Free cash flow remains deeply negative, with margins reaching -40.3% in 2026Q1, reflecting a structural inability to fund operations through internal cash generation.
| Cash from Operations | -16.04M | -20.37M | -32.47M | -32.63M | -39.61M | -18.03M | -15.06M | -21.33M | -2.05M | -3.17M | -136.08K | 260.66K | 53.83K |
| Operating CF Margin % | - | -42.05% | -70.54% | -93.4% | -198.86% | -155.8% | -163.13% | -390.05% | -4.23% | -14.31% | -1.12% | 2.7% | 0.47% |
| Operating CF Growth % | 231.31% | 37.26% | 0.48% | 17.63% | -119.65% | -19.72% | 29.39% | -939.14% | 35.18% | -2227.43% | -152.21% | 384.22% | - |
| Net Income | -29.95M | -31.46M | -61.41M | -45.69M | -83.45M | -27.4M | -13.96M | -12.4M | -5.7M | -5.04M | -38.98K | 369.39K | 114.78K |
| Depreciation & Amortization | 6.47M | 5.06M | 9.49M | 7.89M | 6.42M | 3.38M | 1.96M | 1.38M | 1.37M | 688.96K | 51.87K | 70.27K | 79.65K |
| Stock-Based Compensation | 961K | 2.91M | 4.83M | 4.35M | 6.62M | 3.91M | 796K | 446K | 464.51K | 408.46K | 26.84K | 0 | 0 |
| Deferred Taxes | 14K | 14K | 14K | 13K | -987K | -3.82M | 14K | 10K | 452.48K | -294.67K | -219.98K | 0 | 0 |
| Other Non-Cash Items | 4.4M | 4.47M | 16.21M | 2.36M | 32.22M | 194K | -3.54M | -11.86M | 83.25K | 690.65K | 134.67K | -95.25K | 2.37K |
| Working Capital Changes | 2.06M | -1.37M | -1.61M | -1.56M | -426K | 5.7M | -327K | 1.1M | 1.28M | 380.58K | -90.49K | -83.76K | -142.96K |
| Change in Receivables | -318K | -1.67M | 220K | -1.88M | 729K | 299K | -298K | -867K | 1.44M | -158.51K | -263.81K | -106.95K | 307.89K |
| Change in Inventory | 1.49M | 1.25M | 1.16M | -687K | 209K | 65K | -962K | -229K | 83.01K | 12.06K | -3.7M | -1.09M | 0 |
| Change in Payables | 905K | -1.49M | -2.32M | 1.6M | -2.23M | 5.08M | 889K | 954K | 202.85K | -398.31K | 157.79K | -40.73K | 0 |
| Cash from Investing | -2.11M | -2.17M | -9.37M | 270K | -8.39M | -47.37M | 4.59M | -563K | 395.15K | -289.66K | -36.83K | -57.34K | -32.07K |
| Capital Expenditures | -2.58M | -2.53M | -1.68M | -1.39M | -4.17M | -6.22M | -1.04M | -798K | -1.08M | -289.66K | -36.83K | -57.34K | -32.07K |
| CapEx % of Revenue | 5.2% | 5.22% | 3.65% | 3.97% | 20.94% | 53.76% | 11.23% | 14.59% | 2.22% | 1.31% | 0.3% | 0.59% | 0.28% |
| Acquisitions | 76K | 0 | -7.72M | 0 | -3.34M | -39.84M | 5.63M | 250K | 0 | -417.7B | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 386K | 359K | 34K | 177K | -125K | -48K | 0 | -15K | 1.48M | 417.7B | 0 | 0 | 0 |
| Cash from Financing | 26.44M | 34.08M | 31.45M | 45.6M | 23.87M | 70.99M | 29.62M | 20.99M | 2.47M | 2.63M | 2.39M | -267.76K | -319.91K |
| Debt Issued (Net) | 11.82M | 11.84M | -14.57M | 10.69M | 921K | -28K | -6.39M | 3.84M | -3K | 650.22K | 500K | 0 | 0 |
| Equity Issued (Net) | 14K | -116K | 26.17M | 18.61M | 22.66M | 69.81M | 29.93M | 2.95M | 2.8M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -108K | -344.72K | -251.51K | -125.61K | -267.76K | -319.91K |
| Share Repurchases | -98K | -189K | -189K | -105K | -98K | -319K | 0 | 0 | 0 | -1.75T | 0 | 0 | 0 |
| Other Financing | 14.61M | 22.35M | 19.85M | 16.3M | 291K | 1.21M | 6.08M | 14.31M | 18K | 2.23M | 2.02M | 0 | 0 |
| Net Change in Cash | 8.29M | 11.53M | -10.38M | 13.24M | -24.13M | 5.59M | 19.14M | -902K | 809.97K | -831.38K | 2.22M | -64.44K | -298.15K |
| Free Cash Flow | -18.61M | -22.9M | -34.15M | -34.02M | -43.78M | -24.26M | -16.1M | -22.13M | -3.13M | -3.46M | -172.91K | 203.31K | 21.76K |
| FCF Margin % | -37.59% | -47.27% | -74.2% | -97.37% | -219.79% | -209.56% | -174.36% | -404.64% | -6.45% | -15.62% | -1.43% | 2.1% | 0.19% |
