REKR · Rekor Systems, Inc.

Rekor Systems reported Q1 2026 results showing continued revenue growth and margin expansion. Revenue increased 12% year-over-year to $10.3 million, driven by growth across all product lines: Scout (+$281k), Discover (+$682k), and Command (+$102k). Adjusted gross margin improved to 52.5% from 48.2% in the prior year, benefiting from a favorable product mix shift toward higher-margin software sales. Cost of revenue excluding D&A increased only 2%, reflecting operational leverage. Loss from operations improved 13% to $8.8 million, aided by cost containment including a 16% headcount reduction (45 positions) with the full benefit expected in Q2 2026. EBITDA loss narrowed to $6.5 million from $7.4 million, and cash used in operations improved by $4.3 million (54%). The sequential cash decline from year-end 2025 was attributed to seasonal Q1 patterns and one-time restructuring costs. Management highlighted that Q1 included planned one-time charges and that Q2 will better reflect the operational improvements. The company is evaluating refinancing its Prime Revenue Sharing Notes to reduce cost of capital. Additionally, Rekor Labs announced GoSecure, a deterministic video authentication product targeting law enforcement and insurance markets, with launch expected in Q3 2026. The company did not provide explicit forward guidance but expressed confidence in continued EBITDA improvement through 2026.