Core Insights - Creative Realities, Inc. announced its financial results for the fiscal third quarter ended September 30, 2025, highlighting a transformational acquisition of Cineplex Digital Media (CDM) that is expected to enhance growth and profitability moving forward [1][3]. Financial Performance - Sales for the third quarter were $10.5 million, down from $14.4 million in the same period of fiscal 2024 [4][6]. - Hardware revenue decreased to $4.2 million from $5.2 million year-over-year, while service revenue fell to $6.4 million from $9.2 million [4][6]. - Consolidated gross profit was $4.8 million, compared to $6.6 million in the prior-year period, with a gross margin of 45.3% [5][6]. - The company reported a net loss of $7.8 million for the third quarter, compared to a net income of $0.1 million in the prior-year period [6][8]. - Adjusted EBITDA was $0.8 million, down from $2.3 million in the prior-year period [6][9]. Acquisition Impact - The acquisition of CDM for CAD $70 million (USD $42.7 million) is expected to significantly improve the company's growth trajectory and profitability through cross-selling opportunities and synergies [3][6]. - The addition of three new board members with extensive industry experience is anticipated to strengthen the company's leadership as it enters a new growth phase [3][6]. Balance Sheet Overview - As of September 30, 2025, the company had cash on hand of approximately $0.3 million, down from $1.0 million at the end of 2024 [10]. - Outstanding debt increased to approximately $39.9 million after accounting for the acquisition and related expenses [10]. Operational Changes - Sales and marketing expenses decreased to $1.4 million, while general and administrative expenses rose to $5.0 million, reflecting increased stock-based compensation and transaction expenses related to the acquisition [7][8]. - The company experienced an operating loss of approximately $7.3 million, including a non-cash software impairment charge of $5.7 million [8][9].

Core Insights - Creative Realities, Inc. has appointed Dan McAllister as Chief Revenue Officer effective November 17, 2025, bringing over 25 years of experience in driving growth across digital signage and related technologies [1][2][3] - The company aims to leverage McAllister's expertise to accelerate growth in North America following its acquisition of Cineplex Digital Media, enhancing its leadership in providing digital signage solutions [2][4] Company Overview - Creative Realities designs, develops, and deploys digital signage experiences for enterprise-level networks, utilizing platforms such as Clarity, ReflectView, and iShowroom Content Management System (CMS) [4] - The company provides recurring SaaS and support services across various verticals, including retail, automotive, digital-out-of-home (DOOH) advertising, and more, focusing on enhancing customer experiences and increasing revenue [4] Leadership Background - Dan McAllister previously served as CRO at Blink AI Automotive and has held significant roles at Spectrio, The Miele Group, and Scala, contributing to his extensive knowledge of the digital signage value chain [3][2] - His experience includes advancing customer engagement through AI applications and developing targeted content strategies for enterprise deployments [3][2]

Acquisition Details - Creative Realities, Inc. has completed the acquisition of Cineplex Digital Media for CAD $70 million in cash, which includes Canada's largest mall retail media network with over 750 screens across 95 shopping destinations [1] - Cineplex Digital Media reported sales of just under CAD $56 million in 2024 and is projected to achieve 25% year-over-year growth in 2025 [1] - The acquisition is expected to generate cost synergies of at least USD $10 million annually by the end of 2026, enhancing operating efficiencies and margin opportunities [1] Financial Structure - The acquisition was financed through a combination of debt and preferred equity, including a three-year, $36 million senior term loan and $30 million of convertible preferred equity [3] - The purchase price is estimated to be approximately 3X-4X the Adjusted EBITDA of the CDM business for the trailing 12-month period ended September 30, 2025 [1] Board Expansion - The size of the Board of Directors has increased from four to seven, with the appointment of three new directors: Dan McGrath, Tom Ellis, and Mike Bosco [2] - The new board members bring unique capabilities and expertise to support the company's expansion plans [3] Company Overview - Creative Realities designs and deploys digital signage-based experiences for enterprise-level networks, utilizing platforms such as Clarity™, ReflectView™, and iShowroom™ [5] - The company provides recurring SaaS and support services across various vertical markets, including retail, automotive, and digital-out-of-home advertising [6]

Core Insights - Creative Realities, Inc. will participate in the 16th Annual Craig-Hallum Alpha Select Conference on November 18, 2025, providing opportunities for one-on-one meetings with management and institutional investors [1] Company Overview - Creative Realities designs, develops, and deploys digital signage experiences for enterprise-level networks, utilizing platforms such as Clarity, ReflectView, and iShowroom Content Management System (CMS) [2] - The company offers recurring SaaS and support services across various vertical markets, including retail, automotive, digital-out-of-home advertising, convenience stores, foodservice, gaming, theater, and stadium venues [2] - Creative Realities helps clients leverage place-based digital media to achieve business objectives like increased revenue, enhanced customer experiences, and improved productivity [2] - The company manages Retail Media Networks to monetize on-premise foot traffic through its AdLogic and AdLogic CPM+ programmatic advertising platforms [2]

Core Insights - Creative Realities, Inc. will release its financial results for Q3 2025 on November 12, 2025, before market open [1] - A conference call to discuss the results will take place on the same day at 9:00 am Eastern Time, hosted by the CEO and Chief Strategy Officer [1] Company Overview - Creative Realities designs and deploys digital signage solutions for enterprise-level networks, utilizing platforms such as Clarity, ReflectView, and iShowroom CMS [3] - The company provides recurring SaaS and support services across various sectors, including retail, automotive, and digital-out-of-home advertising [3] - Creative Realities aims to help clients achieve business objectives like increased revenue and improved customer experiences through place-based digital media [3]

