Rekor Systems, Inc. (REKR) AI Stock Analysis

Rekor Systems, Inc. develops and deploys intelligent infrastructure solutions and services for transportation management, public safety, and commercial applications across markets such as the United States and Canada. Its flagship Rekor One Traffic Management suite offers software modules for roadway monitoring, incident detection, and traffic analytics. For public safety, Rekor One provides contactless compliance software for citation management, while Rekor scout delivers license plate and vehicle recognition across cameras. Law enforcement agencies use its Rekor blue smartphone application to identify vehicle registration details, and commercial clients utilize the Rekor CarCheck API for vehicle identification data.

Rekor Systems grew revenue from $11.6M in FY2021 to $19.9M in FY2022, $34.9M in FY2023, and $46.0M in FY2024, reaching $48.5M in FY2025. Annual revenue growth moderated from 75.4% in FY2023 and 31.8% in FY2024 to 5.3% in FY2025, representing a 5-year revenue CAGR of 39.3%. Gross margin stood at 55.9% in FY2025, up from 49.3% in FY2024. However, operating margin remained negative at -51.9% in FY2025, alongside net income of -$31.5M and EPS of -$0.24. Over the trailing twelve months ended June 30, 2026, revenue reached $49.8M with quarterly revenue growth of 2.5% year-over-year, an operating margin of -20.0%, and a profit margin of -43.8%.

As of June 30, 2026, Rekor Systems held $9.8M in cash and short-term investments against total debt of $26.5M, resulting in net debt of $16.8M. Total assets were $74.3M compared to shareholders equity of $34.1M, with both the current ratio and debt-to-equity ratio at 0.78. In FY2025, operating cash flow was -$20.4M and free cash flow was -$22.9M. Capital expenditures totaled $2.5M, while share buybacks were $189,000, and the share count expanded 228.1% over five years.

Rekor Systems trades at a market capitalization of $45.5M and an enterprise value of $75.8M. The stock trades at a price-to-sales multiple of 0.9x and an EV-to-revenue multiple of 1.5x, compared to a median price-to-sales of 2.8x for its US-listed Technology peers. Its price-to-book ratio is 1.7x. Over the past year leading to October 16, 2026, the stock returned -87.3% and trades 57.7% below its 200-day average, while the S&P 500 (SPY) returned 16.8%. Over five years, the stock returned -97.3% versus an 83.0% gain for the S&P 500.

Analyst coverage includes 1 StrongBuy rating, with 0 Buy, 0 Hold, 0 Sell, and 0 StrongSell ratings. The mean price target is $2.50, representing a 655.3% premium over the last close of $0.33. For the fiscal year ending December 31, 2026, the consensus revenue estimate is $51.1M with an EPS estimate of -$0.11. For the following fiscal year, revenue is projected at $59.6M with an EPS estimate of -$0.03. Over the last four quarters, the company recorded 1 EPS beat. The next earnings date is November 12, 2026.

This page is an AI-written research summary of Rekor Systems, Inc. (REKR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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