Creative Realities, Inc. (CREX): Business Model Canvas [Dec-2025 Updated]

You're digging into a company that just made a major strategic play by absorbing Cineplex Digital Media to scale its digital signage and AdTech solutions across North America. Honestly, that acquisition redefines the entire business structure, and we need to see the new math. Here's the quick view: as of Q3 2025, they are sitting on $10.5 million in total revenue, underpinned by an Annual Recurring Revenue (ARR) base of $12.3 million while maintaining a 45.3% gross margin. That recurring stream is the engine you want to watch. Below, I've mapped out the full nine blocks of their Business Model Canvas, detailing everything from their key resources like the AdLogic™ platform to their deep customer segments in QSR and Retail, so you can see the levers they are pulling for growth.

Creative Realities, Inc. (CREX) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that are funding and scaling Creative Realities, Inc. (CREX) as of late 2025, especially following the major acquisition of Cineplex Digital Media (CDM). These partnerships are the financial backbone and the operational force multipliers for the company's near-term strategy.

Cineplex Digital Media (CDM) as a Newly Acquired Subsidiary

The acquisition of Cineplex Digital Media (CDM), announced in October 2025, is the single most transformative partnership event. Creative Realities, Inc. acquired CDM for a total purchase price of CAD 70 million, which was approximately USD 50 million in an all-cash transaction. This move effectively doubled Creative Realities, Inc.'s operational scale. CDM brings a significant recurring revenue base, with over 60% of its revenue being recurring. Prior to the acquisition, CDM reported approximately USD 40 million in revenue for 2024 and was on track for 25% growth in 2025.

This subsidiary manages a substantial footprint, overseeing 30,000 endpoints across 6,000 locations. A key asset gained is Canada's largest mall-based Digital Out-of-Home (DOOH) media network, featuring over 750 screens across 95 shopping destinations. Management anticipates the combined entity will surpass USD 100 million in annual revenue by 2026, driven in part by expected cost synergies of at least $10 million annually by the end of 2026.

Financing Partnerships

The acquisition was financed through a combination of debt and preferred equity, cementing relationships with key financial partners. Here's the breakdown of the capital structure supporting this expansion as of the November 6, 2025 closing date:

Post-transaction, as of November 7, 2025, Creative Realities, Inc. reported a total debt of $39.9 million and retained a credit facility with First Merchants Bank of $22.5 million, with $17.7 million in availability. That's a lot of dry powder ready for deployment.

Major Contractual Partnership: North Carolina Educational Lottery

CDM was announced as the exclusive partner for the planned North Carolina Education Lottery retail deployment, a significant win that falls under the newly acquired subsidiary's portfolio. This is a ten-year agreement. The total value of the opportunity is cited at $54 million over 10 years. The solution involves deploying a digital signage network at over 1,500 select lottery retail partner locations and claim centers across North Carolina. For context, the North Carolina Education Lottery recorded over $5.3 billion in sales in fiscal year 2024, raising more than $1 billion for public education that year.

Hardware Vendors and System Integrators for Large-Scale Deployments

While specific vendor names aren't detailed in the latest filings, the scale of the combined operations dictates a robust network of hardware suppliers and system integrators. The existing CDM footprint alone includes managing 30,000 endpoints. The business model relies on these external parties to supply and integrate the physical components necessary for large-scale deployments across the five core verticals CDM serves: quick-service restaurants, banking, retail, shopping malls, and lottery networks. The company's own revenue streams are segmented, including hardware sales from reselling digital signage hardware, which points directly to these vendor relationships.

The combined customer-facing team totals approximately 40-43 individuals, suggesting heavy reliance on partners for field deployment and integration work. This structure helps Creative Realities, Inc. maintain its focus on its core software platforms like Clarity™, ReflectView™, and iShowroom™.

• CDM currently supports 30,000 endpoints.
• The North Carolina Lottery deployment covers over 1,500 retail locations.
• The company anticipates total company revenue to exceed $100 million in 2026 on a pro-forma basis.

Finance: draft 13-week cash view by Friday.

