Creative Realities Inc (NASDAQ:CREX) Q2 2025 Earnings: Revenue Meets Expectations, EPS Beats Estimates

Creative Realities Inc (NASDAQ:CREX) Reports Q2 2025 Earnings: Revenue Meets Expectations, EPS Beats Estimates

Creative Realities Inc (CREX) released its fiscal second-quarter 2025 results, posting revenue of $13.03 million, slightly above analyst expectations of $12.27 million. The company reported earnings per share (EPS) of $0.01, surpassing the estimated loss of $0.07 per share. Despite a year-over-year decline in revenue from $13.1 million in Q2 2024, the sequential quarterly growth of 34% suggests an improving trajectory.

Key Financial Highlights

• Revenue: $13.03M (vs. $12.27M est.) – +6.2% beat
• EPS: $0.01 (vs. -$0.07 est.) – Positive surprise
• Gross Profit: $5.0M (down from $6.8M YoY)
• Adjusted EBITDA: $1.2M (vs. $1.5M YoY)
• Annual Recurring Revenue (ARR): $18.1M (up from $17.3M in Q1 2025)

Market Reaction

Following the earnings release, CREX shares saw a pre-market increase of ~13.8%, indicating a positive investor response to the earnings beat. However, the stock has struggled in recent weeks, with declines of -8.4% over the past week, -14.3% over two weeks, and -22.4% over the past month, reflecting broader market sentiment or sector-specific pressures.

Business Performance & Outlook

CEO Rick Mills noted that the company is seeing accelerating demand, particularly in hardware sales ($7.1M vs. $5.0M YoY), driven by quick-serve restaurants (QSR) and sports/entertainment sectors. However, service revenue declined to $6.0M (from $8.1M YoY) due to reduced SaaS subscriptions and the company’s exit from media sales in late 2024.

Management remains optimistic about improving gross margins in the second half of 2025, citing a favorable product mix and higher service revenue. The company also reduced debt by $3.1M during the quarter, strengthening its balance sheet.

Analyst Estimates vs. Company Outlook

• Full-Year 2025 Revenue Estimate: $55.96M
• Q3 2025 Revenue Estimate: $16.38M

While CREX did not provide explicit forward guidance, the sequential revenue growth and management’s confidence in demand suggest potential alignment with analyst expectations.

Conclusion

CREX’s Q2 earnings demonstrate resilience, with revenue and EPS exceeding estimates. The market’s pre-market surge suggests optimism, though longer-term performance will depend on execution in the second half of the year.

For detailed earnings estimates and historical performance, visit CREX Earnings & Estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.