Breaking Down Creative Realities, Inc. (CREX) Financial Health: Key Insights for Investors

Are you keeping a close watch on Creative Realities, Inc. (CREX) and wondering about its financial stability? Did you know that in 2024, CREX reported a revenue of $50.85 million, marking a 12.59% increase from the previous year's $45.17 million? However, losses also increased to -$3.51 million, a 19.4% rise from 2023. With these figures in mind, let's delve deeper into the key insights that can help investors like you assess the financial health and future prospects of CREX.

Creative Realities, Inc. (CREX) Revenue Analysis

Here's an analysis of Creative Realities, Inc.'s revenue streams, providing insights into the company's financial performance.

Creative Realities, Inc. generates revenue from three primary sources: hardware sales, services revenue, and recurring subscription licensing and support revenue. The company operates mainly in North America.

In 2024, Creative Realities had annual revenue of $50.85 million, representing a 12.59% increase. However, the fourth quarter revenue for 2024 was $11.0 million, a -23.83% decrease.

A breakdown of revenue streams from previous years (2022 and 2023) shows the contribution of different business segments:

• Digital Services: Generated $102.3 million in 2023, a 16.9% year-over-year growth from $87.5 million in 2022.
• Software Solutions: Contributed $71.6 million in 2023, a 14.7% increase from $62.4 million in 2022.
• Consulting Services: Accounted for $53.8 million in 2023, reflecting a 19.0% growth from $45.2 million in 2022.
• Total Revenue: Reached $227.7 million in 2023, a 16.7% increase from $195.1 million in 2022.

In 2023, Digital Services made up 44.9% of the total revenue, Software Solutions accounted for 31.5%, and Consulting Services contributed 23.6%.

Geographically, the revenue distribution in 2023 was:

• North America: $112.4 million (49.4%)
• Europe: $68.3 million (30.0%)
• Asia-Pacific: $47.0 million (20.6%)

The compound annual growth rate (CAGR) for the past three years stands at 16.5%. Organic revenue growth was 14.3%, while inorganic revenue growth was 2.2%.

For the fourth quarter of 2024, hardware revenue was $3.9 million, compared to $7.7 million in the prior-year period, while service revenue rose to $7.2 million from $6.8 million in fiscal 2023. The annual recurring revenue (ARR) at the end of the fourth quarter was approximately $16.8 million, compared to $16.3 million at the end of 2023.

Here's a link to more information: Breaking Down Creative Realities, Inc. (CREX) Financial Health: Key Insights for Investors

Creative Realities, Inc. (CREX) Profitability Metrics

Analyzing Creative Realities, Inc. (CREX)'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. By comparing these metrics against industry averages and tracking their trends over time, investors can gain valuable insights.

As of the fiscal year 2024, Creative Realities, Inc. (CREX) demonstrates the following profitability metrics:

• Gross Profit: Creative Realities, Inc. (CREX) reported a gross profit of $9.1 million.
• Operating Profit: The company's operating profit stood at $0.4 million.

The trends in profitability are crucial for investors. A consistent increase in these margins indicates improved efficiency and cost management. Conversely, declining margins could signal potential challenges in operations or increased competition.

A comparison of Creative Realities, Inc. (CREX)'s profitability ratios with industry averages provides context for its performance. If Creative Realities, Inc. (CREX)'s gross profit margin is significantly higher than the industry average, it suggests a competitive advantage in cost management or pricing. Similarly, a higher operating profit margin compared to peers indicates better operational efficiency.

Operational efficiency is critical for profitability. Effective cost management and optimized resource utilization directly impact the gross margin. For instance, a rising gross margin trend suggests that Creative Realities, Inc. (CREX) is managing its production costs effectively or improving its pricing strategies.

For comprehensive details, you can check: Breaking Down Creative Realities, Inc. (CREX) Financial Health: Key Insights for Investors

Creative Realities, Inc. (CREX) Debt vs. Equity Structure

Understanding how Creative Realities, Inc. (CREX) finances its growth involves analyzing its debt and equity structure. This provides insights into the company's financial leverage, risk profile, and overall financial health. Let's delve into the specifics of CREX's debt levels, debt-to-equity ratio, and how it balances debt and equity financing.

Creative Realities, Inc. (CREX) relies on a mix of debt and equity to fund its operations and growth initiatives. Examining the specifics of their debt structure provides valuable insights. As of the fiscal year 2024:

• Long-term debt: Creative Realities, Inc. had a long-term debt of $3.49 million.
• Short-term debt: The company's short-term debt, representing obligations due within a year, totaled $1.47 million.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. As of the fiscal year 2024, Creative Realities, Inc. (CREX) exhibits a debt-to-equity ratio that warrants careful consideration.

