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]

Financial Data and Key Metrics Changes - The company reported a slight increase in revenue for Q3 2025 compared to Q3 2024, with adjusted EBITDA slightly ahead of expectations, resulting in a 52.8% adjusted EBITDA margin [4][19] - Free cash flow for Q3 2025 was $44.4 million, up 32% from $33.6 million in Q3 2024, driven by strong adjusted EBITDA conversion and outstanding collections [5][19] - The company expects free cash flow for the year to exceed $95 million, ahead of original expectations [5] Business Line Data and Key Metrics Changes - Corporate channel revenue reached a record $56.3 million, a 6.1% increase from $53.1 million in Q3 2024, driven by strong performance in upper enterprise accounts and public sector business [8][17] - SOHO business revenue was $31.5 million, representing a strategic planned decline of 9.2% from $34.7 million in Q3 2024, reflecting a focus on optimizing profitability [12][18] - Corporate ARPA was $293 for the quarter, down from $301 in Q2 2025 and $310 in Q3 2024, influenced by the expansion of the SMB cohort [10][18] Market Data and Key Metrics Changes - The corporate customer base expanded to approximately 65,000, up over 12% from 58,000 in Q3 2024 [9][17] - The VA segment saw record high usage and revenue, unaffected by the government shutdown, indicating strong adoption [11][12] - SOHO cancellation rate improved to 3.71% from 3.84% in the previous quarter, reflecting better customer retention [13][18] Company Strategy and Development Direction - The company is focused on expanding its corporate SMB and upper enterprise markets while maintaining a strong emphasis on healthcare [15] - A brand refresh for eFax aims to unify the company's advanced solutions under a familiar name, enhancing market trust [14][15] - The company plans to continue opportunistic repurchases of both debt and equity as part of its capital allocation strategy [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the VA segment, anticipating continued expansion and increased adoption [28] - The company acknowledged potential near-term headwinds in the SOHO segment due to changes in the search environment, but is executing a recovery plan [13][50] - Management expects to provide full-year 2026 guidance in early 2026, indicating a positive outlook for future performance [53] Other Important Information - The company drew approximately $200 million from its credit facility to retire a like amount of 6% notes, reducing total indebtedness significantly [6][22] - The company ended Q3 2025 with cash of approximately $98 million, sufficient to fund operations and repurchases [21] Q&A Session Summary Question: Can you talk about the VA and corporate sales? - Management noted that the VA continues to expand, with increased usage and ongoing rollout to new facilities, expecting growth to continue into 2026 [28] Question: What is the current penetration of VA sites? - The company is more than 50% deployed in terms of raw numbers, but not all sites are fully utilized yet, indicating potential for future growth [30] Question: What is the expected deceleration rate for SOHO revenue? - Management indicated it is difficult to predict, but expects the decline to continue into 2028 or later, with a focus on stabilizing the customer base [34] Question: Can you discuss advanced product upsells into corporate? - Management highlighted strong performance in AI product adoption and integration services, which are key drivers of revenue growth [37] Question: What factors influenced the decline in SOHO paid ads? - The decline was attributed to a spike in customer acquisition costs and changes in the search environment, with recovery measures already in place [40] Question: Can the VA revenue grow from $10 million to $20 million? - Management indicated that while the current focus is on the eFax platform, there is potential for upselling additional solutions into the VA in the future [42]

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 announced the acquisition of Cineplex Digital Media for CAD 70 million, which will double the company's size and expand its North American operations [1][2] - The acquisition is expected to generate annual cost synergies of at least $10 million by the end of 2026, enhancing operating efficiencies and margins [1][2] - CDM's revenue for 2024 was just under CAD 56 million, with a projected growth of 25% in 2025, and over 60% of its revenue is recurring [1][2] Financial Overview - The acquisition will be financed through a combination of debt and equity, including a three-year, $36 million senior term loan and $30 million of convertible preferred equity [4] - On a pro-forma adjusted basis, accounting for synergies, revenue is expected to exceed USD 100 million by 2026, with Adjusted EBITDA margins projected to be in the high teens [2][4] - Once all synergies are realized, Adjusted EBITDA margins should exceed 20%, leading to significant free cash flow generation [2][4] Strategic Implications - The acquisition of CDM will enhance Creative Realities' product portfolio and customer experience capabilities, positioning the company to capitalize on the growth in retail media networks [3] - CDM's established presence in North America, serving thousands of locations, will provide immediate benefits to Creative Realities' operations [3] - The integration of CDM's technology with Creative Realities' platforms is expected to accelerate growth and improve overall performance [3] Market Position - CDM operates within Canada's largest mall network, featuring over 750 screens across 95 shopping destinations, which will significantly enhance Creative Realities' market presence [2][5] - The acquisition is anticipated to be accretive to earnings almost immediately, reflecting a strong strategic fit between the two companies [2][3] Upcoming Events - An investor update call is scheduled for October 16, 2025, to discuss the acquisition and its implications for the company's future [8]

