Digital signage tech provider Creative Realities reports $16.8 million in revenue for 2024 versus $16.3 million in 2023

LOUISVILLE, Ky., March 14, 2025 — Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX), a provider of digital signage, media and AdTech solutions, today announced its financial results for the fiscal fourth quarter and year ended December 31, 2024.

Highlights:

• Fourth quarter revenue of $11.0 million versus $14.5 million in the prior-year period
• Gross profit of $4.9 million for the three months ended December 31, 2024 versus $7.5 million in the fourth quarter of fiscal 2023
• Adjusted EBITDA* of $0.5 million for the fourth quarter of 2024 versus $2.8 million in the prior-year period
• Annual recurring revenue (“ARR”) of approximately $16.8 million at the end of the fourth quarter versus $16.3 million at December 31, 2023

“As anticipated, our fourth quarter hardware revenue was down due to the deployment timing of certain projects, while service revenue grew 6% year-over-year. This marked the end of our best year ever and, with an active pipeline of opportunities ahead of us, we’re on track for fiscal 2025 being another period of record performance,” said Rick Mills, Chief Executive Officer.

“We continue to work towards resolving the contingent liabilities on our balance sheet – and are appreciative of the support shown by First Merchants Bank with regard to our credit facility – while looking to accelerate growth in the quarters to come.

The recent launch of our AdLogic CPM+ platform is particularly exciting, as it offers an integrated, innovative solution that provides users the tools to deliver targeted, high-performing campaigns at significantly reduced costs, while also allowing CRI to benefit from advertising and additional SaaS revenue.

We believe it’s a game-changer in the industry that can significantly enhance the in-store media experience. Going forward, we anticipate solid revenue growth, particularly in the second half, as new deployments come online.

We remain focused on a strategy that leverages our unique capabilities to strengthen new business development initiatives, improve operating results, and drive shareholder value.”

*Adjusted EBITDA is a non-GAAP financial measure. A reconciliation is provided in the tables of this press release.

2024 Fourth Quarter Financial Results

Sales were $11.0 million for the fiscal 2024 fourth quarter as compared to $14.5 million in the same period in fiscal 2023. Hardware revenue was $3.9 million, versus $7.7 million in the prior-year period, while service revenue rose to $7.2 million from $6.8 million in fiscal 2023. Hardware sales were lower year-over-year primarily due to deployment timing.

Consolidated gross profit was $4.9 million for the fiscal 2024 fourth quarter versus $7.5 million in the prior-year period, and consolidated gross margin was 44.2% versus 51.8% in the fiscal 2023 fourth quarter.

Gross margin on hardware revenue was 26.3% in fiscal 2024 as compared to 22.5% in the prior-year period, primarily reflecting product mix.

Gross margin on service amounted to 53.9%, versus 85.2% in the fiscal 2023 fourth quarter, the latter of which was unusually high due to software subscription timing and service mix. The Company ended the 2024 fourth quarter with ARR of approximately $16.8 million.

Sales and marketing expenses in the fourth quarter fell to $1.4 million, versus $1.6 million in the prior-year period, while general and administrative expenses rose to $4.2 million versus $3.9 in fiscal 2023.

The Company posted an operating loss of approximately $0.7 million in the fourth quarter of fiscal 2024 compared to operating income of $2.0 million in fiscal 2023. CRI reported a net loss of $2.8 million, or $(0.27) per diluted share, in the quarter ended December 31, 2024 versus net income of $1.4 million, or $0.14 per diluted share, in the prior-year period.

Adjusted EBITDA (defined later in this release) was $0.5 million in the fourth quarter of 2024 as compared to $2.8 million in the prior-year period.

Balance Sheet
As of December 31, 2024, the Company had cash on hand of approximately $1.0 million, versus $2.9 million at December 31, 2023. The Company had outstanding debt of approximately $13.0 million as of December 31, 2024 versus $15.1 million at the start of the fiscal year.

As of the end of the fourth quarter, the trailing twelve-month gross and net leverage ratios utilizing Adjusted EBTIDA were 2.59x and 2.39x, respectively, versus 2.97x and 2.40x at the beginning of 2024. Net debt is equal to the Company’s outstanding debt less cash on hand.