Rekor Systems (REKR) AI Stock Analysis

• Market Cap: $272.88M
• Dividend Yield: N/A
• Average Volume (3M): 8.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: 7.05%
• EPS Growth: 19.75%
• Country: US
• Employees: 319
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.07
• Shares Outstanding: 126,334,040
• 10 Day Avg. Volume: 4,402,472
• 30 Day Avg. Volume: 8,028,331
• PEG Ratio: 1.59
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 2.94
• P/FCF Ratio: -3.96
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 3.55
• Enterprise Value/Gross Profit: 7.84
• Enterprise Value/Ebitda: -3.80
• 1Y Price Target: $3.25
• Price Target Upside: 45.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $2.00 ▼(-10.31% Downside)

Rekor Systems' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and persistent losses. While there are positive technical signals and strategic contract wins, the negative valuation metrics and financial instability weigh heavily on the score.

Positive Factors

Major Contract Wins

Securing a major contract with Georgia DOT strengthens Rekor's market position and provides a significant revenue stream, enhancing long-term growth prospects.

Product Innovation

Launching a new product to address deepfake media expands Rekor's technological capabilities and opens new market opportunities, supporting sustainable growth.

Operational Efficiency

Significant cost reductions improve operational efficiency, which can enhance profitability and provide a buffer against financial instability in the long term.

Negative Factors

Revenue Stagnation

Stagnant revenue growth indicates challenges in expanding market share and could hinder long-term financial performance and investor confidence.

Decline in Recurring Revenue

A decline in recurring revenue suggests potential issues with customer retention and could impact the stability of future revenue streams.

Negative Cash Flow

Negative cash flow poses a risk to Rekor's financial health, limiting its ability to invest in growth opportunities and meet financial obligations.

Rekor Systems Business Overview & Revenue Model

Company Description

Rekor Systems, Inc. (NASDAQ: REKR) is a technology company that specializes in providing advanced data analytics and artificial intelligence solutions primarily for the public safety sector. The company focuses on delivering innovative software and hardware solutions for law enforcement and other government agencies, enabling them to enhance operational efficiency, improve public safety, and make data-driven decisions. Core products include automatic license plate recognition (ALPR) systems, cloud-based data management platforms, and various analytics tools that support crime prevention and investigation efforts.

How the Company Makes Money

Rekor Systems generates revenue through multiple streams, primarily by selling its ALPR hardware and software solutions to law enforcement agencies and government entities. The company also offers subscription-based services for its cloud-based analytics platform, which provides ongoing support and updates for its users. Additionally, Rekor may engage in professional services, including training and consulting, which further contributes to its revenue. Significant partnerships with law enforcement organizations and government contracts also play a crucial role in securing long-term revenue sources while enhancing the company's market presence.

Rekor Systems Financial Statement Overview

Summary

Rekor Systems is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. The company struggles with negative cash flows and low returns on equity, indicating financial instability.

Income Statement

Rekor Systems has experienced a decline in revenue growth, with a negative growth rate of -15% in the TTM period. The company is facing challenges in profitability, as evidenced by negative net profit and EBIT margins. Despite a relatively stable gross profit margin, the overall income statement reflects significant losses and declining revenue, indicating financial instability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.43 in the TTM period, which is an improvement from previous years. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on its equity. The equity ratio is not explicitly provided, but the overall financial leverage appears to be under control, albeit with ongoing profitability challenges.

