Rekor Systems (REKR) AI Stock Analysis

• Market Cap: $129.88M
• Dividend Yield: N/A
• Average Volume (3M): 3.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: 17.97%
• EPS Growth: 21.12%
• Country: US
• Employees: 319
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): -0.10
• Shares Outstanding: 118,075,940
• 10 Day Avg. Volume: 2,475,916
• 30 Day Avg. Volume: 3,068,107
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $4.00
• Price Target Upside: 277.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $1.00 ▼(-5.66% Downside)

Rekor Systems' overall stock score is driven by strong revenue growth and recent strategic contracts, yet hampered by profitability and cash flow challenges. Technical indicators show a neutral trend, while valuation metrics are unattractive due to persistent losses. Earnings call insights suggest potential for improvement but highlight execution risks.

Positive Factors

Cost Management

Management is on pace to recognize the previously announced $15 million in annualized savings over the course of the year and continues to believe it can reach free cash flow breakeven in the near term.

International Expansion

The international opportunity is promising and key hires are positioning Rekor to capitalize on demand for roadway data technologies across Europe.

Partnerships

Management remains confident in the value of the SoundThinking partnership, for which SoundThinking offers Rekor’s license plate reader system as part of the PlateRanger-branded offering.

Negative Factors

Revenue Decline

First-quarter revenue declined 6%, down from a 4% organic decline in the previous quarter.

Revenue Weakness

Revenue weakness was driven by adverse weather and an uncertain government procurement environment.

Rekor Systems Business Overview & Revenue Model

Company Description

Rekor Systems, Inc. (REKR) is a technology-driven company specializing in the development and deployment of advanced vehicle recognition systems. Operating primarily in the public safety, transportation, and commercial sectors, Rekor leverages artificial intelligence and machine learning to provide automated license plate recognition (ALPR) solutions. These solutions help in improving traffic management, enhancing public safety, and optimizing business operations by delivering real-time data and actionable insights.

How the Company Makes Money

Rekor Systems generates revenue through the sale and licensing of its proprietary software solutions, hardware products, and related services. A significant portion of its income comes from subscription-based models where customers pay recurring fees for access to its cloud-based vehicle recognition platform. The company also earns money through strategic partnerships with law enforcement agencies, government entities, and private corporations who utilize its technology for traffic monitoring, tolling, and security purposes. Additionally, Rekor offers consultancy and support services that provide further revenue streams, contributing to its earnings.

Rekor Systems Financial Statement Overview

Summary

Rekor Systems shows strong revenue growth but faces challenges with profitability and cash flow. Despite a healthy gross profit margin, operational and net profitability are weak with negative net and EBIT margins. The balance sheet reflects a balanced capital structure but poor returns on equity. Cash flow issues are critical, as free cash flow remains negative, impacting financial stability.

Income Statement

Rekor Systems has shown significant revenue growth over the years, with a TTM revenue of $45.45 million compared to $9.23 million in 2020. However, the company's profitability metrics are concerning. The gross profit margin stands at 49.8% TTM, indicating efficient cost management on revenue. Yet, the negative net profit margin of -118.1% and EBIT margin of -113.4% TTM highlight substantial operational losses and persistent net losses, suggesting challenges in achieving profitability.

Balance Sheet

The company's balance sheet reflects a mixed financial position. The debt-to-equity ratio is manageable at 0.48 TTM, showing a relatively low level of debt compared to equity. However, the return on equity is negative at -160.9% TTM, driven by continued net losses, which undermines shareholder value. The equity ratio is 55.8% TTM, indicating a balanced capital structure with a reasonable proportion of equity financing.

