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Creative Realities Inc. (CREX+0.54%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's financial performance, highlighting a total revenue of $50.9 million for the year, which represents a 13% increase from the previous year. This growth was driven by a significant increase in services revenue, particularly in installation and managed services.
Hardware sales, however, decreased by 10% to $18.3 million. The company attributes this decline to changes in customer demand and market conditions.
Gross profit for the year was $24 million, up from $22.2 million in 2023. Despite the increase in revenue, the gross margin percentage decreased slightly due to a shift in the revenue mix.
Operating expenses rose by 11% to $23.1 million, primarily due to increased investments in sales and marketing activities and higher personnel costs.
The company reported an operating income of $938,000, down from $1.3 million the previous year, reflecting higher operating expenses.
Interest expense decreased significantly to $1.8 million from $3 million in 2023, following the refinancing of debt.
Net loss for the year was $3.5 million, compared to a net loss of $2.9 million in 2023. The increase in net loss is attributed to a loss on debt extinguishment and changes in the fair value of contingent consideration.
As of December 31, 2024, Creative Realities had $1 million in cash and cash equivalents, down from $2.9 million at the end of 2023. The company also reported a working capital deficit of $11.7 million.
The filing indicates that the company faces liquidity challenges due to its contingent consideration obligation, which may require additional financing or amendments to its credit agreements.
Creative Realities continues to focus on expanding its SaaS revenue and enhancing its digital signage solutions to drive future growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Creative Realities Inc. annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.