Creative Realities, Inc. announced its financial results for the fiscal first quarter ended March 31, 2025. Sales for the quarter were $9.7 million, a decrease compared to $12.3 million in Q1 2024, with both hardware and service revenues lower due to deployment timing. Hardware revenue was $3.4 million versus $4.1 million, and service revenue fell to $6.3 million from $8.1 million in the prior-year period.
Despite the revenue decline, the company reported net income of $3.4 million, or $0.32 per diluted share, in Q1 2025. This was primarily driven by a pre-tax gain of $4.8 million on the settlement of the contingent consideration liability. In comparison, Q1 2024 saw a net loss of $0.1 million, or $(0.01) per diluted share. Adjusted EBITDA for the quarter was $0.5 million, down from $0.8 million in Q1 2024.
Management expressed confidence in an accelerating revenue trajectory, expecting strong growth and momentum in the second half of 2025. CEO Rick Mills stated that the company remains on track for its best year ever, supported by new installations scheduled for coming quarters. The company plans to focus on using cash flow to reduce debt and maintain an optimal capital structure following the contingent liability settlement.
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