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COLUMBIA, Md. – Rekor Systems, Inc. (NASDAQ: REKR), a technology company with a market capitalization of $172 million and 18% year-over-year revenue growth, has announced a significant deal with a Sun Belt state transportation agency. The company will install 150 of its Rekor Discover® systems as part of a one-year Data-as-a-Service contract valued at $1.2 million. The installations are expected to be completed within the next 60 days. According to InvestingPro analysis, the company is currently burning through cash, with analysts not anticipating profitability this year.
The deployment aims to enhance the state’s traffic data collection and monitoring capabilities, using Rekor’s Roadway Data-as-a-Service model. The Rekor Discover® platform, which is compliant with Federal Highway Administration requirements, utilizes AI-enabled roadside sensors to collect detailed, per-vehicle data while employing proprietary privacy protection methods. This technology is designed to replace the need for traditional in-road sensors, which can disrupt traffic and pose safety risks during maintenance or failure.
Mark Phillips, General Manager of Rekor Discover®, highlighted the project as a pivotal milestone for Data-as-a-Service in the U.S., noting that the initiative represents a step towards replacing outdated single-function devices with scalable, AI-powered platforms for richer and more actionable traffic insights.
Rekor Discover® is gaining traction across the United States, with systems already installed in states such as Arizona, Colorado, Georgia, New Mexico, New York, Florida, and South Carolina. The company’s growing presence in the U.S. market is drawing international attention, suggesting the potential for expansion on a global scale. The stock has shown strong momentum, with a 61% price return over the past six months, though InvestingPro data indicates the stock is currently trading above its Fair Value. For deeper insights into Rekor’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The Rekor Discover® and its Edge Series systems offer a non-intrusive installation process, eliminating the need for road closures and reducing risks to workers and drivers. This AI-based solution allows for accurate data collection in challenging locations, overcoming limitations faced by traditional methods like piezo sensors and rubber tubes, as well as radar systems in complex traffic scenarios.
Rekor Systems, Inc. is at the forefront of implementing digital infrastructure for roadway intelligence, aggregating and transforming mobility data into actionable insights with its Rekor One® Roadway Intelligence Engine. The company’s technology serves as a foundation for a digitally-enabled roadway operating system, aiming to improve safety, efficiency, and environmental sustainability. With a gross profit margin of nearly 50% and a current ratio of 1.18, the company maintains operational stability despite challenging market conditions. InvestingPro offers 11 additional investment tips and extensive financial metrics for REKR, helping investors make more informed decisions.
This news is based on a press release statement from Rekor Systems, Inc.
In other recent news, Rekor Systems has been awarded a significant multi-year statewide contract by the Texas Department of Transportation (TxDOT). This contract, which includes an eight-figure blanket purchase order, will allow TxDOT districts to implement Rekor’s incident management platform, Rekor Command®, aimed at improving traffic operations and safety across the state. However, Rekor Systems reported disappointing financial results for the first quarter of 2025, missing both earnings and revenue forecasts. The company posted an earnings per share (EPS) of -$0.10, below the expected -$0.09, and revenue of $9.2 million, which fell short of the $13.64 million forecast. Despite these setbacks, Rekor is implementing a $15 million annualized cost savings initiative and focusing on international market expansion to drive future growth. Additionally, the company recently held its Annual Meeting of Stockholders, where nine directors were elected, and the appointment of CBIZ CPAs P.C. as the independent public accountant was ratified. The company also approved executive compensation, as disclosed in a Form 8-K filing with the Securities and Exchange Commission.
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