Creative Realities, Inc. (CREX) - Canvas Business Model: Key Activities

You're looking at the core engine of Creative Realities, Inc. (CREX) right now, especially after that big Cineplex Digital Media (CDM) deal closed in November 2025. Here's the breakdown of what they are actively doing, grounded in the numbers from their Q3 2025 report.

Designing and deploying enterprise-level digital signage networks

This is where the physical footprint gets built and managed. For the third quarter of fiscal 2025, the revenue split shows how this activity breaks down:

The CDM acquisition brings immediate scale to this activity. CDM operates in over 6,000 locations with signage deployments, covering approximately 30,000 endpoints. One specific deployment win for CDM is the North Carolina Education Lottery retail rollout, valued at $54 million over a 10-year period.

Developing and maintaining proprietary SaaS/AdTech platforms

The software side is crucial for recurring revenue, even though Q3 2025 showed some softness here. The Annual Recurring Revenue (ARR) run rate at the end of Q3 2025 was approximately $12.3 million. That's down from $18.1 million at the end of Q3 2024.

The financial impact of the software segment is also seen in the gross margin for services, which includes SaaS subscriptions. That margin was 55.3% in Q3 2025, compared to 57.9% in Q3 2024, partly due to a reduction in SaaS subscription services. Honestly, the $5.7 million non-cash software impairment charge related to the Stellantis engagement definitely hit the quarter hard.

You should note the platform focus:

• AdLogicTM and AdLogic CPM+TM programmatic advertising platforms.
• Proprietary CMS (Content Management System) application is expected to drive synergies.

Post-acquisition integration and synergy realization of CDM

The acquisition of CDM closed on November 7, 2025, for CAD $70 million, which was approximately USD $42.7 million. CDM posted sales of just under CAD $56 million in 2024 and was on track to deliver 25% top-line growth in 2025.

The key driver here is synergy realization. Management anticipates annualized cost synergies of at least $10 million by the end of 2026. The combined company expects total revenue to exceed $100 million in 2026. Furthermore, the combined ARR and ad revenue entering 2026 is projected to exceed USD $40 million.

To finance this, debt increased to $39.9 million as of November 7, 2025, stemming from a $36 million senior term loan and $30 million of convertible preferred equity.

Accelerating new customer acquisition velocity across North America

This is a clear, stated priority post-acquisition. The company hired Dan McAllister as Chief Revenue Officer with the specific mandate to improve new customer acquisition velocity across North America.

The near-term pipeline includes tangible opportunities:

• A QSR chain with over 4,000 U.S. locations.
• A C-store client testing retail media network expansion.

Providing 24/7 network operations and technical support

While specific 24/7 support metrics aren't detailed in the Q3 2025 summary, the scale of the acquired media network points to this activity's importance. CDM operates Canada's largest mall retail media network, which is expected to generate over CAD $32 million (approximately USD $25 million) of advertising sales revenue this year.

This network includes:

• Over 750 screens.
• Exclusive representation across 95 shopping destinations.
• Serving approximately 750 million visitor or shopper visits annually.

The company's competitive advantages include expertise in logistics and technical support, which is valued by customers. Finance: draft 13-week cash view by Friday.

Creative Realities, Inc. (CREX) - Canvas Business Model: Key Resources

You're looking at the core assets Creative Realities, Inc. (CREX) relies on to execute its strategy as of late 2025. These aren't just abstract concepts; they are tangible technologies and established market positions.

Proprietary CMS platforms: Clarity™, ReflectView™, iShowroom™

The software backbone is definitely a key resource here. Creative Realities, Inc. deploys a suite of Content Management System (CMS) platforms to manage enterprise-level digital signage networks.

• ReflectView™ manages digital signage solutions for over 400,000 screens.
• Clarity™, purpose-built for digital menu boards, is the platform of choice for tens of thousands of food and beverage brick and mortar locations.
• iShowroom™ is also part of this proprietary CMS offering.

These platforms are offered via a recurring SaaS model.

AdTech monetization platform: AdLogic™ and AdLogic CPM+™

Monetization is driven by the AdLogic family of software. AdLogic™ is the original ad-serving platform, backed by two patents, designed for place-based and out-of-home markets. The newer AdLogic CPM+™, launched in January 2025, adds sophisticated campaign planning and programmatic functionality for in-store Retail Media Networks (RMNs).

