Rekor Systems (REKR) AI Stock Analysis

• Market Cap: $215.37M
• Dividend Yield: N/A
• Average Volume (3M): 4.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: 11.89%
• EPS Growth: 34.27%
• Country: US
• Employees: 319
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.03
• Shares Outstanding: 126,689,800
• 10 Day Avg. Volume: 2,754,838
• 30 Day Avg. Volume: 4,601,852
• PEG Ratio: 1.59
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 2.94
• P/FCF Ratio: -3.96
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 8.46
• Enterprise Value/Ebitda: -6.42
• 1Y Price Target: $3.25
• Price Target Upside: 91.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-11.76% Downside)

Rekor Systems' overall stock score is driven by its financial performance challenges and weak technical indicators. However, the positive earnings call, with record revenue and improved margins, provides a strong counterbalance, highlighting potential for future growth.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, positioning Rekor Systems for sustained expansion.

Recurring Revenue

Growth in recurring revenue enhances financial stability and predictability, providing a reliable income stream that supports long-term business resilience.

Improved Gross Margin

Higher gross margins reflect improved operational efficiency and a favorable product mix, contributing to better profitability prospects.

Negative Factors

Profitability Challenges

Ongoing EBITDA losses highlight challenges in achieving profitability, which could impact long-term financial health if not addressed.

Cash Flow Issues

Negative cash flow metrics suggest liquidity constraints, potentially limiting the company's ability to invest in growth and manage debt.

CFO Transition

Leadership changes in financial management can lead to strategic shifts and uncertainty, affecting long-term planning and execution.

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, Canada, and internationally. It offers Rekor One Traffic Management solutions, including software modules for roadway monitoring and response, an incident detection and management solution; traffic and infrastructure analytics to capture data for roadway and infrastructure analytics and planning; and live and archival traffic view for situational awareness of what is happening on roadways. The company also provides Rekor One Public Safety solutions comprising contactless compliance application that delivers a turnkey information and citation management solution to cities, states, and municipalities for primary and secondary offenses; Rekor scout that offers accurate license plate and vehicle recognition on any IP, traffic, or security camera, and can be subscribed to separately for use with existing camera or sensor systems; and Rekor blue, a smartphone app that retrieves accurate vehicle license plate number and state of registration, and automatically organizes information by sessions, capturing date, location, and timestamp for law enforcement. In addition, it offers Rekor CarCheck, an API of its vehicle recognition technology to respond with accurate license plate data, vehicle make, model, body type, and color for commercial applications; and AutoNotice, a cloud-based financial management application to record payments in the system and provide functionality to research, manage unapplied payments, and reconcile receipts. Further, the company provides hardware products, which includes Rekor Edge Series, a family of mountable vehicle recognition systems that seamlessly capture and process vehicle data. Rekor Systems, Inc. was founded in 2017 and is headquartered in Columbia, Maryland.

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 support for its technology, creating a recurring revenue model. Additionally, Rekor engages in partnerships with law enforcement agencies and municipalities, supplying tailored solutions that often include installation and ongoing maintenance. Strategic collaborations with other technology providers also enhance its market reach, contributing to its earnings through joint ventures and integrated solutions.

Rekor Systems Financial Statement Overview

Summary

Rekor Systems shows revenue growth but faces profitability and cash flow challenges. Improved leverage management is noted, yet negative returns on equity and cash flow issues persist, posing risks.

Income Statement

Rekor Systems shows a consistent increase in revenue, with a TTM growth rate of 8.04%. However, the company struggles with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin is relatively stable at 45.24% TTM, but the net profit margin remains deeply negative, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.85 TTM, indicating better leverage management compared to previous years. However, the return on equity is negative, highlighting profitability issues. The equity ratio is not provided, but the overall financial stability is moderate with some risk due to negative equity returns.

Cash Flow

Cash flow metrics indicate challenges, with negative operating and free cash flows. The free cash flow growth rate is negative at -11.56% TTM, and the operating cash flow to net income ratio is also negative, suggesting cash flow issues. However, the free cash flow to net income ratio is slightly positive, indicating some cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	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

• Technical Analysis Sentiment: Negative
• Last Price: 1.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 1.7 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.15, and above the 200-day MA of 1.40, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 35.29 is Neutral, neither overbought nor oversold. The STOCH value of 18.21 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KLTR	54 Neutral	$229.81M	―	-86.46%	―	1.88%	53.31%
REKR	48 Neutral	$215.37M	―	-114.65%	―	11.89%	34.27%
ZENA	45 Neutral	$109.04M	-5.55	-100.32%	―	312.20%	―
STEM	44 Neutral	$145.15M	―	―	―	-35.61%	―
ARBE	41 Neutral	$144.07M	-2.94	-142.36%	―	-34.35%	20.88%
AISP	35 Underperform	$122.01M	―	―	―	―	―

Rekor Systems Corporate Events

Rekor Systems Achieves Record Third Quarter Results

Rekor Systems, Inc. is a leading provider of AI-enabled roadway intelligence systems, specializing in digital infrastructure and data analytics to enhance traffic management and safety. In its latest earnings report, Rekor Systems announced record financial results for the third quarter of 2025, marking its strongest performance to date with significant improvements in revenue, gross margins, and operational efficiency. The company reported a record quarterly revenue of $14.2 million, with an adjusted gross margin of 63%, and a reduced adjusted EBITDA loss of $1.5 million. Operating expenses saw a notable reduction, contributing to the company’s financial improvement.

Rekor Systems Projects Record Q3 2025 Revenue

Rekor Systems announced its preliminary financial results for Q3 2025, expecting record quarterly revenue between $13.9 million and $14.3 million, a significant reduction in adjusted EBITDA loss, and an expanded gross margin. The results reflect increased demand for their data-as-a-service and software products, contributing to improved operating leverage and long-term shareholder value.

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.