Rekor Systems (NASDAQ:REKR) Issues Earnings Results

Rekor Systems (NASDAQ:REKR) posted its quarterly earnings results on Thursday. The company reported ($0.00) EPS for the quarter, beating the consensus estimate of ($0.03) by $0.03, reports. The business had revenue of $12.66 million during the quarter, compared to analyst estimates of $12.61 million. Rekor Systems had a negative net margin of 60.48% and a negative return on equity of 80.28%.

Here are the key takeaways from Rekor Systems’ conference call:

• Recurring revenue grew 14% year over year to $6.7 million in Q2 and 21% to $13.3 million for the first half, outpacing total revenue growth and improving the business mix.
• Q2 revenue increased 2% to $12.7 million, while adjusted gross margin expanded to 56% from 50%; the adjusted EBITDA loss narrowed 79% to approximately $1.2 million.
• Management expects additional cost efficiencies in Q3 and Q4 and reiterated its goal of reaching adjusted EBITDA profitability in the second half of 2026, assuming continued execution.
• Rekor is pursuing growth through GoSecure.Video and audio authenticity capabilities, recurring roadway data revenue, and expansion opportunities tied to its South Carolina contract, though GoSecure launch-partner agreements remain under discussion.
• The ALPR market remains challenging because of heightened privacy scrutiny, new data-retention and access rules, litigation, and delayed government buying decisions; the company is also evaluating refinancing options for its existing Prime Revenue Sharing Notes.

Rekor Systems Stock Up 0.6%

Shares of Rekor Systems stock traded up $0.00 during midday trading on Friday, hitting $0.71. The company had a trading volume of 1,671,108 shares, compared to its average volume of 2,639,019. The stock has a market cap of $98.21 million, a price-to-earnings ratio of -3.10 and a beta of 1.86. The company has a fifty day simple moving average of $0.66 and a 200 day simple moving average of $0.80. Rekor Systems has a 12-month low of $0.55 and a 12-month high of $3.42.

Institutional Trading of Rekor Systems

Several large investors have recently bought and sold shares of the stock. Centiva Capital LP acquired a new stake in shares of Rekor Systems during the third quarter worth $34,000. NewEdge Advisors LLC increased its position in shares of Rekor Systems by 74.6% in the 2nd quarter. NewEdge Advisors LLC now owns 32,055 shares of the company’s stock valued at $37,000 after acquiring an additional 13,700 shares during the period. Caitong International Asset Management Co. Ltd raised its stake in Rekor Systems by 845.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 33,263 shares of the company’s stock worth $46,000 after acquiring an additional 29,745 shares during the last quarter. Creative Planning lifted its position in Rekor Systems by 233.7% during the 2nd quarter. Creative Planning now owns 40,035 shares of the company’s stock worth $46,000 after acquiring an additional 28,037 shares during the period. Finally, Bank of America Corp DE grew its stake in Rekor Systems by 513.9% during the 3rd quarter. Bank of America Corp DE now owns 30,728 shares of the company’s stock valued at $48,000 after purchasing an additional 25,723 shares during the last quarter. Hedge funds and other institutional investors own 45.71% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Weiss Ratings upgraded Rekor Systems from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 7th. Wall Street Zen raised shares of Rekor Systems from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company presently has an average rating of “Sell”.

Rekor Systems Company Profile

Rekor Systems, Inc is a U.S.-based technology company specializing in real-time vehicle recognition solutions powered by artificial intelligence and machine learning. The company develops software and hardware systems that capture, analyze and store vehicle data—such as license plate images, make and model, color and vehicle characteristics—by leveraging advanced computer vision algorithms. Rekor’s platforms enable public safety agencies, transportation departments and private enterprises to automate vehicle identification, enhance situational awareness and improve operational efficiency.

The company’s flagship offering is a suite of intelligent camera and analytics products that include built-in license plate recognition (LPR) and vehicle attribute classification.