Want to see REKR full AI Analyst Report?
Top Page
Rekor Systems
(NASDAQ:REKR)
Select Model
Select Model
Rating:44Neutral
Price Target:
$0.38
▼(-34.83% Downside)
Action:Reiterated
Date:10/30/26
Overall score reflects a high-risk turnaround profile: financial performance is constrained by ongoing losses and negative free cash flow despite improving revenue and margins. Technicals remain pressured with the stock below key moving averages and negative MACD. Offsetting factors include earnings-call momentum toward adjusted-EBITDA profitability and improved recurring revenue/margins, but corporate events (Nasdaq bid-price compliance timeline and legal action) add meaningful headline and listing risk.
Positive Factors
Recurring Revenue Growth
Recurring revenue is expanding faster than total sales, improving the company’s mix toward contracted and repeatable revenue. That supports greater predictability, potentially higher customer lifetime value, and a stronger foundation for margin expansion as the platform scales over the next several quarters.
Negative Factors
Persistent Losses and Cash Burn
Rekor remains structurally unprofitable and consumes cash despite improving margins and narrowing losses. Negative operating and free cash flow can constrain investment, increase dependence on financing or additional cost reductions, and leave the company vulnerable if the path to profitability takes longer than expected.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Growth
Recurring revenue is expanding faster than total sales, improving the company’s mix toward contracted and repeatable revenue. That supports greater predictability, potentially higher customer lifetime value, and a stronger foundation for margin expansion as the platform scales over the next several quarters.
Read all positive factors
Rekor Systems (REKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.75M
Dividend YieldN/A
Average Volume (3M)1.97M
Price to Earnings (P/E)―
Beta (1Y)2.50
Revenue Growth9.78%
EPS Growth69.23%
CountryUS
Employees234
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.17
Shares Outstanding137,636,490
10 Day Avg. Volume2,415,452
30 Day Avg. Volume1,968,324
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)3.85
Price to Sales (P/S)3.41
P/FCF Ratio-7.21
Enterprise Value/Market Cap2.05
Enterprise Value/Revenue2.25
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda-8.56
Forecast
1Y Price Target
$3.00Price Target Upside417.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.11
Revenue Forecast (FY)$51.05M
Rekor Systems Business Overview & Revenue Model
Company Description
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...
How the Company Makes Money
Rekor makes money primarily by selling and operating AI-enabled roadway intelligence solutions delivered as software and related services. Key revenue streams include: (1) Software and platform revenue: fees for access to Rekor’s AI-driven roadway...
Rekor Systems Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call presents multiple meaningful operational improvements: expanding recurring revenue (+14% Q2, +21 YTD), stronger gross margins (56% Q2 vs 50% prior), large reductions in operating expense, improved cash flow (61% improvement YTD) and a path to adjusted EBITDA profitability in H2 2026. Counterbalancing these positives are ongoing regulatory and market headwinds in ALPR that lengthen sales cycles, dependence on a noncash one-time gain in the quarter, continued adjusted EBITDA loss (~$1.2M), refinancing uncertainty, and modest absolute revenue growth (2% YoY Q2). Overall, the operational momentum and margin/recurring-revenue improvements outweigh the risks noted, but progress depends on execution and the external regulatory environment.Positive Updates
Quarterly and Year-to-Date Revenue Growth
Q2 revenue of $12.7M, up 2% YoY from $12.4M; revenue for the first 6 months was $22.9M, up 6% YoY, indicating modest top-line growth.
Negative Updates
Challenging ALPR Market and Regulatory Scrutiny
ALPR environment under increased public scrutiny with new rules around data retention, sharing, access, and heightened litigation risk; these factors are lengthening sales cycles across the industry and complicating go-to-market dynamics.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly and Year-to-Date Revenue Growth
Q2 revenue of $12.7M, up 2% YoY from $12.4M; revenue for the first 6 months was $22.9M, up 6% YoY, indicating modest top-line growth.
