Rekor Systems (REKR) Surges 21.15% on Landmark Georgia Contract and Record Q3 Revenue

Rekor Systems (REKR) surged 21.15% on Monday, marking its third consecutive day of gains, with a cumulative rise of 28.57% over the past three trading days. The stock hit an intraday high of 29.81%, reaching its highest level since October 2025, driven by a confluence of strategic and financial milestones.

The recent momentum was fueled by Rekor’s record third-quarter revenue of $13.9–14.3 million, driven by strong adoption of its data-as-a-service (DaaS) model and software solutions. The company reported a 65% reduction in Adjusted EBITDA loss compared to Q2 2025 and a 75% improvement over Q3 2024, with gross margins expanding to 61–65%. These metrics underscored progress in operational efficiency and scalability, reinforcing confidence in its long-term value proposition.

A pivotal catalyst was the $50 million multi-year contract with the Georgia Department of Transportation, secured on October 7. This landmark agreement, Rekor’s largest statewide deal to date, involves deploying its Rekor One® Roadway Intelligence Engine to enhance traffic management and infrastructure planning. The contract not only validates the company’s AI-driven solutions but also provides a recurring revenue stream, signaling potential for broader market penetration in the U.S. smart infrastructure sector.

Analyst and institutional support further bolstered investor sentiment. Northland Securities upgraded the stock to “Buy,” citing Rekor’s strategic pivot to DaaS and its leadership in mobility data. Goldman Sachs increased its stake in the company during September, reflecting institutional confidence. While some analysts, including Clear Street, tempered expectations with a lowered price target, the overall sentiment remained cautiously optimistic, highlighting Rekor’s technological differentiation and turnaround initiatives.

Product innovation also played a role, with Rekor unveiling new AI-powered tools at the ITS World Congress 2025. These solutions align with the global shift toward smart cities and digitized transportation, positioning the company to capitalize on the $200 billion intelligent transportation systems market. Recent deployments, including a $1.4 million contract in Central Texas and a $1.2 million agreement in a Sun Belt state, demonstrated the versatility of its offerings.

Retail investor enthusiasm, with 56% ownership in the company as of August, added to short-term volatility. This dynamic, combined with the Georgia contract and product advancements, highlighted Rekor’s appeal as a high-growth speculative play in the AI-driven mobility sector. Forward-looking guidance for Q3 and an upcoming earnings call on November 13 further positioned the stock for continued scrutiny, with investors monitoring execution on key contracts and financial discipline.

While challenges such as competitive pressures persist, Rekor’s focus on DaaS, software solutions, and scalable infrastructure underscores its potential to maintain growth. The broader tailwinds from global smart infrastructure investments and real-time mobility data demand position the company to benefit from its strategic positioning in the evolving transportation technology landscape.