Rekor Third-Quarter Recurring Revenue Rises 16 Percent to 7.5 Million Dollars at 69 Percent of the Total: Revenue of 10.9 Million Dollars and a Net Loss Narrowed to 2.9 Million Dollars
Rekor Systems, Inc., which builds data, privacy, and security solutions for real-world video and sensor networks, reported on November 12, 2026, in Columbia, Maryland, in a GlobeNewswire release, financial and operational results for the third quarter ended September 30, 2026. Total revenue decreased 23 percent to 10.9 million dollars from 14.2 million dollars, primarily reflecting significant, high-margin perpetual software license sales in the prior-year period that did not recur. Recurring revenue increased 16 percent year over year to 7.5 million dollars, representing 69 percent of total revenue, up from 46 percent a year ago. Product and service revenue was 3.4 million dollars, compared with 7.7 million dollars a year earlier. Adjusted gross profit was 5.3 million dollars at an adjusted gross margin of 48.2 percent, compared with 63.4 percent a year earlier.
Total operating expenses decreased 41 percent to 7.6 million dollars, and the loss from operations improved to 2.3 million dollars from 4.0 million dollars. The net loss narrowed to 2.9 million dollars, or 0.02 dollars per share, from 4.1 million dollars, or 0.03 per share. For the first nine months, revenue was 33.8 million dollars, recurring revenue increased 19 percent to 20.8 million dollars, the net loss narrowed to 12.8 million dollars from 23.7 million dollars, and net cash used in operating activities decreased 49 percent to 10.6 million dollars. The company ended the quarter with 5.1 million dollars in cash and cash equivalents and an additional 0.3 million dollars of restricted cash.
During the quarter the company exited its former Columbia, Maryland headquarters and Tel Aviv leases, making one-time termination payments of approximately 2.6 million dollars and eliminating approximately 9.7 million dollars of operating lease liabilities, positioning it to realize more than 2 million dollars in expected annual savings. The company's 15.0 million dollars of Series A Prime Revenue Sharing Notes mature on December 15, 2026, and management said it is in active discussions with multiple lenders on a refinancing. Nasdaq has granted the company an additional 180 days, through April 26, 2027, to regain compliance with the minimum bid price requirement. The Florida Department of Transportation has increased its statewide intelligent transportation infrastructure contract ceiling by approximately 94 percent, from 4.9 million dollars to 9.5 million dollars. Chairman and chief executive Robert A. Berman said the company has built a cost structure designed to support profitability at approximately 50 million dollars of annual revenue, which he described as an operating objective, not a revenue forecast. This item reports only the published results and statements and is not investment advice.
Source: Rekor Systems
Published by GSM · USA (original Chinese edition)
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