AdLogic CPM+™ is designed to facilitate direct and programmatic selling, offering resident Demand Side Platform (DSP) and Supply Side Platform (SSP) functionality, aiming to repatriate 'AdTech Tax' dollars.

Expanded North American footprint and blue-chip customer base

The recent acquisition of Cineplex Digital Media (CDM) in October 2025 was transformational, effectively doubling the size of the company. This move significantly expanded the North American footprint. Prior to the merger, CDM had approximately 84% of its sales based in Canada.

Creative Realities, Inc. has active installations in more than 10 countries. The customer base includes enterprise-level networks across retail, automotive, QSRs, and DOOH advertising networks. Management is actively pursuing large client opportunities, referencing a QSR chain with over 4,000 U.S. locations.

Managed labor pool and in-house creative resources

The company maintains a managed labor pool and in-house creative resources as part of its competitive advantages, supporting design, deployment, and day-to-day management of client networks.

Financial Snapshot as of September 30, 2025

Here's the quick math on the balance sheet and recent performance leading up to the end of Q3 2025, which is critical context for these resources.

The company is actively providing recurring SaaS and support services across its client base.

Creative Realities, Inc. (CREX) - Canvas Business Model: Value Propositions

You're looking at the core reasons why clients choose Creative Realities, Inc. (CREX) right now, especially after that big acquisition. It's about offering a complete package, not just selling screens.

End-to-end digital signage and AdTech solutions

Creative Realities, Inc. provides solutions that cover the whole process, from the initial idea to keeping the network running day-to-day. This includes the deployment and management of Retail Media Networks (RMNs) using their AdLogic™ and AdLogic CPM+™ programmatic advertising platforms. The focus is on recurring revenue from software, which is the smart money play in this space. As of the end of the third quarter of 2025, the Annual Recurring Run Rate (ARR) stood at approximately $12.3 million. This contrasts with the $18.1 million ARR reported at the end of the third quarter in 2024, showing a shift in the revenue mix or timing, which is being addressed by integrating the new assets. The company anticipates combined ARR and ad revenue to 'exceed USD 40 million combined' entering 2026, post-acquisition synergies.

The value is segmented across hardware, services, and software:

• Gross margin on hardware revenue was 30.0% in fiscal 2025.
• Gross margin on service revenue was 55.3% in the third quarter of 2025.
• The company reported a gross profit of $4.8 million for the fiscal 2025 third quarter.

Data-driven, experience-based digital marketing for physical spaces

The value proposition here is turning physical spaces into action drivers, not just billboards. They help clients use place-based digital media to boost revenue and improve customer experience. For example, a digital menu board deployment is valued because it can increase the average order value by a measurable percentage. The services revenue, which includes these managed, experience-based solutions, was $6.4 million in the third quarter of fiscal 2025, commanding that high gross margin of 55.3%.

Retail media network monetization for new revenue streams

The acquisition of Cineplex Digital Media (CDM) is central to this value. This move instantly added Canada's largest mall RMN. This acquired network is expected to generate over CAD 32 million or approximately USD 25 million of advertising sales revenue in 2025 alone.

Scalability and reliability for large, multi-location enterprise networks

The CDM deal effectively doubled the size of Creative Realities, Inc., providing the scale needed to compete aggressively. The combined entity now supports massive deployments. You have to look at the sheer footprint they can manage now. They are currently discussing opportunities with a QSR chain that has over 4,000 U.S. locations.

The scale of the combined operations includes:

• Total endpoints managed post-acquisition: Approximately 30,000 endpoints.
• Total locations served post-acquisition: Over 6,000 locations.
• Expected annualized synergies from integration: At least $10 million by the end of 2026.

Deep vertical expertise in QSR, Retail, and Financial Services

The company doesn't just install technology; it has in-house experts who understand the specific goals of key sectors. This expertise allows for tailored solutions that drive client objectives. For instance, the company has in-house experts in QSRs, retail, and financial services.

Client examples and opportunities underscore this expertise:

• Financial Services clients include Scotia Bank and RBC.
• A major contract was secured to transform digital signage for an upscale restaurant chain with over 1,000 locations following a pilot.
• The company is working with a C-store client on retail media network expansion testing.

The company's overall revenue for Q3 2025 was $10.5 million, against a net loss of $7.8 million, but management projects total company revenue will exceed $100 million in 2026.

Finance: draft 13-week cash view by Friday.

Creative Realities, Inc. (CREX) - Canvas Business Model: Customer Relationships

Dedicated, long-term enterprise-level contracts form the backbone of how Creative Realities, Inc. engages its key accounts. The focus is clearly on securing relationships that provide predictable revenue streams over extended periods, typical of enterprise deployments in digital signage and immersive experiences. This is evidenced by the company's focus on securing large-scale rollouts, such as the significant contract announced after the first quarter of fiscal 2025 to transform the digital signage for an upscale restaurant chain boasting over 1,000 locations. Furthermore, the strategic acquisition of Cineplex Digital Media (CDM) brought in a base where over 60% of the revenue is recurring, reinforcing this commitment to long-term enterprise value. The company continues to target major opportunities, referencing discussions with a Quick-Serve Restaurant (QSR) chain with over 4,000 U.S. locations for retail media network expansion.

The relationship starts with a high-touch, consultative sales and solution design process. Management noted that engagement with prospects was at an all-time high as of the second quarter of 2025, focusing on primary vertical markets including QSR, C-store, retail, and sports and entertainment. The need to accelerate customer acquisition velocity led to the hiring of a new Chief Revenue Officer, Dan McAllister, with a clear mandate to improve this process across North America. The complexity of these enterprise solutions necessitates deep consultation before deployment.

The recurring SaaS and support services model is a critical component of the Customer Relationships block, directly feeding into the Annual Recurring Revenue (ARR). As of the end of the second quarter of fiscal 2025, the ARR run rate stood at approximately \$18.1 million, up from \$17.3 million at the end of the first quarter of 2025. This recurring revenue is generated through platforms like Clarity™, ReflectView™, and iShowroom™ Content Management System (CMS) platforms. However, the third quarter of 2025 showed a dip in the reported ARR to \$12.3 million, and service revenue fell to \$6.4 million compared to \$9.2 million in the prior year, partly attributed to a reduction in SaaS subscription services licenses and the company's prior exit from media sales effective October 1, 2024. The acquired CDM business contributes a recurring revenue stream where approximately 84% of its sales are based in Canada.

A client-obsessed focus for defintely ensuring customer success is implied by the structure of the recurring revenue and the focus on specific verticals. The company assists clients in achieving business objectives like increased revenue and enhanced customer experiences through its managed services. The gross margin on service revenue in the second quarter of 2025 was 54.4%, compared to 65.2% in the prior-year period, with the change partly due to the reduction in SaaS subscription services. The company's gross margin on service in the third quarter of 2025 was 55.3%, versus 57.9% in the third quarter of 2024.

Account management for cross-selling and expansion is key to growing the value within existing relationships. New deployments are expected to have a follow-on effect of growing SaaS-based ARR. The strategic importance of the CDM acquisition is partly due to its potential for synergies of at least \$10 million annually by the end of 2026, which includes the adoption of Creative Realities, Inc.'s CMS and ad tech platforms throughout the acquired CDM customer base. The company is actively looking to expand its retail media network from Canada down into the U.S. by engaging with U.S. mall ownership properties over the next two quarters.

• Key Vertical Markets: QSR, C-store, retail, sports and entertainment.
• New CRO Mandate: Improve new customer acquisition velocity across North America.
• CDM Recurring Revenue Share: Over 60% of acquired revenue.
• CDM Sales Geography: Approximately 84% of sales based in Canada.

Creative Realities, Inc. (CREX) - Canvas Business Model: Channels

You're looking at how Creative Realities, Inc. gets its solutions and services into the hands of customers as of late 2025. The channel strategy is clearly in a state of transformation following the major acquisition of Cineplex Digital Media (CDM) in November 2025, which instantly doubled the company's size.

Direct enterprise sales team focused on large accounts

The direct sales effort targets large enterprise accounts, a segment where sales cycles can cause revenue timing shifts, as seen when a $2 million order slipped from the third quarter into the fourth quarter of fiscal 2025. To speed up pipeline conversion, the company appointed Dan McAllister as Chief Revenue Officer (CRO) to reorganize the go-to-market (GTM) strategy. This team is responsible for the core business, which saw Q3 2025 revenue of $10.5 million.

