Rekor Systems (NASDAQ:REKR) Issues Earnings Results

Rekor Systems (NASDAQ:REKR) released its quarterly earnings data on Monday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.03), FiscalAI reports. The company had revenue of $10.26 million for the quarter, compared to the consensus estimate of $12.32 million. Rekor Systems had a negative net margin of 60.48% and a negative return on equity of 78.29%.

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

• Management completed a broad cost-reduction program including a reduction of ~45 positions (≈16% of workforce), expects the full savings to show in Q2, and is targeting to be EBITDA positive by year-end (near EBITDA neutral by end-Q2/early-Q3).
• Revenue grew 12% year-over-year with all product lines (Scout, Discover, Command) contributing, adjusted gross margin improved to 53% vs. 48% a year ago, and recurring revenue represented about 64% of the quarter.
• Cash declined to $12.2 million from $16.6 million at year-end 2025 (attributed to seasonal patterns and one-time restructuring costs), and the company is evaluating refinancing its Series A Prime Revenue Sharing Notes, indicating ongoing funding/liquidity considerations.
• The company launched Rekor Labs and plans a commercial release of GoSecure (video authentication) in Q3 2026, a product positioned to address rising deepfake concerns and expand addressable markets in law enforcement, insurers, and courts.

Rekor Systems Stock Down 2.9%

Rekor Systems stock traded down $0.02 during mid-day trading on Wednesday, reaching $0.79. 1,822,608 shares of the company’s stock traded hands, compared to its average volume of 3,012,631. Rekor Systems has a 12-month low of $0.72 and a 12-month high of $3.42. The stock has a 50 day moving average of $0.86 and a two-hundred day moving average of $1.34. The company has a market cap of $107.90 million, a price-to-earnings ratio of -3.43 and a beta of 1.83.

Hedge Funds Weigh In On Rekor Systems

A number of institutional investors and hedge funds have recently made changes to their positions in REKR. Goldman Sachs Group Inc. grew its stake in shares of Rekor Systems by 20.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,981,293 shares of the company’s stock worth $3,530,000 after buying an additional 686,094 shares in the last quarter. Creative Planning grew its stake in shares of Rekor Systems by 233.7% in the 2nd quarter. Creative Planning now owns 40,035 shares of the company’s stock worth $46,000 after buying an additional 28,037 shares in the last quarter. Jump Financial LLC grew its stake in shares of Rekor Systems by 199.4% in the 2nd quarter. Jump Financial LLC now owns 63,768 shares of the company’s stock worth $74,000 after buying an additional 42,468 shares in the last quarter. Daiwa Securities Group Inc. bought a new position in Rekor Systems during the second quarter valued at $52,000. Finally, NewEdge Advisors LLC increased its position in Rekor Systems by 74.6% during the second 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 last quarter. 45.71% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on REKR shares. Wall Street Zen cut shares of Rekor Systems from a “hold” rating to a “sell” rating in a research report on Saturday, April 4th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rekor Systems in a research report on Tuesday, April 21st. One analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Rekor Systems 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.