Rekor Systems Inc Financials
This page shows Rekor Systems Inc (REKR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 10 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Rekor is still funding losses externally, but unit economics are improving as margins recover and cash burn narrows.
The latest year pairs a gross margin of55.9% with a free-cash-flow margin of-47.3% , showing the bottleneck is no longer product delivery economics but the overhead and reinvestment needed to support the business. Because operating cash outflow was smaller than the net loss, and both SG&A and R&D were lower than the prior year, the improvement looks driven more by cost-base restraint than by a demand surge.
Financing inflows of
Even after the recovery, SG&A and R&D together still equaled about
Financial Health Signals
Scored against emerging companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Rekor Systems Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Rekor Systems Inc scores -4.02, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($91.4M) relative to total liabilities ($42.5M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Rekor Systems Inc passes 5 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Rekor Systems Inc generates $0.65 in operating cash flow (-$20.4M OCF vs -$31.5M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Rekor Systems Inc earns $-12.6 in operating income for every $1 of interest expense (-$28.9M vs $2.3M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Rekor Systems Inc generated $48.5M in revenue in fiscal year 2025. This represents an increase of 5.3% from the prior year.
Rekor Systems Inc's EBITDA was -$22.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 49.5% from the prior year.
Rekor Systems Inc reported -$31.5M in net income in fiscal year 2025. This represents an increase of 48.8% from the prior year.
Cash & Balance Sheet
Rekor Systems Inc generated -$22.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 32.9% from the prior year.
Rekor Systems Inc held $16.6M in cash against $15.0M in long-term debt as of fiscal year 2025.
Rekor Systems Inc had 136M shares outstanding in fiscal year 2025. This represents an increase of 30.5% from the prior year.
Margins & Returns
Rekor Systems Inc's gross margin was 55.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 6.6 percentage points from the prior year.
Rekor Systems Inc's operating margin was -59.6% in fiscal year 2025, reflecting core business profitability. This is up 58.4 percentage points from the prior year.
Rekor Systems Inc's net profit margin was -64.9% in fiscal year 2025, showing the share of revenue converted to profit. This is up 68.5 percentage points from the prior year.
Rekor Systems Inc's ROE was -73.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 106.5 percentage points from the prior year.
Capital Allocation
Rekor Systems Inc invested $14.6M in research and development in fiscal year 2025. This represents a decrease of 22.2% from the prior year.
Rekor Systems Inc spent $189K on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 0.0% from the prior year.
Rekor Systems Inc invested $2.5M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 50.5% from the prior year.
REKR Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $10.3M-19.2% | $12.7M-10.5% | $14.2M+14.8% | $12.4M+34.4% | $9.2M-30.7% | $13.3M+25.9% | $10.5M-15.1% | $12.4M |
| Cost of Revenue | $4.9M-5.8% | $5.2M-0.3% | $5.2M-16.8% | $6.2M+31.2% | $4.8M-25.4% | $6.4M+8.1% | $5.9M+2.2% | $5.8M |
| Gross Profit | $5.4M-28.4% | $7.5M-16.4% | $9.0M+47.2% | $6.1M+37.8% | $4.4M-35.7% | $6.9M+48.5% | $4.6M-30.2% | $6.7M |
| R&D Expenses | $3.5M+5.4% | $3.3M-9.6% | $3.7M+0.2% | $3.7M-8.2% | $4.0M-1.4% | $4.0M-14.9% | $4.7M-5.0% | $5.0M |
