Rekor Systems 2025 Q3 Earnings 67.2% Net Loss Reduction Drives Optimism

Rekor Systems (REKR) delivered a mixed performance in Q3 2025, with revenue exceeding expectations but shares dipping post-earnings. The company reported $14.2 million in revenue, a 34.6% year-over-year increase, while narrowing its net loss by 67.2% to $4.15 million. Despite outperforming on revenue and EPS, the stock declined 7.27% in regular trading, reflecting broader market skepticism.

Revenue

Rekor’s total revenue surged to $14.19 million in Q3 2025, a 34.6% increase from $10.55 million in the prior-year period. The growth was driven by a robust $6.52 million in recurring revenue, which rose 18% year-over-year, and $7.67 million in product and service revenue. The company’s Data-as-a-Service model is gaining traction, with clients favoring scalable, hardware-free solutions.

Earnings/Net Income

The company improved its net loss to $4.15 million in Q3 2025, a 67.2% reduction from $12.65 million in Q3 2024. Earnings per share (EPS) narrowed to -$0.03, up from -$0.14, reflecting a 78.6% improvement. While losses persist, the trajectory signals progress in operational efficiency and cost management.

Post-Earnings Price Action Review

The stock price of Rekor Systems rose 9.74% on the day of the earnings report but subsequently fell 4.04% for the week and 18.32% month-to-date. The 7.27% post-earnings decline, despite beating revenue and EPS estimates, suggests investor caution amid high volatility (beta of 2.14). Analysts attribute the drop to broader market trends and sector-specific uncertainties, despite the company’s strategic advancements.

CEO Commentary

CEO Robert Berman highlighted “record-breaking quarter” results, emphasizing Rekor’s leadership in integrated data and intelligence solutions. He underscored the Data-as-a-Service model’s role in reducing hardware costs and enabling scalable growth, particularly in transportation agencies. The tone was optimistic, with a focus on expanding Rekor’s U.S. transportation network presence.

Guidance

Rekor outlined strategic priorities centered on high-margin software sales and operational efficiency. The $50 million GDOT contract and South Carolina’s $1 million virtual weigh station order signal expansion opportunities. While no specific financial guidance was provided, the company remains confident in long-term profitability and margin improvements.

Additional News

Rekor secured a $50 million, eight-year contract with the Georgia Department of Transportation, with potential value exceeding $100 million. The company also announced a $1 million initial order from South Carolina for virtual weigh stations, reinforcing its market adoption. Additionally, Rekor Labs is developing a deepfake detection product, leveraging its AI expertise to address synthetic media challenges in government and law enforcement.

Rekor Systems, Inc. (NASDAQ: REKR) reported record Q3 2025 results on Nov 13, 2025, with revenue of $14.2 million and an adjusted gross margin of 63.4%. The company secured a statewide Georgia contract valued at a minimum of $50 million (up to >$100 million) and expanded Rekor Discover® into three additional states. Operating expenses fell 26% sequentially and 20% year-over-year, narrowing the adjusted EBITDA loss to $1.5 million. The stock price dipped 7.27% post-earnings, reflecting investor caution despite operational improvements.