Financial Data and Key Metrics Changes - The company reported organic growth of 2% in Q3, which was below the expected 5% and the street's expectations [8][31] - MyDay product line experienced double-digit growth, with MyDay multifocal growing by 20% [11] - The company anticipates a similar performance in Q4 as in Q3, with expectations of channel inventory adjustments [17][18] Business Line Data and Key Metrics Changes - MyDay's growth was attributed to successful fitting sets and trial lenses provided to optometrists, leading to increased sales [10][11] - Clarity, a private label product, faced inventory drawdowns due to new private label contracts, impacting sales negatively in Q3 [12][14] - The company expects to start replenishing private label inventory in Q4, which should help stabilize sales [17] Market Data and Key Metrics Changes - The e-commerce channel in China saw a significant reduction in inventory from six months to two months, impacting sales negatively [19][20] - The company noted a 25% reduction in sales in Q1, with similar declines in Q3, indicating challenges in the Chinese market [20][30] - The overall market growth is projected to be 4% to 6%, with the company expecting to align its growth with market trends [53][55] Company Strategy and Development Direction - The company is focusing on increasing MyDay capacity to meet demand and improve market share in the daily silicone hydrogel segment [49][56] - There is an ongoing effort to improve operational efficiency and leverage revenue growth through restructuring initiatives [78][81] - The company is considering separating its CooperVision and CooperSurgical businesses if market valuations do not improve [73][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market's recovery and the company's ability to capitalize on MyDay's growth potential [94] - There are indications of a positive shift in the fertility market, with expectations of mid-single-digit growth in the long term [62][66] - Management acknowledged recent challenges but believes they will be resolved, leading to improved organic growth in the future [94] Other Important Information - The company is focusing on stock buybacks and debt reduction as part of its capital allocation strategy [91] - Free cash flow is expected to improve as capital expenditures decrease and operational cash flow increases [88][89] Q&A Session Summary Question: What were the issues highlighted in CVI? - Management explained that organic growth was impacted by inventory adjustments and the transition to private label products, which caused confusion in the market [8][15] Question: What is the status of e-commerce in China? - Management confirmed that inventory levels have decreased significantly, and they do not plan to chase back lost sales aggressively [20][30] Question: How is the company addressing pricing competition? - Management noted that while there is positive pricing in the U.S., aggressive pricing competition exists in Asia Pacific, particularly in low-margin e-commerce channels [25][27] Question: What is the company's market share in silicone hydrogel dailies? - Management stated that the company holds approximately 25% market share in daily silicone hydrogels and is working to regain share lost in recent years [49][50] Question: What are the expectations for future growth? - Management expects the market to grow 4% to 6% and believes the company can achieve better growth rates by leveraging MyDay capacity [53][55]