| SG&A Expenses | $8.3M+79.1% | $4.7M-26.1% | $6.3M-9.2% | $6.9M-4.8% | $7.3M+4.0% | $7.0M-18.9% | $8.6M+17.2% | $7.4M |
| Operating Income | -$8.8M-25.2% | -$7.0M-77.4% | -$4.0M+48.7% | -$7.7M+23.7% | -$10.1M+45.1% | -$18.5M-43.8% | -$12.9M-27.6% | -$10.1M |
| Interest Expense | $493K-10.8% | $553K-2.6% | $568K-3.1% | $586K-0.7% | $590K+7.1% | $551K+11.1% | $496K-8.8% | $544K |
| Income Tax | $0-100.0% | $42K | $0 | $0 | $0-100.0% | $45K | $0 | $0 |
| Net Income | -$9.4M-20.3% | -$7.8M-87.5% | -$4.1M+52.1% | -$8.7M+20.4% | -$10.9M+46.6% | -$20.4M-61.0% | -$12.6M-29.1% | -$9.8M |
| EPS (Diluted) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
REKR Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $78.5M-8.1% | $85.4M+5.4% | $81.0M+1.1% | $80.1M+0.3% | $79.8M-3.2% | $82.5M-18.5% | $101.2M+3.4% | $97.9M |
| Current Assets | $25.7M-16.3% | $30.7M+36.8% | $22.5M+5.1% | $21.4M+7.2% | $20.0M+0.1% | $19.9M-14.2% | $23.2M+30.6% | $17.8M |
| Cash & Equivalents | $12.2M-26.5% | $16.6M+424.6% | $3.2M-34.6% | $4.8M+25.4% | $3.9M-23.2% | $5.0M-52.7% | $10.6M+243.2% | $3.1M |
| Inventory | $2.9M-4.3% | $3.1M-20.9% | $3.9M-15.2% | $4.6M+9.2% | $4.2M-2.4% | $4.3M+9.0% | $3.9M+8.7% | $3.6M |
| Accounts Receivable | $7.7M-12.5% | $8.8M-28.8% | $12.3M+54.5% | $8.0M+5.2% | $7.6M+4.8% | $7.2M+7.5% | $6.7M-25.4% | $9.0M |
| Goodwill | $24.3M0.0% | $24.3M0.0% | $24.3M0.0% | $24.3M0.0% | $24.3M0.0% | $24.3M0.0% | $24.3M0.0% | $24.3M |
| Total Liabilities | $44.0M+3.6% | $42.5M-4.4% | $44.5M-0.4% | $44.7M-3.8% | $46.4M-3.9% | $48.3M-20.6% | $60.9M+17.7% | $51.7M |
| Current Liabilities | $29.5M+1.3% | $29.1M+87.6% | $15.5M+1.8% | $15.2M-9.8% | $16.9M-7.4% | $18.2M-40.5% | $30.6M+44.7% | $21.2M |
| Long-Term Debt | $15.0M+0.1% | $15.0M+0.2% | $15.0M+0.2% | $14.9M-6.1% | $15.9M+0.2% | $15.9M+0.2% | $15.8M-5.4% | $16.8M |
| Total Equity | $34.5M-19.6% | $42.9M+17.5% | $36.5M+3.1% | $35.4M+6.1% | $33.4M-2.3% | $34.1M-15.4% | $40.3M-12.6% | $46.2M |
| Retained Earnings | -$300.9M-3.2% | -$291.6M-2.7% | -$283.8M-1.5% | -$279.6M-3.2% | -$271.0M-4.2% | -$260.1M-8.5% | -$239.7M-5.6% | -$227.1M |
REKR Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$3.7M-1883.3% | $210K+104.3% | -$4.8M+36.7% | -$7.7M+5.2% | -$8.1M-64.3% | -$4.9M+48.9% | -$9.6M+4.1% | -$10.0M |
| Capital Expenditures | $393K-15.3% | $464K-67.3% | $1.4M+370.8% | $301K-13.8% | $349K-57.4% | $820K+134.3% | $350K-0.3% | $351K |
| Free Cash Flow | -$4.1M-1529.1% | -$254K+95.9% | -$6.3M+21.3% | -$8.0M+5.6% | -$8.4M-46.9% | -$5.7M+42.5% | -$10.0M+4.0% | -$10.4M |
| Investing Cash Flow | -$278K-45.5% | -$191K+85.9% | -$1.4M-257.4% | -$378K-50.0% | -$252K+46.3% | -$469K-140.9% | $1.1M+298.6% | -$577K |
| Financing Cash Flow | -$241K-101.8% | $13.4M+202.5% | $4.4M-50.1% | $8.9M+21.7% | $7.3M+3001.2% | -$252K-101.6% | $16.0M+807.2% | $1.8M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $2K-92.6% | $27K | $0-100.0% | $69K-25.8% | $93K | $0-100.0% | $9K | $0 |
REKR Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.5%-6.8pp | 59.2%-4.2pp | 63.4%+13.9pp | 49.5%+1.2pp | 48.2%-3.7pp | 51.9%+7.9pp | 44.0%-9.5pp | 53.5% |
| Operating Margin | -85.9%-30.5pp | -55.5%-27.5pp | -28.0%+34.6pp | -62.6%+47.6pp | -110.2%+28.9pp | -139.2%-17.3pp | -121.9%-40.8pp | -81.1% |
| Net Margin | -91.2%-29.9pp | -61.3%-32.0pp | -29.2%+40.8pp | -70.0%+48.2pp | -118.2%+35.1pp | -153.3%-33.4pp | -119.9%-41.1pp | -78.8% |
| Return on Equity | -27.2%-9.0pp | -18.1%-6.8pp | -11.4%+13.1pp | -24.5%+8.1pp | -32.6%+27.0pp | -59.6%-28.3pp | -31.4%-10.1pp | -21.2% |
| Return on Assets | -11.9%-2.8pp | -9.1%-4.0pp | -5.1%+5.7pp | -10.8%+2.8pp | -13.6%+11.0pp | -24.7%-12.2pp | -12.5%-2.5pp | -10.0% |
| Current Ratio | 0.87-0.2 | 1.06-0.4 | 1.45+0.0 | 1.40+0.2 | 1.18+0.1 | 1.09+0.3 | 0.76-0.1 | 0.84 |
| Debt-to-Equity | 0.44+0.1 | 0.35-0.1 | 0.41-0.0 | 0.42-0.1 | 0.48+0.0 | 0.47+0.1 | 0.39+0.0 | 0.36 |
