Rekor Systems expects record Q3 revenue amid reduced losses

COLUMBIA, Md. - Rekor Systems, Inc. (NASDAQ:REKR), with a market capitalization of $262 million, announced Tuesday it anticipates record quarterly revenue between $13.9 million and $14.3 million for the third quarter ended September 30, 2025, according to preliminary financial results. The company has shown strong momentum, with its stock price surging over 160% in the past six months.

The roadway intelligence technology company projects an adjusted EBITDA loss between $1.6 million and $1.9 million, representing a reduction of more than 65% compared to the second quarter of 2025 and over 75% compared to the third quarter of 2024. According to InvestingPro data, analysts expect the company’s losses to narrow significantly, though they don’t anticipate profitability this year.

Gross margin is expected to range between 61% and 65%, with the company attributing the improvement to increased demand for its data-as-a-service and software products. This represents a substantial improvement from the 48.7% gross margin reported in the last twelve months.

"Expanding adoption of our data-as-a-service model, as well as software solutions, is driving operating leverage and improving economics," said Eyal Hen, Chief Financial Officer at Rekor, in the press release statement.

The company plans to release its complete third-quarter financial results on Thursday, November 13, 2025, after market close, followed by an earnings conference call at 4:30 p.m. Eastern Time on the same day.

Rekor Systems develops AI-enabled computer vision and machine learning systems for roadway intelligence. The company’s technology collects and transforms data points into intelligence through proprietary computer vision, machine learning, and analytics. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 8 additional ProTips and detailed financial metrics in its Pro Research Report, available as part of the subscription.

Adjusted EBITDA and gross margin are non-GAAP financial measures. A full reconciliation of these figures to the most directly comparable GAAP financial measures will be provided in Rekor’s upcoming Quarterly Report on Form 10-Q for the period ended September 30, 2025.

In other recent news, Rekor Systems has secured a significant multi-year contract with the Georgia Department of Transportation, valued at a minimum of $50 million. This agreement, which is the company’s largest statewide contract to date, could potentially increase to over $100 million, allowing for cooperative purchasing by other Georgia government agencies. Additionally, Rekor Systems announced that both the California Department of Transportation and the Texas Department of Transportation have begun initial installations of its Rekor Discover traffic data service. These developments may lead to a broader deployment of the service across these states. The recent contract with Georgia and the installations in California and Texas highlight Rekor’s expanding presence in the transportation sector. The company describes the Georgia contract as a major milestone, emphasizing its potential for substantial revenue growth. These advancements underscore Rekor’s strategic push to enhance its roadway intelligence technology footprint across major U.S. states.

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