AI and Technology Solutions - Rekor has positioned itself to participate in the modernization of the U.S. transportation infrastructure, focusing on AI solutions through collaborations with public and private sectors [148]. - The Rekor One® roadway intelligence engine aggregates trillions of data points from IoT devices, roadway sensors, and cameras, delivering real-time and predictive solutions [154]. - AI monitoring systems enhance roadway safety by detecting hazards and reducing incident response times, contributing to fewer injuries and fatalities [150]. - Rekor's AI-powered platforms support various use cases, including traffic analysis, operations management, and high-definition video monitoring [155]. - The company aims to optimize resource allocation through AI assistance, streamlining operations for better efficiency [157]. - Automated enforcement systems are designed to reduce uninsured drivers, thereby improving public safety [158]. - Rekor's solutions provide enhanced data accuracy, supporting better decision-making and strategic planning [159]. - The company is committed to creating a connected, data-driven infrastructure ecosystem to improve urban mobility and transportation management [144]. - Rekor's traffic analytics and monitoring capabilities assist law enforcement and support intelligence-based policing [156]. - The ongoing modernization efforts present significant opportunities for Rekor to address challenges such as traffic congestion and roadway safety [147]. - The company anticipates significant growth in the Smart City market, driven by advancements in big data and AI, addressing urban challenges as two-thirds of the global population is expected to live in urban areas by 2050 [160]. - The company expects to benefit from the Infrastructure Investment and Jobs Act, which allocates over $150 billion for roadway infrastructure, including intelligent transportation systems, and aims to capture federal funding opportunities [161]. - The company is investing in advanced vehicle recognition systems to enhance accuracy and affordability, targeting smaller municipalities and organizations that previously could not afford conventional systems [160]. - The company is focused on expanding automated enforcement of motor vehicle laws, anticipating increased legislative support for automated compliance programs [160]. - The company is leveraging improvements in GPU technology to enhance image processing capabilities, which is expected to drive growth in the GPU market due to IoT adoption [161]. Financial Performance - Revenue for the three months ended September 30, 2025, was $14,194,000, representing a 35% increase from $10,546,000 in 2024 [178]. - Revenue for the nine months ended September 30, 2025, was $35,751,000, a 9% increase from $32,751,000 in 2024 [178]. - Cost of revenue, excluding depreciation and amortization, decreased by 12% to $5,195,000 for the three months ended September 30, 2025, compared to $5,903,000 in 2024 [179]. - Total operating expenses for the three months ended September 30, 2025, were $12,969,000, a 26% decrease from $17,497,000 in 2024 [180]. - General and administrative expenses decreased by 27% to $6,299,000 for the three months ended September 30, 2025, from $8,637,000 in 2024 [181]. - Net loss for the three months ended September 30, 2025, was $4,149,000, compared to a net loss of $12,646,000 in 2024 [189]. - Interest expense, net, increased by 15% to $568,000 for the three months ended September 30, 2025, from $496,000 in 2024 [186]. - EBITDA for the three months ended September 30, 2025, was $(2,036,000), an improvement from $(9,751,000) in 2024 [189]. - The company recorded a loss on extinguishment of debt of $4,693,000 in 2024, which did not recur in 2025 [187]. - Research and development expenses decreased by 23% to $3,660,000 for the three months ended September 30, 2025, from $4,740,000 in 2024 [183]. - Adjusted Gross Profit for the three months ended September 30, 2025, was $8,999,000, compared to $4,643,000 for the same period in 2024, representing an increase of 94.5% [192]. - Adjusted Gross Margin improved to 63.4% for the three months ended September 30, 2025, up from 44.0% in 2024, indicating a significant enhancement in profitability [192]. - Recurring revenue for the three months ended September 30, 2025, was $5,511,000, an 18% decrease from $6,520,000 in 2024 [194]. - Net cash used in operating activities decreased by $6,970,000, from $27,552,000 in the nine months ended September 30, 2024, to $20,582,000 in 2025, a 25% improvement [197]. - Net cash provided by financing activities decreased by $10,722,000, from $31,367,000 in the nine months ended September 30, 2024, to $20,645,000 in 2025, a 34% decline [199]. - As of September 30, 2025, the company had cash and cash equivalents of $3,411,000, compared to $5,329,000 as of December 31, 2024 [200]. - The company reported a net loss of $23,681,000 for the nine months ended September 30, 2025, reflecting ongoing challenges in achieving profitability [203]. - Performance obligations as of September 30, 2025, included approximately $13,157,000 in contracts expected to be recognized over the next twelve months [195]. - The company issued 18,888,832 shares of common stock at a weighted average selling price of $1.23 per share, generating net cash of $22,350,000 after issuance costs [207]. - The company anticipates that existing cash is insufficient to fund operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern [208]. Operational Challenges - The company is facing challenges in achieving profitability, with increasing operating expenses and capital expenditures, and has not yet reached sustainable profitability [162]. - The company is committed to significant investments in sales and marketing to increase market awareness and adoption of its products and services [168]. - The company has identified risks associated with executing its corporate strategy, particularly in acquiring and integrating established technology companies [162]. - The company is experiencing high general and administrative expenses due to growth-related costs, but expects these expenses to decrease as a percentage of revenue over the long term [167]. - The company relies on information technology for operations, facing potential cybersecurity risks that could disrupt services and impact financial condition [162].