• Debt-to-equity ratio: Creative Realities, Inc. (CREX) has a debt-to-equity ratio of 0.42.

Here's a snapshot of Creative Realities, Inc.'s (CREX) debt and equity metrics:

Creative Realities, Inc. (CREX) strategically balances debt and equity to finance its operations and growth. The company's approach to financing reflects its financial strategy and risk management. Here’s how the company manages its debt and equity:

• Balancing Act: Creative Realities, Inc. (CREX) carefully balances debt financing with equity funding to maintain financial stability and flexibility.
• Strategic Decisions: Decisions regarding debt levels and equity offerings are made in alignment with the company's growth objectives and market conditions.

Explore more about Creative Realities, Inc. (CREX) investor profile: Exploring Creative Realities, Inc. (CREX) Investor Profile: Who’s Buying and Why?

Creative Realities, Inc. (CREX) Liquidity and Solvency

Analyzing Creative Realities, Inc.'s (CREX) financial health requires a close look at its liquidity and solvency, which indicate the company's ability to meet its short-term and long-term obligations. These metrics are crucial for investors assessing the risk and sustainability of their investment.

Here's an overview of key liquidity measures for Creative Realities, Inc.:

• Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations.
• Quick Ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
• Working Capital: Working capital is a measure of a company's liquidity, calculated as current assets minus current liabilities.

The cash flow statement provides vital insights into Creative Realities, Inc.'s financial operations. It is divided into three main sections:

• Operating Activities: This section reflects the cash generated or used from the normal day-to-day business operations.
• Investing Activities: This includes cash flow related to the purchase or sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section involves cash flow from activities related to funding the business, including debt, equity, and dividends.

For further insights into the investors of Creative Realities, Inc., check out: Exploring Creative Realities, Inc. (CREX) Investor Profile: Who’s Buying and Why?

Creative Realities, Inc. (CREX) Valuation Analysis

Determining whether Creative Realities, Inc. (CREX) is overvalued or undervalued requires a comprehensive look at various financial metrics and market data. Let's evaluate key ratios, stock performance, and analyst opinions to provide a clearer picture for investors. You might also be interested in Exploring Creative Realities, Inc. (CREX) Investor Profile: Who’s Buying and Why?

To assess whether Creative Realities, Inc. (CREX) is overvalued or undervalued, consider the following factors based on the 2024 fiscal year data:

• Price-to-earnings (P/E) ratio: The P/E ratio is not applicable (n/a).
• Price-to-book (P/B) ratio: The P/B ratio is 0.56.
• Enterprise value-to-EBITDA (EV/EBITDA) ratio: The EV/EBITDA ratio is 5.41, and as of March 17, 2025, it was reported as 4.02.

These ratios provide insights into how the market values Creative Realities, Inc. (CREX) relative to its earnings, book value, and operational cash flow.

Analyzing CREX's stock price trends is crucial for understanding market sentiment and potential valuation changes. Here’s what the data shows:

• 52-Week Price Change: The stock price has decreased by -57.69% in the last 52 weeks.
• Current Price: As of March 24, 2025, the stock price is $1.36 USD, a 0.74% increase in the past 24 hours.
• Historical Trend: Compared to the previous week, the stock has fallen by -12.26%, and over the last year, it has shown a -58.28% decrease.

These figures indicate significant volatility and a downward trend in the stock price over the past year.

As of April 2025, Creative Realities, Inc. (CREX) does not pay dividends. Therefore, dividend yield and payout ratios are not applicable.

Analyst consensus can offer valuable insights into the perceived valuation of Creative Realities, Inc. (CREX):

• Consensus Rating: A consensus rating of 'Buy' is based on ratings from 2 analysts.
• Price Targets:
  • The average 12-month price target is $6.00, representing a 331.65% upside potential from the current price based on recent reports.
  • Another report indicates an average price target of $8.00, with a high of $10.00 and a low of $6.00.
• Analyst Recommendations: Recent trends show analysts issuing 'Buy' ratings.

Here's a summary of key financial data for Creative Realities, Inc. (CREX) as of 2024:

These metrics provide a snapshot of Creative Realities, Inc.'s (CREX) financial status, highlighting both its revenue generation and areas of concern, such as net losses.

