Rekor Systems (REKR) AI Stock Analysis

• Market Cap: $221.08M
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• Revenue Growth: 7.05%
• EPS Growth: 19.75%
• Country: US
• Employees: 319
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.07
• Shares Outstanding: 126,334,040
• 10 Day Avg. Volume: 5,442,688
• 30 Day Avg. Volume: 2,852,767
• 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: 0.73
• Enterprise Value/Revenue: 3.55
• Enterprise Value/Gross Profit: 7.84
• Enterprise Value/Ebitda: -3.80
• 1Y Price Target: $3.13
• Price Target Upside: 78.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 41 Neutral
• Price Target: $1.50 ▼(-14.29% Downside)

Rekor Systems faces substantial financial challenges, with declining revenues and persistent losses being the most significant factors. Technical indicators suggest overbought conditions, while valuation metrics highlight unprofitability. Despite some positive developments in securing contracts, the overall outlook remains cautious.

Positive Factors

Major Contracts

Securing a major contract with the Texas Department of Transportation enhances Rekor's market position and provides a stable revenue stream, reflecting trust in their technology and potential for further government partnerships.

Operational Efficiency

A significant reduction in operating expenses demonstrates Rekor's commitment to cost management, which can improve profitability and cash flow over time, supporting long-term financial health.

Expanded Market Presence

The contract expansion with a regional authority showcases Rekor's growing market presence and the effectiveness of its technology, which can lead to further adoption and revenue growth.

Negative Factors

Revenue Stagnation

Stagnant revenue growth indicates challenges in expanding market share or increasing sales, which may hinder long-term financial performance and investor confidence.

Decline in Recurring Revenue

A decline in recurring revenue suggests potential issues with customer retention or service value, impacting predictable income streams and financial stability.

Decreased Gross Margin

A decrease in gross margin reflects a shift towards lower-margin contracts, which could pressure profitability and limit the company's ability to invest in growth initiatives.

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 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: Positive
• Last Price: 1.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1.75 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.26, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 71.04 is Negative, neither overbought nor oversold. The STOCH value of 69.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	315.82M	47.85	12.54%	―	27.84%	-13.78%
VERI	58 Neutral	348.87M	-2.09	-3009.11%	―	-31.11%	-52.32%
AUID	46 Neutral	42.62M	-2.08	-123.99%	―	295.86%	-2.95%
ARBE	46 Neutral	179.83M	-3.27	-219.23%	―	-60.93%	10.46%
SNCR	45 Neutral	73.61M	-3.05	-42.95%	―	-6.32%	6.80%
REKR	41 Neutral	$221.08M	―	-128.83%	―	7.05%	19.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.

The most recent analyst rating on (REKR) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Rekor Systems stock, see the REKR Stock Forecast page.