Rekor Systems (REKR) AI Stock Analysis

• Market Cap: $141.49M
• Dividend Yield: N/A
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: 7.05%
• EPS Growth: 19.75%
• Country: US
• Employees: 319
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): -0.07
• Shares Outstanding: 126,334,040
• 10 Day Avg. Volume: 1,695,386
• 30 Day Avg. Volume: 2,191,208
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.55
• Enterprise Value/Gross Profit: 7.84
• Enterprise Value/Ebitda: -3.80
• 1Y Price Target: $2.42
• Price Target Upside: 116.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-10.71% Downside)

Rekor Systems' overall stock score is primarily impacted by its financial instability, with declining revenues and persistent losses. While recent contract wins and operational improvements are positive, the technical indicators and valuation metrics suggest caution. The company's optimism for future growth is tempered by current financial challenges.

Positive Factors

Business Development

Management remained positive on business development pipeline in Florida, Texas, Georgia, Maryland, and New Mexico.

Contract Awards

Rekor announced that it was awarded a statewide Texas Department of Transportation contract for its Rekor Command software.

Product Demand

Rekor won a handful of contracts in Texas and a Sun Belt state, which shows improving demand for its products.

Negative Factors

Liquidity Concerns

Rekor still has significant liquidity concerns.

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. (NASDAQ: REKR) is a technology company that specializes in providing advanced data analytics and artificial intelligence solutions primarily for the public safety sector. The company focuses on delivering innovative software and hardware solutions for law enforcement and other government agencies, enabling them to enhance operational efficiency, improve public safety, and make data-driven decisions. Core products include automatic license plate recognition (ALPR) systems, cloud-based data management platforms, and various analytics tools that support crime prevention and investigation efforts.

How the Company Makes Money

Rekor Systems generates revenue through multiple streams, primarily by selling its ALPR hardware and software solutions to law enforcement agencies and government entities. The company also offers subscription-based services for its cloud-based analytics platform, which provides ongoing support and updates for its users. Additionally, Rekor may engage in professional services, including training and consulting, which further contributes to its revenue. Significant partnerships with law enforcement organizations and government contracts also play a crucial role in securing long-term revenue sources while enhancing the company's market presence.

Rekor Systems Financial Statement Overview

Summary

Rekor Systems is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. The company struggles with negative cash flows and low returns on equity, indicating financial instability.

Income Statement

Rekor Systems has experienced a decline in revenue growth, with a negative growth rate of -15% in the TTM period. The company is facing challenges in profitability, as evidenced by negative net profit and EBIT margins. Despite a relatively stable gross profit margin, the overall income statement reflects significant losses and declining revenue, indicating financial instability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.43 in the TTM period, which is an improvement from previous years. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on its equity. The equity ratio is not explicitly provided, but the overall financial leverage appears to be under control, albeit with ongoing profitability challenges.

Cash Flow

Rekor Systems is experiencing negative operating and free cash flows, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is slightly above 1, indicating some alignment between cash flow and reported earnings, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.38M	46.03M	34.93M	19.92M	14.29M	9.23M
Gross Profit	20.53M	22.68M	18.43M	9.03M	8.06M	5.70M
EBITDA	-42.39M	-48.86M	-36.11M	-77.58M	-27.60M	-10.10M
Net Income	-52.53M	-61.41M	-45.69M	-83.45M	-26.78M	-14.18M
Balance Sheet
Total Assets	80.07M	82.47M	92.15M	83.84M	125.88M	40.40M
Cash, Cash Equivalents and Short-Term Investments	5.17M	5.01M	15.71M	1.92M	25.80M	20.59M
Total Debt	29.94M	32.44M	42.33M	19.76M	11.36M	2.41M
Total Liabilities	44.67M	48.33M	58.78M	34.50M	24.79M	8.54M
Stockholders Equity	35.40M	34.14M	33.37M	49.34M	101.09M	31.86M
Cash Flow
Free Cash Flow	-32.10M	-34.15M	-34.02M	-43.78M	-24.30M	-16.10M
Operating Cash Flow	-30.28M	-32.47M	-32.63M	-39.61M	-18.03M	-15.06M
Investing Cash Flow	-293.00K	-9.37M	270.00K	-8.39M	-47.37M	5.19M
Financing Cash Flow	32.32M	31.45M	45.60M	23.87M	70.99M	29.02M

Rekor Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.12 is above the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.18, and below the 200-day MA of 1.22, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 is Neutral, 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	69 Neutral	$282.06M	42.74	19.65%	―	27.84%	-13.78%
Sector *	61 Neutral	$35.42B	7.71	-10.08%	1.88%	8.71%	-9.18%
VERI	58 Neutral	$168.58M	―	-600.12%	―	-31.11%	-52.32%
SNCR	45 Neutral	$69.24M	26.79	-53.05%	―	-6.32%	6.80%
AUID	44 Neutral	$59.96M	―	-106.55%	―	295.86%	-2.95%
REKR	42 Neutral	$141.49M	―	-128.83%	―	7.05%	19.75%
ARBE	42 Neutral	$136.71M	―	-116.76%	―	-60.93%	10.46%

Rekor Systems Corporate Events

Rekor Systems Ends Market Issuance Agreement

On August 12, 2025, Rekor Systems, Inc. announced the voluntary termination of its At Market Issuance Sales Agreement with Northland Securities, Inc., initially established on February 10, 2025. Under this agreement, the company had sold 18,888,832 shares of common stock, generating approximately $23.3 million.

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.

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.