Rekor Systems ( (REKR) ) has released its Q3 earnings. Here is a breakdown of the information Rekor Systems presented to its investors.
Rekor Systems, Inc. is a prominent player in the advanced roadway intelligence sector, leveraging AI-powered technology to enhance road infrastructure and data collection. For the third quarter of 2024, Rekor Systems reported a 16% increase in gross revenue to $10.5 million, with recurring revenue rising by 14% to $5.5 million. The company achieved significant milestones, such as the inclusion of Rekor Discover™ on the Florida DOT Approved Product List and the commencement of its deployment across Florida. Additionally, Rekor’s solutions were highlighted by the Texas DOT and advanced to the procurement phase in New York, demonstrating significant traction in the public sector. Despite these positive developments, Rekor Systems experienced an increase in operating losses, primarily due to costs associated with acquisitions and direct expenses. The company’s adjusted gross margin also saw a decline, attributed to the mix of hardware and software sales. Looking ahead, Rekor Systems is focused on optimizing its cost structure and is confident in achieving positive cash flow by 2025, as it continues to adapt to the challenges of government procurement timelines and aims for sustained growth.