Channel Sales Program utilizing a reseller network

Creative Realities, Inc. established a Channel Sales Program to complement its direct enterprise sales, aiming to expedite a new path to market, especially for SaaS-based revenue. The structure of this program is under evaluation following the passing of the Director of Channel Sales in July 2025. The company generates revenue through hardware sales, services, and recurring subscription licensing, which the channel program is designed to enhance.

North American operational footprint (US and Canada)

The operational footprint is heavily weighted toward North America, with the core business operating primarily in the United States and certain international markets. The acquisition of CDM significantly expanded this, as approximately 84% of CDM's 2024 sales were in Canada. Management anticipates total company revenue, pro-forma with CDM and synergies, to exceed USD $100 million in 2026.

Here's a look at the scale before the full integration of CDM's recurring revenue base:

Digital Out-of-Home (DOOH) media network in malls

The acquisition of CDM brought in Canada's largest mall retail media network, a key new channel for media and advertising sales. This DOOH network includes over 750 screens with exclusive media representation and revenue sharing across 95 shopping destinations. This network alone is projected to generate over CAD $32 million in advertising sales revenue in 2025. Over 60% of the revenue from this acquired business is recurring in nature.

Online platforms for software access and support

Software access and support are delivered via online platforms, evidenced by the Annual Recurring Revenue (ARR) metric. While the core business ARR was $12.3 million at the end of Q3 2025, it had been as high as $18.1 million at the end of Q2 2025. The CDM acquisition, with its over 60% recurring revenue component, is expected to instantly scale this recurring revenue pillar for Creative Realities, Inc. The company is also testing a retail media network with a major C-store customer across approximately 8,000 screens through March 2026, which could significantly grow SaaS revenue if successful.

Finance: draft pro-forma ARR projection including CDM by end of next week.

Creative Realities, Inc. (CREX) - Canvas Business Model: Customer Segments

You're looking at the customer base for Creative Realities, Inc. (CREX) as of late 2025, especially after the major acquisition of Cineplex Digital Media (CDM) in October 2025. This move significantly broadened the enterprise client roster across North America.

Large enterprise clients in Quick Service Restaurants (QSR)

The QSR segment remains a primary focus, with demand accelerating for improved drive-thru performance. Creative Realities, Inc. secured a significant engagement with a well-known upscale QSR chain, which includes deploying solutions across over 1,000 locations spanning more than 25 states. Furthermore, the acquired CDM business serves thousands of QSR restaurants across Canada.

Financial Services and Retail sectors (e.g., Scotiabank, Tim Hortons)

The company provides digital marketing technology and solutions to the retail sector, with existing and prospective clients including Macy's, Verizon, and Best Buy. Following the CDM acquisition, key financial services and retail names were added to the client list, specifically naming Scotiabank, RBC, and Tim Horton's in Canada. The CDM business, which has over 60% of its revenue as recurring in nature, serves financial institutions and retail establishments across Canada.

The scale of the acquired Canadian retail media network is substantial:

• Digital out-of-home (DOOH) media network with over 750 screens.
• Exclusive representation across 95 shopping destinations.
• Includes 76 of the 100 most productive Canadian shopping centers.
• Serves approximately 750 million visitor or shopper visits annually through the mall network.

Entertainment venues, including theaters and stadiums (e.g., AMC Theaters)

Vertical markets served include gaming, theater, and stadium venues. The client list now includes AMC Theatres, which was part of the acquired CDM portfolio. The company's prior year revenue in 2024 was impacted by a significant sports and entertainment installation that did not recur in the third quarter of 2025.

Automotive dealer showrooms and convenience stores

Creative Realities, Inc. has in-house experts in the automotive and convenience store (C-store) segments. The company previously had an engagement with Stellantis in the U.S., which was winding down as of the third quarter of 2025. The company continues to focus on these primary vertical markets.

Government-affiliated lottery and educational organizations

A major recent win involves the North Carolina Education Lottery retail deployment, where Creative Realities, Inc. was announced as the exclusive partner. This is a $54 million deployment scheduled over a 10-year period. The CDM acquisition also brought a lottery vertical segment into the customer base.

