Core Insights - Creative Realities, Inc. has appointed Tamra Koshewa as the new Chief Financial Officer effective December 1, 2025, to oversee the next phase of the company's expansion [1][2] - Ms. Koshewa brings 30 years of financial experience across various industries, which will be crucial for integrating the recently acquired Cineplex Digital Media and achieving revenue growth and operational synergies [1][2] Company Overview - Creative Realities specializes in digital signage, media, and AdTech solutions, providing services across multiple sectors including retail, automotive, and digital-out-of-home advertising [4] - The company utilizes platforms such as Clarity™, ReflectView™, and iShowroom™ for content management and aims to enhance customer experiences and productivity through its services [4] Leadership Background - Tamra Koshewa has held CFO positions at Manna, LLFlex, and HMI, and has extensive experience in senior financial roles at companies like Equipment Depot and General Electric [3] - She is recognized for her ability to drive change, implement process improvements, and generate positive cash flow, making her well-suited for the challenges ahead at Creative Realities [2][3]

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].

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 Points - Alpha Modus, Corp. has filed a patent infringement lawsuit against Creative Realities, Inc. in the U.S. District Court for the Eastern District of Texas, claiming infringement of five foundational patents [1][2] - The lawsuit targets CRI's digital signage platforms, alleging they infringe on Alpha Modus's patented technologies related to consumer behavior analysis, targeted marketing, and AI-driven retail personalization [2] - The CEO of Alpha Modus expressed confidence in the strength of their patents and the merits of their case, while also indicating a preference for amicable resolutions [3] - The CEO noted that the patented technology of Alpha Modus is becoming widespread in retail consumer engagement, suggesting that more legal actions may follow [4] Company Overview - Alpha Modus Holdings Inc. is an AI-driven technology company focused on transforming the retail and financial sectors through patented innovations [4]

Core Viewpoint - Creative Realities, Inc. reported a revenue growth of 34% sequentially in the second quarter of fiscal 2025, with expectations for stronger performance in the second half of the year, aiming for record results in 2025 [3][4]. Financial Performance - Sales for the second quarter of fiscal 2025 were $13.0 million, slightly down from $13.1 million in the same period of fiscal 2024 [4][8]. - Hardware revenue increased to $7.1 million from $5.0 million year-over-year, driven by demand from quick-serve restaurants and sports/entertainment sectors [4][8]. - Service revenue decreased to $6.0 million from $8.1 million, attributed to a reduction in SaaS subscriptions and the exit from media sales [4][5]. Profitability Metrics - Consolidated gross profit was $5.0 million, down from $6.8 million in the prior-year period, with a gross margin of 38.5% compared to 51.8% [5][8]. - Adjusted EBITDA for the second quarter was $1.2 million, down from $1.5 million in the prior-year period [9][8]. Operating Expenses - Sales and marketing expenses decreased to $1.2 million from $1.7 million, while general and administrative expenses rose to $5.2 million from $4.5 million [6][8]. - The company reported an operating loss of approximately $1.3 million, compared to an operating profit of $0.6 million in the same quarter of the previous year [7][8]. Balance Sheet and Cash Flow - As of June 30, 2025, the company had cash on hand of approximately $0.6 million, down from $1.0 million at the end of 2024, with outstanding debt increasing to $20.1 million from $13.0 million [10][8]. - The trailing twelve-month gross and net leverage ratios were 4.53x and 4.40x, respectively, compared to 2.59x and 2.39x at the beginning of 2025 [10][8]. Annual Recurring Revenue - The company ended the second quarter with an annual recurring revenue (ARR) run-rate of approximately $18.1 million, up from $17.3 million as of March 31, 2025 [5][8].

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. is set to release its financial results for Q1 2025 on May 14, 2025, with a conference call scheduled for the same day to discuss the results and engage in a Q&A session [1][2]. Company Overview - Creative Realities, Inc. specializes in designing, developing, and deploying digital signage solutions for enterprise-level networks, utilizing platforms such as Clarity™, ReflectView™, and iShowroom™ [3]. - The company provides recurring SaaS and support services across various sectors, including retail, automotive, digital-out-of-home advertising, convenience stores, foodservice, gaming, theater, and stadium venues [3]. - Creative Realities assists clients in leveraging place-based digital media to enhance revenue, customer experiences, and productivity, including managing Retail Media Networks through its AdLogic™ and AdLogic CPM+™ platforms [3].