Financial Data and Key Metrics Changes - The company reported organic growth of 2% in Q3, which was below the expected 5% and the street's expectations [4][26] - MyDay product line experienced double-digit growth, with MyDay multifocal growing by 20% [7] - The company anticipates a similar performance in Q4 as in Q3, with expectations of improved inventory levels and revenue from private label products [13][54] Business Line Data and Key Metrics Changes - MyDay's growth was attributed to successful fitting sets and trial lenses provided to optometrists, leading to increased sales [6][7] - Clarity, the private label product, faced inventory drawdowns as retailers anticipated new private label contracts, impacting sales negatively in Q3 [9][10] - The company expects to replenish private label inventory in Q4, which should help stabilize sales [11][13] Market Data and Key Metrics Changes - The e-commerce channel in China saw a significant reduction in inventory, dropping from six months to two months, impacting sales negatively [15][16] - Pricing in the U.S. remains stable, while competitive pricing pressures are noted in Asia Pacific, particularly in e-commerce channels [21][22] - The overall market growth is projected to be 4% to 6%, with the company expecting to maintain or regain market share as MyDay capacity improves [50][53] Company Strategy and Development Direction - The company is focusing on increasing MyDay production capacity to meet demand and improve market share in the daily silicone hydrogel segment [54][45] - There is an ongoing effort to enhance operational efficiency and leverage revenue growth, particularly in the CooperSurgical business [71][72] - The management is open to considering a separation of CooperVision and CooperSurgical if market valuations do not improve, but currently believes in the synergy of keeping both together [66][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying market dynamics, expecting a return to mid-single-digit growth in the contact lens market [66][59] - The company acknowledges recent challenges in organic growth but believes that improvements in MyDay supply will lead to better performance in the future [85] - Management noted that consumer purchasing behavior remains stable, with continued demand for premium products [30][31] Other Important Information - The company is experiencing pricing pressures in certain markets but maintains a positive pricing environment overall [21][22] - Free cash flow is expected to improve as capital expenditures decrease and operational cash flow increases [79][80] - The company plans to utilize free cash flow for debt reduction and stock buybacks, indicating a more aggressive approach to returning value to shareholders [82] Q&A Session Summary Question: What were the issues affecting Q3 earnings? - Management explained that the organic growth was impacted by inventory drawdowns in Clarity due to private label contracts and reduced e-commerce sales in China [4][10][15] Question: How is the company addressing pricing competition? - Management noted that while there is aggressive pricing in Asia Pacific, they have chosen not to engage in price wars, focusing instead on maintaining profitability [22][24] Question: What is the outlook for the MyDay product line? - Management confirmed that MyDay is expected to see significant growth as production capacity increases, with double-digit growth already observed in Q3 [54][45] Question: What is the company's strategy regarding potential separation of business units? - Management stated that they would consider separating CooperVision and CooperSurgical if market valuations do not improve, but currently see value in keeping them together [66][67] Question: How does the company plan to improve free cash flow? - Management indicated that free cash flow is expected to improve as capital expenditures decrease and operational efficiencies are realized [79][80]

Financial Data and Key Metrics Changes - Q3 consolidated revenues increased by 5.7% year over year, reaching $1,060 million, with organic growth of 2% [7][26] - Non-GAAP earnings per share (EPS) grew by 15% to $1.1, with free cash flow reported at $165 million [7][28] - Gross margin improved by 70 basis points to 67.3%, driven by efficiency gains and favorable foreign exchange [26] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $718 million, reflecting a 6.3% increase and 2.4% organic growth, although results were below expectations due to declines in Clarity and e-commerce weakness in Asia Pacific [8][10] - CooperSurgical posted revenues of $342 million, up 4.5% or 2% organically, with fertility revenues growing 6% [20][21] Market Data and Key Metrics Changes - EMEA region grew by 14% or 6% organically, becoming CooperVision's largest revenue region globally [10] - The Americas grew by 2% or 3% organically, while Asia Pacific saw a 1% increase but a 5% organic decline [10] Company Strategy and Development Direction - The company aims to leverage the strong momentum of MyDay and upcoming product launches to outpace the contact lens market and gain market share [24] - Focus on operational excellence and disciplined cost management to support sustainable revenue growth [7][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from Clarity and e-commerce challenges in Asia Pacific but expressed confidence in the long-term outlook for both CooperVision and CooperSurgical [20][24] - The company expects to generate approximately $2 billion in free cash flow over the next three fiscal years, with a focus on debt reduction and share repurchases [30][31] Other Important Information - The company is implementing mitigation strategies for tariffs, expecting a $24 million lower impact than previously anticipated [30] - Significant progress has been made in IT upgrades and organizational efficiency initiatives [30][71] Q&A Session Summary Question: How does the core CVI portfolio compare to the market for fiscal 2026? - Management indicated that the core portfolio is expected to be at least in line with the market, with additional growth from MiSight [37][38] Question: Why is MyDay's success impacting Clarity? - Management noted that in some markets, Clarity and MyDay were viewed similarly, leading to a shift in customer preference towards MyDay [41][42] Question: What is the outlook for the contact lens market? - Management acknowledged a slowdown in market growth but remains optimistic about future performance driven by silicone hydrogel lenses and multifocal products [19][50] Question: What are the expectations for the fertility market? - Management expects a rebound in the fertility market as clinics begin investing again, despite near-term pressures [20][110] Question: What is the situation with PARAGARD? - Management reported declining volumes for PARAGARD but offsetting revenue through pricing strategies [114][116]

