REKR

Company Expects Adjusted EBITDA Loss to Narrow 78% Year Over Year to Approximately $1.3 Million Company Expects Second Quarter Adjusted EBITDA Loss to Improve to $1.3 Million $12.6 Million in Revenue, 55% Adjusted Gross Margin and $10 Million in Cash at Quarter-End Validates Rekor's More Efficient Operating Model Company Expects to Achieve Profitability During the Second Half of 2026 COLUMBIA, Md., July 15, 2026 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR) ("Rekor" or the "Company"), which builds trusted-data, privacy, and security solutions for real-world video and sensor networks, today announced preliminary and unaudited financial results for the second quarter ended June 30, 2026. Preliminary Second Quarter 2026 Financial Highlights Based on currently available information, the Company expects to report: Revenue of approximately $12.6 million, representing growth of approximately 22% sequentially and approximately 2% compared with the second quarter of 2025; Adjusted Gross Margin of approximately 55%, compared with approximately 53% in the first quarter of 2026; Adjusted EBITDA loss of approximately $1.3 million; and Cash at quarter-end of approximately $10 million. The expected results demonstrate the outcomes of Rekor's operational realignment and cost-reduction initiatives, while also showing that these actions did not impair the Company's ability to support customers, execute existing programs, introduce new technologies, and grow revenue. During the first half of 2026, Rekor completed a series of actions designed to align its operating structure with the current state of its business. These actions included optimizing engineering operations, reducing headcount, eliminating duplicative functions, and concentrating resources on customer delivery, revenue-generating products, and near-term commercial opportunities. While the majority of the Company's headcount-related actions have now been completed, Rekor has identified additional efficiencies unrelated to workforce reductions and expects to implement them. These additional savings are expected to further improve Rekor's operating leverage without reducing the resources devoted to customer delivery, product development, or commercial expansion. As the Company implements these measures they are expected to generate several million dollars of additional annualized cost savings. With the Compan...

Image source: The Motley Fool. Monday, May 11, 2026 at 4:30 p.m. ET Chief Executive Officer — Robert A. Berman Chief Financial Officer — Joseph Nalepa Joseph Nalepa: Good afternoon, everyone. I'd like to start by thanking all of our investors and stakeholders who have joined us on today's call. Today, I'll walk through our financial results for the year ended December 31, 2025. We've been focusing on execution and operational efficiency and are encouraged by the progress we continue to make. During 2025, we continued to deliver top line revenue growth while also finding efficiencies within our operations. For the year ended December 31, 2025, we recognized revenue of $48.5 million, an increase of 5% compared to revenue of $46 million in 2024. This increase represents continued growth across our public safety and urban mobility businesses. Throughout 2025, we continue to see growth in our sales pipeline and active deployments. As of December 31, 2025, our remaining performance obligations increased to $25.9 million, a nearly 80% increase from December 31, 2024, which highlights strong momentum, giving us confidence in our ability to drive growth into 2026. For the year ended December 31, 2025, recurring revenue was $23.9 million, up 6% year-over-year. This reflects our long-term strategy of expanding our recurring revenue base through software and Data-as-a-Service subscription contracts. Adjusted margin for 2025 was 56% versus 49% in 2024. This improvement was largely driven by a greater portion of high-margin software sales relative to our service and hardware-based contracts as well as operational efficiencies within our deployments. As we continue to grow, we expect margins to fluctuate over time, but to gradually stabilize as our Software and Data-as-a-Service businesses become a larger share of total revenue. As mentioned in our recent press release, we made the decision to onshore our engineering efforts to optimize our engineering operations and cost containment efforts. As a result of this decision, we recognized a noncash asset impairment charge of $3.8 million in 2025. A key highlight this year was our continued focus on optimizing our operations. Total operating expenses, excluding depreciation, amortization and asset impairment charges, declined 20% year-over-year, representing an $11.4 million reduction. These reductions were achieved across all...

