Rekor Systems Provides Guidance on Financial Results and Updates on Operational and Management Realignments

Core Insights - Rekor Systems, Inc. is focusing on improving financial performance by reducing operating losses and positioning for growth both domestically and internationally [1] - The company expects full-year 2024 revenue to exceed $45.5 million, marking a year-over-year increase of over 30% compared to 2023 [2] - Fourth-quarter 2024 revenue is projected to be above $12.5 million, reflecting growth of over 12% compared to the same period last year [2] Financial Performance - Preliminary financial results indicate a net loss of $20.428 million for Q4 2024, compared to a net loss of $11.324 million in Q4 2023 [4] - For the full year 2024, the net loss is expected to be $61.483 million, up from $45.685 million in 2023 [4] - Adjusted EBITDA for the year is projected at $(29.403) million, slightly improved from $(29.853) million in 2023 [4] Cost Reduction and Strategic Realignment - The company has implemented cost reduction efforts starting in November 2024, including voluntary cash reductions in employee compensation in exchange for equity awards [5] - An Executive Committee was established to review operations and focus on a go-to-market strategy to accelerate revenue growth and reduce reliance on outside capital [6] - Workforce reductions and realignment of executives with global scaling experience are part of the strategy to enhance sales and operational resources [7] Leadership Changes - On March 12, 2025, Rekor's President and CEO, David Desharnais, resigned, and the Board has initiated a search for a new CEO [8]