Rekor Systems (REKR)
NASDAQ:REKR
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Rekor Systems
(NASDAQ:REKR)
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Rating:44Neutral
Price Target:
$0.79
▼(-11.12% Downside)
Action:Reiterated
Date:05/20/26
The score is held down primarily by weak financial quality (large losses and ongoing cash burn) and a bearish technical setup (below key moving averages with negative MACD). The earnings call provides some offset via tangible cost actions and a stated path toward EBITDA improvement, but valuation is hard to support with negative earnings and corporate events add a listing/governance overhang.
Positive Factors
Revenue growth & gross margins
Sustained high single-digit to double-digit top-line acceleration alongside mid-50% gross margins indicates the business is scaling with a favorable product mix. Durable gross margins provide structural room to absorb SG&A and R&D, supporting a credible path to operating leverage over coming quarters.
Negative Factors
Negative operating and free cash flow
Persistently negative operating and free cash flow increases funding risk and constrains strategic flexibility. With cash down sequentially, the company may need refinancing or capital raises; such needs can dilute shareholders, raise financing costs, or force trade-offs between growth investments and cost containment.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & gross margins
Sustained high single-digit to double-digit top-line acceleration alongside mid-50% gross margins indicates the business is scaling with a favorable product mix. Durable gross margins provide structural room to absorb SG&A and R&D, supporting a credible path to operating leverage over coming quarters.
Read all positive factors
Rekor Systems (REKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$90.71M
Dividend YieldN/A
Average Volume (3M)2.72M
Price to Earnings (P/E)―
Beta (1Y)2.37
Revenue Growth8.95%
EPS Growth59.41%
CountryUS
Employees319
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.23
Shares Outstanding137,608,110
10 Day Avg. Volume2,771,300
30 Day Avg. Volume2,716,325
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)3.85
Price to Sales (P/S)3.41
P/FCF Ratio-7.21
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit4.27
Enterprise Value/Ebitda-5.28
Forecast
1Y Price Target
$3.00Price Target Upside237.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.1
Revenue Forecast (FY)$55.16M
Rekor Systems Business Overview & Revenue Model
Company Description
Rekor Systems, Inc., operating through its various subsidiaries, specializes in creating and implementing crucial intelligent infrastructure solutions and services. These innovations serve transportation management, public safety, and commercial s...
How the Company Makes Money
Rekor primarily makes money by selling and deploying its roadway intelligence solutions as software and technology services, along with associated implementation and support. Key revenue streams include: (1) software and platform revenue from AI-p...
Rekor Systems Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic tone: clear operational actions produced measurable near-term improvements (12% revenue growth, +5pp gross margin, higher recurring revenue, workforce reductions) and management laid out a credible path to improved profitability (expected Q2 benefits and year-end EBITDA positive). However, Q1 still reflected one-time restructuring charges, a continued EBITDA loss (~$6.5M), and a sequential cash decline to $12.2M. The positives — revenue/margin gains, recurring revenue and concrete cost actions — outweigh the near-term negatives, though execution and timing risks remain.Positive Updates
Revenue Growth and Product Performance
Revenue increased 12% year-over-year (approximately $1.1M of growth). All product lines grew: Scout contributed ~$281k, Discover ~$682k and Command ~$102k.
Negative Updates
Continued Net Loss / Negative EBITDA
Despite improvements, the company remains EBITDA negative at approximately a $6.5M loss in Q1 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Product Performance
Revenue increased 12% year-over-year (approximately $1.1M of growth). All product lines grew: Scout contributed ~$281k, Discover ~$682k and Command ~$102k.
