Rekor Systems, Inc.
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Range $3 – $3
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About the company
Rekor Systems, Inc. provides infrastructure solutions for public safety, urban mobility, and transportation management markets in the United States and internationally. The company offers Rekor One, a roadway intelligence engine; Rekor Command for transportation management; Rekor Discover for urban mobility; Rekor Scout for public safety; Rekor AutoNotice, cloud-based financial management application for contactless compliance; and Rekor CarCheck, an artificial intelligence (AI) based vehicle and license plate recognition technology.
- CEO
- Robert A. Berman
- IPO
- 2017
- Employees
- 234
- HQ
- Columbia, MD, US
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Similar companies
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- Market Cap
- $80.75M
- P/E
- -3.51
- PEG
- -0.03
- P/S
- 1.62
- P/B
- 2.37
- EV/EBITDA
- -7.45
- Div Yield
- 0.00%
- Gross Margin
- 55.31%
- Op Margin
- -31.83%
- Net Margin
- -43.84%
- ROE
- -59.05%
- ROIC
- -25.38%
Latest fiscal year · YoY change
- Revenue
- $48.45M+5.3%
- Gross Profit
- $27.07M+19.3%
- Op Income
- $-25,132,000
- Net Income
- $-31,460,000+48.8%
- EPS
- $-0.26+63.4%
- OCF Growth
- +37.3%
- FCF Growth
- +32.9%
- 52W High
- $3.42
- 52W Low
- $0.55
- 50D MA
- $0.66
- 200D MA
- $1.07
- Beta
- 1.81
- RSI (14)
- 39
- Avg Volume
- 2.02M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Rekor reported modest revenue growth, stronger recurring revenue and margins, and said cost cuts put it on track to reach adjusted EBITDA profitability in the second half of 2026.· August 13, 2026
- Q2 revenue was $12.7 million, up 2% year over year; first-half revenue was $22.9 million, up 6%.
- Recurring revenue outpaced total growth, rising 14% in Q2 to $6.7 million and 21% in the first half to $13.3 million.
- Adjusted gross margin expanded to 56% from 50% in Q2 and to 55% from 49% in the first half.
- Adjusted EBITDA loss narrowed sharply to $1.2 million in Q2, a 79% improvement year over year.
- Management said more cost savings are coming in Q3/Q4 and reiterated a goal to reach adjusted EBITDA profitability in the second half of 2026.
Q2 revenue was $12.7 million, up 2% from $12.4 million in Q2 2025; first-half revenue was $22.9 million, up 6% year over year. Recurring revenue grew 14% in the quarter to $6.7 million and 21% in the first half to $13.3 million. Adjusted gross margin expanded to 56% from 50% in Q2 2025 and to 55% from 49% in the first half of 2025. Operating expenses decreased by $4 million in the quarter and $4.3 million in the first half versus prior-year periods. The company recorded a one-time $2.8 million noncash gain from remeasuring a lease liability, and adjusted EBITDA loss was $1.2 million, down 79% year over year. Cash ended Q2 at slightly above $10 million, with operating cash burn of $2.4 million for the quarter and cash used from operations improving by $9.6 million, or 61%, for the first half. Management did not give specific revenue guidance, but said it expects additional cost efficiencies in Q3 and a noticeable impact in Q4 and into 2027, and reiterated expectations to reach adjusted EBITDA profitability in the second half of 2026.
Robert Alan Berman framed the quarter as evidence that the company’s cost actions are flowing through the P&L, saying revenue grew, gross margins expanded, and the adjusted EBITDA loss narrowed sharply. He emphasized that the savings are not a one-quarter effect and said Rekor is nearing the end of a judicious cost reduction program. Strategically, he highlighted GoSecure as a potential media authenticity standard, recurring roadway data revenue, and responsible vehicle recognition as the company’s main growth opportunities. His tone was confident but measured, with repeated focus on execution and profitability.
Joseph Nalepa provided the financial detail: revenue rose to $12.7 million, recurring revenue reached $6.7 million, adjusted gross margin improved to 56%, and operating expenses fell by $4 million in the quarter. He attributed margin improvement to better operating leverage and mix, especially a higher share of software and recurring revenue. He also cited the $2.8 million lease-liability remeasurement gain, cash slightly above $10 million, and reduced operating cash burn of $2.4 million. On capital allocation and balance sheet actions, he said the company is evaluating refinancing options for its existing prime revenue sharing notes and believes its contract portfolio, including South Carolina, should help support that process.
