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COLUMBIA, Md. – Rekor Systems, Inc. (NASDAQ: REKR), a developer of advanced roadway intelligence technology with a market capitalization of $130 million, has been awarded a multi-year statewide contract by the Texas Department of Transportation (TxDOT). The contract includes an eight-figure blanket purchase order authorizing TxDOT districts to implement Rekor Command®, the company’s incident management platform, to improve traffic operations and safety across Texas. According to InvestingPro data, the company has demonstrated strong momentum with a 31% price return over the past six months.
The technology aims to address the challenges posed by the growing traffic demands in Texas, which boasts the largest state-maintained roadway network in the U.S. Rekor Command® has already shown positive results in Texas, with the TxDOT Austin District reporting significant operational improvements, such as a 159% increase in incident detection and a 44-minute reduction in incident clearance time. The company maintains a healthy gross profit margin of nearly 50%, though InvestingPro analysis indicates ongoing cash burn concerns. For deeper insights into Rekor’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
TxDOT’s Director of Strategy and Innovation, Darran Anderson, expressed enthusiasm for the continued partnership with Rekor, emphasizing the platform’s potential to enhance safety and reduce congestion. The platform’s success is attributed to its ability to deliver real-time insights and support quicker decision-making for traffic management.
Rekor Command® integrates with various Advanced Traffic Management Systems (ATMS) and will introduce new features under the expanded contract, including a Traffic Impact Module and Work Zone API. These tools are designed to improve traffic flow and work zone safety by providing real-time data to operators and the public.
This contract solidifies Rekor’s position as a key partner in large-scale transportation infrastructure projects. The platform will also support the Construction Partnership Program (CPP) and the CTX-GO mobile application, furthering TxDOT’s goals for improved regional collaboration and public communication. With revenue growth of 18% over the last twelve months, Rekor continues to expand its market presence, though analysts tracked by InvestingPro do not anticipate profitability this year.
The information in this article is based on a press release statement from Rekor Systems, Inc.
In other recent news, Rekor Systems Inc. reported its first-quarter 2025 financial results, which showed a miss on both earnings and revenue forecasts. The company posted an earnings per share (EPS) of -$0.10, falling short of the expected -$0.09, and reported revenue of $9.2 million, which was below the $13.64 million forecast. This represents a 6% decrease in revenue compared to the same period last year. Despite these challenges, Rekor Systems is implementing a $15 million annualized cost savings initiative and reported a 3% increase in recurring revenue from the previous year. Additionally, the company is focusing on international market expansion to drive future growth.
In other developments, Rekor Systems held its Annual Meeting of Stockholders, where nine directors were elected, and the appointment of CBIZ CPAs P.C. as the independent public accountant for the fiscal year ending December 31, 2025, was ratified. Executive compensation was also approved on an advisory basis. These results were disclosed in a Form 8-K filing with the Securities and Exchange Commission. The company is targeting breakeven adjusted EBITDA and potential profitability by the end of 2025, with a focus on optimizing current resources and expanding its gross margin through international markets.
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