Read all positive updates
Company Guidance
Guidance from the call emphasized that the cost-reduction actions already executed—including a ~45‑person cut (~16% of the workforce) and other rightsizing measures—should drive a marked improvement in profitability, with the company targeting EBITDA positive by year‑end and expecting to be very close to EBITDA neutral by end of Q2 or early Q3; Q1 included one‑time charges so the full benefit of these savings should appear in Q2 and thereafter. Key metrics cited: revenue grew 12% year‑over‑year (≈$1.1M), driven by Scout (+$281k), Discover (+$682k) and Command (+$102k); adjusted gross margin rose to 53% from 48% a year ago (+5 ppt); Q1 EBITDA loss was ~$6.5M (improved from a $7.4M loss in Q1 2025); cash was $12.2M at quarter end (vs. $16.6M at 2025 year‑end); recurring revenue was ~64% of total. Management also noted a planned Q3 2026 commercial launch of GoSecure and that it is evaluating options to refinance its prime revenue‑sharing notes to lower cost of capital.Rekor Systems Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 48.45M | 46.03M | 34.93M | 19.92M | 11.57M |
| Gross Profit | 27.07M | 22.68M | 18.43M | 9.03M | 7.03M |
| EBITDA | -22.94M | -49.40M | -36.11M | -77.95M | -27.62M |
| Net Income | -31.46M | -61.41M | -45.69M | -83.11M | -26.78M |
Balance Sheet | |||||
| Total Assets | 85.39M | 82.47M | 92.15M | 83.84M | 125.88M |
| Cash, Cash Equivalents and Short-Term Investments | 16.57M | 5.01M | 15.71M | 1.92M | 25.80M |
| Total Debt | 29.74M | 32.44M | 42.33M | 19.76M | 11.54M |
| Total Liabilities | 42.52M | 48.33M | 58.78M | 34.50M | 24.79M |
| Stockholders Equity | 42.87M | 34.14M | 33.37M | 49.34M | 101.09M |
Cash Flow | |||||
| Free Cash Flow | -22.90M | -34.15M | -34.02M | -43.78M | -24.26M |
| Operating Cash Flow | -20.37M | -32.47M | -32.63M | -39.61M | -18.03M |
| Investing Cash Flow | -2.17M | -9.37M | 270.00K | -8.39M | -47.37M |
| Financing Cash Flow | 34.08M | 31.45M | 45.60M | 23.87M | 70.99M |
Rekor Systems Technical Analysis
Negative
0.89
Price Trends
0.80
Negative
0.84
Negative
1.34
Negative
Market Momentum
-0.03
Positive
37.78
Neutral
21.66
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 0.89 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.80, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.78 is Neutral, neither overbought nor oversold. The STOCH value of 21.66 is Neutral, 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% | |
53 Neutral | $200.00M | -22.13 | -128.96% | ― | -1.34% | 32.15% | |
50 Neutral | $72.19M | 0.46 | -59.64% | ― | 0.74% | ― | |
46 Neutral | $98.50M | 22.17 | -0.27% | ― | -10.05% | -9.73% | |
44 Neutral | $90.71M | -2.78 | -80.28% | ― | 8.95% | 59.41% | |
44 Neutral | $100.79M | ― | -83.01% | ― | 115.65% | 39.03% | |
42 Neutral | $118.74M | -1.00 | -120.57% | ― | 719.35% | ― |
* Technology Sector Average
REKR
Rekor Systems
0.66
-0.46
-41.16%
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Rekor Systems Corporate Events
Shareholder Meetings
Rekor Systems Adjourns 2026 Annual Meeting for Lack Quorum
Negative
May 15, 2026
On May 15, 2026, Rekor Systems convened its 2026 Annual Meeting of Stockholders but adjourned it after failing to achieve a quorum, delaying all planned business and votes. The meeting has been rescheduled as a reconvened session for September 11,...
Delistings and Listing ChangesRegulatory Filings and Compliance
Rekor Systems Receives Nasdaq Notice for Bid Non-Compliance
Negative
May 1, 2026
On April 27, 2026, Rekor Systems, Inc. disclosed that it had received a notice from Nasdaq indicating non-compliance with the exchange’s $1.00 minimum bid price requirement, after the company’s shares traded below that threshold for 30...
Business Operations and StrategyExecutive/Board Changes
Rekor Systems announces board change and leadership contracts
Positive
Mar 27, 2026
On March 25, 2026, Rekor Systems said Professor Sanjay Sarma resigned from its board of directors, effective the same day, noting his departure was not due to any disagreement over operations or policies. He will remain involved with the business ...
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.