Rekor Systems (REKR) AI Stock Analysis

• Market Cap: $170.03M
• Dividend Yield: N/A
• Average Volume (3M): 5.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: 17.97%
• EPS Growth: 21.12%
• Country: US
• Employees: 319
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): -0.10
• Shares Outstanding: 118,075,940
• 10 Day Avg. Volume: 7,256,045
• 30 Day Avg. Volume: 5,048,807
• PEG Ratio: -0.12
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.47
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 5.83
• Enterprise Value/Ebitda: -0.75
• 1Y Price Target: $4.00
• Price Target Upside: 177.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $1.50 ▲(4.17%Upside)

Rekor Systems faces significant profitability and cash flow challenges, impacting its financial health and investor confidence. Technical indicators show mixed signals, with valuation concerns further affecting the score. Despite some positive strategic shifts and a major contract win, the overall outlook remains cautious.

Positive Factors

Cost Efficiency

Management is on pace to recognize the previously announced $15 million in annualized savings over the course of the year and continues to believe it can reach free cash flow breakeven in the near term.

Partnerships

Management remains confident in the value of the SoundThinking partnership, for which SoundThinking offers Rekor’s license plate reader system as part of the PlateRanger-branded offering.

Negative Factors

Organic Revenue Decline

While revenue increased by 20%, it is estimated that organic revenue declined by 4%.

Revenue Decline

First-quarter revenue declined 6%, down from a 4% organic decline in the previous quarter. Revenue weakness was driven by adverse weather and an uncertain government procurement environment.

Rekor Systems Business Overview & Revenue Model

Company Description

Rekor Systems, Inc., through its subsidiaries, develops and implements transformative mission-critical intelligent infrastructure solutions and services for transportation management, public safety, and commercial markets in the United States, Canada, and internationally. It offers Rekor One Traffic Management solutions, including software modules for roadway monitoring and response, an incident detection and management solution; traffic and infrastructure analytics to capture data for roadway and infrastructure analytics and planning; and live and archival traffic view for situational awareness of what is happening on roadways. The company also provides Rekor One Public Safety solutions comprising contactless compliance application that delivers a turnkey information and citation management solution to cities, states, and municipalities for primary and secondary offenses; Rekor scout that offers accurate license plate and vehicle recognition on any IP, traffic, or security camera, and can be subscribed to separately for use with existing camera or sensor systems; and Rekor blue, a smartphone app that retrieves accurate vehicle license plate number and state of registration, and automatically organizes information by sessions, capturing date, location, and timestamp for law enforcement. In addition, it offers Rekor CarCheck, an API of its vehicle recognition technology to respond with accurate license plate data, vehicle make, model, body type, and color for commercial applications; and AutoNotice, a cloud-based financial management application to record payments in the system and provide functionality to research, manage unapplied payments, and reconcile receipts. Further, the company provides hardware products, which includes Rekor Edge Series, a family of mountable vehicle recognition systems that seamlessly capture and process vehicle data. Rekor Systems, Inc. was founded in 2017 and is headquartered in Columbia, Maryland.

How the Company Makes Money

Rekor Systems generates revenue through the sale and licensing of its software and hardware solutions, primarily focusing on vehicle recognition and traffic management systems. The company offers its products to government agencies, law enforcement, and commercial clients, which pay for the implementation, usage, and maintenance of these systems. Additionally, Rekor monetizes its data analytics capabilities by providing insights and actionable intelligence to clients, often through subscription-based models. Partnerships with government entities and infrastructure companies also contribute to its revenue streams, allowing Rekor to expand its market reach and application areas.

Rekor Systems Financial Statement Overview

Summary

Rekor Systems has shown significant revenue growth but faces challenges with profitability and cash flow. The company's gross profit margin is healthy, yet operational inefficiencies lead to negative profitability metrics, undermining investor confidence. The balance sheet is balanced but shows poor returns on equity, and cash flow remains a critical area of concern.

Income Statement

Rekor Systems has shown significant revenue growth over the years, with a TTM revenue of $45.45 million compared to $9.23 million in 2020. However, the company's profitability metrics are concerning. The gross profit margin stands at 49.8% TTM, indicating efficient cost management on revenue. Yet, the negative net profit margin of -118.1% and EBIT margin of -113.4% TTM highlight substantial operational losses and persistent net losses, suggesting challenges in achieving profitability.

Balance Sheet

The company's balance sheet reflects a mixed financial position. The debt-to-equity ratio is manageable at 0.48 TTM, showing a relatively low level of debt compared to equity. However, the return on equity is negative at -160.9% TTM, driven by continued net losses, which undermines shareholder value. The equity ratio is 55.8% TTM, indicating a balanced capital structure with a reasonable proportion of equity financing.

