Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Achieved record Q2 revenue of $21.5 million, a 65% year-over-year increase, primarily driven by the integration of CDM and new installations across the legacy business.
Completed the majority of CDM integration, realizing approximately 75% of the targeted $10 million in annualized synergies to date. Attributed service revenue growth to the inclusion of $7 million from CDM and positive momentum in legacy CRI installs, despite the expiration of some high-margin contracts. Reported hardware gross margin compression to 17.2% due to product mix, while service margins remained robust at 50.1% despite competitive pricing pressures.
Strengthened the balance sheet through a $12 million equity offering, which management intends to use for deleveraging and funding future growth initiatives. Successfully alleviated the 'going concern' qualification on financial statements through a comprehensive financial model reviewed and approved by auditors. Shifted executive focus toward strategic growth areas as new C-suite leadership takes over daily operations to scale the enterprise customer base.
Anticipates Q3 2026 will be the largest revenue quarter in company history, with Q4 expected to significantly exceed Q3 levels. Projects an automatic increase in ARR starting January 1, 2027, as approximately $4 million to $5 million in current backlog begins generating recurring revenue. Expects consolidated gross margins to return to the 40% range in 2027 as high-margin SaaS revenue becomes a larger portion of the total mix.
Plans to migrate customers from third-party platforms to proprietary CMS platforms in 2027 to eliminate external costs and improve operational efficiency. Assumes continued upward trajectory in the retail media network pipeline, leveraging the Albertsons deployment as a primary reference for blue-chip brands. Albertsons Deployment: Currently running 3,000 screens across 250 locations, representing what management believes is the largest retail media network deployment in the U.S. this year.
Tennessee Titans Partnership: On track to realize the majority of the $8.5 million digital signage and IPTV installation revenue within the 2026 calendar year. AMC Theatres Expansion: Moving to full deployment this month across 285 locations in partnership with National CineMedia using proprietary CMS and AdTech stacks. Contracting Stage Wins: Finalizing agreements with a 900-location national cellular organization and a 1,000-unit QSR, both involving conversions to CRI's platform.
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