Interested in Rekor Systems, Inc.? Here are five stocks we like better. Rekor Systems said its Q1 revenue rose 12% year over year, helped by growth in Scout, Discover and Command, while recurring revenue made up about 64% of quarterly revenue. The company’s adjusted gross margin improved to 53% from 48% a year earlier, and its EBITDA loss narrowed to about $6.5 million as cost-cutting efforts began to take hold. Management said it has cut roughly 16% of its workforce and expects expenses to drop sharply in Q2, with a goal of reaching EBITDA neutral by late Q2 or early Q3 and positive by the end of 2026. Rekor Systems (NASDAQ:REKR) said its first-quarter results reflected early benefits from a broad cost-reduction effort, while management pointed to stronger margins, higher recurring revenue and a path toward improved EBITDA performance later in 2026. Chief Executive Officer Robert Berman told investors that the company conducted a comprehensive review of headcount, contracts and expenses beginning near the end of 2025 and continuing into the first quarter of 2026. He said Rekor reduced headcount by approximately 45 positions, or roughly 16% of its workforce, between year-end 2025 and the end of the first quarter. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum “The organization we are running today is leaner, faster, and more focused than the one we had a year ago,” Berman said. He added that the financial impact of the restructuring was not fully visible in the first quarter because some actions occurred mid-quarter and some one-time costs were recorded during the period. Eyal Koursh, who reviewed the financial results on the call, said first-quarter revenue increased 12% year over year, with approximately $1.1 million of growth realized across Rekor’s Scout, Discover and Command product lines. Scout contributed $281,000 to the year-over-year increase. Discover contributed $682,000. Command contributed approximately $102,000. → 3 Ways to Target the Resources Powering AI and Data Centers Adjusted gross margin rose to 53% in the first quarter of 2026 from 48% in the first quarter of 2025. Koursh attributed the five-percentage-point improvement to revenue growth, improved deployment efficiency and a more favorable product mix, including higher-margin software sales and recurring revenue representing a larger share of total revenue. During the...

Image source: The Motley Fool. Monday, May 11, 2026 at 4:30 p.m. ET Chief Executive Officer — Robert Berman Chief Financial Officer — Joseph Nalepa Operator Need a quote from a Motley Fool analyst? Email [email protected] Robert Berman: Good afternoon, everyone, and thank you for joining us. I want to be direct about where we are and where we are headed, because I think the story is clearer now than it has been in some time. For 2025 into Q1 2026, we decided to take a hard look at every part of this organization. Every headcount, every contract, every expense—nothing was exempt from that review. The question we asked was simply, does this make the company better? If the answer was no, or even maybe, we adjusted to improve our core business. That process produced real structural change. We reduced headcount by approximately 45 positions, roughly 16% of our workforce, between year-end 2025 and 2026. We found efficiencies and optimized engineering activities that were core to our path forward. We right-sized the cost and organizational structure to match where the business actually is today. The financial impact of those decisions was not fully visible in Q1. Some of those actions were taken mid-quarter. Some carried one-time costs that hit Q1 but will not repeat, and Joseph will walk you through all of that in detail. What I want investors to understand is that this work is done. The organization we are running today is leaner, faster, and more focused than the one we had a year ago, and Q2 will be where you start to see what that means in the numbers. Our target is to reach EBITDA positive by the end of the year, and we expect to be very close to EBITDA neutral by the end of Q2 or in early Q3. That is not a wish. It is where the math takes us when you run the full impact of the cost reductions we have already executed against our current revenue trajectory. Now let me turn to the revenue side, because the business itself is performing well. Revenue grew 12% year over year, and every product line—Scout, Discover, and Command—grew. Gross margins reached 53%, up from 48% a year ago. These are not small moves. They reflect a business that is executing. Finally, we previously announced the creation of Rekor Labs, and before I close, I want to spend a moment on Rekor Labs, because I think it deserves attention. Rekor Labs was established to develop technology that extend...

