Creative Realities (CREX) AI Stock Analysis

• Market Cap: $38.50M
• Dividend Yield: N/A
• Average Volume (3M): 96.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -18.37%
• EPS Growth: -1304.71%
• Country: US
• Employees: 146
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.75
• Shares Outstanding: 10,518,932
• 10 Day Avg. Volume: 251,287
• 30 Day Avg. Volume: 96,687
• PEG Ratio: 2.55
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 44.10
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: -15.64
• 1Y Price Target: $7.00
• Price Target Upside: 91.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.26
• Revenue Forecast (FY): $102.12M

• Rating: 54 Neutral
• Price Target: $3.00 ▼(-18.03% Downside)

The score is held back primarily by weak financial performance (declining revenue, negative margins, negative operating cash flow). Technicals provide support with price above key moving averages, but momentum is nearing stretched levels. The earnings call adds moderate optimism due to the transformative CDM acquisition and synergy targets, while valuation remains pressured due to losses (negative P/E) and no dividend support.

Positive Factors

Scale via CDM acquisition

Buying Cineplex Digital Media materially increases company scale, expanding revenue base and customer footprint. Doubling size supports fixed-cost absorption, improves negotiating leverage with suppliers and advertisers, and makes the stated $10M synergy target a meaningful driver of sustainable margin expansion.

High recurring revenue and network scale

CDM's large installed base and majority-recurring revenue provide a steadier revenue stream and higher visibility into future cash flows. Network scale creates advertising and platform network effects that support long-term SaaS and content monetization, improving revenue durability and margin potential.

Product expansion into drive-thru digital systems

Digital Drive-Thru 2.0 addresses a structural, growing QSR and convenience market need. Multi-screen capability increases per-location revenue potential and recurring software/content opportunities, broadening the addressable market and enabling longer-term SaaS and advertising revenue streams beyond one-time hardware sales.

Negative Factors

Declining revenue and ARR

Falling revenue and ARR reduce base-level cash generation and weaken monetization of installed systems. Sustained declines shrink scale benefits, make hitting post-acquisition >$100M revenue targets harder, and increase reliance on new large customer wins to restore recurring revenue and predictable margins.

Negative margins and operating cash flow

Persistent negative operating margins and cash flow indicate core operations currently do not generate sufficient cash. This undermines self-funding for growth, heightens dependence on external financing, and elevates execution risk for product development and integration of acquisitions until margins sustainably improve.

Higher leverage from acquisition financing

Acquisition-related debt increases interest and principal obligations, reducing financial flexibility and increasing covenant and refinancing risk. If anticipated synergies or revenue gains are delayed, leverage could constrain investment in sales, R&D, and integration, pressuring long-term balance sheet health.

Creative Realities Business Overview & Revenue Model

Company Description

Creative Realities, Inc., together with its subsidiaries, provides digital marketing technology and solutions to retail companies, individual retail brands, enterprises, and organizations in the United States and internationally. Its technology and solutions include digital merchandising systems and omni-channel customer engagement systems; interactive digital shopping assistants; advisors and kiosks; and other interactive marketing technologies, such as mobile, social media, point-of-sale transactions, beaconing, and Web-based media that enables its customers to engage with their consumers. The company also provides system hardware; professional and implementation services; software design and development; and software licensing, deployment, and maintenance and support services, as well as media management and distribution software platforms and networks; device and product management; and customized software service layers, systems, experiences, workflows, and integrated solutions. The company sells its solutions to the automotive, apparel and accessories, banking, baby/children, beauty, CPG, department stores, digital out-of-home, electronics, fashion, fitness, foodservice/quick service restaurant, financial services, gaming, luxury, mass merchants, mobile operators, and pharmacy retail industries. Creative Realities, Inc. is headquartered in Louisville, Kentucky.

How the Company Makes Money

Creative Realities generates revenue through multiple streams including the sale of hardware and software solutions, service contracts for installation and maintenance, and subscription fees for its content management platform. The company also earns income from consulting services that assist clients in developing effective digital marketing strategies. Significant partnerships with technology providers and advertising agencies enhance its offerings and expand its market reach, contributing to a diversified revenue model.

Creative Realities Financial Statement Overview

Summary

Weak fundamentals driven by declining TTM revenue (-8.08%) and negative profitability (net margin -2.56% with negative EBIT/EBITDA margins). Leverage is moderate (debt-to-equity 0.75), but returns remain poor (ROE -4.36%). Cash flow quality is mixed: free cash flow growth is strong (+98.5%), yet operating cash flow is negative and FCF appears less tied to core operations.

Income Statement

Creative Realities has shown a decline in revenue growth with a TTM revenue decrease of 8.08%. The gross profit margin remains relatively stable at 45.14%, but the net profit margin is negative at -2.56%, indicating profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.75, suggesting manageable leverage. However, the return on equity is negative at -4.36%, indicating inefficiencies in generating returns from equity. The equity ratio stands at 35.73%, showing a reasonable proportion of equity financing.

