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What were the key takeaways from Rekor Systems’s earnings call?

- **Record Q3 Performance**: $14.2M revenue (35% YoY growth), $6.5M recurring revenue (18% YoY), 63% gross margin.
- **Landmark Georgia Contract**: $50M+ multiyear deal validates leadership in roadway data infrastructure.
- **AI Innovation**: Launching deep fake detection product in 2026 via Rekor Labs.
- **Operational Efficiency**: 24% QoQ OpEx reduction, EBITDA loss down 84% YoY.
- **Strategic Expansion**: Texas rollout, international Scout discussions, and integrated data RFPs driving 2026 growth.

**【CEO Opening Remarks】**
- Q3 2025 marked Rekor's best-performing quarter with record revenue of $14.2 million, up 35% YoY and 15% QoQ.
- Secured a $50 million+ multiyear contract with Georgia DOT, the largest state contract in company history.
- Highlighted the success of the South Carolina virtual way station program, achieving 100% accuracy in overweight truck targeting.
- Announced entry into the global deep fake detection market through Rekor Labs, an independent subsidiary.
- Appointed Jennifer Candelaria as GM of Scout, strengthening leadership across core business lines.

**【CFO Financial Commentary】**
- Q3 2025 GAAP revenue: $14.2 million (35% YoY growth); recurring revenue: $6.5 million (18% YoY increase).
- Adjusted gross margin: 63% (vs. 44% Q3 2024), driven by higher software sales.
- Operating expenses declined 24% QoQ ($3.7 million reduction), with year-to-date savings of $7.8 million (18% YoY).
- Adjusted EBITDA loss: $1.5 million (84% improvement YoY); year-to-date loss: $14.5 million (42% YoY reduction).
- Projected margin stabilization at higher levels due to Data-as-a-Service model adoption.

**【Q&A Highlights】**
- **Deep Fake Detection**: Rekor Labs developing an independent product for 2026 launch, leveraging AI expertise in synthetic media detection.
- **Georgia Contract Impact**: Full pro-rata billing expected in Q4 2025, with Discover deployments expanding in Georgia and Florida.
- **Texas Expansion**: Austin contract expansion underway, with plans to roll out Command platform to Dallas-Fort Worth and Houston.
- **Liquidity Strategy**: Exploring second revenue-sharing note with Georgia and Texas contracts to enhance liquidity.
- **International Growth**: Early-stage discussions in Europe for Scout deployments, targeting 2026 commercialization.
- **Scout Optimization**: New leadership focused on margin improvement through hardware reduction and SaaS transition.
- **Market Momentum**: Unprompted RFPs from states seeking integrated data solutions, aligning with Rekor's DaaS model.

Rekor Systems, Inc.(REKR)-20251114-2025 Q3 Earnings call transcript

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