Record Revenue Achieved
Rekor Systems reported record revenue of $14.2 million for Q3 2025, a 35% increase compared to Q3 2024 and a 15% increase compared to Q2 2025. Year-to-date revenue was $35.8 million, up 9% from the first 9 months of 2024.
Strong Recurring Revenue Growth
Recurring revenue for Q3 2025 totaled $6.5 million, representing an 18% increase compared to Q3 2024. For the 9 months ended September 30, 2025, recurring revenue was $17.5 million, up 5% year-over-year.
Improved Gross Margin
The adjusted gross margin for Q3 2025 was 63%, up from 44% in Q3 2024. For the first 9 months of 2025, the adjusted gross margin was 55%, up from 48% in the prior year period.
Significant Reduction in Operating Expenses
Operating expenses, excluding depreciation and amortization, declined 24% quarter-over-quarter, representing a $3.7 million reduction. Year-to-date, operating expenses were reduced by $7.8 million, an 18% improvement compared to the same period last year.
Major Contract Wins
Rekor secured a major statewide multiyear contract with the Georgia Department of Transportation valued at a minimum of $50 million and received recognition for its work in South Carolina, showcasing strong performance across its core portfolio.
Continued Expansion and Adoption
Rekor Discover and Command technologies received considerable attention and adoption in the market, with new deployments in Georgia, Florida, and other states.