 2025, involves a $3 million cash payment, a $4 million promissory note, and the issuance of warrants to purchase company stock, providing financial flexibility and removing uncertainty for stakeholders.
Executive/Board ChangesM&A TransactionsStock Split
Creative Realities Faces Dispute Over CEO Stock Options
Negative
Feb 21, 2025
Creative Realities, Inc. disclosed a modification to the stock option agreement for its CEO, Richard Mills, initially granting him the option to purchase up to 1,000,000 shares, which was later reduced to 333,334 shares due to a reverse stock split on March 27, 2023. The vesting of these options is contingent upon meeting specific share price targets, which are currently under dispute with RSI regarding the Guaranteed Price and Consideration from a merger agreement. As a result, the vesting period was extended from February 17, 2025, to a future date contingent on the resolution of this disagreement.
Executive/Board Changes
Creative Realities Announces CFO Resignation and Transition
Neutral
Jan 8, 2025
Creative Realities announced the resignation of Will Logan as Chief Financial Officer, effective January 31, 2025, as he transitions to a new role at Rough Country. David Ryan Mudd, the current controller, will step in as the Interim CFO, bringing extensive experience in SEC reporting and technical accounting matters, and will help steer the company through this transitional period.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.