| FCF Growth % | 46.1% | 32.94% | -0.4% | 22.31% | -80.5% | -50.66% | 27.25% | -606.42% | 9.38% | -1899.17% | -185.05% | 834.31% | - |
| FCF per Share | -0.14 | -0.19 | -0.39 | -0.54 | -0.88 | -0.59 | -0.67 | -1.10 | -0.20 | -0.29 | -0.01 | 0.01 | 0.00 |
| FCF Conversion (FCF/Net Income) | 0.62x | 0.65x | 0.53x | 0.71x | 0.48x | 0.67x | 1.06x | 1.34x | 0.36x | 0.63x | 3.49x | 0.71x | 0.47x |
| Interest Paid | 0 | 2.41M | 2.52M | 1.65M | 59K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 6K | 58K | 61K | 9K | 60K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent cash burn trajectory
As reported in recent financial statements, Rekor's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating significantly, reaching a low of -0.03 in 2025Q4, which suggests that the company's reported losses are not being mitigated by non-cash adjustments or efficient working capital management.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses are translating directly into tangible cash outflows. Investors should monitor this divergence, as it implies that the business model has yet to achieve the operational efficiency required to bridge the gap between accrual-based accounting and actual liquidity generation.
Based on the company's historical cash flow data, Rekor has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins frequently dipping below -80%, highlighting a structural inability to fund operations through internal cash generation rather than external financing.
The consistent negative FCF trajectory suggests that the company's growth initiatives are currently consuming capital at a rate that outpaces its ability to monetize its software platform. This trend warrants further investigation into whether the current cost structure is sustainable without recurring capital infusions.
According to quarterly filings, working capital changes have been highly erratic, swinging from a $4.1M inflow in 2025Q4 to a $3.2M outflow in 2025Q3, which suggests that the company's cash position is heavily dependent on the timing of municipal contract payments and inventory management cycles.
This volatility in working capital appears to obscure the underlying operational burn rate, as management relies on timing differences to manage liquidity. Such reliance on fluctuating working capital cycles may indicate a lack of predictable cash conversion, increasing the risk profile for investors during periods of slower contract procurement.
As evidenced by the provided data, stock-based compensation and capitalized costs represent significant non-cash components that mask the true extent of the company's cash burn, with SBC reaching as high as $1.4M in 2025Q1, effectively diluting shareholders while the core business remains cash-flow negative.
The reliance on stock-based compensation to manage cash expenses suggests that the company is attempting to preserve liquidity at the cost of shareholder dilution. Analysts should be cautious, as these adjustments may artificially improve the appearance of operating cash flow while failing to address the fundamental lack of self-sustaining profitability.
Quick answers to the most common questions about buying REKR stock.
Rekor Systems, Inc. (REKR) generated $-20.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rekor Systems, Inc. (REKR) reported negative free cash flow of $22.9M in 2025, indicating capital requirements exceeded cash from operations.
Rekor Systems, Inc. (REKR) spent $2.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Rekor Systems, Inc. (REKR) spent $0.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.