Sun Belt State Transportation Agency to Deploy 150 Rekor Discover® Systems Under Rekor's Data-as-a-Service Model

Rhea-AI Summary

Rekor Systems (NASDAQ: REKR) has secured a $1.2 million one-year Data-as-a-Service contract with a Sun Belt state transportation agency to deploy 150 Rekor Discover® systems. The AI-powered roadside sensors will be installed within 60 days, replacing outdated intrusive road sensors with FHWA-compliant technology. The Rekor Discover® platform provides detailed per-vehicle data while protecting privacy, eliminating the need for dangerous in-road sensors. The company has existing installations across multiple states including Arizona, Colorado, Georgia, New Mexico, New York, Florida, and South Carolina. The technology offers advantages over traditional methods like piezo sensors and rubber tubes, as it can be installed without road closures and operates effectively in locations previously deemed too hazardous or congested. With over 60 countries actively collecting traffic data, Rekor sees potential for global expansion of its non-intrusive AI-based solution.

Positive

• Secured $1.2 million one-year Data-as-a-Service contract for 150 system deployment
• Rapid deployment timeline of 60 days for all systems
• Expanding presence across multiple U.S. states with potential for international growth
• Technology eliminates need for dangerous road work and traffic disruptions
• FHWA-compliant solution with proprietary privacy protection features

Negative

• Short contract duration of only one year
• Limited to single state deployment despite broader market potential

Insights

Transportation Technology Analyst

Rekor secured a $1.2M contract to deploy 150 AI roadway systems, demonstrating market adoption and revenue growth potential.

Rekor Systems has secured a $1.2 million one-year Data-as-a-Service contract with an unnamed Sun Belt state transportation agency. The deal involves deploying 150 Rekor Discover® systems within a condensed 60-day timeframe, representing a strategic expansion of their AI-powered roadway intelligence technology.

This contract signals growing market acceptance of Rekor's non-intrusive roadway monitoring technology. The company is positioning its solution as a replacement for traditional intrusive road sensors (like piezo sensors and rubber tubes) that require disruptive installation and ongoing maintenance. Their edge-based AI systems offer installation without road closures and can operate in locations where traditional monitoring methods struggle.

The expansion beyond this single contract appears promising, with the company already having installations across multiple states including Arizona, Colorado, Georgia, New Mexico, New York, Florida, and South Carolina. This geographic diversification reduces dependency on any single client or region.

The contract's $1.2 million value over one year represents approximately $8,000 per system annually. While the press release hints at international expansion potential, no concrete international deals are mentioned, indicating this remains aspirational rather than realized revenue. The short deployment timeline (60 days) suggests the company has established operational efficiency in their installation processes, which could support rapid scaling if additional contracts are secured.

The transportation data market represents a potentially sustainable revenue stream as agencies worldwide modernize their infrastructure monitoring capabilities. With Rekor claiming compatibility with Federal Highway Administration requirements, they've positioned themselves to capitalize on government infrastructure spending priorities focused on transportation intelligence and safety.

Rekor Discover® to Replace Outdated Roadway Intrusive Technology with FHWA-Compliant AI That Advances Transportation Planning and Operations

COLUMBIA, Md., June 06, 2025 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR) (the "Company), a leader in developing and implementing state-of-the-art roadway intelligence technology, today announced a transformative deployment with a Sun Belt state transportation agency. As part of a new state initiative to upgrade its planning and operations capabilities, Rekor will deploy 150 Rekor Discover® systems under a one-year Data-as-a-Service contract valued at $1.2 million. The Company expects all 150 systems to be installed within 60 days.

The program will enable the agency to use Rekor's Roadway Data-as-a-Service model to modernize traffic data collection and monitoring. The Rekor Discover® platform complies with Federal Highway Administration requirements and uses AI-enabled roadside sensors to generate detailed, per-vehicle data using proprietary privacy protection techniques. This eliminates the need to rely on intrusive in-road sensors that create dangerous and disruptive traffic conditions and pose roadway worker safety risks when they fail or need to be maintained.

"This marks a pivotal milestone in the evolution of Data-as-a-Service for U.S. transportation agencies, led by forward-thinking departments," said Mark Phillips, General Manager of Rekor Discover®. "Our vision is to replace the tens of thousands of single-function roadway devices currently in use worldwide with a scalable, AI-powered platform that delivers richer, safer, and more actionable traffic insights. International transportation authorities are increasingly looking to this model, making this a national achievement and a foundational step toward global transformation."

