Action Bolsters Support for Customer Base While Cutting Annual Operating Expenses by Approximately $7.5 MillionCOLUMBIA, Md., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR) ("Rekor or the "Company"), a global leader in roadway intelligence, today announced a strategic consolidation of its worldwide engineering operations aimed at increasing operational efficiency and aligning the Company's cost structure with current revenue levels. As part of this initiative, Rekor will move engineeri ...

Core Viewpoint - Rekor Systems, Inc. has successfully closed an underwritten registered direct offering of 8,571,428 units at a price of $1.75 per unit, raising approximately $15 million in gross proceeds before expenses [1][2]. Group 1: Offering Details - Each unit in the offering consists of one share of common stock and a warrant to purchase one additional share at an exercise price of $2.40, with warrants immediately exercisable and expiring seven years from issuance [1]. - The offering was managed solely by William Blair, with participation from one institutional investor [2]. Group 2: Use of Proceeds - The net proceeds from the offering are intended for working capital, capital expenditures, and general corporate purposes [2]. Group 3: Company Overview - Rekor Systems, Inc. specializes in roadway intelligence technology, utilizing AI-enabled computer vision and machine learning to collect and analyze mobility data [5]. - The company aims to create a digitally-enabled operating system for roadways, providing actionable insights for governments and businesses to enhance safety, efficiency, and environmental sustainability [5].

Core Viewpoint - Rekor Systems, Inc. has announced a registered direct offering of 8,571,428 units at a price of $1.75 per unit, aiming to raise approximately $15 million in gross proceeds for working capital and general corporate purposes [1][2]. Group 1: Offering Details - The offering consists of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $2.40, with warrants immediately exercisable and expiring in seven years [1]. - The offering is expected to close on or about December 16, 2025, pending customary closing conditions [1]. Group 2: Financial Implications - The gross proceeds from the offering are anticipated to be around $15 million before deducting underwriting discounts and commissions [2]. - The net proceeds will be utilized for working capital, capital expenditures, and general corporate purposes [2]. Group 3: Company Overview - Rekor Systems, Inc. specializes in roadway intelligence systems using AI-enabled computer vision and machine learning, aiming to create a digitally-enabled operating system for roadways [5]. - The company aggregates and transforms vast amounts of mobility data into actionable insights, enhancing roadway safety, efficiency, and environmental sustainability [5].

Core Viewpoint - Rekor Systems, Inc. has developed a patented technology framework aimed at protecting personal privacy in the use of vehicle recognition data, particularly through automated license plate recognition (ALPR) systems, addressing growing concerns over surveillance and data sharing [1][2]. Technology Framework - The company has secured a patent for a method that encodes and anonymizes vehicle identification data at the point of collection, ensuring that specific vehicle information remains encrypted and accessible only with lawful authorization [2]. - This framework aims to establish consistent privacy safeguards through administrative guidance, legislation, or procurement rules, allowing public safety agencies to adopt it without disrupting current operations [4]. Privacy Safeguards - Key elements of Rekor's privacy framework include immediate encoding of vehicle identification data, real-time use of deidentified information for legitimate purposes, and the release of identifying information only upon receipt of a warrant or legally approved documentation [7]. - The framework also provides real-time access to "hot-listed" wanted vehicles to support urgent public safety needs [7]. Industry Impact - The innovative approach is designed to enhance public trust and accountability in ALPR programs, encouraging public safety agencies and policymakers to implement privacy-protected ALPR systems [5][6]. - Rekor Systems aims to provide this patented privacy framework to any authorized government agency seeking to improve privacy protections while maintaining operational efficiency [5].

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].

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 - 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].

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, 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]