Rekor Systems (REKR) AI Stock Analysis

• Market Cap: $216.97M
• Dividend Yield: N/A
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• 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: 136,457,580
• 10 Day Avg. Volume: 3,026,609
• 30 Day Avg. Volume: 3,101,297
• 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: 1.03
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 8.46
• Enterprise Value/Ebitda: -6.42
• 1Y Price Target: $3.25
• Price Target Upside: 104.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.24
• Revenue Forecast (FY): $41.56M

• Rating: 54 Neutral
• Price Target: $2.00 ▲(25.79% Upside)

Rekor Systems' overall score is driven by strong revenue growth and improved operational efficiency, as highlighted in the earnings call. However, significant profitability and cash flow challenges, along with a negative valuation, weigh down the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Recurring Revenue Model

The increase in recurring revenue enhances financial stability and predictability, providing a solid foundation for future growth.

Gross Margin Improvement

Improved gross margins reflect better cost management and higher profitability potential, strengthening the company's financial position.

Negative Factors

Profitability Challenges

Ongoing losses indicate challenges in achieving profitability, which could impact long-term financial health and investment capacity.

Cash Flow Issues

Negative cash flows suggest liquidity constraints, potentially limiting the company's ability to invest in growth opportunities.

CFO Transition

Leadership changes can disrupt strategic continuity and may affect financial management, posing risks to operational stability.

Rekor Systems Business Overview & Revenue Model

Company Description

Rekor Systems, Inc. (REKR) is a technology company specializing in advanced vehicle recognition and artificial intelligence solutions. The company operates primarily in the transportation and public safety sectors, providing innovative software and hardware products that enhance vehicle monitoring, data analysis, and security. Rekor's core offerings include automatic license plate recognition (ALPR) systems, cloud-based analytics, and other related services that support law enforcement agencies, municipalities, and various commercial applications.

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: 1.59
• 50DMA: Negative
• 100DMA: Negative
• 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 1.59 is below the 20-day moving average (MA) of 1.75, below the 50-day MA of 2.14, and above the 200-day MA of 1.42, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 35.12 is Neutral, neither overbought nor oversold. The STOCH value of 8.29 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%
REKR	54 Neutral	$216.97M	―	-114.65%	―	11.89%	34.27%
KLTR	54 Neutral	$262.64M	-14.25	-86.46%	―	1.88%	53.31%
STEM	51 Neutral	$139.95M	-1.21	―	―	-35.61%	―
ZENA	45 Neutral	$122.25M	-6.32	-100.32%	―	312.20%	―
ARBE	41 Neutral	$124.09M	-2.47	-142.36%	―	-34.35%	20.88%
AISP	35 Underperform	$102.53M	-1.85	―	―	-62.56%	-250.18%

Rekor Systems Corporate Events

Rekor Systems Closes $14 Million Direct Offering

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, 2025, generating approximately $14 million in net proceeds for the company, which plans to use the funds for working capital, capital expenditures, and general corporate purposes. The offering included a side letter agreement prohibiting Rekor from entering into variable rate transactions while the investor holds any warrants. The issuance of these units and associated warrants is expected to impact Rekor’s financial flexibility and market positioning.

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.