GICS Sector : Technology
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.
Rekor Systems reported its best financial performance in its history for Q3 2025, with record revenue of $14.2 million, a 35% increase from Q3 2024, and a 15% increase from Q2 2025. The company's adjusted gross margin for Q3 2025 was 63%, compared to 44% in Q3 2024. The actual EPS loss came out at -$0.03, beating estimates of -$0.05. The company's adjusted EBITDA loss for Q3 2025 was $1.5 million, an improvement of $7.9 million or 84% from Q3 2024. Year-to-date revenue was $35.8 million, up 9% from the first 9 months of 2024. Recurring revenue for Q3 2025 was $6.5 million, an 18% increase from Q3 2024.
Publication Date: Nov -24
The company recently secured a large statewide multi-year contract with the Georgia Department of Transportation valued at a minimum of $50 million. Robert Berman discussed Rekor's expansion plans, including a 3-year contract with Austin, with the potential for similar rollouts in other Texas districts. The company is also exploring opportunities in the QSR sector and other commercial applications for its vehicle recognition software. As Eyal Hen confirmed, Rekor expects a full pro-rata portion of the new contract's value in Q4, indicating a strong pipeline for future growth.
Analysts estimate next year's revenue growth at 22.6%, indicating a positive outlook for the company's future performance. With a P/S Ratio of 4.47, the market is pricing in significant growth expectations. Additionally, the EV/EBITDA ratio of -6.59 suggests that the company's valuation is largely dependent on its growth prospects. The ROE and ROIC, both negative, indicate that the company is still in a growth phase and not yet profitable on a net income basis.
Rekor is actively engaged with European customers and aims to do business outside the US in 2026, providing a significant opportunity for future growth. The company has established Rekor Labs as an independent entity to develop deepfake detection technology, further diversifying its offerings. With a strong leadership team, including the appointment of Jennifer Candelaria as General Manager of Scout, Rekor is well-positioned to drive growth and create value for shareholders.
Eyal Hen mentioned working on a second series of revenue-sharing notes to improve liquidity, following the success of the previous notes. Operating expenses, excluding depreciation and amortization, declined 24% quarter-over-quarter, representing a $3.7 million reduction. This improvement in operational efficiency is expected to continue, with the company planning to shift resources to states where work can continue during the holiday season.
Rekor Had A Great Quarter, But Financing Risks Remain High Without The ATM
Nov -21
Rekor Systems Offers Policymakers a Privacy-Protected and Responsible Path Forward for the Use of Automated License Plate Recognition
Nov -19
Rekor Systems, Inc. (REKR) Q3 2025 Earnings Call Transcript
Nov -18
Rekor Systems, Inc. (REKR) Reports Q3 Loss, Beats Revenue Estimates
Nov -13
Rekor Systems Reports Record Third Quarter 2025 Financial Results
Nov -13
Rekor Technology Powers South Carolina “Virtual Weigh Stations,” Wins State Technology Innovation Award, Establishing a Near 100 Percent Perfect Overweight-Truck Targeting Model That Other States Can Follow
Oct -16
10 Under-the-Radar Artificial Intelligence (AI) Stocks Worth a Closer Look
Oct -13
Rekor Systems Announces Early Deployments with Caltrans and Texas DOT for Rekor Discover ®, Signaling Scalable Statewide Opportunities
Oct -09
Growing demand for intelligent transportation systems, increasing adoption of AI-powered analytics, and rising need for efficient traffic management solutions drive the growth of Rekor Systems' SaaS-based license plate recognition and subscription-based access to AI-powered analytics.
Growing demand for contactless compliance solutions, increasing adoption of AI-powered traffic management systems, and rising need for customized implementation of camera and sensor technologies drive the growth of Rekor Systems, Inc.'s market.
A cloud-based platform that provides real-time, AI-powered traffic monitoring and analytics
An AI-powered, edge-based solution for real-time video analytics and object detection
A mobile app for law enforcement and public safety agencies to capture and analyze license plate data
A cloud-based platform for video and image analysis, object detection, and facial recognition
A high-performance, GPU-accelerated computing platform for AI-powered video analytics
Rekor Systems, Inc. operates in a niche market, providing license plate recognition and public safety solutions. While there are some substitutes available, they are not as effective or efficient as Rekor's solutions, reducing the threat of substitutes.
Rekor Systems, Inc. has a diverse customer base, including law enforcement agencies, municipalities, and private companies. While customers have some bargaining power, Rekor's solutions are often customized to meet specific needs, reducing the bargaining power of customers.
Rekor Systems, Inc. has a diversified supply chain, and its suppliers do not have significant bargaining power. The company's dependence on a few key suppliers is limited, reducing the bargaining power of suppliers.
The threat of new entrants in the license plate recognition and public safety solutions market is low due to the high barriers to entry, including significant capital investments and regulatory hurdles.
The intensity of rivalry in the license plate recognition and public safety solutions market is moderate, with a few established players competing for market share. However, Rekor Systems, Inc. has a strong market position and differentiated solutions, reducing the intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 45.47% |
| Debt Cost | 3.95% |
| Equity Weight | 54.53% |
| Equity Cost | 14.91% |
| WACC | 9.93% |
| Leverage | 83.38% |
Value: 8.6
Growth: 2.4
Quality: 7.6
Yield: 0.0
Momentum: 8.0
Volatility: 3.7
1-Year Total Return ->
Value: 5.5
Growth: 1.7
Quality: 7.5
Yield: 0.0
Momentum: 8.0
Volatility: 7.0
1-Year Total Return ->
Value: 7.4
Growth: 7.0
Quality: 4.8
Yield: 0.0
Momentum: 6.5
Volatility: 2.7
1-Year Total Return ->
Value: 7.6
Growth: 1.1
Quality: 4.8
Yield: 0.0
Momentum: 6.0
Volatility: 4.7
1-Year Total Return ->
Value: 6.4
Growth: 3.3
Quality: 3.5
Yield: 0.0
Momentum: 8.0
Volatility: 0.3
1-Year Total Return ->
Value: 9.2
Growth: 1.6
Quality: 3.7
Yield: 0.0
Momentum: 1.0
Volatility: 1.3
1-Year Total Return ->