Creative Realities, Inc.

Good morning. At this time, I would like to welcome everyone to Creative Reality's 2025 Fourth Quarter Earnings Conference Call. This call will be recorded and a copy will be available on the company's website at CRI.com following its completion. Creative Reality sets of prepared remarks summarizing the interim results for the quarter along with additional industry and company updates. Joining the call today is Rick Mills, Chief Executive Officer, Tamara Koshawa, Chief Financial Officer, and George Sautter, Chief Strategy Officer and Head of Corporate Development. Mrs. Koshawa, you may proceed.

Thank you, and good morning, everyone. Welcome to our earnings call for the fourth quarter ended December 31, 2025. I would like to take this opportunity to remind you that remarks today will include forward-looking statements. The words anticipated will be leads, expects, intends, plans, estimates, projects should, may, proposed, and similar expressions or the negative versions of such words or expressions as they relate to us or our management are intended to identify forward-looking statements. Actual results may differ materially from those contemplated by such statements. Factors that could cause these results to differ materially are set forth in our Form 10-K and other filings with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and non-GAAP financial measures. We believe the use of certain non-GAAP measures, such as adjusted EBITDA and several important KPIs, represent meaningful ways to track our performance. A reconciliation of gap to non-gap measures is included in our public filings and in our earnings relief that was issued this morning. It is now my pleasure to introduce Rick Mills, CEO of Creative Realities.

Thanks, Tamara. Good morning, everybody. We appreciate everyone joining today's call. I'd like to start by giving some highlights of our Q4 financials and other recent developments, including our integration of the CDM business, which we acquired in November. Given the sizable nature of this transaction and the transformable impact it brings to CRI, it should come as no surprise that it took longer than normal to close our books for the fourth quarter. But first, I'd like to take a moment to introduce our new CFO, Tamara Koshuwa. Tamara joined our team on December 1st. I know the date because it happens to be my birthday. Tamara, welcome aboard. She brings tremendous experience to the organization, 30 years of executing financial strategies across diverse industries, including manufacturing technology and services. Her expertise and leadership credentials include a strong dedication to achieving a high level of performance and orchestrating operational turnaround. We believe Tamara is uniquely qualified to take on the challenges of integrating CDM into CRI, finding synergies across the enterprise, ensuring margin expansion, and ultimately de-levering the balance sheet. While this should improve returns for our shareholders. She brings tremendous energy. She is driving organizational change. She is implementing value-enhancing process improvements and is working to increase our cash flow. She's off to a great start, and Tamara, we're excited to have you on board. More recently, we've also added a couple other key executives. So on March 30th, we added Jackie Walker as our Chief Experience Officer. Jackie is a veteran digital transformation leader with more than 15 years' experience designing, operating, and scaling enterprise digital platforms, really at the intersection of customer experience, product vision, and commercial outcomes. She brings a combination of technical execution and business acumen, having authored the digital menu board and drive-through strategies for seven of the top 10 restaurant brands, and two of the largest in-store retail media networks in the U.S. Her appointment marks an important shift for CRI as the company continues its transition into a software-first platform powered by data analytics and artificial intelligence. Jackie will be instrumental for our next era of growth. She possesses a unique ability to bridge the gap between complex engineering and the strategic needs of the world's largest brands, and we're very pleased to have her here as well. You had Jackie's addition with the prior addition of Dan McAllister as our CRO. This rounds out our management team with industry-leading veterans, who have track records of accomplishment at a pivotal time in our history as we relaunch ourselves as a much bigger, more technology-focused, service-oriented leader in the digital signage space. We believe we now have the talent at the top to accelerate growth, enhance our margin, and deliver improved bottom line results going forward. A couple other facts of the business. This past February, We completed the repurchase of all of Slipstream's 1.7 million outstanding warrants for $200,000. The repurchase of these warrants provides greater visibility for the future and our total shares outstanding, which we believe benefits the company as well as our shareholders, alleviating potential overhang on the stock. We want to thank Slipstream for their support in finalizing this transaction. Now, let's review a few details of our current results. Tamara will go over the financials in greater detail, but some of the highlights. We posted revenue of 23.9 million in Q4 versus 11 million in the prior year period, including 13.6 million of that revenue from CDM. Our fourth quarter gross profit was 11.5 million as compared to 4.9 million in fiscal 2024, and our consolidated gross margin was 47.9% versus 44.2 in the prior year period. This reflects both improved mix and the positive impact from CDM joining the company. In addition, as of December 31st, 2025, We had an annual recurring revenue run rate, or ARR, of $20.1 million versus $12.3 million at the end of the third quarter. In addition, we have $4.1 million of SAS under contract that will come online through the balance of this year and be added to the January 2027 SAS total. Adjusted EBITDA was $5.2 million for the fourth quarter of 2025 versus $0.5 million last year and $0.8 million in the third quarter. And just as a reminder to everybody, we closed the transaction on November 7th, so our Q4 includes two months of the CDM performance, not the full quarter. We anticipate both adjusted EBITDA and our ARR will increase going forward due to the synergies and additional opportunities in our pipeline. We have substantially integrated CDM operations into CRI, and we are making significant progress towards our integration goals this year. As you may recall, acquiring CDM more than doubled the size of our company, and significantly increased our market penetration in Canada. CDM serves thousands of quick-serve restaurants, financial institutions, and retail establishments across North America, and the acquisitions strengthen our ability to address the growth in retail media networks literally coast-to-coast all throughout North America. In addition, we now own Canada's largest mall retail media network. This digital out-of-home, or DOOH, if you will, media network has over 750 screens with exclusive representation and revenue sharing across 95 shopping destinations. These locations include 76 of the 100 most productive Canadian shopping centers and 9 of the 10 busiest malls in Canada, serving approximately 750 million shopper visits annually. As previously announced, we expect synergies of at least 10 million U.S. across North America on an annualized basis by the end of this year, reflecting the operating efficiencies, margin enhancement opportunities, and the cross-pollination of our CMS and ad tech platforms. At present, we are currently north of 60% of the goal, and we continue to anticipate total company revenue to exceed $100 million in 2026, with adjusted EBITDA margin percentage in the mid-teens. Once all synergies are realized, adjusted EBITDA margins are expected to be above 20%, and free cash flow generation should be significant, allowing us to pay down debt and de-lever the balance sheet once again, as we have done in the past after acquisitions. With all our advancements, unique applications, strong customer relationships, and proprietary technology, We've built a strong foundation for a bright future at CRI. We expect revenue to accelerate, our backlog to grow, and margins to improve as the year plays out, putting us on track for record performance in fiscal 2026. I'll come back in a minute to talk about specific product and customer trends, but we'll now turn it over to Tamara to share some additional comments on our financials.