| FCF Margin | -40.3%-38.3pp | -2.0%+42.1pp | -44.1%+20.2pp | -64.4%+27.3pp | -91.6%-48.4pp | -43.2%+51.4pp | -94.6%-11.0pp | -83.6% |
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Frequently Asked Questions
What is Rekor Systems Inc's annual revenue?
Rekor Systems Inc (REKR) reported $48.5M in total revenue for fiscal year 2025. This represents a 5.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Rekor Systems Inc's revenue growing?
Rekor Systems Inc (REKR) revenue grew by 5.3% year-over-year, from $46.0M to $48.5M in fiscal year 2025.
Is Rekor Systems Inc profitable?
No, Rekor Systems Inc (REKR) reported a net income of -$31.5M in fiscal year 2025, with a net profit margin of -64.9%.
What is Rekor Systems Inc's EBITDA?
Rekor Systems Inc (REKR) had EBITDA of -$22.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Rekor Systems Inc have?
As of fiscal year 2025, Rekor Systems Inc (REKR) had $16.6M in cash and equivalents against $15.0M in long-term debt.
What is Rekor Systems Inc's gross margin?
Rekor Systems Inc (REKR) had a gross margin of 55.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Rekor Systems Inc's operating margin?
Rekor Systems Inc (REKR) had an operating margin of -59.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Rekor Systems Inc's net profit margin?
Rekor Systems Inc (REKR) had a net profit margin of -64.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Rekor Systems Inc's return on equity (ROE)?
Rekor Systems Inc (REKR) has a return on equity of -73.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Rekor Systems Inc's free cash flow?
Rekor Systems Inc (REKR) generated -$22.9M in free cash flow during fiscal year 2025. This represents a 32.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Rekor Systems Inc's operating cash flow?
Rekor Systems Inc (REKR) generated -$20.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Rekor Systems Inc's total assets?
Rekor Systems Inc (REKR) had $85.4M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Rekor Systems Inc's capital expenditures?
Rekor Systems Inc (REKR) invested $2.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Rekor Systems Inc spend on research and development?
Rekor Systems Inc (REKR) invested $14.6M in research and development during fiscal year 2025.
What is Rekor Systems Inc's current ratio?
Rekor Systems Inc (REKR) had a current ratio of 1.06 as of fiscal year 2025, which is considered adequate.
What is Rekor Systems Inc's debt-to-equity ratio?
Rekor Systems Inc (REKR) had a debt-to-equity ratio of 0.35 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Rekor Systems Inc's return on assets (ROA)?
Rekor Systems Inc (REKR) had a return on assets of -36.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Rekor Systems Inc's cash runway?
Based on fiscal year 2025 data, Rekor Systems Inc (REKR) had $16.6M in cash against an annual operating cash burn of $20.4M. This gives an estimated cash runway of approximately 10 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Rekor Systems Inc's Altman Z-Score?
Rekor Systems Inc (REKR) has an Altman Z-Score of -4.02, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Rekor Systems Inc's Piotroski F-Score?
Rekor Systems Inc (REKR) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Rekor Systems Inc's earnings high quality?
Rekor Systems Inc (REKR) has an earnings quality ratio of 0.65x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Rekor Systems Inc cover its interest payments?
Rekor Systems Inc (REKR) has an interest coverage ratio of -12.6x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Rekor Systems Inc?
Rekor Systems Inc (REKR) scores 50 out of 100 on our Financial Health Score, indicating moderate standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.