Financial Performance - First quarter revenue was $9.7 million, down 21% from $12.3 million in the same period of fiscal 2024[4] - Consolidated gross profit for the first quarter was $4.5 million, compared to $5.8 million in the prior-year period, resulting in a gross margin of 45.7% versus 46.9%[5] - Adjusted EBITDA for the first quarter was $0.5 million, a decrease from $0.8 million in the prior-year period[9] - Total sales for the three months ended March 31, 2025, were $9,734 million, a decrease of 20.1% compared to $12,285 million for the same period in 2024[21] - Gross profit for the same period was $4,453 million, down 22.7% from $5,764 million year-over-year[21] - Net income for the three months ended March 31, 2025, was $3,368 million, compared to a net loss of $109 million in the same period of 2024[21] - Operating loss increased to $(722) million from $(76) million year-over-year, indicating a decline in operational efficiency[21] - Adjusted EBITDA for the three months ended March 31, 2025, was $467 million, significantly lower than $2,271 million in the same period of 2024[29] - The company reported a gain on settlement of contingent consideration amounting to $(4,775) million, impacting overall financial results[21] - Total operating expenses decreased to $5,175 million from $5,840 million year-over-year, reflecting cost-cutting measures[21] Income and Debt - The company reported a net income of $3.4 million, or $0.32 per diluted share, compared to a net loss of $0.1 million, or $(0.01) per diluted share, in the prior-year period[7] - Total debt as of March 31, 2025, was approximately $23.2 million, down from $25.8 million at the start of the fiscal year[10] Cash and Cash Equivalents - Cash on hand increased to approximately $1.1 million from $1.0 million at December 31, 2024[10] - Cash and cash equivalents at the end of the period were $1,149 million, a slight increase from $1,037 million at the beginning of the period[23] - Net cash used in operating activities was $(2,449) million, compared to $1,938 million provided in the same period of 2024[23] Annual Recurring Revenue - Annual recurring revenue (ARR) at the end of the first quarter was approximately $17.3 million, up from $16.8 million at December 31, 2024[8] Expenses and Marketing - Sales and marketing expenses decreased to $1.2 million from $1.5 million in the prior-year period[6] Contracts and Business Development - The company announced a significant contract with a well-known restaurant chain to transform hundreds of locations across the U.S. after a successful pilot program[3] Leverage Ratios - The company ended the first quarter with trailing twelve-month gross and net leverage ratios of 4.91x and 4.67x, respectively, compared to 2.59x and 2.39x at the beginning of 2025[11] Share Information - Weighted average shares outstanding for basic and diluted earnings were both 10,447 million, showing stability in share count[21]
Creative Realities(CREX) - 2025 Q1 - Quarterly Results