Core Insights - Rekor Systems, Inc. reported record financial results for Q3 and the first nine months of 2025, achieving new highs in revenue, margins, and operational efficiency [2][7]. Operational & Strategic Highlights - Rekor secured its largest statewide contract with the Georgia Department of Transportation (GDOT), valued at a minimum of $50 million over eight years, with potential to exceed $100 million [3]. - In South Carolina, Rekor's technology contributed to winning the State Technology Innovation Award, leading to an initial order of approximately $1 million for virtual weigh stations [4]. - The adoption of Rekor Discover® expanded in three new states during Q3, reinforcing its role in roadway data intelligence and supporting the Data-as-a-Service growth strategy [5]. Financial Performance - Q3 2025 revenue reached $14.2 million, a 35% increase from $10.5 million in Q3 2024, while nine-month revenue increased by 9% to $35.8 million [10]. - Adjusted gross margin improved to 63% for Q3 2025, up from 44% in Q3 2024, driven by a favorable revenue mix with higher-margin software sales [12]. - Adjusted EBITDA loss narrowed to $1.5 million, marking the best performance in the company's history [7]. Cost Management - Operating expenses decreased by 26% sequentially and 20% year-over-year, contributing to sustained financial improvement [7]. - Loss from operations improved significantly, with a reduction of 69% in Q3 2025 compared to Q3 2024, primarily due to revenue growth and cost containment efforts [15]. Future Outlook - The company plans to launch a suite of products aimed at combating deep-fake media, indicating a strategic expansion into new technology areas [6]. - The Data-as-a-Service model is positioned as a key growth engine, providing transportation agencies with fast access to actionable roadway data without the burden of hardware ownership [9].

Group 1 - Rekor Systems has entered the deepfake detection market by launching a new subsidiary, Rekor Labs, which will utilize AI and machine vision to identify synthetic media [1][2] - The deepfake detection technology aims to tackle the increasing legal, personal, and commercial challenges associated with manipulated content, with the market projected to exceed $30 billion in the next decade [2][3] - The rise in deepfake fraud has created complications in government security and surveillance, impacting criminal prosecutions and leading to potential fraudulent liabilities [3] Group 2 - Rekor Systems specializes in AI solutions that provide real-time roadway intelligence for public safety, transportation management, and urban mobility [4] - The company employs AI-enabled computer vision and machine learning to gather and analyze mobility data, assisting governments and businesses in making informed decisions [4]

Core Insights - Rekor Systems, Inc. is launching a new product through its subsidiary Rekor Labs to address the challenges posed by deepfake media, which is expected to grow the global deepfake detection market to over $30 billion in the next decade [2][3] Group 1: Product Development and Launch - Development of the new product began in 2023 in response to government requests for verifying federally mandated traffic data videos, highlighting the increasing prevalence of deepfake fraud in security and surveillance [3] - A full product launch is anticipated in the first half of 2026, with proof of concept and alpha milestones already completed [3] Group 2: Market Applications - Rekor Labs will target five key verticals: 1. News media and journalism to combat misinformation 2. Social media platforms to ensure content authenticity 3. Government and security agencies for securing evidence 4. Enterprise safety to prevent financial and workplace fraud 5. Entertainment and film to protect creative integrity [4][7] Group 3: Corporate Structure and Advisory - Rekor Labs is operating as an independent entity, and the company is exploring optimal corporate structures for its business, having engaged Moelis & Company LLC as its financial advisor [4]

