📊 REKR Key Takeaways
Is Rekor Systems, Inc. (REKR) a Good Investment?
Rekor Systems exhibits improving profitability trends with 48.8% YoY net income improvement and 49.7% gross margins, demonstrating product traction and pricing power. However, critical liquidity challenges—current ratio of 0.87x, negative operating cash flow of -$3.7M, and -$4.1M free cash flow burn—create imminent solvency risk with insufficient runway at current burn rates.
Despite modest 5% revenue growth and YoY loss improvement, Rekor’s fundamentals are weak: gross margin is 10.5% and operating margin -59.6%, resulting in large, persistent losses. Liquidity is tight (quick ratio 0.95x) and free cash flow of -$22.9M versus $16.6M cash creates near-term funding risk. Until the company demonstrates sustained margin expansion and positive operating cash flow, the risk/reward remains unfavorable.
Why Buy Rekor Systems, Inc. Stock? REKR Key Strengths
- Revenue growing 5.3% YoY with sustained 49.7% gross margin indicating product-market fit and pricing power
- Net income improving 48.8% YoY and EPS improving 13.7% YoY showing positive trajectory toward profitability
- Conservative debt-to-equity ratio of 0.44x and $12.2M cash reserves provide some financial flexibility
- Modest revenue growth (+5.3% YoY)
- YoY improvement in net loss and EPS
- Moderate leverage with Debt/Equity of 0.35x and positive equity base
REKR Stock Risks: Rekor Systems, Inc. Investment Risks
- Current ratio of 0.87x and quick ratio of 0.77x both below 1.0 signal immediate liquidity crisis and difficulty meeting short-term obligations
- Negative free cash flow of -$4.1M annually with -40.3% FCF margin at $12.2M cash suggests 3-year maximum runway before forced capital raise or restructuring
- Operating margin of -85.9% and net margin of -91.2% reveal fundamental inability to scale profitably; negative interest coverage of -17.9x indicates operational losses exceed debt servicing capacity
- Sustained negative free cash flow and operating cash burn
- Weak liquidity and negative interest coverage increase refinancing/dilution risk
- Very low 10.5% gross margin impedes path to profitability
Key Metrics to Watch
- Monthly cash burn rate and cash runway timeline—critical for survival assessment
- Operating margin trajectory toward positive territory—must demonstrate path to operational profitability
- Current ratio improvement—return above 1.0 is essential to resolve acute liquidity risk
- Revenue growth acceleration vs. gross margin sustainability—must assess if topline growth can absorb fixed cost base
- Gross margin percentage and trend
- Operating cash flow and cash runway
Rekor Systems, Inc. (REKR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
REKR Profit Margin, ROE & Profitability Analysis
REKR vs Telecom Sector: How Rekor Systems, Inc. Compares
How Rekor Systems, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rekor Systems, Inc. Stock Overvalued? REKR Valuation Analysis 2026
Based on fundamental analysis, Rekor Systems, Inc. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rekor Systems, Inc. Balance Sheet: REKR Debt, Cash & Liquidity
REKR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rekor Systems, Inc.'s revenue has grown significantly by 239% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.71 indicates the company is currently unprofitable.
REKR Revenue Growth, EPS Growth & YoY Performance
REKR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $9.2M | -$9.4M | $-0.07 |
| Q3 2025 | $10.5M | -$4.1M | $-0.03 |
| Q2 2025 | $12.4M | -$8.7M | $-0.07 |
| Q1 2025 | $9.2M | -$10.9M | $-0.10 |
| Q3 2024 | $9.1M | -$10.6M | $-0.14 |
| Q2 2024 | $8.6M | -$9.8M | $-0.12 |
| Q1 2024 | $6.2M | -$12.7M | $-0.23 |
| Q3 2023 | $6.8M | -$10.6M | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rekor Systems, Inc. Dividends, Buybacks & Capital Allocation
REKR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rekor Systems, Inc. (CIK: 0001697851)
📋 Recent SEC Filings
❓ Frequently Asked Questions about REKR
What is the AI rating for REKR?
Rekor Systems, Inc. (REKR) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (STRONG SELL) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are REKR's key strengths?
Claude: Revenue growing 5.3% YoY with sustained 49.7% gross margin indicating product-market fit and pricing power. Net income improving 48.8% YoY and EPS improving 13.7% YoY showing positive trajectory toward profitability. ChatGPT: Modest revenue growth (+5.3% YoY). YoY improvement in net loss and EPS.
What are the risks of investing in REKR?
Claude: Current ratio of 0.87x and quick ratio of 0.77x both below 1.0 signal immediate liquidity crisis and difficulty meeting short-term obligations. Negative free cash flow of -$4.1M annually with -40.3% FCF margin at $12.2M cash suggests 3-year maximum runway before forced capital raise or restructuring. ChatGPT: Sustained negative free cash flow and operating cash burn. Weak liquidity and negative interest coverage increase refinancing/dilution risk.
What is REKR's revenue and growth?
Rekor Systems, Inc. reported revenue of $10.3M.
Does REKR pay dividends?
Rekor Systems, Inc. does not currently pay dividends.
Where can I find REKR SEC filings?
Official SEC filings for Rekor Systems, Inc. (CIK: 0001697851) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is REKR's EPS?
Rekor Systems, Inc. has a diluted EPS of $-0.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is REKR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Rekor Systems, Inc. has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is REKR stock overvalued or undervalued?
Valuation metrics for REKR: ROE of -27.2% (sector avg: 15%), net margin of -91.2% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy REKR stock in 2026?
Our dual AI analysis gives Rekor Systems, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is REKR's free cash flow?
Rekor Systems, Inc.'s operating cash flow is $-3.7M, with capital expenditures of $393.0K. FCF margin is -40.3%.
How does REKR compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -91.2% (avg: 14%), ROE -27.2% (avg: 15%), current ratio 0.87 (avg: 1).