Read all positive updates
Company Guidance
Management guided to adjusted-EBITDA profitability in the second half of 2026, citing Q2 revenue of $12.7M (+2% YoY) and H1 revenue of $22.9M (+6% YoY); recurring revenue of $6.7M in Q2 (+14% YoY) and $13.3M for the first six months (+21% YoY) with adjusted gross margin expanding to 56% in Q2 (55% H1 vs. 50%/49% prior-year), operating expenses down ~$4.0M in the quarter and $4.3M YTD, an adjusted EBITDA loss of ~$1.2M in Q2 (79% improvement YoY), a one‑time $2.8M lease remeasurement gain, ending cash slightly above $10M and quarterly operating cash burn reduced to $2.4M (six‑month cash from operations improved by $9.6M, or 61%); the company expects several million dollars of additional annualized savings to be executed in Q3 with noticeable impact in Q4/2027, aims to finalize initial GoSecure launch terms in Q3, and is evaluating refinancing of its revenue‑sharing notes.Rekor Systems Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
57
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.82M | 48.45M | 46.03M | 34.93M | 19.92M | 11.57M |
| Gross Profit | 27.55M | 27.07M | 22.68M | 18.43M | 9.03M | 7.03M |
| EBITDA | -13.10M | -22.94M | -49.40M | -36.11M | -77.95M | -27.62M |
| Net Income | -21.84M | -31.46M | -61.41M | -45.69M | -83.11M | -26.78M |
Balance Sheet | ||||||
| Total Assets | 74.33M | 85.39M | 82.47M | 92.15M | 83.84M | 125.88M |
| Cash, Cash Equivalents and Short-Term Investments | 9.77M | 16.57M | 5.01M | 15.71M | 1.92M | 25.80M |
| Total Debt | 26.55M | 29.74M | 32.44M | 42.33M | 19.76M | 11.54M |
| Total Liabilities | 40.20M | 42.52M | 48.33M | 58.78M | 34.50M | 24.79M |
| Stockholders Equity | 34.13M | 42.87M | 34.14M | 33.37M | 49.34M | 101.09M |
Cash Flow | ||||||
| Free Cash Flow | -13.04M | -22.90M | -34.15M | -34.02M | -43.78M | -24.26M |
| Operating Cash Flow | -10.77M | -20.37M | -32.47M | -32.63M | -39.61M | -18.03M |
| Investing Cash Flow | -1.74M | -2.17M | -9.37M | 270.00K | -8.39M | -47.37M |
| Financing Cash Flow | 17.38M | 34.08M | 31.45M | 45.60M | 23.87M | 70.99M |
Rekor Systems Technical Analysis
Neutral
0.58
Price Trends
0.42
Negative
0.54
Negative
0.72
Negative
Market Momentum
-0.02
Negative
56.26
Neutral
83.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REKR, the sentiment is Neutral. The current price of 0.58 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.42, and below the 200-day MA of 0.72, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for REKR.
Rekor Systems Risk Analysis
Rekor Systems disclosed 38 risk factors in its most recent earnings report. Rekor Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rekor Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $71.63M | 2.57 | -1.21% | ― | 32.24% | ― | |
47 Neutral | $50.32M | -1.28 | -88.73% | ― | 250.00% | 35.86% | |
46 Neutral | $221.20M | -16.18 | -164.67% | ― | -0.23% | 33.15% | |
45 Neutral | $21.37M | -0.26 | 28.62% | ― | -5.11% | -161.56% | |
44 Neutral | $54.75M | -2.38 | -59.05% | ― | 9.78% | 69.23% | |
43 Neutral | $175.67M | -0.60 | -118.17% | ― | 530.37% | -198.37% |
* Technology Sector Average
REKR
Rekor Systems
0.40
-2.13
-84.31%
STEM
Stem Inc
2.22
-17.39
-88.68%
ARBE
Arbe Robotics
0.39
-1.57
-80.00%
KLTR
Kaltura
1.45
-0.10
-6.45%
AISP
Airship AI Holdings
2.08
-2.67
-56.21%
ZENA
ZenaTech, Inc.
0.87
-3.76
-81.17%
Rekor Systems Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Rekor Systems Granted Nasdaq Bid Price Compliance Extension
Negative
Oct 27, 2026
On October 27, 2026, Rekor Systems, Inc. announced that Nasdaq had granted the company an additional 180 days, until April 26, 2027, to regain compliance with the exchange’s $1.00 minimum bid price requirement. Rekor’s shares, which ha...
Business Operations and StrategyLegal ProceedingsPrivate Placements and FinancingRegulatory Filings and Compliance
Rekor Systems Files Fiduciary Duty Complaint Against Ex-Director
Negative
Oct 19, 2026
Rekor Systems said it filed a verified complaint on October 16, 2026, in the Delaware Court of Chancery against former director Viraj Mehta, alleging breaches of the fiduciary duty of loyalty tied to a December 2025 hedge fund financing. The actio...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Rekor Systems Holds 2026 Annual Shareholder Meeting Successfully
Positive
Oct 16, 2026
On October 16, 2026, Rekor Systems, Inc. held its 2026 Annual Meeting of Stockholders after prior attempts on May 15 and September 11 were adjourned for lack of a quorum, prompting a bylaw change on October 6 to lower the quorum threshold to 40 pe...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Rekor Systems Lowers Quorum Requirement for Shareholder Meetings
Neutral
Oct 6, 2026
On October 6, 2026, Rekor Systems, Inc.’s board approved an amendment to its Amended and Restated Bylaws, cutting the quorum requirement for stockholder meetings from a majority of shares entitled to vote to 40%, either present in person or ...
Shareholder Meetings
Rekor Systems Adjourns Annual Meeting, Urges Shareholder Participation
Neutral
Sep 14, 2026
On September 11, 2026, Rekor Systems reconvened its 2026 Annual Meeting of Stockholders but was unable to conduct business due to the absence of a quorum, leading to an adjournment. The meeting was rescheduled as a reconvened session for October 1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.