Core Insights - U.S. stocks experienced a mostly positive session, with the Dow Jones index increasing by over 150 points on Friday [1] Company Highlights - Revolution Medicines Inc (NASDAQ:RVMD) saw a significant share price increase of 11.2%, reaching $55.25, after the FDA granted a non-transferrable voucher for its drug daraxonrasib under the National Priority Voucher pilot program [1] - Disc Medicine Inc (NASDAQ:IRON) shares surged by 25.7% to $93.50 following the receipt of a Commissioner's National Priority Voucher from the FDA for bitopertin [4] - Liberty Energy Inc (NYSE:LBRT) reported a 23.4% increase in share price to $14.73 after announcing third-quarter results [4] - Solana Co (NASDAQ:HSDT) shares rose by 19.5% to $12.08 [4] - Sealsq Corp (NASDAQ:LAES) experienced a 14.4% increase, reaching $7.28 [4] - Rekor Systems Inc (NASDAQ:REKR) shares gained 13.3% to $2.94 [4] - Praxis Precision Medicines Inc (NASDAQ:PRAX) saw a 12.5% increase to $183.00 after announcing a $525 million public offering [4] - Sify Technologies Ltd (NYSE:SIFY) shares rose by 11.8% to $13.15 [4] - Kenvue Inc (NYSE:KVUE) increased by 8.4% to $15.30 [4] - Propetro Holding Corp (NYSE:PUMP) surged by 7.6% to $5.52 [4] - Owens & Minor Inc (NYSE:OMI) shares gained 6.7% to $4.90 [4] - American Express Co (NYSE:AXP) reported a 6% increase in share price to $342.57, surpassing analyst estimates for revenue and adjusted earnings per share [4] - AppFolio Inc (NASDAQ:APPF) shares increased by 4.7% to $233.90, with an upgrade from Keybanc analyst Jason Celino from Sector Weight to Overweight and a new price target of $285 [4]

Core Insights - Rekor Systems, Inc. has received an initial order of approximately $1 million for the deployment of virtual weigh stations in South Carolina, with expectations for increased revenue as the program expands statewide [1][2]. Technology Implementation - The virtual weigh station technology detects overweight vehicles in real-time, focusing on identifying overweight trucks for inspection while allowing compliant carriers to continue their operations [2][4]. - The system significantly reduces costs associated with traditional truck weigh stations, which are often prohibitively expensive [2]. Benefits to Transportation Agencies - The implementation of Rekor's technology allows state transport police to identify all overweight trucks during enforcement operations, optimizing officer time and reducing unnecessary stops for compliant vehicles [7]. - The mobile screening workflow enables officers to access live weight-in-motion (WIM) data, allowing for accurate identification of overweight vehicles without stopping those within legal weight limits [7][8]. Data Management and Analytics - Drakewell's data management software powers the virtual weigh stations by analyzing and displaying traffic and WIM data from roadside sensors, enhancing enforcement of truck safety and weight laws [8][9]. - The integration of Rekor's vehicle recognition technology with mobile setups provides real-time data and alerts to officers, improving the efficiency of enforcement operations [7][9]. Future Implications - The successful implementation in South Carolina serves as a model for other transportation departments nationwide, highlighting the potential for broader adoption of similar technologies [4][12]. - The focus on data-driven planning and enhanced compliance aims to safeguard infrastructure while reducing operational costs for transportation agencies [12].

