Rekor Systems Inc
NASDAQ:REKR
Rekor Systems Inc
Rekor Systems, Inc. is a holding company, which engages in the provision of real-time roadway, customer, and public safety intelligence solutions through its subsidiaries. The company is headquartered in Columbia, Maryland and currently employs 249 full-time employees. The company went IPO on 2017-08-28. The firm provides real-time intelligence platforms, artificial intelligence (AI)-powered software, and smart optical devices to improve roadway safety, while enabling connected cities and communities. Its Rekor One Intelligence Platform is a modular, configurable, rapid development platform that houses the machine learning models and other technology that power all its business lines and solutions, including Rekor One for Traffic Management, Rekor One for Public Safety, and multiple commercial use-cases. Its Rekor One Traffic Management Solutions include software modules for Roadway Monitoring and Response (RMR), Traffic and Infrastructure Analytics (TIA), and its Live and Archival Traffic View (LATV). Its Rekor One Public Safety solution includes license plate and vehicle recognition technology that can analyze multi-spectral images and video streams using AI-trained algorithms.
Rekor Systems, Inc. is a holding company, which engages in the provision of real-time roadway, customer, and public safety intelligence solutions through its subsidiaries. The company is headquartered in Columbia, Maryland and currently employs 249 full-time employees. The company went IPO on 2017-08-28. The firm provides real-time intelligence platforms, artificial intelligence (AI)-powered software, and smart optical devices to improve roadway safety, while enabling connected cities and communities. Its Rekor One Intelligence Platform is a modular, configurable, rapid development platform that houses the machine learning models and other technology that power all its business lines and solutions, including Rekor One for Traffic Management, Rekor One for Public Safety, and multiple commercial use-cases. Its Rekor One Traffic Management Solutions include software modules for Roadway Monitoring and Response (RMR), Traffic and Infrastructure Analytics (TIA), and its Live and Archival Traffic View (LATV). Its Rekor One Public Safety solution includes license plate and vehicle recognition technology that can analyze multi-spectral images and video streams using AI-trained algorithms.
Record Revenue: Rekor delivered its best quarter ever with revenue of $14.2 million, up 35% year-over-year and 15% sequentially.
Margin Expansion: Adjusted gross margin jumped to 63% from 44% a year ago, driven by higher software and data services sales.
Cost Controls: Operating expenses were reduced by 24% quarter-over-quarter, reflecting disciplined cost management.
Recurring Revenue Growth: Recurring revenue for Q3 reached $6.5 million, up 18% year-over-year.
Profitability Progress: Adjusted EBITDA loss shrank to $1.5 million, an 84% improvement from Q3 2024.
Major Contract Win: Rekor secured its largest contract ever with the Georgia DOT, valued at a minimum of $50 million.
Leadership Transition: CFO Eyal Hen is stepping down; Joel, the company’s longtime controller, has been appointed as the new CFO.
Positive Outlook: Management expressed confidence in continued growth, driven by a strong sales pipeline and increasing adoption of its data-as-a-service business model.