Cash Flow

Free cash flow has grown significantly by 98.5%, but the operating cash flow is negative, indicating cash management issues. The free cash flow to net income ratio is high at 28.21, suggesting reliance on non-operational cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.32M	50.85M	45.17M	43.35M	18.44M	17.46M
Gross Profit	19.12M	24.01M	22.18M	17.74M	8.36M	8.12M
EBITDA	-2.81M	2.45M	3.36M	7.53M	2.42M	-14.51M
Net Income	-9.53M	-3.51M	-2.94M	1.88M	232.00K	-16.84M
Balance Sheet
Total Assets	61.27M	65.21M	70.78M	66.02M	22.88M	20.62M
Cash, Cash Equivalents and Short-Term Investments	314.00K	1.04M	2.91M	1.63M	2.88M	1.83M
Total Debt	5.80M	13.97M	14.56M	19.16M	7.53M	10.84M
Total Liabilities	39.38M	39.75M	41.95M	40.44M	14.15M	16.28M
Stockholders Equity	21.89M	25.46M	28.83M	25.58M	8.73M	4.33M
Cash Flow
Free Cash Flow	-2.91M	580.00K	1.14M	-5.00M	-688.00K	-4.19M
Operating Cash Flow	-2.20M	3.38M	5.17M	-708.00K	471.00K	-3.53M
Investing Cash Flow	-2.47M	-2.80M	-4.03M	-21.48M	-1.16M	-657.00K
Financing Cash Flow	4.12M	-2.45M	137.00K	20.93M	1.75M	3.48M

Creative Realities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CREX, the sentiment is Positive. The current price of 3.66 is above the 20-day moving average (MA) of 2.91, above the 50-day MA of 2.85, and above the 200-day MA of 2.64, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 76.22 is Negative, neither overbought nor oversold. The STOCH value of 87.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CREX.

Creative Realities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CREX	54 Neutral	$38.50M	-4.21	-36.46%	―	-18.37%	-1304.71%
ANY	43 Neutral	$10.46M	-0.40	-52.92%	―	-48.75%	-6.62%
CSAI	43 Neutral	$17.55M	-1.94	-216.29%	―	―	―
CYN	41 Neutral	$17.86M	>-0.01	-166.00%	―	347.74%	84.88%

Creative Realities Corporate Events

Creative Realities Appoints Tamra Koshewa as New CFO

On December 1, 2025, Creative Realities, Inc. appointed Tamra Koshewa as the new Chief Financial Officer, succeeding Richard Mills who served as interim CFO until November 30, 2025. Ms. Koshewa brings over 30 years of financial leadership experience across various industries and has held significant roles in companies such as General Electric and Time Warner Cable. Her appointment includes an employment agreement with a base salary of $350,000 and stock options, reflecting the company’s strategic focus on strengthening its financial leadership.

The most recent analyst rating on (CREX) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Creative Realities stock, see the CREX Stock Forecast page.

Creative Realities Completes Financing with North Run Fund

On November 6, 2025, Creative Realities, Inc. completed a financing transaction with North Run Strategic Opportunities Fund I, LP, issuing Series A Convertible Preferred Stock. This transaction led to a temporary change in the company’s Board of Directors, which was later adjusted to comply with Nasdaq rules. The company plans to seek shareholder approval for this change at its annual meeting on December 29, 2025, which could result in the reappointment of a director if approved.

The most recent analyst rating on (CREX) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Creative Realities stock, see the CREX Stock Forecast page.

Creative Realities Completes Acquisition of Cineplex Digital Media

On November 6, 2025, Creative Realities, Inc. entered into an amended and restated Credit Agreement, securing a $36 million term loan and a $22.5 million revolving credit facility to finance the acquisition of Cineplex Digital Media (CDM) and refinance certain debts. The acquisition, completed on November 7, 2025, for approximately CAD $70 million, is expected to enhance Creative Realities’ growth trajectory by expanding its customer base and leveraging synergies across a broader media network. Despite a challenging third quarter with a net loss of $7.8 million and a decrease in revenue and gross profit compared to the previous year, the acquisition and new board members are anticipated to strengthen the company’s industry position and financial performance moving forward.

The most recent analyst rating on (CREX) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Creative Realities stock, see the CREX Stock Forecast page.

Creative Realities Discusses Cineplex Digital Media Acquisition

On October 16, 2025, Creative Realities, Inc. held a conference call to discuss its upcoming acquisition of Cineplex Digital Media Inc. and its affiliates, contingent upon meeting certain closing conditions. This strategic move is expected to enhance Creative Realities’ market position by expanding its digital media capabilities, potentially impacting stakeholders positively by broadening the company’s operational scope.

The most recent analyst rating on (CREX) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Creative Realities stock, see the CREX Stock Forecast page.