[Form 8-K Filing Details](index=1&type=section&id=Form%208-K%20Filing%20Details) This section outlines the essential administrative and identification details of the Form 8-K filing for REKOR SYSTEMS, INC [General Information](index=1&type=section&id=General%20Information) This section provides the foundational details of the Form 8-K filing, including the registrant's identification, jurisdiction, and securities information | Detail | Value | | :--- | :--- | | Registrant Name | REKOR SYSTEMS, INC. | | Filing Type | FORM 8-K | | Date of Report | October 14, 2025 | | State of Incorporation | Delaware | | Commission File Number | 001-38338 | | Trading Symbol | REKR | | Exchange | The Nasdaq Stock Market | - The registrant is not an emerging growth company[2](index=2&type=chunk) [Financial and Regulatory Disclosures](index=3&type=section&id=Financial%20and%20Regulatory%20Disclosures) This section details the preliminary financial results for Q3 2025 and confirms their dissemination under Regulation FD [Item 2.02. Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) Rekor Systems, Inc. announced preliminary, unaudited financial results for the quarter ended September 30, 2025, including expected ranges for revenue, gross margin, and Adjusted EBITDA, ahead of its full Q3 2025 results release and investor call scheduled for November 13, 2025 - **Rekor Systems, Inc.** issued a press release on **October 14, 2025**, announcing preliminary, unaudited financial results for the quarter ended **September 30, 2025**[3](index=3&type=chunk) - The preliminary results include expected ranges for revenue, gross margin, and Adjusted EBITDA[3](index=3&type=chunk) - The company's full third-quarter **2025** results and related investor conference call are scheduled for **November 13, 2025**[3](index=3&type=chunk) [Item 7.01. Regulation FD Disclosure](index=3&type=section&id=Item%207.01.%20Regulation%20FD%20Disclosure) This section confirms that the financial information disclosed under Item 2.02 is being furnished pursuant to Regulation FD to ensure broad and non-selective dissemination of material information - The information from Item 2.02 is furnished pursuant to **Regulation FD**[5](index=5&type=chunk) - The purpose of this disclosure is to ensure broad and non-selective dissemination of material information[5](index=5&type=chunk) [Exhibits and Signatures](index=3&type=section&id=Exhibits%20and%20Signatures) This section details the exhibits included in the filing and confirms the official signature by the Chief Financial Officer [Item 9.01. Financial Statements and Exhibits](index=3&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits accompanying the Form 8-K filing, primarily the press release detailing the preliminary financial results | Exhibit Number | Title | | :--- | :--- | | 99.1 | Press Release dated October 14, 2025 | | 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) | [Signature](index=4&type=section&id=Signature) The report is officially signed by Rekor Systems, Inc. through its Chief Financial Officer, Eyal Hen, on October 14, 2025 - The report was signed on behalf of **Rekor Systems, Inc.** by **Eyal Hen**, Chief Financial Officer[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - The signature date is **October 14, 2025**[11](index=11&type=chunk)

Core Insights - Rekor Systems, Inc. announced preliminary financial results for Q3 2025, indicating record quarterly revenue and a significant reduction in Adjusted EBITDA loss by over 65% compared to Q2 2025 and over 75% compared to Q3 2024 [1][2][7] - The company attributes its performance to the expanding adoption of its data-as-a-service (DaaS) model and software solutions, which are driving operating leverage and improving economics [2] Financial Performance - Expected record quarterly revenue is projected to be between $13.9 million and $14.3 million [7] - Adjusted EBITDA loss is anticipated to be between $1.6 million and $1.9 million [7] - Gross margin is expected to range between 61% and 65% [7] Future Outlook - The company will release full financial results on November 13, 2025, and will host an earnings call to discuss these results [2][3] - The trend in financial performance is viewed positively for long-term shareholder value, despite potential quarterly variations due to deployment timing and DaaS contract starts [2] Company Overview - Rekor Systems, Inc. specializes in roadway intelligence systems utilizing AI-enabled computer vision and machine learning [5] - The company focuses on collecting and organizing mobility data to create a digitally-enabled operating system for roadways [5]

Core Insights - Rekor Systems, Inc. has announced that the California Department of Transportation (CalTrans) and the Texas Department of Transportation (TxDOT) are now using Rekor Discover® technology, indicating a significant step towards broader deployment [1][2] - The company secured its largest state contract with the Georgia Department of Transportation (GDOT), which could generate over $100 million, showcasing the effectiveness of its Data-as-a-Service (DaaS) model [2][3] - The DaaS model provides reliable, scalable, and compliant traffic data, which is essential for modern transportation agencies [2][3] Company Overview - Rekor Systems, Inc. specializes in roadway intelligence systems utilizing AI-enabled computer vision and machine learning [3] - The company aims to collect and organize mobility data to create a digitally-enabled operating system for roadways [3] - Rekor's technology aggregates trillions of data points into actionable insights for governments and businesses, promoting safer and more efficient roadways [3]

Core Insights - Rekor Systems (REKR) has secured its largest statewide contract to date with the Georgia Department of Transportation (GDOT), marking a significant milestone for the company [1] - The contract focuses on the deployment of Rekor Discover and Data-as-a-Service, enhancing GDOT's traffic data collection and utilization efforts [1] - The agreement has the potential to generate over $50 million in additional revenue, potentially increasing the total contract value to more than $100 million over its duration [1] Summary by Categories Contract Details - The contract is a multi-year agreement that can extend up to seven years at GDOT's discretion [1] - It allows for cooperative use by various Georgia municipalities without requiring separate competitive bids [1] Financial Impact - The projected revenue from the contract is over $50 million, with the possibility of exceeding $100 million in total value [1] Technological Advancements - The contract aims to modernize traffic data collection, validation, and utilization, promoting a smarter and safer approach to roadway monitoring [1]