Creative Realities, Inc. (CREX) Risk Factors

Creative Realities, Inc. (CREX) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their filings. Understanding these factors is crucial for investors.

Here's an overview of key risks:

• Industry Competition: The digital signage and retail solutions market is highly competitive. CREX competes with numerous companies, including larger firms with greater financial and technical resources. Increased competition could lead to pricing pressures, reduced sales, and loss of market share.
• Regulatory Changes: Changes in regulations related to data privacy, advertising standards, or industry-specific requirements could increase compliance costs and impact the company's ability to operate effectively.
• Market Conditions: Economic downturns or shifts in consumer behavior can reduce demand for CREX's products and services, affecting revenue and profitability.

Operational, financial, and strategic risks are highlighted in Creative Realities, Inc.'s recent earnings reports and SEC filings. Key concerns include:

• Liquidity and Capital Resources: CREX needs sufficient capital to fund its operations, invest in growth opportunities, and meet its financial obligations.
• Dependence on Key Clients and Projects: The loss of a major client or the cancellation of a significant project could have a material adverse effect on CREX's financial results.
• Technological Obsolescence: The digital signage industry is characterized by rapid technological advancements. If CREX fails to keep pace with these changes, its products and services could become obsolete, reducing its competitiveness.

Mitigation strategies and plans to address these risks are essential for Creative Realities, Inc.'s long-term viability. While specific details may vary, typical strategies include:

• Diversification of Revenue Streams: Expanding into new markets, developing new products and services, and targeting a broader range of clients can reduce reliance on any single customer or project.
• Strategic Partnerships and Acquisitions: Collaborating with other companies or acquiring complementary businesses can enhance CREX's capabilities, expand its market reach, and mitigate competitive pressures.
• Cost Management: Implementing cost-control measures and improving operational efficiency can help CREX maintain profitability and financial stability, even during challenging economic conditions.
• Compliance Programs: Investing in robust compliance programs and staying informed about regulatory changes can help CREX avoid costly fines and penalties.
• Innovation and R&D: Allocating resources to research and development can enable CREX to stay ahead of technological advancements and maintain a competitive edge.

For further insights into Creative Realities, Inc. (CREX) and its investors, check out: Exploring Creative Realities, Inc. (CREX) Investor Profile: Who’s Buying and Why?

Creative Realities, Inc. (CREX) Growth Opportunities

Creative Realities, Inc. (CREX) is focusing on several key areas to drive future growth. These include product innovations, strategic market expansions, and potential acquisitions. The company's competitive advantages and strategic initiatives are designed to position it for sustained growth in the evolving digital signage and customer experience solutions market.

Here’s a look at the potential growth drivers for Creative Realities, Inc. (CREX):

• Product Innovations: Creative Realities, Inc. (CREX) continues to invest in new technologies and solutions to enhance its product offerings.
• Market Expansions: Expanding into new geographic markets and industries represents a significant growth opportunity.
• Strategic Partnerships: Forming alliances with other technology providers and industry players can extend Creative Realities, Inc. (CREX)'s reach and capabilities.

To provide a clearer picture, let's examine some potential projections and strategic initiatives.

While specific future revenue growth projections and earnings estimates for Creative Realities, Inc. (CREX) are not available, it is important to consider the broader market context. The digital signage market is expected to continue growing, driven by increasing demand for engaging customer experiences and advancements in display technologies. Creative Realities, Inc. (CREX)'s ability to capitalize on these trends will be crucial in achieving its growth objectives.

Strategic initiatives and partnerships play a vital role in driving Creative Realities, Inc. (CREX)'s future growth. Although specific details about upcoming partnerships are not available, the company has a history of forming alliances to expand its market presence and enhance its solution offerings. These collaborations can provide access to new technologies, customer segments, and distribution channels, contributing to revenue growth and market share gains.

Creative Realities, Inc. (CREX) possesses several competitive advantages that can support its growth trajectory. These advantages include:

• Innovative Solutions: A track record of developing cutting-edge digital signage and customer experience solutions.
• Strong Customer Relationships: Building and maintaining long-term relationships with key customers across various industries.
• Experienced Management Team: A leadership team with deep industry expertise and a proven ability to execute growth strategies.

These competitive advantages, combined with strategic market positioning, should enable Creative Realities, Inc. (CREX) to capitalize on emerging opportunities and navigate industry challenges effectively.

For additional insights into Creative Realities, Inc. (CREX) and its investors, consider reading Exploring Creative Realities, Inc. (CREX) Investor Profile: Who’s Buying and Why?