CREX Set to Report Q2 Earnings: What's in Store for the Stock?

Core Viewpoint - Creative Realities (CREX) is set to release its second-quarter 2025 results on August 13, with expected revenues of $12.1 million, reflecting a year-over-year decline of 7.48% [1][7]. Financial Performance - The Zacks Consensus Estimate for CREX's second-quarter loss is projected at 3 cents per share, an improvement from the previous year's loss of 6 cents per share [1]. - CREX has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average surprise of 86.56% [2]. Operational Insights - The second-quarter performance is anticipated to be influenced by a larger project pipeline and expanded operational capacity, following an agreement with a quick-service restaurant chain for over 1,000 locations across 25 states [3]. - Preparatory work for this contract, including procurement and site readiness, may have contributed to revenue and improved backlog visibility [3]. - The company achieved SOC 2 Type 1 compliance in the first quarter, which is expected to enhance its appeal to enterprise clients [3]. Challenges - The first quarter saw a net income of $3.4 million, which included a one-time gain of $4.8 million from settling a contingent consideration liability, masking underlying operational pressures [4]. - Total debt increased to $23.2 million from $13 million at the beginning of the year, indicating elevated leverage ratios and ongoing liquidity concerns [4]. - Deployment delays on three large projects in the first quarter may impact the pace of project execution and overall second-quarter performance [4]. Earnings Expectations - According to the Zacks model, CREX currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating a lower likelihood of an earnings beat [5].