Rekor Systems Inc (REKR)
NASDAQ:REKR
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Rekor Systems
(NASDAQ:REKR)
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Rating:46Neutral
Price Target:
$0.87
▼(-2.02% Downside)
Action:ReiteratedDate:04/01/26
The score is held down primarily by weak financial performance (persistent losses and significant cash burn) and bearish technicals (below key moving averages with negative MACD). Offsetting this, earnings-call commentary indicates improving efficiency, margins, and backlog/visibility, while valuation and recent corporate actions are neutral to mildly supportive but not decisive.
Positive Factors
Improved leverage and balance-sheet cushion
Material reduction in debt and positive shareholder equity materially lowers bankruptcy and refinancing risk over the next 2–6 months. A stronger capital structure gives management flexibility to execute product commercialization, absorb short-term losses, and pursue targeted investments without urgent financing.
Negative Factors
Persistent negative cash flow
Ongoing operating and free cash flow deficits indicate the business still consumes capital to fund operations. Continued cash burn increases reliance on external financing or equity, which can dilute shareholders and constrain strategic choices if profitability and FCF recovery do not continue improving.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage and balance-sheet cushion
Material reduction in debt and positive shareholder equity materially lowers bankruptcy and refinancing risk over the next 2–6 months. A stronger capital structure gives management flexibility to execute product commercialization, absorb short-term losses, and pursue targeted investments without urgent financing.
Read all positive factors
Rekor Systems (REKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$127.52M
Dividend YieldN/A
Average Volume (3M)2.41M
Price to Earnings (P/E)―
Beta (1Y)2.08
Revenue Growth11.89%
EPS Growth34.27%
CountryUS
Employees319
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.06
Shares Outstanding136,578,170
10 Day Avg. Volume2,665,654
30 Day Avg. Volume2,407,679
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 Cap1.06
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit4.98
Enterprise Value/Ebitda-5.88
Forecast
1Y Price Target
$3.00Price Target Upside237.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.08
Revenue Forecast (FY)$60.93M
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 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:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call presents meaningful operational progress and improving financial metrics: revenue growth (+5%), a large increase in remaining performance obligations (~+80%), recurring revenue growth (+6%), margin expansion to 56% (+7 pp), a 20% reduction in operating expenses, and a narrowed adjusted EBITDA loss with operating cash flow positive in Q4. These positives are tempered by a $3.8M noncash impairment, continued GAAP losses (adjusted EBITDA still negative $18.1M), and expected near-term one-time restructuring charges in 2026 as the company completes rightsizing. Management frames these trade-offs as necessary steps to build a scalable, higher-margin business and expects accelerated, profitable growth in the back half of 2026.Positive Updates
Revenue Growth
Total revenue of $48.5 million for fiscal 2025, a 5% increase versus $46.0 million in 2024, driven by growth across public safety and urban mobility businesses.
Negative Updates
Noncash Asset Impairment Charge
Recorded a $3.8 million noncash asset impairment in 2025 associated with the decision to onshore engineering, which reduced reported earnings for the year.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Total revenue of $48.5 million for fiscal 2025, a 5% increase versus $46.0 million in 2024, driven by growth across public safety and urban mobility businesses.
Read all positive updates
Company Guidance
Management stopped short of specific profit targets but said they entered 2026 with momentum after FY2025 results that included $48.5M revenue (up 5% from $46M in 2024), $25.9M of remaining performance obligations (nearly +80% YoY), $23.9M recurring revenue (up 6% YoY) and a 56% adjusted margin (vs. 49% in 2024); they booked a $3.8M noncash asset impairment, cut operating expenses ex-D&A/impairment by 20% (an $11.4M reduction), narrowed the adjusted EBITDA loss to $18.1M (an $11M or 38% improvement YoY; H1 loss $13.1M vs. H2 loss $5M), reduced net loss ~49% and achieved operating cash flow positivity in Q4 2025. Looking forward, management expects near‑term one‑time restructuring charges in Q1–Q2 2026, additional savings from onshoring engineering and rightsizing (concluding around end of Q2), plans to normalize R&D to a 7–10% of gross revenue run rate by the back half of 2026, and intends to aggressively ramp sales and scale in the back half of 2026 with margins gradually stabilizing as Software and Data‑as‑a‑Service grow as a share of revenue.Rekor Systems Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
53
Neutral
Cash Flow
18
Very 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
Positive
0.89
Price Trends
0.86
Positive
1.21
Negative
1.43
Negative
Market Momentum
>-0.01
Negative
52.81
Neutral
75.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REKR, the sentiment is Positive. The current price of 0.89 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.86, and below the 200-day MA of 1.43, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 75.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $101.08M | -4.91 | -93.10% | ― | 312.20% | ― | |
46 Neutral | $127.52M | -5.31 | -84.96% | ― | 11.89% | 34.27% | |
46 Neutral | $91.58M | 0.91 | -49.36% | ― | -35.61% | ― | |
46 Neutral | $169.56M | -106.50 | -42.81% | ― | 1.88% | 53.31% | |
41 Neutral | $95.76M | -3.28 | -84.58% | ― | -34.35% | 20.88% | |
41 Neutral | $84.90M | 3.19 | -99.72% | ― | -62.56% | -250.18% |
* Technology Sector Average
REKR
Rekor Systems
0.89
0.11
14.10%
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Rekor Systems Corporate Events
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.