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Sep 30, 2025
Rekor Systems Q3 2025 Earnings Report
Rekor Systems delivered record revenue and improved operating efficiency in Q3 2025.
Key Takeaways
Rekor Systems posted its best quarter yet with record-high revenue and gross margin. Strong software sales led to a 35% year-over-year revenue increase and significantly reduced losses from operations and EBITDA.
Revenue rose to $14.2 million in Q3 2025, a 35% increase year-over-year.
Adjusted gross margin expanded to 63%, driven by higher software sales.
Loss from operations narrowed significantly to $4.0 million, from $12.9 million last year.
Operating expenses declined 26% sequentially and 20% YoY, reflecting disciplined cost control.
Forward Guidance
Rekor anticipates continued momentum in adoption of its Data-as-a-Service and integrated technology solutions as state contracts expand and demand for roadway intelligence increases.
Positive Outlook
- Secured largest statewide contract to date with Georgia DOT
- Initial $1 million virtual weigh station order from South Carolina
- Three new states adopted Rekor Discover® in Q3
- High-margin software sales mix improving profitability
- R&D and G&A costs reduced through cost control measures
Challenges Ahead
- Company remains unprofitable with a net loss of $4.1 million in Q3
- Ongoing need to manage restricted and limited cash reserves
- Still reliant on contract expansion for sustained revenue growth
- Gross profit dependent on continued high software sales mix
Historical Earnings Impact
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Avg. Return Before/After Earnings
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