Cash Flow

Cash flow metrics indicate financial strain. The operating cash flow to net income ratio is positive at 0.61 TTM, suggesting some ability to convert accounting profits into actual cash, albeit with negative operating cash flow of -$32.66 million. The free cash flow remains negative, impacting the company’s ability to self-finance growth and operations without external financing. Although there has been some reduction in free cash flow deficit, it remains a critical area of concern.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
45.45M	46.03M	34.93M	19.92M	14.29M	9.23M
	Gross Profit
22.63M	22.68M	18.43M	9.03M	8.06M	5.70M
	EBIT
-51.55M	-54.32M	-42.12M	-50.95M	-31.21M	-11.85M
	EBITDA
-44.29M	-48.86M	-36.11M	-78.04M	-27.60M	-10.10M
	Net Income Common Stockholders
-53.67M	-61.41M	-45.69M	-83.45M	-26.63M	-13.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.85M	5.01M	15.71M	1.92M	25.80M	20.59M
	Total Assets
59.85M	82.47M	92.15M	83.84M	125.88M	40.40M
	Total Debt
15.90M	32.44M	42.33M	19.76M	11.36M	2.41M
	Net Debt
12.05M	27.42M	26.94M	17.84M	-14.43M	-18.19M
	Total Liabilities
29.56M	48.33M	58.78M	34.50M	24.79M	8.54M
	Stockholders Equity
33.36M	34.14M	33.37M	49.34M	101.09M	31.86M
Cash Flow		Free Cash Flow
-34.53M	-34.15M	-34.02M	-43.78M	-24.30M	-16.10M
	Operating Cash Flow
-32.66M	-32.47M	-32.63M	-39.61M	-18.03M	-15.06M
	Investing Cash Flow
-577.00K	-9.37M	270.00K	-8.39M	-47.37M	5.19M
	Financing Cash Flow
25.28M	31.45M	45.60M	23.87M	70.99M	29.02M

Rekor Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REKR, the sentiment is Positive. The current price of 1.44 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 0.97, and above the 200-day MA of 1.21, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 75.71 is Negative, neither overbought nor oversold. The STOCH value of 67.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REKR.

Rekor Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYS	71 Outperform	$234.76M	39.56	18.82%	―	26.77%	-13.24%
Sector *	62 Neutral	$11.70B	10.39	-7.10%	2.92%	7.45%	-8.42%
SNCR	50 Neutral	$79.22M	26.79	-3.58%	―	-13.46%	95.46%
ARBE	49 Neutral	$177.73M	―	-101.60%	―	-46.41%	6.05%
REKR	45 Neutral	$170.03M	―	-121.54%	―	17.97%	21.12%
AUID	42 Neutral	$69.24M	―	-168.24%	―	230.96%	91.63%
VERI	40 Neutral	$66.13M	―	-600.12%	―	-24.08%	-51.13%

Rekor Systems Corporate Events

Rekor Systems Secures Major Contract with TxDOT

On June 3, 2025, Rekor Systems announced its selection by the Texas Department of Transportation (TxDOT) for a multi-year statewide contract to implement Rekor Command, an advanced incident management and situational awareness platform. This contract includes a significant purchase order allowing immediate deployment across all TxDOT districts, aiming to improve traffic operations, reduce congestion, and enhance roadway safety. The platform, which has already shown success in Texas, will now support additional features like the Traffic Impact Module and Work Zone API, further solidifying Rekor’s position as a key partner in modernizing Texas’s infrastructure.

The most recent analyst rating on (REKR) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Rekor Systems stock, see the REKR Stock Forecast page.

Rekor Systems Holds Annual Stockholders Meeting

On May 15, 2025, Rekor Systems, Inc. held its Annual Meeting of Stockholders where 61,861,880 shares were represented. During the meeting, all nine director nominees were elected, the appointment of CBIZ CPAs P.C. as the independent public accountant for 2025 was ratified, and the compensation of the company’s named executive officers was approved on an advisory basis.

The most recent analyst rating on (REKR) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Rekor Systems stock, see the REKR Stock Forecast page.

Rekor Systems CEO Resignation Amid Strategic Realignment

Rekor Systems announced the resignation of CEO David Desharnais, effective March 14, 2025, as part of a strategic realignment to improve financial performance and accelerate growth. The company reported a projected 30% increase in full-year 2024 revenue, driven by cost reduction efforts and a focus on its Rekor Scout and Discover product lines. These initiatives aim to enhance cash flow and reduce reliance on external capital, positioning Rekor for domestic and international expansion.