Quarter-over-quarter Revenue Growth Across All Product Lines, Margin Expansion and Reduced Operating Expenses COLUMBIA, Md., May 11, 2026 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR) ("Rekor" or the "Company"), a leader in AI-powered roadway intelligence, today reported financial and operational results for the first quarter ended March 31, 2026. Q1 2026 Financial Highlights Revenue grew 12% year over year, driven by continued growth in the Company's data-as-a-service and roadway intelligence businesses. Gross margin reached 53%, up from 48% in Q1 2025. EBITDA loss came in at approximately $6.5 million, an improvement from the $7.4 million loss recorded in Q1 2025. Cash used in operating activities improved by $4.3 million, or 54%, compared to the same period in Q1 2025. Reduced headcount by approximately 16% or 45 positions from the end of 2025 through Q1 2026 with the majority of the financial benefit to be reflected in Q2 2026. "Q1 went largely as we expected," said Joseph Nalepa, Chief Financial Officer, Rekor. "Revenue is growing and margins are expanding while we continue to improve operational efficiency. The one-time charges that hit Q1 were planned and several of the operational actions we took during the quarter were not fully reflected in the Q1 results, and we expect the benefit of those initiatives to become more visible in future periods." Cash Position and Outlook The sequential decline in cash from year-end 2025 was expected. It reflects a combination of seasonal Q1 patterns and one-time restructuring costs tied to headcount reductions completed over the past two quarters. The costs savings and combined with the Company’s revenue growth trajectory reinforces the Company’s view that the underlying business is moving in the right direction and is positioned for continued EBITDA improvement as we move through 2026. The Company is also evaluating options to refinance its existing Prime Revenue Sharing Notes. The refinancing is intended to reduce the Company's cost of capital, which is supported by Rekor's growing contract portfolio and improvements in operations. "The first quarter included costs we knew were coming and temporary," said Robert A. Berman, Chairman of Rekor Systems. "The organization we have now is smaller, faster, and better positioned than the one we had 12 months ago. Q1 showed improvement from last year; however, we b...

This article first appeared on GuruFocus. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rekor Systems Inc (NASDAQ:REKR) achieved a 12% year-over-year revenue growth, with all product lines contributing positively. Gross margins improved to 53% from 48% a year ago, indicating better operational efficiency. The company has implemented significant cost reductions, including a 16% workforce reduction, which is expected to positively impact future financials. Rekor Labs' new product, GoSecure, is on track for a Q3 2026 release, addressing the growing need for video evidence authentication. Recurring revenue accounted for 64% of total revenue in the quarter, providing a stable income stream. The financial impact of cost reduction measures was not fully visible in Q1 due to mid-quarter implementation and one-time costs. EBITDA loss was approximately $6.5 million, although improved from the previous year, it still indicates ongoing financial challenges. Cash reserves decreased from $16.6 million at the end of 2025 to $12.2 million at the end of Q1 2026, reflecting seasonal patterns and restructuring costs. The company is actively seeking to refinance existing notes to reduce the cost of capital, indicating current financial strain. The full benefits of cost optimization measures are not expected to be realized until Q2 2026, delaying immediate financial improvements. Warning! GuruFocus has detected 5 Warning Signs with REKR. Is REKR fairly valued? Test your thesis with our free DCF calculator. Q: What is the status of the Georgia Department of Transportation (GDOT) deployment, and how should we expect it to progress throughout the year? A: Robert Berman, CEO: The Georgia deployment took longer to finalize but was completed last fall. It is a contract vehicle, allowing other entities in Georgia to purchase through it. We are already working with several counties and large cities. The contract's value is expected to exceed the base value of $60 million, and we have received a price increase on existing equipment, leading to higher margins. Q: Do you expect the Q1 expense level to remain consistent throughout the year, or will there be changes? A: Joe Nalepa, CFO: Q1 expenses are expected to be on the higher end due to cost-cutting measures implemented late in the quarter, which included...

Company will host earnings call on Monday, May 11, 2026 COLUMBIA, Md, May 01, 2026 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR) ("Rekor" or the "Company"), a leader in developing and implementing cutting-edge roadway intelligence systems, today announced that it will release its financial results for the first quarter of 2026 on Monday, May 11, 2026, after market close. On the same day, the Company will host its earnings conference call at 4:30 p.m. Eastern Time to discuss financial and operating results. CONFERENCE CALL INFORMATION Any person interested in participating in the call should please dial in approximately 10 minutes before the start of the call using the following information: North America: Participant Dial-In: 877-407-8037 / +1 201-689-8037 Click here for participant International Toll-Free access numbers Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=MGcLP20L REPLAY INFORMATION A replay will be available online approximately two hours after the live call for two weeks. To access the replay, use the following numbers: Replay Dial-In: 877-660-6853 / 201-612-7415 Access ID: 13760466 Replay Duration: two weeks. About Rekor Systems, Inc. Rekor Systems, Inc. (NASDAQ: REKR) is a leader in developing and implementing state-of-the-art roadway intelligence systems using AI-enabled computer vision and other advanced technologies. Our solutions provide actionable insights to government agencies and businesses in a secure, collaborative, privacy-protected environment that drives the world to be safer and more efficient. To learn more, please visit our website: https://rekor.ai, and follow Rekor on social media on LinkedIn, X (formerly Twitter), Threads, and Facebook. Forward-Looking Statements This press release and its links and attachments contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Rekor Systems, Inc. that involve substantial risks and uncertainties, including particularly statements regarding our future results of operations and financial position, business strategy, prospective products and services, timing and likelihood of success, plans and objectives of management for future operations and future results of current and anticipated products and services. These statements involve uncertainties, such as known and unknown risks, and are de...

This article first appeared on GuruFocus. Revenue: $48.5 million for the year ended December 31, 2025, a 5% increase from $46 million in 2024. Recurring Revenue: $23.9 million, up 6% year-over-year. Adjusted Margin: 56% in 2025, up from 49% in 2024. Operating Expenses: Declined 20% year-over-year, representing an $11.4 million reduction. Adjusted EBITDA Loss: $18.1 million for 2025, an improvement of $11 million or 38% compared to 2024. Net Loss Reduction: Reduced by 49% year-over-year. Operating Cash Flow: Achieved positivity in the fourth quarter of 2025. Noncash Asset Impairment Charge: $3.8 million recognized in 2025. Remaining Performance Obligations: Increased to $25.9 million, a nearly 80% increase from December 31, 2024. Warning! GuruFocus has detected 5 Warning Signs with REKR. Is REKR fairly valued? Test your thesis with our free DCF calculator. Release Date: March 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rekor Systems Inc (NASDAQ:REKR) achieved a 5% increase in revenue for 2025, reaching $48.5 million, driven by growth in public safety and urban mobility sectors. The company reported a significant improvement in adjusted EBITDA loss, reducing it by 38% to $18.1 million compared to 2024. Recurring revenue grew by 6% year-over-year, reflecting the company's strategic focus on expanding its software and Data-as-a-Service subscription contracts. Operational efficiencies led to a 20% reduction in total operating expenses, excluding depreciation, amortization, and asset impairment charges. Rekor Systems Inc (NASDAQ:REKR) achieved operating cash flow positivity in the fourth quarter of 2025, marking a critical inflection point for the company. The company incurred a noncash asset impairment charge of $3.8 million in 2025 due to the decision to onshore engineering efforts. Rekor Systems Inc (NASDAQ:REKR) anticipates incurring one-time charges in the first and second quarters of 2026 related to the cancellation and restructuring of existing agreements. There is potential quarter-to-quarter variability in financial performance as the company completes its rightsizing and efficiency processes. The company faces challenges with political and regulatory resistance to ALPR technologies, which could impact sales cycles. Rekor Systems Inc (NASDAQ:REKR) is still in the process of scaling its oper...

Transitioned from a development-heavy R&D organization to a customer-focused business with fully productized solutions following the integration of three complex acquisitions. Achieved a 20% reduction in total operating expenses through disciplined cost containment and a deliberate realignment of resources to support a pragmatic business model. Improved adjusted margins to 56% by shifting the revenue mix toward high-margin software sales and Data-as-a-Service subscriptions over hardware-heavy contracts. Onshored engineering efforts to optimize operations, resulting in faster development cycles, improved responsiveness, and a $3.8 million non-cash impairment charge. Reached an inflection point in the second half of 2025 with a 62% reduction in adjusted EBITDA loss compared to the first half, signaling the effectiveness of rightsizing actions. Launched Rekor Labs to leverage internal technology for identifying deepfakes and synthetically modified media, chaired by Professor Sanjay Sarma. Expects to aggressively ramp sales execution and drive accelerated growth in the second half of 2026 as rightsizing actions conclude. Targets a normalized R&D spend of 7% to 10% of gross revenue by the back half of 2026 to align investment levels with current business scale. Anticipates incurring one-time charges in the first and second quarters of 2026 related to the cancellation and restructuring of existing agreements to build a leaner structure. Projects continued expansion of the Data-as-a-Service model as government agencies gradually shift from hardware procurement to subscription-based data access. Aims to maintain the momentum of the fourth quarter's operating cash flow positivity into 2026 through further cost savings from engineering onshoring. Recognized a $3.8 million non-cash asset impairment charge in 2025 specifically tied to the strategic decision to onshore engineering operations. Management noted that while the long-term trajectory is intact, quarter-to-quarter variability is expected as the final stages of the cost-structure alignment are completed. Acknowledged the 'slow grind' of government sales cycles, particularly with state agencies and Department of Transportation districts, which can delay deployment timelines. Addressed regulatory resistance to ALPR technology by emphasizing a 'no data lake' policy, where the company avoids selling data to third pa...

