REKR · Rekor Systems, Inc.

Rekor Systems delivered a year of operational transformation in 2025, with revenue growing 5% to $48.5 million primarily from the Public Safety product line, where sales reached $17.4 million versus $14.8 million in 2024, fueled by higher perpetual license sales. Gross margins expanded significantly to 55.9% from 49.3%, reflecting a favorable shift to higher-margin software revenue over hardware and reduced cost of revenue by 8%. Operating loss narrowed dramatically by 47% to $28.9 million, driven by cost containment including lower payroll, R&D spend, and a $6.5 million drop in asset impairment charges to $3.8 million. Adjusted EBITDA loss improved 38% to $18.1 million, with management highlighting disciplined execution and alignment of costs to revenue scale. CFO Joseph Nalepa noted the shift to a 'pragmatic, product-focused business' enabling a path to sustainable profitability. Balance sheet strengthened with cash rising over threefold to $16.6 million, total assets at $85.4 million, and equity up to $42.9 million, supported by positive Q4 operating cash flow—the first such quarter. Operational efficiencies included integrating STS and ATD subsidiaries, on-shoring engineering, and securing a key patent for privacy-focused data retention. Strategic moves like commercializing core products (Rekor Scout, Discover, Command) and planning Rekor Labs position the company for scalable growth with increased multi-year revenue visibility from Georgia DOT contracts. No forward guidance was provided in the release.