Rekor Systems Inc. Advances with Record‑Quarter Revenue and State‑Level Innovation
Rekor Systems Inc. (NASDAQ: REKR) has announced a set of developments that collectively underscore its position as a leader in real‑time roadway intelligence. The company reported a projected record revenue for the third quarter of 2025, a dramatic improvement in its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and a high‑margin gross performance. Simultaneously, the firm secured a state‑wide deployment in South Carolina, winning the State Technology Innovation Award and securing a first‑order value of approximately one million dollars.
1. Strong Third‑Quarter Outlook
On October 14, 2025, Rekor issued a preliminary earnings announcement via Globe Newswire, outlining its expectations for the quarter that ended September 30:
| Metric | Preliminary Estimate | Comparison |
|---|---|---|
| Revenue | $13.9 million – $14.3 million | Record for the period |
| Adjusted EBITDA | –$1.6 million to –$1.9 million | 65 % reduction vs. Q2 2025; 75 % reduction vs. Q3 2024 |
| Gross Margin | 61 % – 65 % | Continued expansion |
The company’s chief financial officer, Eyal Hen, highlighted the drivers of these gains: the rapid uptake of its data‑as‑a‑service (DaaS) offering and the expansion of software solutions. “Expanding adoption of our data‑as‑a‑service model, as well as software solutions, is driving operating leverage and improving economics,” Hen remarked. While quarterly results can fluctuate with deployment timing and contract initiation, the long‑term trend, according to Rekor, remains positive for shareholders.
Rekor also confirmed that the full third‑quarter results would be disclosed on Thursday, November, providing an opportunity for investors to verify the preliminary outlook.
2. Near‑Perfect Overweight‑Truck Targeting in South Carolina
In a separate development, Rekor announced the deployment of its Virtual Weigh Station technology in South Carolina, integrated with the state’s traffic management system, Drakewell. The solution links live weigh‑in‑motion (WIM) data with vehicle recognition to pinpoint overweight trucks in real time, allowing law‑enforcement officers to target inspections without stopping vehicles that are legally weighted.
Key outcomes from the initial pilot include:
- Coverage Improvement: The system moved from detecting 3–4 overweight trucks out of nine stops to identifying all nine trucks during targeted operations.
- Cost Efficiency: The technology reduces the need for fixed weigh stations, lowering operational costs while maintaining compliance enforcement.
- Recognition: The deployment earned Rekor the State Technology Innovation Award on October 16, 2025, highlighting the solution’s impact on state infrastructure and safety.
Rekor will receive an initial order of approximately $1 million, with additional revenue anticipated as the program scales statewide. The award and order signal that other states may look to South Carolina’s model as a blueprint for efficient freight regulation.
3. Market Context
- Current Stock Performance (as of 2025‑10‑14): Closing at $2.62, the share price sits near its 52‑week high of $2.72, following a 52‑week low of $0.621 on 2025‑04‑06.
- Market Capitalization: Roughly $331 million, reflecting a market that has been responsive to Rekor’s technology traction and financial trajectory.
The company’s focus on AI‑driven roadway intelligence positions it at the intersection of autonomous vehicle development, smart city initiatives, and freight logistics—an area of growing strategic importance for public and private stakeholders alike.
4. Forward‑Looking Statements
Rekor’s management has cautioned that actual results may differ materially from the preliminary estimates due to factors such as deployment timing, contract structuring, and market dynamics. Investors are advised to review the forthcoming full third‑quarter report and related disclosures for comprehensive analysis.
Bottom Line
Rekor Systems Inc. is exhibiting a dual‑pronged momentum: a robust financial outlook driven by data‑service expansion, and a technology validation at the state level that reinforces its claim to leadership in roadway intelligence. As the company secures further deployments and tightens its operating leverage, it is poised to deliver sustained value to its shareholders and to the broader ecosystem of transportation infrastructure.
