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Jun 30, 2025
Rekor Systems Q2 2025 Earnings Report
Rekor Systems reported Q2 2025 revenue of $12.36 million with improved operating performance and a gross profit margin of 49.5%.
Key Takeaways
Rekor Systems delivered revenue of $12.36 million in Q2 2025, nearly flat year-over-year. Gross profit margin declined to 49.5% due to a shift in revenue mix, while net loss improved slightly. The company emphasized strategic deployments and expanding government contracts to drive long-term growth.
Q2 revenue was $12.36 million, down 1% YoY due to project timing and weather-related delays.
Gross profit was $6.11 million with a gross margin of 49.5%.
Loss from operations improved 23% YoY to $7.74 million.
Company secured major contracts in Texas and expanded AI traffic solutions across Sun Belt states.
Forward Guidance
Rekor expects continued improvement in margins and operational efficiency, with strong demand for its AI-enabled traffic platforms supporting revenue growth in the second half of 2025.
Positive Outlook
- Signed $1.4 million 5-year contract expansion with CTRMA.
- TxDOT onboarded Command® across Austin and other districts.
- Progressed $1.2M Discover® rollout in a major Sun Belt state.
- RoadView platform scaled to municipalities without TOCs.
- Adjusted EBITDA loss improved YoY and QoQ.
Challenges Ahead
- Gross margin declined 4 percentage points YoY due to cost mix.
- Revenue remained nearly flat YoY despite broader deployments.
- Net loss still substantial at $8.66 million.
- Cost of revenue increased due to hardware-heavy contracts.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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