Analysts asked about the South Carolina contract, and management said it expands Rekor’s footprint in the state and could create opportunities to win additional work there, similar to Georgia. On Command, management said the pipeline is being monitored and there is potential for new wins, but government procurement timing is hard to predict. A question about privacy issues in ALPR prompted Berman to say the industry is in flux, some competitors are losing contracts, and Rekor believes its long-standing privacy-focused design and data-use controls will help it win business as agencies sort out the rules.
The bull case is that the company is showing operating leverage: revenue is growing, recurring revenue is growing faster than total revenue, gross margins are expanding, and cash burn is improving. Management also sounded more confident about the back half of 2026, pointing to the full benefit of cost cuts and the potential to reach adjusted EBITDA profitability.
The bear case is that growth remains modest and the company is still not profitable on an adjusted EBITDA basis, with Q2 loss only narrowing to $1.2 million. Management also flagged challenging ALPR market conditions due to public scrutiny, retention/sharing/access rules, and litigation risk, which are slowing sales cycles across the industry. In addition, the refinancing of existing revenue-sharing notes is still only under evaluation, not finalized.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 80.3%
- Shares Outstanding
- 137.61M
- Float Shares
- 110.48M
of shares held by institutions
89 13F filers
Buy/sell ratio 1.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Vanguard Group Inc | 6.05M | ▲ 717.59K |
| Vanguard Capital Management LLC | 5.49M | ▼ 5.52K |
| Ubs Group AG | 2.80M | ▲ 236.23K |
| Prescott Group Capital Management, L.L.C. | 2.51M | 0 |
| Blackrock, Inc. | 1.72M | ▼ 358.95K |
| Mercer Global Advisors Inc /Adv | 1.70M | 0 |
| D. Scott Neal, Inc. | 1.70M | 0 |
| Geode Capital Management, LLC | 1.66M | ▲ 345.64K |
| Jane Street Group, LLC | 1.53M | ▲ 1.42M |
| Vanguard Fiduciary Trust Co | 815.93K | ▼ 66.59K |
| Sg Americas Securities, LLC | 679.86K | ▼ 1.04K |
| State Street Corp | 597.74K | ▼ 3.21M |
Held by 24 ETFs
Biggest fund positions in REKR by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| May 27, 26 | BERMAN ROBERT ALAN | other | 1,000,000 |
| Mar 15, 26 | Nalepa Joseph | other | 100,000 |
| Apr 21, 26 | BERMAN ROBERT ALAN | other | 1,000,000 |
| Mar 15, 26 | Nalepa Joseph | other | 1,155 |
| Mar 15, 26 | SHAKERDGE-HENNESSY DEBRA | other | 1,155 |
| Dec 5, 25 | Hen Eyal | other | 0 |
| Nov 24, 25 | Goord Glenn S | other | 48,499 |
| Nov 24, 25 | Goord Glenn S | other | 48,499 |
| Nov 17, 25 | Nalepa Joseph | other | 0 |
| Nov 17, 25 | Nalepa Joseph | other | 6,666 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our REKR coverage
Recent articles, reports, and earnings notes.
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Generate REKR report →Rekor Systems Q2 Earnings Call Highlights
marketbeat.com · Aug 13
Rekor Systems, Inc. (REKR) Q2 2026 Earnings Call Transcript
seekingalpha.com · Aug 13
Rekor Systems, Inc. (REKR) Reports Break-Even Earnings for Q2
zacks.com · Aug 13
Rekor Systems Reports Second Quarter 2026 Financial Results
globenewswire.com · Aug 13
Rekor Expands Patented Verification Technology into Voice, Opening New Market for GoSecure™
globenewswire.com · Aug 12
Rekor Selected for 7-Year South Carolina DOT Statewide Contract Valued in Excess of $22 Million
globenewswire.com · Aug 11
Rekor Systems to Announce Second Quarter Fiscal 2026 Results
globenewswire.com · Jul 29
Rekor Systems Expects Significant Improvement in Second Quarter 2026 Financial Performance
globenewswire.com · Jul 15
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