The financial impact of the acquired customer base is significant, with CDM posting sales of just under CAD $56 million in 2024 and on track for 25% growth in 2025. The mall network alone is projected to generate over CAD $32 million or USD $25 million in advertising sales revenue in 2025.

The composition of the customer base, particularly post-acquisition, is detailed below:

Creative Realities, Inc. (CREX) - Canvas Business Model: Cost Structure

You're looking at the cost side of Creative Realities, Inc. (CREX) as they integrate the Cineplex Digital Media (CDM) acquisition. Here's the quick math on what the company is spending, based on the latest figures from the third quarter of 2025.

The cost of goods sold directly impacts the gross margin, which for Q3 2025 was reported at 45.3%. This margin reflects the blended performance of hardware sales and services revenue for the period.

The operating expenses were significantly hit by a large, one-time charge. Specifically, the non-cash software impairment charge hit the books at $5.7 million for the third quarter of 2025. This charge directly contributed to the operating loss for the quarter.

General and administrative expenses, which cover overhead, rose to $5.0 million in Q3 2025. This increase reflects higher stock-based compensation and transaction expenses tied to the recent CDM acquisition and its financings.

Sales and marketing expenses were relatively controlled, coming in at $1.4 million for the quarter. This was actually a slight decrease from the $1.5 million reported in the prior-year period.

Regarding debt structure post-CDM close, Creative Realities, Inc. reported a total gross debt of approximately $39.9 million as of November 7, 2025. This new debt load was established through financing the acquisition, which included:

• A 3-year $36 million senior term loan with First Merchants Bank.
• $30 million of convertible preferred equity provided by affiliates of North Run Capital.

The cost structure also includes ongoing costs for software development, which is embedded within the service revenue cost structure and the impairment charge mentioned above. The gross margin breakdown shows the cost of services sold was higher than hardware:

• Gross margin on hardware revenue was 30.0%.
• Gross margin on service amounted to 55.3%.

Finance: draft 13-week cash view by Friday.

Creative Realities, Inc. (CREX) - Canvas Business Model: Revenue Streams

You're looking at the core ways Creative Realities, Inc. (CREX) brings in cash as of late 2025. The revenue structure clearly shows a mix of transactional sales and more stable, predictable income streams.

The three primary sources for Creative Realities, Inc. revenue are clear: hardware sales from reselling digital signage equipment, services revenue from design, deployment, and managed services, and recurring subscription and support revenue from their digital signage software platforms sold via a Software as a Service (SaaS) model. Honestly, the mix is what matters for valuation.

For the fiscal third quarter ended September 30, 2025, the reported total revenue was $10.5 million. This quarter's performance was impacted by a $2 million order slipping into the fourth quarter, but the underlying structure is what we need to map out here.

The recurring component is the engine for long-term stability. As of the end of the third quarter of 2025, the Annual Recurring Revenue (ARR) stood at approximately $12.3 million. To give you context on the mix, over 60% of the total revenue is recurring, which is a key metric for a software-focused entity like Creative Realities, Inc. This ARR figure was down from $18.1 million at the end of the third quarter in 2024, but the recent acquisition of Cineplex Digital Media (CDM) is defintely intended to scale this pillar.

Here's a breakdown of the revenue components for the third quarter of fiscal 2025, showing where the $10.5 million came from:

You can see the margin difference immediately. The services revenue, which includes managed experiences, commands a gross margin of 55.3%. That's a much higher-margin business than the hardware sales, which registered a gross margin of 30.0% in the same period. The consolidated gross margin for the quarter was 45%, roughly in line with the prior year's 46%.

The recurring subscription and support revenue stream, which is the SaaS model piece, is embedded within the services revenue figures but is the focus for future growth, especially post-CDM acquisition. The overall revenue streams for Creative Realities, Inc. can be summarized by their contribution to the top line:

• Services Revenue: $6.4 million
• Hardware Revenue: $4.2 million
• Total Q3 2025 Revenue: $10.5 million
• ARR at Q3 2025 End: Approximately $12.3 million

Finance: draft 13-week cash view by Friday.