Core Insights - Creative Realities, Inc. has won the 2025 Digital Signage Experience (DIZZIE) Award in the Venues category for its Digital Transformation project at Rogers Arena, highlighting its innovative approach to enhancing the live venue experience through integrated digital design and fan engagement [1][4] Company Achievements - The award recognizes the collaboration between Creative Realities and Canucks Sports & Entertainment, which resulted in a large-scale digital transformation that improves fan experience, operational efficiency, and revenue generation [1][4] - This marks Creative Realities' first DIZZIE Award in the Venues category and its first large-scale deployment in a Canadian venue, indicating the company's expanding international presence in the sports and entertainment sector [4] Technological Innovations - The digital modernization at Rogers Arena included the installation of over 900 IPTV and digital signage endpoints, utilizing Creative Realities' Clarity™ Digital Menu Board software for real-time content delivery and synchronized fan experiences [2][3] - Key innovations featured in the project include "Moments of Exclusivity" that synchronize screens during significant events, POS-integrated digital menu boards for instant pricing updates, and a hospitality-driven content strategy that enhances the overall fan experience [7] Industry Recognition - The DIZZIE Awards, presented annually by the Digital Signage Experience (DSE) and Questex, honor excellence in digital signage, recognizing installations that combine creativity, innovation, and measurable results across various sectors [3]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Viewpoint - The company is discussing the acquisition of Cineplex's CDM business unit, highlighting its strategic importance and potential benefits for growth and market expansion [3]. Group 1: Acquisition Background - The acquisition process began post-COVID when Cineplex put the CDM business unit up for sale, but later withdrew it from the market, initiating discussions with the company [4]. - The Chief Strategy Officer, George Sautter, has extensive experience with Cineplex, having worked there for over 13 years, which adds strategic insight to the acquisition [4]. Group 2: Transaction Details - The acquisition is expected to double the company's scale and expand its total addressable market [3]. - It aims to increase annual recurring revenue (ARR) and achieve meaningful cost synergies [3]. Group 3: Future Outlook - The company is optimistic about the outlook for calendar year 2026 following the acquisition, indicating a positive growth trajectory [3].

Summary of Creative Realities (NasdaqCM:CREX) M&A Announcement Company and Industry - **Company**: Creative Realities, Inc. (CRI) - **Industry**: Digital Media and Advertising, specifically focusing on digital signage and retail media networks Key Points and Arguments Acquisition Overview - CRI announced the acquisition of Cineplex Digital Media (CDM) to enhance its scale and market presence [2][3] - The acquisition is expected to double CRI's revenue from $50 million to $100 million, creating one of the largest North American digital media companies [2][3] Rationale for Acquisition - **Scale**: The acquisition significantly increases CRI's operational scale, which is crucial in the digital media industry [3][4] - **Market Expansion**: It expands CRI's total addressable market, particularly in the lottery vertical and media revenue generation [4] - **Cost Synergies**: Identified cost synergies of approximately $10 million, including personnel and support structure optimizations [4][12] Financial Details - The purchase price for CDM is approximately $50 million, financed through $48.5 million in bank debt and $30 million in convertible preferred equity [9][10] - The acquisition is expected to add $18 million in day-one SaaS revenue and $20 million in media revenue [10][13] - By the end of 2025, CRI anticipates reaching about $46 million in recurring revenue [13] Growth Projections - Revenue is projected to exceed $100 million in 2026, with adjusted EBITDA margins expected to exceed 20% after realizing synergies [14][15] - The acquisition is expected to generate significant free cash flow [15] Strategic Benefits - The acquisition strengthens CRI's leadership in digital signage and ad tech, enhancing its capabilities in retail media networks and lottery [10][11] - CRI now owns the largest mall digital out-of-home network in Canada, which is expected to grow [11] - The addition of CDM's capabilities allows CRI to pursue larger deals and enhance credibility with enterprise clients [17][18] Market Opportunities - CRI sees significant opportunities in the U.S. lottery market, with several upcoming RFPs expected to be released [19][20] - The company plans to leverage its existing relationships with major Canadian retailers and financial institutions to expand its market presence [19][20] Competitive Landscape - The competitive landscape in the lottery market is favorable for CRI, as it aims to capitalize on the North Carolina Lottery contract as a reference point [24][25] - CRI's existing expertise in retail media networks is expected to enhance its competitive position in both Canada and the U.S. [54][56] Operational Insights - The integration of CDM is expected to streamline operations, reduce costs, and enhance service delivery through CRI's existing infrastructure [12][13] - The transition of support services from outsourced to in-house is anticipated to reduce operational costs significantly [12][13] Additional Important Information - The acquisition is currently under review by the Competition Bureau in Canada, which may affect the closing timeline [42][45] - The existing credit facility of $21 million was paid off as part of the financing for the acquisition [29][30] - The Stellantis contract, which generated approximately $2.4 million annually, is being phased out due to budget constraints in the U.S. [31][32] This summary encapsulates the critical aspects of the acquisition announcement and the strategic direction of Creative Realities following the merger with Cineplex Digital Media.

+ CRI – CDM Combination – 4th Quarter 2025 1 Proprietary and Confidential 1 Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and includes, among other things, discussions of our business strategies, product releases, future operations and capital resources. Words such as "estima ...