Creative Realities (CREX) investor relations material

Executive summary

• Q4 2025 revenue more than doubled year-over-year to $23.9 million, with $13.6 million contributed by the CDM acquisition.

• Gross profit rose to $11.5 million, with gross margin improving to 47.9% from 44.2% year-over-year.

• Adjusted EBITDA surged to $5.2 million from $0.5 million in the prior year period.

• Integration of CDM is substantially complete, expanding market reach, especially in Canada, and strengthening recurring revenue streams.

• Management team expanded with key hires, including a new CFO, Chief Experience Officer, and Chief Revenue Officer, and three new board members.

Financial highlights

• Hardware revenue increased to $6.6 million from $3.9 million, and service revenue to $17.3 million from $7.2 million year-over-year.

• Operating income was $0.5 million, reversing a prior year operating loss of $0.7 million.

• Net loss narrowed to $2.0 million ($0.21/share) from $2.8 million ($0.27/share) year-over-year.

• Cash on hand at year-end was $1.6 million, up from $1 million at the start of 2025.

• Gross and net debt rose to $44.0 million and $41.7 million, respectively, due to the CDM acquisition.

Outlook and guidance

• Revenue for 2026 expected to exceed $100 million, with Adjusted EBITDA margin run rate reaching 20% by year-end.

• Synergies from CDM acquisition targeted at $10 million annualized by end of 2026; currently over 60% achieved.

• Free cash flow generation anticipated to improve, enabling debt reduction and deleveraging.

• Q1 2026 revenue impacted by severe weather, shifting $4 million+ to Q2 and Q3, but full-year guidance reaffirmed.

• Management expects fiscal 2026 to deliver record results, with higher revenue and expanded margins.