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Rekor Systems
(NASDAQ:REKR)
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Rating:51Neutral
Price Target:
$0.55
▼(-5.00% Downside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by weak financial fundamentals—continued sizable losses and negative free cash flow—despite improved leverage and better gross margins. The latest earnings call adds moderate support due to a clearer path toward adjusted-EBITDA profitability and reduced cash burn, while technicals are neutral with a longer-term downtrend and valuation is constrained by ongoing losses and no dividend support.
Positive Factors
Recurring Revenue Growth
Recurring revenue is growing faster than total sales, improving mix toward contracted and repeatable income. This can support better forecasting, customer retention, and higher-margin growth as the platform scales across transportation and public-safety deployments.
Negative Factors
Persistent Operating Losses
Rekor remains materially unprofitable, so revenue growth has not yet translated into durable earnings. The company must execute further cost reductions and expand efficiently; otherwise continued losses could erode equity and delay self-funded growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Growth
Recurring revenue is growing faster than total sales, improving mix toward contracted and repeatable income. This can support better forecasting, customer retention, and higher-margin growth as the platform scales across transportation and public-safety deployments.
Read all positive factors
Rekor Systems (REKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$71.52M
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)2.55
Revenue Growth9.78%
EPS Growth69.23%
CountryUS
Employees234
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.17
Shares Outstanding137,636,490
10 Day Avg. Volume1,568,511
30 Day Avg. Volume1,368,010
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$3.00Price Target Upside417.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$51.58M
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 Systems primarily makes money by selling and operating AI-enabled roadway intelligence and vehicle-recognition solutions for government and commercial customers. Key revenue streams commonly associated with its business include: (1) software...
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
Negative
0.58
Price Trends
0.63
Negative
0.71
Negative
0.98
Negative
Market Momentum
-0.03
Positive
33.03
Neutral
10.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REKR, the sentiment is Negative. The current price of 0.58 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.63, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.03 is Neutral, neither overbought nor oversold. The STOCH value of 10.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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% | |
54 Neutral | $233.40M | -16.85 | -164.67% | ― | -0.23% | 33.15% | |
51 Neutral | $71.52M | -3.21 | -59.05% | ― | 9.78% | 69.23% | |
50 Neutral | $53.04M | -0.65 | 28.62% | ― | -5.11% | -161.56% | |
48 Neutral | $79.60M | -1.89 | -88.73% | ― | 250.00% | 35.86% | |
48 Neutral | $151.42M | -1.20 | -120.57% | ― | 719.35% | ― | |
46 Neutral | $72.32M | 2.53 | -1.21% | ― | 32.24% | ― |
* Technology Sector Average
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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.