Cash Flow

Cash flow metrics indicate financial strain. The operating cash flow to net income ratio is positive at 0.61 TTM, suggesting some ability to convert accounting profits into actual cash, albeit with negative operating cash flow of -$32.66 million. The free cash flow remains negative, impacting the company’s ability to self-finance growth and operations without external financing. Although there has been some reduction in free cash flow deficit, it remains a critical area of concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.03M	34.93M	19.92M	14.29M	9.23M
Gross Profit	22.68M	18.43M	9.03M	8.06M	5.70M
EBITDA	-48.86M	-36.11M	-78.04M	-27.60M	-10.10M
Net Income	-61.41M	-45.69M	-83.45M	-26.63M	-13.96M
Balance Sheet
Total Assets	82.47M	92.15M	83.84M	125.88M	40.40M
Cash, Cash Equivalents and Short-Term Investments	5.01M	15.71M	1.92M	25.80M	20.59M
Total Debt	32.44M	42.33M	19.76M	11.36M	2.41M
Total Liabilities	48.33M	58.78M	34.50M	24.79M	8.54M
Stockholders Equity	34.14M	33.37M	49.34M	101.09M	31.86M
Cash Flow
Free Cash Flow	-34.15M	-34.02M	-43.78M	-24.30M	-16.10M
Operating Cash Flow	-32.47M	-32.63M	-39.61M	-18.03M	-15.06M
Investing Cash Flow	-9.37M	270.00K	-8.39M	-47.37M	5.19M
Financing Cash Flow	31.45M	45.60M	23.87M	70.99M	29.02M

Rekor Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REKR, the sentiment is Negative. The current price of 1.06 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.24, and below the 200-day MA of 1.22, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REKR.

Rekor Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYS	66 Neutral	$386.03M	43.07	19.65%	―	27.84%	-13.78%
Sector *	61 Neutral	$34.83B	4.75	-10.43%	2.08%	6.55%	-9.99%
SNCR	59 Neutral	$85.09M	26.79	-3.58%	―	-13.46%	95.46%
VERI	52 Neutral	$135.82M	―	-600.12%	―	-24.08%	-51.13%
REKR	49 Neutral	$129.88M	―	-121.54%	―	17.97%	21.12%
AUID	42 Neutral	$47.32M	―	-168.24%	―	230.96%	91.63%
ARBE	42 Neutral	$145.13M	―	-116.76%	―	-46.41%	6.05%

Rekor Systems Corporate Events

Rekor Systems Secures $1.2M Contract with Sun Belt State

On June 6, 2025, Rekor Systems announced a significant contract with a Sun Belt state transportation agency to deploy 150 Rekor Discover® systems under a one-year Data-as-a-Service contract worth $1.2 million. This initiative aims to modernize traffic data collection and monitoring using AI-enabled sensors, replacing outdated and intrusive technologies. The deployment is part of a broader trend where Rekor’s solutions are being adopted by various U.S. states, indicating strong momentum in the domestic market and potential for international expansion.

The most recent analyst rating on (REKR) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Rekor Systems stock, see the REKR Stock Forecast page.

Rekor Systems Secures Major Contract with TxDOT

On June 3, 2025, Rekor Systems announced its selection by the Texas Department of Transportation (TxDOT) for a multi-year statewide contract to implement Rekor Command, an advanced incident management and situational awareness platform. This contract includes a significant purchase order allowing immediate deployment across all TxDOT districts, aiming to improve traffic operations, reduce congestion, and enhance roadway safety. The platform, which has already shown success in Texas, will now support additional features like the Traffic Impact Module and Work Zone API, further solidifying Rekor’s position as a key partner in modernizing Texas’s infrastructure.

The most recent analyst rating on (REKR) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Rekor Systems stock, see the REKR Stock Forecast page.

Rekor Systems Holds Annual Stockholders Meeting

On May 15, 2025, Rekor Systems, Inc. held its Annual Meeting of Stockholders where 61,861,880 shares were represented. During the meeting, all nine director nominees were elected, the appointment of CBIZ CPAs P.C. as the independent public accountant for 2025 was ratified, and the compensation of the company’s named executive officers was approved on an advisory basis.

The most recent analyst rating on (REKR) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Rekor Systems stock, see the REKR Stock Forecast page.