Creative Realities Inc

Creative Realities Inc has a market capitalization of $39.2 million and a price-to-book ratio of 1.36, indicating a moderate premium over its book value. The company's liquidity position is characterized by a current ratio of 0.42, suggesting limited short-term liquidity, and a negative net cash position after subtracting total debt. The debt-to-equity ratio of 0.81 reflects a relatively balanced capital structure, with liabilities accounting for a significant portion of its total assets.

Profitability metrics reveal a challenging financial position for Creative Realities Inc. The company reported a net loss of $109,000 and an operating loss of $76,000, resulting in a negative return on equity of -0.38% and a negative return on assets of -0.16%. These figures are below the typical performance metrics for the IT Services & Consulting industry, indicating a need for operational improvements to enhance profitability.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the risk associated with market fluctuations in the IT services sector. The company's capital expenditures of $830,000 suggest ongoing investment in infrastructure, but the free cash flow of -$100,000 indicates that these investments are not yet generating positive cash returns.

Looking ahead, Creative Realities Inc is expected to face continued financial challenges. The company's operating cash flow of $1.94 million is a positive sign, but it is insufficient to offset the negative net income and operating income. Analysts have provided a mean price target of $8.62, with a median of $8.50, suggesting a potential for growth, but the current financial performance may hinder this outlook.

The risk assessment for Creative Realities Inc highlights a medium liquidity risk and a low dilution risk. The company's negative net cash position after subtracting total debt is a key flag, indicating potential liquidity constraints. The absence of significant dilution risk is a positive factor, as the company has not issued additional shares recently.

Recent events and filings indicate that the company is actively managing its financial position. The company's operating cash flow and capital expenditures suggest a focus on maintaining operational stability while investing in future growth. However, the negative net income and operating income highlight the need for strategic adjustments to improve profitability.

Revenue grew at a 32.7% CAGR over four years, demonstrating strong top-line expansion despite recent profitability challenges.

Analysts project 118.9% upside to a mean price target of $8.625, signaling significant expected valuation recovery.

Gross profit increased to $25.7 million in FY2026, indicating improving core operational efficiency before operating expenses.

The company maintains a book value of $28.8 million, providing a baseline asset cushion for potential restructuring.

Dilution risk is assessed as low, suggesting current equity structure remains stable for existing shareholders.

Long-term debt surged to $65.6 million in FY2026, creating a high leverage band and significant credit risk.

Free cash flow turned deeply negative at -$4.5 million, indicating an inability to generate cash from operations.

Operating margin of -0.6% and net margin of -0.9% lag significantly behind IT services cohort medians.

Current ratio of 0.85 suggests potential liquidity constraints, as current assets do not cover current liabilities.

Revenue $23.9M, +117,2% YoY; Operating income +136,6% YoY.

• ▍Revenue $23.9M, +117,2% YoY
• ▍Operating income +136,6% YoY
• ▍Net income +30,8% YoY
• ▍Free cash flow +106,7% YoY
• ▍Net margin -8.2%

Revenue $10.5M, −27,0% YoY; Operating income −753,0% YoY.

• ▍Revenue $10.5M, −27,0% YoY
• ▍Operating income −753,0% YoY
• ▍Net income −14 659,3% YoY
• ▍Free cash flow −2 038,3% YoY
• ▍Net margin -74.5%

Revenue $13.0M, −0,7% YoY; Operating income −185,0% YoY.

• ▍Revenue $13.0M, −0,7% YoY
• ▍Operating income −185,0% YoY
• ▍Net income −195,4% YoY
• ▍Free cash flow −255,1% YoY
• ▍Net margin -13.9%

Revenue $9.7M, −20,8% YoY; Operating income +5 096,1% YoY.

• ▍Revenue $9.7M, −20,8% YoY
• ▍Operating income +5 096,1% YoY
• ▍Net income +3 189,9% YoY
• ▍Free cash flow +4 034,0% YoY
• ▍Net margin 34.6%

Revenue $11.0M; Operating income -$714.0k.

• ▍Revenue $11.0M
• ▍Operating income -$714.0k
• ▍Net margin -25.8%

Revenue $14.4M; Operating income $1.1M.

• ▍Revenue $14.4M
• ▍Operating income $1.1M
• ▍Net margin 0.4%

Revenue $13.1M; Operating income -$467.0k.

• ▍Revenue $13.1M
• ▍Operating income -$467.0k
• ▍Net margin -4.7%

Revenue $12.3M; Operating income -$76.0k.

• ▍Revenue $12.3M
• ▍Operating income -$76.0k
• ▍Net margin -0.9%

Revenue $57.2M, +12,5% YoY; Operating income −3 776,9% YoY.

• ▍Revenue $57.2M, +12,5% YoY
• ▍Operating income −3 776,9% YoY
• ▍Net income −135,9% YoY
• ▍Free cash flow −102,2% YoY
• ▍Net margin -14.5%

Revenue $50.9M, +12,6% YoY; Operating income −109,0% YoY.

• ▍Revenue $50.9M, +12,6% YoY
• ▍Operating income −109,0% YoY
• ▍Net income −19,4% YoY
• ▍Free cash flow +40,4% YoY
• ▍Net margin -6.9%

Revenue $45.2M, +4,2% YoY; Operating income +134,3% YoY.

• ▍Revenue $45.2M, +4,2% YoY
• ▍Operating income +134,3% YoY
• ▍Net income −256,6% YoY
• ▍Free cash flow −991,2% YoY
• ▍Net margin -6.5%

Revenue $43.4M, +135,1% YoY; Operating income −348,0% YoY.

• ▍Revenue $43.4M, +135,1% YoY
• ▍Operating income −348,0% YoY
• ▍Net income +708,6% YoY
• ▍Free cash flow −3,9% YoY
• ▍Net margin 4.3%