Rekor Systems (REKR)
NASDAQ:REKR
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Rekor Systems
(NASDAQ:REKR)
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Rating:49Neutral
Price Target:
$1.00
▲(21.95% Upside)
Action:DowngradedDate:01/27/26
The score is held back primarily by weak financial performance (continued losses and negative operating/free cash flow) and bearish technicals (price below key moving averages with negative MACD). These are partially offset by a strong, improving narrative from the latest earnings call (record revenue, higher margins, lower opex, and major contract wins), while valuation is difficult to support due to negative earnings and no dividend yield provided.
Positive Factors
Recurring Revenue Growth
Growth in recurring subscriptions increases predictable, contractable revenue and reduces reliance on one‑time hardware sales. A rising recurring base supports customer lifetime value, steadier cash inflows, and margin predictability, improving scalability and resilience over the next several quarters.
Negative Factors
Negative Operating & Free Cash Flow
Persistent negative operating and free cash flow and declining FCF growth constrain reinvestment and increase dependence on external financing. This reduces the company's ability to self‑fund expansion or absorb shocks, elevating liquidity risk until sustained positive cash generation is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Growth
Growth in recurring subscriptions increases predictable, contractable revenue and reduces reliance on one‑time hardware sales. A rising recurring base supports customer lifetime value, steadier cash inflows, and margin predictability, improving scalability and resilience over the next several quarters.
Read all positive factors
Rekor Systems (REKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$104.77M
Dividend YieldN/A
Average Volume (3M)2.11M
Price to Earnings (P/E)―
Beta (1Y)2.22
Revenue Growth11.89%
EPS Growth34.27%
CountryUS
Employees319
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.03
Shares Outstanding136,457,580
10 Day Avg. Volume2,185,483
30 Day Avg. Volume2,108,467
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)3.96
Price to Sales (P/S)2.94
P/FCF Ratio-3.96
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue2.68
Enterprise Value/Gross Profit4.96
Enterprise Value/Ebitda-3.77
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.08
Revenue Forecast (FY)$61.89M
Rekor Systems Business Overview & Revenue Model
Company Description
Rekor Systems, Inc., through its subsidiaries, develops and implements transformative mission-critical intelligent infrastructure solutions and services for transportation management, public safety, and commercial markets in the United States, Can...
How the Company Makes Money
Rekor Systems generates revenue through multiple streams, primarily from the sale of its software and hardware solutions for vehicle recognition and analytics. The company offers subscription-based services that provide continuous updates and supp...
Rekor Systems Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including record revenue growth, strong recurring revenue, improved gross margins, and major contract wins, reflecting positive momentum for Rekor Systems. While there are challenges, such as the CFO transition and ongoing losses, the positive aspects significantly outweigh the negatives.Positive Updates
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.
Negative Updates
CFO Transition
Eyal Hen, the CFO of nearly 7 years, announced his decision to step down, leading to a transition in the financial leadership of the company.
Read all updates
Q3-2025 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
During the third quarter of 2025, Rekor Systems delivered its best financial performance in the company's history, with a record revenue of $14.2 million, marking a 35% year-over-year increase and a 15% rise from the previous quarter. Year-to-date revenue was $35.8 million, up 9% from the first nine months of 2024. Recurring revenue for the quarter reached $6.5 million, an 18% increase compared to the previous year, while year-to-date recurring revenue was $17.5 million, up 5% year-over-year. The adjusted gross margin improved significantly to 63% from 44% in Q3 2024, driven by a higher proportion of high-margin software sales. Operating expenses, excluding depreciation and amortization, declined by 24% quarter-over-quarter. Consequently, the adjusted EBITDA loss for Q3 2025 was $1.5 million, an 84% improvement from the previous year. The company also emphasized its strategic focus on expanding its recurring revenue base and operational efficiency, setting a strong foundation for future growth.Rekor Systems Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.03M | 46.03M | 34.93M | 19.92M | 11.57M | 9.23M |
| Gross Profit | 26.45M | 22.68M | 18.43M | 9.03M | 7.03M | 5.72M |
| EBITDA | -34.84M | -49.40M | -36.11M | -77.95M | -27.62M | -10.13M |
| Net Income | -44.04M | -61.41M | -45.69M | -83.11M | -26.78M | -14.18M |
Balance Sheet | ||||||
| Total Assets | 80.98M | 82.47M | 92.15M | 83.84M | 125.88M | 40.40M |
| Cash, Cash Equivalents and Short-Term Investments | 3.16M | 5.01M | 15.71M | 1.92M | 25.80M | 20.59M |
| Total Debt | 29.91M | 32.44M | 42.33M | 19.76M | 11.54M | 2.41M |
| Total Liabilities | 44.49M | 48.33M | 58.78M | 34.50M | 24.79M | 8.54M |
| Stockholders Equity | 36.48M | 34.14M | 33.37M | 49.34M | 101.09M | 31.86M |
Cash Flow | ||||||
| Free Cash Flow | -28.39M | -34.15M | -34.02M | -43.78M | -24.26M | -16.10M |
| Operating Cash Flow | -25.50M | -32.47M | -32.63M | -39.61M | -18.03M | -15.06M |
| Investing Cash Flow | -2.79M | -9.37M | 270.00K | -8.39M | -47.37M | 4.59M |
| Financing Cash Flow | 20.73M | 31.45M | 45.60M | 23.87M | 70.99M | 29.62M |
Rekor Systems Technical Analysis
Negative
0.82
Price Trends
0.99
Negative
1.39
Negative
1.46
Negative
Market Momentum
-0.04
Positive
35.41
Neutral
7.42
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 0.82 is below the 20-day moving average (MA) of 0.91, below the 50-day MA of 0.99, and below the 200-day MA of 1.46, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 7.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REKR.
Rekor Systems Risk Analysis
Rekor Systems disclosed 37 risk factors in its most recent earnings report. Rekor Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rekor Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $98.22M | -4.91 | -93.10% | ― | 312.20% | ― | |
49 Neutral | $104.77M | -11.89 | -126.37% | ― | 11.89% | 34.27% | |
49 Neutral | $74.54M | 0.91 | -49.36% | ― | -35.61% | ― | |
48 Neutral | $185.92M | -106.50 | -42.81% | ― | 1.88% | 53.31% | |
41 Neutral | $72.87M | 3.19 | -99.72% | ― | -62.56% | -250.18% | |
40 Underperform | $63.36M | -2.91 | -84.58% | ― | -34.35% | 20.88% |
* Technology Sector Average
REKR
Rekor Systems
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-0.12
-13.82%
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Rekor Systems Corporate Events
Executive/Board Changes
Rekor Systems announces resignations of two board directors
Neutral
Jan 16, 2026
On January 14, 2026, Rekor Systems, Inc. announced that board members Viraj Mehta and Tim Davenport resigned from the company’s Board of Directors, with both departures effective the same day and unrelated to any disagreements over the firm&...
Private Placements and Financing
Rekor Systems Closes $14 Million Direct Offering
Neutral
Dec 16, 2025
On December 13, 2025, Rekor Systems entered into an underwriting agreement for an underwritten registered direct offering of 8,571,428 units to a single institutional investor, with each unit priced at $1.75. The offering closed on December 16, 20...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.