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]

Core Insights - Rekor Systems, Inc. has secured its largest statewide contract with the Georgia Department of Transportation (GDOT), which could exceed $100 million over a seven-year term [1][2] - The contract aims to enhance traffic data collection and improve roadway safety through the deployment of Rekor Discover and Data-as-a-Service (DaaS) technologies [1][3] Contract Details - The contract allows for cooperative purchasing across various Georgia agencies, potentially increasing its total value to over $100 million [1][2] - It is projected to generate over $50 million in additional revenue during its duration [2] Technology and Implementation - Rekor's DaaS platform provides non-intrusive roadside equipment installations, improving count accuracy and enabling data collection in previously inaccessible areas [3][11] - The platform integrates various roadside detection technologies, including vehicle classification and weigh-in-motion, into a comprehensive solution [7][9] Operational Efficiency - The innovative DaaS contracting mechanism has reduced administrative overhead for GDOT, enhancing efficiency in managing device inventories and maintenance [4][10] - Rekor manages all infrastructure and support, eliminating the need for agencies to handle installation and servicing [8] Safety and Data Insights - The platform offers real-time operational and safety insights, including incident detection for various roadway hazards [9][12] - It supports public sector functions such as federal reporting and emergency response coordination [12] Recent Achievements - The GDOT contract follows another significant contract with the Texas Department of Transportation, highlighting Rekor's growing influence in modernizing transportation data collection [13]