Rekor Systems (NASDAQ:REKR) Announces Quarterly Earnings Results

Rekor Systems (NASDAQ:REKR) issued its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.02), FiscalAI reports. Rekor Systems had a negative net margin of 43.84% and a negative return on equity of 59.05%. The firm had revenue of $10.90 million during the quarter, compared to the consensus estimate of $14.10 million.

Here are the key takeaways from Rekor Systems’ conference call:

• Third-quarter revenue fell to $10.9 million from $14.2 million a year earlier, while adjusted gross margin declined to 48.2% from 63.4%, largely because the prior-year quarter included high-margin perpetual software licenses. Adjusted EBITDA loss widened to $2.6 million from $1.5 million.
• Recurring revenue grew 16% to $7.5 million and increased to 69% of quarterly revenue, compared with 46% a year ago. For the first nine months, recurring revenue rose 19% to $20.8 million.
• Rekor said its 2026 cost actions represent more than $10 million in estimated annualized savings, and operating cash use declined 49% year over year for the first nine months. The company said operational rightsizing is substantially complete, though improved delivery margins and revenue conversion remain priorities.
• The company cited contract opportunities including South Carolina’s seven-year selection, Oregon’s intent to award, and an expanded Florida contract ceiling. These opportunities are subject to negotiations, funding, work orders, or other conditions, and are not guaranteed revenue.
• Rekor had $5.1 million in cash and a $15 million note maturity on December 15; it is discussing financing with multiple lenders but has no definitive agreement and cannot assure funding on acceptable terms before maturity.

Rekor Systems Stock Down 29.3%

Shares of Rekor Systems stock traded down $0.09 during trading on Friday, reaching $0.23. The company’s stock had a trading volume of 2,549,181 shares, compared to its average volume of 2,453,545. The business’s 50-day moving average price is $0.38 and its 200-day moving average price is $0.68. The firm has a market cap of $31.11 million, a PE ratio of -1.39 and a beta of 1.83. Rekor Systems has a 52 week low of $0.22 and a 52 week high of $2.27.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered Rekor Systems from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, November 4th. One analyst has rated the stock with a Sell rating. According to MarketBeat, the stock currently has an average rating of “Sell”.

About Rekor Systems

Rekor Systems, Inc. (NASDAQ: REKR) is a technology company that develops artificial intelligence and machine-learning solutions for roadway intelligence, public safety, and transportation management. Its software analyzes data from cameras and other sources to help government agencies, law enforcement organizations, transportation departments, and commercial customers understand and manage vehicle movement. The company’s Rekor One platform is designed to combine roadway data from multiple sources and provide tools for vehicle identification, traffic analytics, incident detection, and operational decision-making.