Rekor Systems' Leadership Shake-Up: Assessing Stability and Strategic Momentum Amid Key Executives' Departures

Rekor Systems Inc. has experienced a significant leadership transition in 2025, with the departures of both its CEO and CFO. These changes, occurring against a backdrop of financial challenges and strategic realignment, raise critical questions about the company's operational continuity and long-term growth prospects. This analysis examines the implications of these executive exits, evaluates the company's evolving strategic direction, and assesses how leadership stability-or instability-may shape Rekor's trajectory in the coming months.

Leadership Instability: A Double Blow

Rekor's leadership turbulence began in March 2025 when David Desharnais, the company's CEO, resigned amid a broader strategic realignment. According to reports, Desharnais' departure followed a reported net loss of $61 million in 2024, signaling financial strain. Robert A. Berman, the chairman and former CEO, assumed the interim CEO role, a move that underscores the board's reliance on internal leadership during a period of uncertainty.

The situation intensified in November 2025 with the resignation of Eyal Hen, Rekor's CFO, whose last day was confirmed in a SEC filing. Unlike Desharnais' resignation, which was tied to strategic restructuring, Hen's exit lacks a stated reason, leaving investors speculating about potential internal pressures. The absence of an announced interim CFO or replacement raises concerns about short-term operational continuity, particularly as the company navigates complex financial reporting and capital allocation decisions.

Strategic Resilience Amid Leadership Vacuums

Despite these leadership challenges, Rekor's strategic direction appears to remain intact. The company continues to prioritize its core mission of leveraging artificial intelligence and machine learning to deliver roadway intelligence systems. Recent financial performance also suggests momentum: Q3 2025 revenue surged to $14.2 million, a 34.6% year-over-year increase, while operating expenses dropped 24% quarter-over-quarter.

Rekor's strategic pivot to a data-as-a-service model is proving pivotal. This shift has enabled the company to secure a $50 million multi-year agreement with the Georgia Department of Transportation. Additionally, Rekor is expanding internationally, with plans to enter European markets and develop a deepfake detection product slated for a 2026 launch. These initiatives highlight the company's ambition to diversify revenue streams and reduce reliance on traditional hardware sales.

Growth Trajectory: Can Leadership Gaps Be Mitigated?

Rekor's Q3 results and forward-looking projections indicate a growth trajectory that may offset concerns about leadership instability. The company anticipates $14.71 million in Q4 2025 revenue, supported by operational efficiencies and a narrowing adjusted EBITDA loss of $1.5 million. However, the absence of a permanent CFO could complicate capital-raising efforts or investor confidence, particularly as the company seeks to fund its ambitious expansion into commercial sectors like property management and seaport logistics.

The board's ability to swiftly appoint a qualified CFO and finalize a permanent CEO replacement will be critical. Berman's interim leadership provides some continuity, but prolonged vacancies could hinder strategic execution. Investors should monitor the board's communication for clarity on succession plans and financial governance.

Conclusion: Balancing Risk and Opportunity

Rekor Systems' recent leadership changes present both risks and opportunities. While the resignations of key executives introduce uncertainty, the company's strategic focus on data-driven solutions and its strong Q3 performance demonstrate resilience. For investors, the key will be assessing whether Rekor's board can stabilize leadership while maintaining its growth momentum. If the company successfully navigates these transitions, its innovative offerings and expanding market reach could position it as a leader in the transportation technology sector.