Financial Data and Key Metrics Changes - Q3 consolidated revenues increased by 5.7% year over year, reaching $1,060 million, with organic growth of 2% [5][25] - Non-GAAP earnings per share (EPS) grew by 15% year over year to $1.1, with free cash flow reported at $165 million [5][28] - Gross margin improved by 70 basis points to 67.3%, driven by efficiency gains and favorable foreign exchange [25] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $718 million, reflecting a 6.3% increase and 2.4% organic growth, although results were below expectations due to declines in Clarity orders [6][9] - CooperSurgical posted revenues of $342 million, up 4.5% year over year, with fertility revenues growing 6% [20][21] - MyDay lenses showed double-digit growth, with MyDay Multifocal growing 20% [11][13] Market Data and Key Metrics Changes - EMEA region grew 14% or 6% organically, becoming CooperVision's largest revenue region globally [9] - The Americas grew 2% or 3% organically, while Asia Pac grew 1% but declined 5% organically due to Clarity pressure [9][10] - The overall contact lens market is expected to continue mid-single-digit growth, driven by a shift towards silicone hydrogel lenses [19] Company Strategy and Development Direction - The company aims to leverage strong MyDay momentum and upcoming product launches to gain market share [23][30] - Focus on operational excellence and disciplined cost management to support sustainable revenue growth [5][28] - Ongoing restructuring efforts to enhance efficiency and leverage IT upgrades [73][74] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the contact lens market, particularly in Asia Pac, but remains optimistic about long-term growth in fertility and contact lenses [20][50] - Guidance for Q4 indicates expected organic growth of 2% to 4% for both CooperVision and CooperSurgical, factoring in potential headwinds [22][23] - Confidence in achieving $2 billion in free cash flow over the next three fiscal years, supported by improved operating margins [30][102] Other Important Information - The company repurchased $52 million worth of stock during the quarter, with approximately $164 million remaining under the repurchase plan [28] - Tariff impacts are expected to be lower than previously anticipated, with mitigation strategies in place [29][30] Q&A Session Summary Question: How does the core CVI portfolio compare to market growth for fiscal 2026? - Management indicated that the core portfolio has lagged the market but expects to be at least in line with market growth, with additional contributions from MySight [36][40] Question: Why is MyDay's success impacting Clarity? - Management noted that in some markets, Clarity and MyDay were viewed similarly, leading to a shift in orders towards MyDay [41][45] Question: What is the outlook for the contact lens market's growth? - Management acknowledged a slowdown in market growth but remains confident in the long-term fundamentals, including pricing and consumer trends [50][52] Question: What are the drivers for expected Q4 rebound in fertility? - Management highlighted improvements in genomics and consumables, along with anticipated investments from fertility clinics [110][114] Question: What is the situation with PARAGARD and market dynamics? - Management confirmed no new competitive launches but acknowledged declining volumes, offset by pricing strategies [117][119]

Core Viewpoint - The Cooper Companies, Inc. is expected to report strong third-quarter fiscal 2025 results, with anticipated revenue growth of 5.4% year-over-year and earnings per share (EPS) growth of 8.2% [2][10]. Group 1: Financial Performance - The Zacks Consensus Estimate for revenues is $982 million, reflecting a 5.4% increase from the previous year [2]. - The consensus estimate for earnings is 92 cents per share, indicating an 8.2% improvement from the prior-year period [2]. - The company has consistently beaten earnings estimates, with an average surprise of 3.18% over the last four quarters [1]. Group 2: Segment Performance - Cooper Companies operates under two main segments: CooperVision (CVI) and CooperSurgical (CSI), both of which have shown strength recently [3]. - The CVI segment is expected to benefit from rising demand for contact lenses, with projected sales growth of 6-7% in fiscal 2025 [8]. - The CSI segment may face challenges due to weak fertility demand, but growth in minimally invasive surgical devices is expected to partially offset this weakness [11][12]. Group 3: Product Demand and Innovations - The CVI segment has seen solid growth across all geographies, particularly in The Americas, and is expected to continue this trend [5]. - Strong demand for premium brands like MyDay is anticipated to persist, supported by new market availability and expanded product offerings [6]. - The company is also launching new products, such as MyDay Energy in Canada and upgraded Clarity One Day Sphere in Japan, which are expected to contribute to revenue growth [4]. Group 4: Market Trends and Challenges - The overall market for contact lenses is projected to grow by 4-6% in 2025, benefiting Cooper Companies due to its leadership in several categories [5]. - The fertility segment is experiencing a decline, particularly in the Asia-Pacific region, which may impact overall sales [12]. - Despite challenges in the fertility market, the company anticipates continued interest in its PARAGARD product, although sales may decline in the upcoming quarter [13].