In addition to this significant expansion, Rekor Discover® is being adopted by many transportation agencies nationwide, with installations in states including Arizona, Colorado, Georgia, New Mexico, New York, Florida, and South Carolina. With a significant and expanding footprint already in place, Rekor Discover® is demonstrating strong momentum in the U.S. market, and international transportation agencies are beginning to take notice, signaling the potential for broader global expansion.

A Global Vision for Data-as-a-Service
The potential of Rekor Discover® goes far beyond the U.S. The International Road Federation's World Road Statistics shows that more than 60 countries actively collect traffic data to improve safety and transportation planning. With proven scalability, U.S.-based AI, and non-intrusive installation, Rekor is positioned to serve domestic and international markets, seeking modern, cost-effective alternatives to legacy traffic technologies.

Safer, Smarter, and Scalable Transportation Planning and Operations
Rekor Discover® and its non-intrusive Edge Series systems represent a significant leap forward in traffic planning and operations. Unlike traditional methods such as piezo sensors and rubber tubes, which are prone to failure in harsh conditions and require roadway intrusive installation, Rekor's AI-based solution is installed without road closures, posing no risk to workers or disruption to traffic. It also enables accurate roadway data collection in locations previously considered too hazardous or congested for traditional methods, where side-firing radar systems are often limited by obstructions, placement restrictions, or reduced precision in complex traffic environments.

About Rekor Systems, Inc.
Rekor Systems, Inc. (NASDAQ: REKR) is a leader in developing and implementing state-of-the-art roadway intelligence systems using AI-enabled computer vision and machine learning. As a pioneer in the implementation of digital infrastructure, Rekor is collecting, connecting, and organizing the world's mobility data – laying the foundation for a digitally-enabled operating system for the roadway. With our Rekor One® Roadway Intelligence Engine at the core of our technology, we aggregate and transform trillions of data points into intelligence through proprietary computer vision, machine learning, and big data analytics that power our platforms and applications. Our solutions provide actionable insights that give governments and businesses a comprehensive picture of roadways while providing a collaborative environment that drives the world to be safer, greener, and more efficient. To learn more, please visit our website: https://rekor.ai, and follow Rekor on social media on LinkedIn, X (formerly Twitter), Threads, and Facebook.

Forward-Looking Statements

This press release and its links and attachments contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Rekor Systems, Incthat involve substantial risks and uncertainties, including particularly statements regarding our future results of operations and financial position, business strategy, prospective products and services, timing and likelihood of success, plans and objectives of management for future operations and future results of current and anticipated products and services. These statements involve uncertainties, such as known and unknown risks, and are dependent on other important factors that may cause our actual results, performance, or achievements to be materially different from the future results, performance or achievements we express or imply. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these terms or other similar expressions. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of risks, uncertainties and assumptions described under the sections in our Annual Report on Form 10-K for the year ended December 31, 2024 entitled "Risk Factors" and elsewhere in our Quarterly Reports on Form 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this Press Release and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The forward-looking statements in this Press Release do not reflect the potential impact of any divestiture, merger, acquisition, or other business combination that had not been completed as of the date of this filing. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. We do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events, or otherwise.

This press release and its links and attachments contain statements concerning Rekor Systems, Inc.
Media & Investor Relations Contact:
Rekor Systems, Inc.
Charles Degliomini
ir@rekor.ai

FAQ

What is the value of Rekor Systems' (REKR) new contract with the Sun Belt state agency?

The contract is valued at $1.2 million for a one-year Data-as-a-Service agreement to deploy 150 Rekor Discover® systems.

How long will it take Rekor Systems (REKR) to install the 150 Discover systems?

Rekor Systems expects to complete the installation of all 150 systems within 60 days.

In which U.S. states is Rekor Discover® currently installed?

Rekor Discover® is installed in Arizona, Colorado, Georgia, New Mexico, New York, Florida, and South Carolina.

What advantages does Rekor's system have over traditional traffic monitoring methods?

Rekor's AI-based solution can be installed without road closures, eliminates dangerous in-road sensors, and works effectively in hazardous or congested locations where traditional methods struggle.

What is the global market potential for Rekor Discover®?

According to the International Road Federation, over 60 countries actively collect traffic data, representing significant expansion potential for Rekor's technology.