Cash Flow

Rekor Systems is experiencing negative operating and free cash flows, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is slightly above 1, indicating some alignment between cash flow and reported earnings, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.38M	46.03M	34.93M	19.92M	14.29M	9.23M
Gross Profit	20.53M	22.68M	18.43M	9.03M	8.06M	5.70M
EBITDA	-42.39M	-48.86M	-36.11M	-77.58M	-27.60M	-10.10M
Net Income	-52.53M	-61.41M	-45.69M	-83.45M	-26.78M	-14.18M
Balance Sheet
Total Assets	80.07M	82.47M	92.15M	83.84M	125.88M	40.40M
Cash, Cash Equivalents and Short-Term Investments	5.17M	5.01M	15.71M	1.92M	25.80M	20.59M
Total Debt	29.94M	32.44M	42.33M	19.76M	11.36M	2.41M
Total Liabilities	44.67M	48.33M	58.78M	34.50M	24.79M	8.54M
Stockholders Equity	35.40M	34.14M	33.37M	49.34M	101.09M	31.86M
Cash Flow
Free Cash Flow	-32.10M	-34.15M	-34.02M	-43.78M	-24.30M	-16.10M
Operating Cash Flow	-30.28M	-32.47M	-32.63M	-39.61M	-18.03M	-15.06M
Investing Cash Flow	-293.00K	-9.37M	270.00K	-8.39M	-47.37M	5.19M
Financing Cash Flow	32.32M	31.45M	45.60M	23.87M	70.99M	29.02M

Rekor Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.23 is below the 20-day moving average (MA) of 2.59, above the 50-day MA of 1.96, and above the 200-day MA of 1.41, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 12.04 is Positive, 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KLTR	59 Neutral	$224.01M	―	-94.40%	―	2.56%	59.00%
STEM	45 Neutral	$164.28M	―	―	―	-35.61%	―
ARBE	45 Neutral	$170.36M	-3.12	-116.76%	―	-60.93%	10.46%
REKR	44 Neutral	$272.88M	―	-128.83%	―	7.05%	19.75%
AISP	35 Underperform	$143.20M	―	―	―	―	―

Rekor Systems Corporate Events

Rekor Systems Projects Record Q3 2025 Revenue

Rekor Systems announced its preliminary financial results for Q3 2025, expecting record quarterly revenue between $13.9 million and $14.3 million, a significant reduction in adjusted EBITDA loss, and an expanded gross margin. The results reflect increased demand for their data-as-a-service and software products, contributing to improved operating leverage and long-term shareholder value.

The most recent analyst rating on (REKR) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Rekor Systems stock, see the REKR Stock Forecast page.

Rekor Systems’ Earnings Call: Achievements and Challenges

Rekor Systems’ recent earnings call painted a mixed picture, highlighting both significant achievements and ongoing challenges. The company celebrated major contracts with transportation agencies and improvements in operational efficiency. However, these positive developments were tempered by issues such as flat revenue growth, a decline in recurring revenue, and decreased gross margins.

Rekor Systems Reports Improved Q2 2025 Financials

Rekor Systems, Inc., a leader in AI-enabled roadway intelligence, specializes in developing digital infrastructure solutions that enhance traffic management and safety for government and business sectors. In its recent earnings report for the second quarter of 2025, Rekor Systems highlighted a significant improvement in its financial performance, including a narrowed adjusted EBITDA loss and a reduction in operating expenses by 17% compared to previous periods. The company reported a gross revenue of $12.4 million, reflecting a stable year-over-year performance despite challenging conditions. Key strategic developments included the expansion of its Rekor Command® and Discover® platforms, with notable contracts from the Texas Department of Transportation and the Central Texas Regional Mobility Authority, showcasing the effectiveness of its AI-driven solutions. Additionally, Rekor’s RoadView platform was expanded to provide real-time traffic insights to smaller municipalities. Looking ahead, Rekor Systems remains focused on disciplined execution and expanding its market presence, aiming for sustained growth and enhanced operational efficiency in the coming quarters.

Rekor Systems Ends Market Issuance Agreement

On August 12, 2025, Rekor Systems, Inc. announced the voluntary termination of its At Market Issuance Sales Agreement with Northland Securities, Inc., initially established on February 10, 2025. Under this agreement, the company had sold 18,888,832 shares of common stock, generating approximately $23.3 million.

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.