Creative Realities (CREX) AI Stock Analysis

• Market Cap: $25.61M
• Dividend Yield: N/A
• Average Volume (3M): 72.53K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.27
• Revenue Growth: -6.24%
• EPS Growth: 24.19%
• Country: US
• Employees: 146
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): -0.17
• Shares Outstanding: 10,518,932
• 10 Day Avg. Volume: 78,425
• 30 Day Avg. Volume: 72,535
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.22
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: -88.90
• 1Y Price Target: $2.50
• Price Target Upside: 8.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: $2.50 ▲(8.23% Upside)

Creative Realities' overall stock score is primarily impacted by its financial challenges, including declining revenues and negative profitability. Technical analysis indicates bearish momentum, further weighing on the score. While the earnings call provided some positive insights into future growth and debt reduction, the overall outlook remains cautious due to valuation concerns and operational challenges.

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, primarily by selling digital signage solutions, which include both hardware and software components. Key revenue streams consist of direct sales of digital displays, licensing fees for proprietary content management software, and ongoing maintenance and support services. Additionally, the company often engages in long-term contracts with clients for managed services, providing a steady income stream. Significant partnerships with technology firms and content creators also contribute to its earnings by expanding its product offerings and enhancing its market reach.

Creative Realities Financial Statement Overview

Summary

Creative Realities faces significant financial challenges, with declining revenues, negative profitability, and weak cash flow generation. While the balance sheet shows manageable leverage, the company must focus on improving its revenue growth and operational efficiency to enhance profitability and cash flow.

Income Statement

Creative Realities has shown a declining revenue trend with a negative revenue growth rate of -17.6% in the TTM period. The gross profit margin is relatively stable at 45.1%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -2.56% and negative EBIT and EBITDA margins. The company needs to focus on improving its cost structure and revenue generation to enhance profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.20, indicating manageable leverage. However, the return on equity is negative at -4.36%, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital base, but the company needs to improve its profitability to enhance shareholder value.

Cash Flow

The cash flow statement reveals significant challenges, with a negative free cash flow growth rate of -50.85% and negative operating cash flow. The free cash flow to net income ratio is high, indicating some ability to convert net income into cash flow, but overall cash generation is weak. Improving operational efficiency and cash management is crucial for financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.22M	50.85M	45.17M	43.35M	18.44M	17.46M
Gross Profit	21.77M	24.01M	22.18M	17.74M	8.36M	8.12M
EBITDA	-639.00K	2.45M	3.36M	7.53M	2.42M	-14.51M
Net Income	-1.23M	-3.51M	-2.94M	1.88M	232.00K	-16.84M
Balance Sheet
Total Assets	63.65M	65.21M	70.78M	66.02M	22.88M	20.62M
Cash, Cash Equivalents and Short-Term Investments	569.00K	1.04M	2.91M	1.63M	2.88M	1.83M
Total Debt	22.00M	13.97M	14.56M	19.16M	7.53M	10.84M
Total Liabilities	34.21M	39.75M	41.95M	40.44M	14.15M	16.28M
Stockholders Equity	29.44M	25.46M	28.83M	25.58M	8.73M	4.33M
Cash Flow
Free Cash Flow	-1.47M	580.00K	1.14M	-5.00M	-688.00K	-4.19M
Operating Cash Flow	-52.00K	3.38M	5.17M	-708.00K	471.00K	-3.53M
Investing Cash Flow	-2.57M	-2.80M	-4.03M	-21.48M	-1.16M	-657.00K
Financing Cash Flow	-895.00K	-2.45M	137.00K	20.93M	1.75M	3.48M

Creative Realities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CREX, the sentiment is Negative. The current price of 2.31 is below the 20-day moving average (MA) of 2.63, below the 50-day MA of 3.05, and below the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 36.33 is Neutral, neither overbought nor oversold. The STOCH value of 29.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$35.97B	6.65	-10.17%	1.99%	8.60%	-7.54%
NXPL	48 Neutral	$19.93M	―	-41.44%	―	-11.50%	-71.52%
CREX	47 Neutral	$25.61M	27.05	-4.28%	―	-6.24%	24.19%
IPM	47 Neutral	$18.01M	―	-17.07%	―	-13.06%	―
SMSI	42 Neutral	$14.57M	―	-94.92%	―	-38.89%	64.99%
XTKG	―	$231.43M	―	-55.41%	―	―	―
QH	38 Underperform	$10.12M	―	0.61%	―	-18.93%	-1133.29%

Creative Realities Corporate Events

Creative Realities Amends Credit Agreement with Bank

On July 24, 2025, Creative Realities, Inc. and its subsidiaries, in collaboration with First Merchants Bank, executed a Second Amendment to their Credit Agreement. This amendment adjusts the borrowing base margin for the company’s revolving line of credit, setting it at 95% until September 29, 2025, 90% until October 30, 2025, and 85% thereafter, impacting the company’s financial flexibility and credit availability.

Creative Realities Grants Stock Units to Executives

On July 3, 2025, Creative Realities, Inc. granted restricted stock units to its CEO, Richard Mills, and Interim CFO, David Ryan Mudd. Mills received 450,000 units, vesting in installments by 2028, while Mudd received 50,000 units, also vesting by 2028. These grants are part of the company’s 2023 Stock Incentive Plan and are subject to specific conditions including continued service, sale transactions, or changes in control.

Creative Realities Resolves Dispute with CEO Stock Options

On June 2, 2025, Creative Realities, Inc. fully vested an option for 333,334 shares of common stock to its CEO, Richard Mills, as a result of resolving a dispute related to the Guaranteed Consideration from a merger agreement. Additionally, the company issued stock options to Mr. Mills and Interim CFO David Ryan Mudd, with a ten-year term, under its 2023 Stock Incentive Plan, reflecting strategic incentives for leadership retention and alignment with shareholder interests.