Rekor Systems Reports Record Third Quarter 2025 Financial Results

Company Achieves Third Consecutive Quarter of Positive Results

Highlights:

COLUMBIA, Md., Nov. 13, 2025 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR), a global leader in roadway intelligence, today announced record financial results for the three and nine months ended September 30, 2025. The third quarter represents the strongest performance in Rekor’s history, with the Company achieving new highs in revenue, margins, and operational efficiency.

Operational & Strategic Highlights

Executive Commentary

“This was a record-breaking quarter for Rekor,” said Eyal Hen, Rekor's Chief Financial Officer. “The Company is moving in the right direction, and these results confirm that Rekor’s model is scalable, resilient, and built for long-term profitability.”

“We’re seeing continued strength across our entire portfolio,” said Robert A. Berman, Rekor President and CEO. “Rekor Discover® and Rekor Command® are gaining significant traction in the market, and we’re now seeing transportation authorities issue new RFPs that combine both technologies. This confirms a clear industry shift toward integrated data and intelligence solutions — a direction Rekor helped define years ago.

Our Data-as-a-Service model has become a powerful growth engine, setting Rekor apart in the industry. Transportation agencies increasingly want fast, reliable access to actionable roadway data without the cost and complexity of owning and maintaining hardware. Combined with our most established platform, Rekor Scout™, these solutions are propelling the Company toward escape velocity and positioning Rekor for sustained, scalable growth.”

Three and Nine Months Ended September 30, 2025 Financial Results

This section highlights the changes for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024.

Revenues and Cost of Revenue, excluding Depreciation and Amortization

Revenue for the three and nine months ended September 30, 2025, increased compared to the corresponding periods in 2024, primarily driven by higher perpetual license sales during the third quarter of 2025.

Cost of revenue, excluding depreciation and amortization, decreased for both the three and nine-month periods compared to the prior year, mainly due to a favorable revenue mix, with a greater proportion of higher-margin software sales relative to hardware.

Adjusted Gross Margin for the three and nine months ended September 30, 2025, improved compared to the same periods in 2024, reflecting the increased contribution from software sales, which generally carry higher margins than service-based contracts. Adjusted Gross Margin typically fluctuates based on the mix of software and service revenue in any given period.

Adjusted Gross Margin is a non-GAAP financial measure calculated as Adjusted Gross Profit divided by revenue and should not be considered in isolation from, or as a substitute for, GAAP financial measures.

Loss from Operations

Loss from operations for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, improved primarily due to our revenue growth and a reduction in payroll and payroll-related costs as a result of cost containment efforts intended to conform to current operations.

EBITDA and Adjusted EBITDA

The Company calculates EBITDA as net loss before interest, taxes, depreciation, and amortization. The Company calculates Adjusted EBITDA as net loss before interest, taxes, depreciation, and amortization, adjusted for (i) impairment of intangible assets, (ii) loss on extinguishment of debt, (iii) stock-based compensation, (iv) losses or gains on sales of subsidiaries, and (v) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the U.S. ("U.S. GAAP") and should not be considered as an alternative to net earnings or cash flow from operating activities as indicators of our operating performance or as a measure of liquidity or any other measures of performance derived in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors, and other interested parties to evaluate a company’s ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do. These non-GAAP measures should not be considered in isolation from, or as a substitute for, GAAP measures.

The following table sets forth the components of the EBITDA and Adjusted EBITDA for the periods included (dollars in thousands):

The Company will host its earnings conference call today at 4:30 p.m. ET to discuss its financial and operating results.

CONFERENCE CALL INFORMATION

Any person interested in participating in the call should please dial in approximately 10 minutes before the start of the call using the following information:

North America: Participant Dial-In: 877-407-8037 / +1 201-689-8037

Click here for participant International Toll-Free access numbers

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=gyrVsAf5

REPLAY INFORMATION

A replay will be available online approximately two hours after the live call for two weeks. To access the replay, use the following numbers:

Replay Dial-In: 877-660-6853 / 201-612-7415

Access ID: 13756647

Replay Duration: two weeks.

About Rekor Systems, Inc.

Rekor Systems, Inc. (NASDAQ: REKR) is a leader in developing and implementing state-of-the-art roadway intelligence systems using AI-enabled computer vision and machine learning. As a pioneer in the implementation of digital infrastructure, Rekor is collecting, connecting, and organizing the world's mobility data – laying the foundation for a digitally-enabled operating system for the roadway. With our Rekor One® Roadway Intelligence Engine at the core of our technology, we aggregate and transform trillions of data points into intelligence through proprietary computer vision, machine learning, and big data analytics that power our platforms and applications. Our solutions provide actionable insights that give governments and businesses a comprehensive picture of roadways while providing a collaborative environment that drives the world to be safer, greener, and more efficient. To learn more, please visit our website: https://rekor.ai, and follow Rekor on social media on LinkedIn, X (formerly Twitter), Threads, and Facebook.

Forward-Looking Statements

This press release and its links and attachments contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Rekor Systems, Inc. that involve substantial risks and uncertainties, including particularly statements regarding our future results of operations and financial position, business strategy, prospective products and services, timing and likelihood of success, plans and objectives of management for future operations and future results of current and anticipated products and services. These statements involve uncertainties, such as known and unknown risks, and are dependent on other important factors that may cause our actual results, performance, or achievements to be materially different from the future results, performance or achievements we express or imply. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these terms or other similar expressions. These forward-looking statements speak only as of the date they are made and are subject to a number of risks, uncertainties and assumptions described under the sections in our Annual Report on Form 10-K for the year ended December 31, 2024 entitled "Risk Factors" and elsewhere in our Quarterly Reports on Form 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this Press Release and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The forward-looking statements in this Press Release do not reflect the potential impact of any divestiture, merger, acquisition, or other business combination that had not been completed as of the date of this filing. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements are qualified in their entirety by reference to the risks discussed in our SEC filings. This cautionary statement also applies to any forward-looking statements made during the conference call referenced herein. We do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events, or otherwise.

Company Contact:

Rekor Systems, Inc.

Eyal Hen

Chief Financial Officer

Phone: +1 (443) 545-7260

ehen@rekor.ai

Media & Investor Relations Contact:

Rekor Systems, Inc.

Charles Degliomini

ir@rekor.ai