EarningsQ2 2026 Earnings Report
DE:38E Q2 2026 EPS Results
Actual EPS€0.00
Consensus EPS-€0.03
Beat/MissBeat by +€0.03
One Year Ago EPS-€0.06
DE:38E Q2 2026 Revenue Results
Actual Revenue€11.29M
Expected Revenue€11.25M
Beat/MissBeat by +€44.59K
YoY Revenue Growth+2.45%
Earnings Announcement Details
QuarterQ2 2026
Date08/13/2026
TimeBefore Open
Conference CallThursday, August 13, 2026
DE:38E Upcoming Earnings
Rekor Systems's next earnings date is estimated for November 16, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:38E Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
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.Company Guidance
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.
Recurring Revenue Expansion
Recurring revenue grew 14% in the quarter to $6.7M and increased 21% for the first 6 months to $13.3M, outpacing total revenue and improving business mix toward contracted, repeatable, higher-margin revenue.
Gross Margin Improvement
Adjusted gross margin expanded to 56% in Q2 from 50% in Q2 of 2025; adjusted gross margin for the first half rose to 55% from 49% YoY, driven by revenue growth and a more favorable product/recurring mix.
Large Improvement in Adjusted EBITDA Loss
Adjusted EBITDA loss narrowed sharply to approximately $1.2M in Q2, representing a 79% improvement versus the second quarter of 2025, driven primarily by lower payroll and margin expansion.
Material Operating Expense Reductions
Operating expenses decreased by $4.0M in the quarter and $4.3M for the first 6 months versus the prior year across G&A, S&M, and R&D due to headcount reductions and engineering optimizations, with additional several million dollars of annualized savings planned.
One-time Noncash Gain Improved Operating Results
The quarter included a $2.8M noncash gain from remeasurement of a lease liability tied to operational realignment, which contributed to reported income from operations for the quarter.
Cash Position and Cash Flow Improvement
Ended Q2 with slightly over $10M in cash; operating cash burn for the quarter reduced to $2.4M; cash used from operations improved by $9.6M (61%) for the six months ended June 30, 2026 versus 2025.
Product and Commercial Developments: GoSecure and Market Wins
Launched GoSecureVideo in June (cryptographically signs video) and extended the approach to recorded audio to address authenticity; in active discussions with launch partners and targeting initial commercial terms in Q3. Also reported a recent win in South Carolina expected to expand footprint and support refinancing efforts.
Forward Profitability Outlook
Management expects to reach adjusted EBITDA profitability in the back half of 2026 assuming continued execution and cost discipline, citing the full-period benefit of cost reductions and recurring revenue growth.
DE:38E Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed