Rekor Systems (REKR) announced its largest statewide contract to date, a multi-year award from the Georgia Department of Transportation. The agreement accelerates the deployment of Rekor Discover and Data-as-a-Service, strengthens GDOT’s modernization of traffic data collection, validation, and utilization, and delivers a smarter, safer, and more scalable approach to monitoring roadway conditions and enforcing safety standards across the state. At GDOT’s discretion, the full term of the statewide contract ...

Contract also permits cooperative purchasing across Georgia agencies, with the potential to increase the total contract value to more than $100 million over its 7-year termColumbia, Md., Oct. 07, 2025 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR) ("Rekor" or the "Company"), a leader in developing and implementing state-of-the-art roadway intelligence technology, today announced its largest statewide contract to date, a multi-year award from the Georgia Department of Transportation (GDOT). The agree ...

Core Viewpoint - Rekor Systems, Inc. has launched Rekor TrafficSight, a cloud-native, AI-powered solution designed to enhance the security and efficiency of traffic data management in the U.S., addressing national security concerns related to the transmission of sensitive roadway video data to foreign entities [1][4][3]. Group 1: Product Features and Innovations - Rekor TrafficSight allows users to securely upload video and generate advanced traffic analytics, processing all data within the U.S. to comply with federal data privacy and cybersecurity standards [4][3]. - The application extracts FHWA 13-bin classifications and vehicle counts from existing video feeds, eliminating the need for specialized hardware or field installations [5]. - Rekor is also launching a Data-as-a-Service (DaaS) offering for Rekor Discover, providing agencies with access to trusted traffic data without the burden of installation or maintenance [8][9]. Group 2: Addressing Security Concerns - The unregulated practice of sending raw video footage to foreign countries poses risks of data misuse, raising concerns about national security and infrastructure vulnerability [2][3]. - Rekor TrafficSight mitigates these risks by ensuring that all video data is processed domestically, thus preventing potential exploitation of sensitive information [4][3]. Group 3: Enhanced Traffic Management Solutions - The new Incident Detection API, built on the Rekor Command platform, enables real-time event detection by unifying data from various sources, enhancing situational awareness for agencies [11][12]. - Rekor RoadView is introduced as a lightweight tool for local agencies, providing real-time insights into roadway conditions without requiring extensive infrastructure [13][14]. - The high-performance License Plate Recognition (LPR) technology showcased by Rekor can be deployed flexibly, supporting various use cases such as electronic tolling and regulatory enforcement [15]. Group 4: Strategic Vision - The company aims to modernize transportation operations by replacing manual data handling with secure automation and providing actionable insights through advanced technology [16].

Core Insights - Rekor Systems, Inc. reported significant operational efficiency and financial performance improvements in Q2 2025, with a focus on disciplined execution and long-term growth [2][6] - The company received a statewide blanket purchase order from the Texas Department of Transportation (TxDOT) for its Rekor Command system, indicating strong demand for its technology [2][3] - Rekor's financial results showed a quarterly gross revenue of $12.4 million, reflecting a nearly flat year-over-year performance despite challenges [8][27] Operational Highlights - The Central Texas Regional Mobility Authority (CTRMA) extended its contract with Rekor Command by $1.4 million for five years, based on a 324% increase in incident detection and an 11-minute reduction in average response time [3] - Rekor is installing 150 Rekor Discover systems under a $1.2 million Data-as-a-Service agreement, enhancing traffic data collection without intrusive sensors [4] - The expansion of the RoadView platform provides municipalities with real-time traffic incident alerts, improving operational visibility for smaller agencies [5] Financial Performance - Adjusted EBITDA loss was narrowed by $2 million for the six-month period ending June 30, 2025, demonstrating improved cost discipline with a 17% reduction in operating expenses [8][12] - Quarterly revenue decreased slightly by 1% year-over-year, while the six-month revenue showed a 3% decline, attributed to adverse weather and project activity slowdowns [10][12] - Loss from operations decreased by 23% for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to reduced payroll costs [15][16] Financial Metrics - For the three months ended June 30, 2025, the company reported a net loss of $8.7 million, compared to a loss of $9.8 million in the same period of 2024 [27] - Adjusted Gross Margin decreased to 49.5% for Q2 2025 from 53.5% in Q2 2024, reflecting changes in revenue mix [10][14] - Total assets as of June 30, 2025, were $80.1 million, down from $82.5 million at the end of 2024, with total liabilities at $44.7 million [24][25]