Improved 2025 financials: Rekor reported $48.5 million in revenue (up 5%) with recurring revenue of $23.9 million (up 6%), an adjusted margin of 56% (vs. 49% in 2024), a 20% reduction in operating expenses (~$11.4M), and an adjusted EBITDA loss of $18.1M (improved $11M or 38%), while net loss fell 49% and the company achieved operating cash flow positivity in Q4. Operational reset and near-term charges: Management onshored engineering (triggering a $3.8M non-cash impairment) and expects one-time cancellation/restructuring charges in Q1–Q2 2026 as it rightsizes, targets R&D at a 7%–10% revenue run rate by H2 2026, and plans to scale sales in the back half of 2026. Backlog and demand dynamics: Remaining performance obligations rose to $25.9M (nearly +80%), the company is pushing toward a data-as-a-service model (current revenue roughly 50/50 recurring vs. equipment), and deployment activity includes a 150-system pilot in Florida, ramping work in Georgia, and slower, steady sales progress in Texas. Interested in Rekor Systems, Inc.? Here are five stocks we like better. Rekor Systems (NASDAQ:REKR) detailed improved margins and reduced losses in 2025 as management said it shifted the company from a development-heavy posture to a more disciplined, customer-focused operating model. CFO Joseph Nalepa said Rekor generated $48.5 million in revenue for the year ended Dec. 31, 2025, up 5% from $46.0 million in 2024, driven by growth across its public safety and urban mobility businesses. Recurring revenue totaled $23.9 million, a 6% year-over-year increase, which Nalepa said aligns with the company’s strategy to expand software and data-as-a-service subscription contracts. → HP Inc. Stock Is Historically Cheap, but Can AI Change the Story? Nalepa also pointed to improved profitability metrics. Adjusted margin for 2025 was 56%, up from 49% in 2024, which he attributed to a higher mix of software sales relative to service and hardware contracts, along with operational efficiencies in deployments. On expenses, Nalepa said total operating expenses (excluding depreciation, amortization, and asset impairment charges) declined 20% year over year, representing an $11.4 million reduction. He said the cost cuts were broad-based “across all major areas of the business” and reflected “disciplined cost containment and a deliberate realignment of resources.” → Valero's Rally: Why Thi...

Company Reduced Adjusted EBITDA Loss by 38%, as a Result of YoY Revenue Growth and Expanded Margin COLUMBIA, Md., March 31, 2026 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR), ("Rekor" or the "Company"), a leader in developing and implementing cutting-edge roadway intelligence systems, today reported financial and operational results for the full year ended December 31, 2025, highlighting a year of disciplined execution, operational efficiency, and strategic repositioning. “2025 was a transformative year for Rekor,” said Joseph Nalepa, Rekor’s Chief Financial Officer. “The maturity of our development efforts has enabled us to make a deliberate shift to operate as a pragmatic, product-focused business. That discipline has resulted in a stronger, leaner company with a clear path to sustainable profitability.” Financial Highlights Revenue increased approximately 5% year-over-year, reflecting steady top-line growth despite a strong prior-year comparison. Gross margins expanded to 56%, up from 49% in 2024, driven by a focus on higher-value, recurring revenue streams. Adjusted EBITDA loss reduced by approximately 38%, reflecting successful cost alignment and operational efficiencies. Achieved positive operating cash flow in Q4 2025, marking the Company’s first quarter of cash inflow from operations. Operational Highlights Reduced non-recurring engineering spending and aligned cost structure with current revenue scale. Drove further efficiency with the integration of our STS and ATD subsidiaries, eliminating legacy complexity and unlocking operational synergies. On-shored Rekor Command® engineering and product operations to the United States, improving customer coordination, responsiveness, and service delivery. This resulted in enhanced customer service and product responsiveness, with transportation agencies reporting faster turnaround times and improved engagement. Secured a landmark patent for “Incident-Based” data retention, replacing outdated ALPR and vehicle dragnets with privacy-sensitive intelligent storage. Announced plans to launch Rekor Labs, a new subsidiary pioneering a suite of patented products to identify synthetically created and modified media. These initiatives have strengthened collaboration across product, engineering, and customer success teams while improving overall operational performance. Strategic Highlights Rekor also made sign...