Earnings Releases·Nov 12, 2026, 4:08 PM ET

Rekor Systems — Third Quarter 2026 Earnings Summary

Total revenue declined 23% to $10.9 million for the quarter and 5% to $33.8 million for the first nine months, while net loss narrowed to $2.9 million ($0.02/share) for the quarter and $12.8 million for the nine-month period.
Recurring revenue grew 16% year-over-year to $7.5 million for the quarter (69% of total revenue), offsetting a drop in adjusted gross margin to 48.2% due to a less favorable revenue mix lacking high-margin perpetual license sales.
The company established a profitability objective at approximately $50 million in annual revenue, following the completion of major right-sizing initiatives that reduced operating expenses 41% in the quarter and eliminated $9.7 million in lease liabilities.
Management is in active discussions to refinance $15.0 million in Series A Prime Revenue Sharing Notes maturing December 15, 2026, with no assurance of completion on acceptable terms, while also addressing Nasdaq minimum bid price compliance requirements.
Strategic growth initiatives include expanding Born Authentic™ to retail via e-commerce in Q1 2027, launching the Rekor Scout® Axis Agent, and pursuing statewide transportation opportunities following contract expansions in Florida and an intent to award in Oregon.