Financial Data and Key Metrics Changes - The company reported fourth quarter 2024 revenue of $13.3 million, surpassing consensus estimates by 3% and marking a year-over-year growth rate above 20% [25] - For the full year 2024, revenue reached $46 million, a robust increase of 32% compared to $34.9 million in 2023 [27] - Adjusted gross margin rebounded to 52% in Q4 2024, up from 44% in Q3 2024, while the full year adjusted gross margin slightly decreased to 49.3% from 52.8% in 2023 [28] - Adjusted EBITDA loss reduced to approximately $4.7 million in Q4 2024, significantly improved from $9.2 million in Q3 2024 [29] Business Line Data and Key Metrics Changes - The Urban Mobility segment drove growth, primarily due to demand for the new roadway data aggregation solution [25] - Public safety, the second largest revenue source, achieved solid mid-teens growth, bolstered by strategic licensing partnerships [26] - Product and services revenue grew significantly to $23.4 million, up 65% year-over-year [27] Market Data and Key Metrics Changes - The company gained traction in states like Texas, Florida, Georgia, Maryland, and New Mexico, demonstrating the value of AI-driven platforms [11] - In Florida, the company achieved inclusion on the state's approved product list, allowing broader rollout of solutions [11] Company Strategy and Development Direction - The Board decided to shift strategy away from relying on traditional government contracting timelines, focusing instead on a more predictable revenue base [12][13] - The company aims to operate at a level with a clear path to breakeven, with any upside from large government contracts being additive rather than essential [14] - Partnerships with global technology leaders like Amazon Web Services and NVIDIA were deepened, enhancing the company's channel presence [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust government contracting pipeline, stating it is a matter of when, not if, orders will come through [12] - The new administration's focus on addressing inefficiencies in government technology is seen as an opportunity for the company [15] - Management emphasized the importance of aligning the company's cost structure with controllable factors rather than waiting on uncertain government timelines [15] Other Important Information - The company repaid the remaining balance of a $15 million prepaid advance agreement ahead of schedule, enhancing its balance sheet [22] - The former CEO David Desharnais resigned, and the Board is in the process of identifying a new CEO [23][24] Q&A Session Summary Question: Comparison with Flock Safety's license plate reader cameras - Management stated that comparing Flock and Rekor is not fair due to different market focuses and funding levels, emphasizing Rekor's strong vehicle recognition software [36] Question: Timeline for free cash flow breakeven - Management anticipates reaching free cash flow breakeven by the end of the year [39] Question: Progress of partnership with SoundThinking - Management indicated that SoundThinking is making progress and conducting pilots, which is expected to pay off in 2025 [41] Question: Rollout progress in Florida for the contract involving over 1,000 cameras - Management noted that government contracting processes take time, but they are optimistic about ongoing procurements in Florida and other states [44][45] Question: Organic growth expectations for the year - Management refrained from providing specific growth numbers but expressed confidence in the adoption of new products and technologies [52] Question: Cost-cutting measures and their effectiveness - Management confirmed that cost-cutting measures were implemented to focus on immediate needs while remaining flexible for future scaling [56] Question: Liquidity and share count - Management discussed the importance of revenue sharing notes for improving liquidity and reducing dilutive funding [61] Question: Camera deployment in Florida and potential contracts in other states - Management stated they cannot disclose specific deployment numbers but expressed confidence in ongoing relationships and potential contracts in various states [72][75]

Financial Performance - Rekor Systems, Inc. achieved record annual gross revenue of $46.0 million for the fiscal year ended December 31, 2024, representing a 32% increase from $34.9 million in 2023 [5] - The fourth quarter gross revenue reached an all-time high of $13.3 million, marking a 20% increase compared to Q4 2023 [5] - Adjusted EBITDA loss narrowed from $6.7 million in Q4 2023 to $4.7 million in Q4 2024, indicating improved operational efficiency [5] Operational and Strategic Achievements - The company expanded its AI-powered Rekor Command platform to enhance support for traffic and emergency operations centers, introducing features that improve real-time decision-making [2][3] - Rekor's platform, Rekor Scout, received certification for deployment in New Jersey, facilitating further market penetration [6] - A strategic partnership with Soundhound AI was established to develop advanced emergency vehicle technologies, enhancing situational awareness [6] Executive Leadership and Strategic Realignment - An Executive Committee was formed to review company operations and realign resources to accelerate revenue growth and reduce reliance on external financing [4] - Selective workforce reductions were made, and new executive leaders with experience in scaling global infrastructure businesses were appointed [4][8] Revenue Streams and Market Presence - The Urban Mobility revenue stream, which includes roadway data aggregation activities, significantly contributed to the revenue increase, with $10.1 million for the year and $2.7 million for the quarter [10] - Rekor Discover products have gained traction in multiple states, including Georgia, South Carolina, Virginia, New Mexico, Arkansas, and Florida [7]