Start here if you're new
what it is
Rekor sells software that watches roads, reads plates, and turns traffic data into alerts for cities and police.
how it gets paid
Last year Rekor Systems made $46M in revenue. Rekor Recognition Systems was the main engine at $18M, or 39% of sales.
what just happened
The quarter grew to $36M, but EPS stayed deep in the red at -$0.20.
At a glance
C++ balance sheet — some cracks in the foundation
65/100 earnings predictability — reasonably predictable
-$0.71 fy2024 eps est
$46M fy2024 rev est
~-118% operating margin — deep losses
xvary composite: 41/100 — below average
What they do
Rekor sells software that watches roads, reads plates, and turns traffic data into alerts for cities and police.
Rekor sells into road systems, and switching costs (leaving is painful) are real once your cameras, alerts, and reports are wired in. The latest quarter brought in $36M, up 152% from a year earlier, versus $46M for all of 2024. You get real adoption, then a brutal bill: the revenue climbs faster than the profit line.
How they make money
$46M
annual revenue
Rekor Recognition Systems
$18M
+12.0%
Waycare Technologies
$14M
+152.0%
All Traffic Data Systems
$8M
+8.0%
Southern Traffic Services
$6M
5.0%
The products that matter
vehicle recognition software
Rekor Scout
6+ years of machine learning data
It identifies make, model, color, and license plate from roadway imagery. This is the detection layer behind a ~$46M annual revenue base on this page, but product accuracy still has to turn into recurring dollars.
computer vision core
traffic analytics platform
Rekor Discover
ties to the $15M next-quarter revenue expectation
It classifies vehicles for monitoring and government reporting without major road construction. Useful product. The real test is whether it helps sustain the $15M revenue consensus rather than produce another one-off win.
contract conversion test
Key numbers
$46M
annual sales
This is the whole sales base. Compare it with the $138M market cap, and you see a small company priced like a story.
~-118%
op margin
Operating margin n/a (verify filings) margin).
$27M
long debt
Long-term debt is 16% of capital, so the lender still has a chair at the table.
2.3
beta
A 2.3 beta means the stock moves about 2.3 times the market's swings.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $27M (16% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for REKR right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The quarter grew to $36M, but EPS stayed deep in the red at -$0.20.
Revenue rose 152% vs. prior year, and gross margin was 53.94% from web data. The company still posted a loss, and FY2024 EPS stayed negative at -$0.71.
$36M
quarter revenue
-$0.20
eps
53.94%
gross margin
the number that mattered
The most important number was $36M, because a 152% jump still left the company unprofitable.
source: company earnings report, 2026
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What could go wrong
The #1 risk is running out of room before contract wins become durable recurring revenue.
med
cash burn and dilution
The company reduced cash burn by $7.5M in February 2026, but it still had to raise $15M in December 2025 at $1.75 a share. That tells you the business was not funding itself.
If operating losses stay wide, more equity issuance can hit existing shareholders before profitability arrives.
med
revenue quality risk
Q3 2025 revenue reached $14.2M, and management tied part of the strength to one-time license sales. One good quarter is useful. It is not the same thing as repeatable recurring revenue.
If the next quarter misses the $15M consensus, the market will likely treat recent growth as episodic rather than durable.
med
leadership turnover
Two board resignations in January 2026 plus a CFO transition in November 2025 add execution risk right when cost control and capital allocation matter most.
Turnarounds are hard enough with a stable team. They get harder when the people steering the process keep changing.
A company with $49M in trailing revenue, a -89.82% profit margin, and recent equity financing does not have much room for operational misses.
source: institutional data · regulatory filings · risk analysis
Pay attention to
cash
whether the burn reduction sticks
February 2026 showed a $7.5M burn improvement. You want that trend to hold, because the December 2025 $15M raise says the balance sheet still needs help.
earnings
next quarter's $15M revenue test
Consensus expects $15M of revenue and a -$0.04 loss per share. Beating that would help frame Q3's strength as momentum instead of a one-off event.
contracts
whether state wins repeat
The bull case needs large state and transportation contracts to show up again and again, not just once in a headline or license sale.
governance
leadership stability
Two board resignations in January 2026 and a CFO transition in November 2025 mean you should keep an eye on who is actually running the turnaround from here.
Analyst rankings
earnings predictability
65 / 100
Middle of the pack. In human-speak: analysts have some visibility, but this is still the kind of stock that can surprise you.
beta
2.3
This has moved more than twice as much as the market. In human-speak: if you own REKR, your stomach matters almost as much as your thesis.
source: institutional data
Institutional activity
institutional ownership data for REKR is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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