Creative Realities, Inc. announced its financial results for the fiscal second quarter ended June 30, 2025. Sales for the quarter were $13.0 million, which was flat year-over-year compared to $13.1 million in Q2 2024, but represented a 34% sequential increase from Q1 2025. Hardware revenue rose to $7.1 million from $5.0 million in the prior-year period, driven by advance purchases from QSR and sports/entertainment customers due to tariff uncertainties.
Service revenue fell to $6.0 million from $8.1 million in Q2 2024, primarily due to a reduction in SaaS subscription services and the company’s exit from media sales effective October 1, 2024. The company reported a net loss of $1.8 million, or $(0.17) per diluted share, compared to a net loss of $0.6 million, or $(0.06) per diluted share, in Q2 2024. Adjusted EBITDA for the quarter was $1.2 million, down from $1.5 million in the prior-year period.
Creative Realities used operating cash flow to reduce approximately $3.1 million of debt during the period, demonstrating a commitment to an improved balance sheet. Management expects top-line growth to accelerate in the coming quarters, with stronger performance anticipated in the second half of fiscal 2025. They also anticipate gross margins to expand due to improved product mix and increased service revenue, setting the stage for further improvement in 2026 and beyond.
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