Rekor Systems 2025 Q3 Earnings 67.2% Reduction in Net Loss Amid Revenue Surge

Rekor Systems (REKR) reported fiscal 2025 Q3 earnings on Nov 13, 2025, surpassing revenue estimates while narrowing losses. The company’s 34.6% year-over-year revenue growth and 67.2% reduction in net loss signaled progress amid a nine-year streak of quarterly losses. CEO Robert Berman highlighted momentum in its Data-as-a-Service model and secured major contracts, though the stock faced short-term volatility.

Revenue

Rekor Systems’ total revenue surged 34.6% year-over-year to $14.19 million in Q3 2025, driven by strong perpetual license sales and expanded deployments of its Rekor Discover® and Rekor Command® platforms. The company attributed the growth to increased demand for integrated transportation data solutions and favorable revenue mix, with software sales contributing to higher-margin performance.

Earnings/Net Income

The company narrowed its net loss to $-4.15 million in Q3 2025, a 67.2% improvement from $-12.65 million in the prior-year quarter. Earnings per share (EPS) improved to -$0.03 from -$0.14, exceeding analysts’ expectations of -$0.05. While the reduction in losses reflects disciplined cost management, Rekor’s nine-year history of quarterly losses underscores ongoing financial challenges.

Price Action

Rekor’s stock price declined 6.85% on the day of the earnings report, 5.56% for the week, and 19.05% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The strategy of purchasing Rekor shares on the day of its earnings announcement and holding for 30 days historically yielded strong returns, with a 171% total shareholder return over three years and a 96% one-month return. However, shares opened at $2.19 on Nov 13, 2025, a 7.27% drop from the previous day, highlighting post-earnings volatility.

CEO Commentary

CEO Robert Berman emphasized Rekor’s “escape velocity” in scaling its Data-as-a-Service model, noting growing traction for Rekor Discover® and Rekor Command® in transportation markets. He cited the GDOT $50 million contract and South Carolina’s $1 million initial order as catalysts for recurring revenue, alongside cost containment efforts that reduced operating expenses by 26% sequentially.

Guidance

Rekor outlined continued expansion of its Data-as-a-Service platform, with forward-looking revenue forecasts of $14.71 million for Q4 2025. The company expects to leverage cooperative purchasing opportunities to scale the GDOT contract to $100 million and expand virtual weigh station deployments in South Carolina. Management reaffirmed confidence in long-term profitability, citing improved margins and operational discipline.

Additional News

Rekor Systems secured a $50 million eight-year contract with Georgia’s Department of Transportation, its largest deal to date, and a $1 million initial order for virtual weigh stations in South Carolina. The company also announced plans for Rekor Labs, targeting synthetic media detection in 2026. Analysts remain cautiously optimistic, with a 12-month price target of $3.25 reflecting a potential 32% upside.