Reduces Dilution Exposure and Improves Visibility for ShareholdersLOUISVILLE, Ky., Feb. 18, 2026 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX), a leading provider of digital signage, media and AdTech solutions, today announced that it repurchased the warrant (the “Warrant”) to purchase 1,731,499 shares of the Company’s common stock held by Slipstream Communications, LLC (“Slipstream”) for an aggregate repurchase price of $200,000. The Company ini ...

Core Insights - Creative Realities, Inc. has launched Digital Drive-Thru 2.0, a modular digital menu board system aimed at simplifying installation and maintenance for drive-thru environments [1][4] - The new system allows for scalability from single-screen to multi-screen configurations without the need for complete structural replacement, addressing the evolving needs of operators [1][3] Product Features - Digital Drive-Thru 2.0 features a lightweight design that can be installed manually, reducing downtime and installation barriers [3][6] - The system includes adaptive canopy lighting that complies with municipal regulations regarding exterior illumination [6] - It offers customizable components such as microphone and speaker placement, adjustable clearance bars, and POS integration for enhanced order accuracy [6] Market Positioning - The product is designed for various sectors, including quick-service restaurants (QSR) and convenience stores, allowing operators to modernize their drive-thru experience while meeting customer expectations and regulatory requirements [4][6] - Creative Realities has completed two pilot deployments and anticipates broader rollout momentum throughout 2026 [4] Upcoming Showcase - The company will present Digital Drive-Thru 2.0 at NRF 2026, featuring a full canopy installation and a three-screen configuration for media and attendees to explore [5]

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. reported a first quarter revenue of $9.7 million for fiscal 2025, down from $12.3 million in the same period of fiscal 2024, primarily due to installation timing issues [4][10] - The company announced a significant contract with a well-known restaurant chain to transform hundreds of locations across the U.S., which is expected to drive growth in the second half of 2025 [3][10] - The company ended the first quarter with an annual recurring revenue (ARR) of approximately $17.3 million, an increase from $16.8 million at the end of 2024 [5][10] Financial Performance - Consolidated gross profit for the first quarter was $4.5 million, compared to $5.8 million in the prior-year period, with a gross margin of 45.7% [5][10] - Operating loss for the first quarter was approximately $0.7 million, compared to a loss of $0.1 million in the same period last year [7][10] - The company reported a net income of $3.4 million, or $0.32 per diluted share, in the first quarter of fiscal 2025, compared to a net loss of $0.1 million, or $(0.01) per diluted share, in the prior-year period [7][10] Cost Management - Sales and marketing expenses decreased to $1.2 million from $1.5 million in the prior-year period, while general and administrative expenses fell to $3.9 million from $4.4 million [6][10] - Adjusted EBITDA for the first quarter was $0.5 million, down from $0.8 million in the prior-year period [8][10] Balance Sheet and Debt - As of March 31, 2025, the company had cash on hand of approximately $1.1 million, compared to $1.0 million at the end of 2024 [11][10] - Total debt was approximately $23.2 million, down from $25.8 million at the start of the fiscal year, primarily due to a $5.8 million reduction in contingent liabilities [11][10] - The trailing twelve-month gross and net leverage ratios utilizing Adjusted EBITDA were 4.91x and 4.67x, respectively, compared to 2.59x and 2.39x at the beginning of 2025 [12][10]

Core Viewpoint - Creative Realities, Inc. has settled its dispute with former stockholders of Reflect Systems, resolving its obligation to pay contingent supplemental cash payments related to the merger with Reflect [1][2] Group 1: Settlement Details - The settlement includes a cash payment of $3 million, a $4 million 30-month promissory note, and the issuance of warrants to purchase common stock [1][2] - The promissory note is unsecured, accrues interest at 14.0% per annum, and requires a balloon payment of $2.3 million on September 14, 2027 [1][2] Group 2: Management Commentary - The CEO expressed satisfaction with the settlement, highlighting its benefits for the company, investors, and former Reflect stockholders [2] - The settlement is seen as providing financial flexibility and removing uncertainty, allowing the company to focus on growth and improved operating results for fiscal 2025 [2] Group 3: Company Overview - Creative Realities designs and deploys digital signage solutions for enterprise-level networks, utilizing platforms like Clarity™, ReflectView™, and iShowroom™ [3] - The company provides recurring SaaS and support services across various sectors, including retail, automotive, and digital-out-of-home advertising [3] - It aims to enhance customer experiences and productivity through place-based digital media and Retail Media Networks [3]