Revenue growth has decelerated to 11.6% YoY as of 2026Q1, while gross margins remain highly inconsistent, fluctuating between 38.2% and 63.4% over the last ten quarters.
| Sales/Revenue | 49.52M | 48.45M | 46.03M | 34.93M | 19.92M | 11.57M | 9.23M | 5.47M | 48.56M | 22.14M | 12.13M | 9.66M | 11.52M |
| Revenue Growth % | 8.95% | 5.26% | 31.76% | 75.37% | 72.09% | 25.35% | 68.84% | -88.74% | 119.38% | 82.51% | 25.53% | -16.13% | - |
| Cost of Goods Sold | 22.96M | 21.38M | 23.34M | 16.5M | 10.89M | 4.55M | 3.52M | 1.65M | 34.77M | 13.79M | 6.96M | 5.5M | 6.62M |
| COGS % of Revenue | - | 44.13% | 50.72% | 47.23% | 54.67% | 39.3% | 38.1% | 30.21% | 71.59% | 62.31% | 57.38% | 56.89% | 57.46% |
| Gross Profit | 26.56M | 27.07M | 22.68M | 18.43M | 9.03M | 7.03M | 5.72M | 3.82M | 13.8M | 8.34M | 5.17M | 4.17M | 4.9M |
| Gross Margin % | 53.63% | 55.87% | 49.28% | 52.77% | 45.33% | 60.7% | 61.9% | 69.79% | 28.41% | 37.69% | 42.62% | 43.11% | 42.54% |
| Gross Profit Growth % | - | 19.34% | 23.06% | 104.14% | 28.52% | 22.92% | 49.75% | -72.33% | 65.36% | 61.41% | 24.1% | -15% | - |
| Operating Expenses | 50.37M | 52.2M | 77.01M | 60.55M | 94.81M | 38.86M | 17.56M | 11.35M | 18.83M | 12.98M | 5.26M | 3.8M | 4.79M |
| OpEx % of Revenue | - | 107.75% | 167.3% | 173.33% | 475.97% | 335.72% | 190.21% | 207.55% | 38.78% | 58.65% | 43.39% | 39.29% | 41.54% |
| Selling, General & Admin | 31.56M | 31.35M | 38.53M | 34.38M | 34.94M | 27.48M | 12.42M | 9.92M | 15.07M | 12.98M | 5.26M | 3.8M | 4.71M |
| SG&A % of Revenue | - | 64.7% | 83.72% | 98.43% | 175.41% | 237.41% | 134.48% | 181.42% | 31.03% | 58.65% | 43.39% | 39.29% | 40.85% |
| Research & Development | 14.11M | 14.6M | 18.77M | 18.27M | 18.62M | 8.29M | 3.19M | 1.43M | 131K | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 30.13% | 40.77% | 52.3% | 93.45% | 71.64% | 34.49% | 26.13% | 0.27% | - | - | - | - |
| Other Operating Expenses | 3M | 6.26M | 19.71M | 7.89M | 41.26M | 3.09M | 1.96M | 0 | -28.17K | 0 | 0 | 0 | 302.25K |
| Operating Income | -23.81M | -25.13M | -54.32M | -42.12M | -85.78M | -31.83M | -11.85M | -7.53M | -5.04M | -4.64M | -93.88K | 369.39K | 114.79K |
| Operating Margin % | -48.09% | -51.87% | -118.02% | -120.56% | -430.64% | -275.02% | -128.31% | -137.76% | -10.37% | -20.95% | -0.77% | 3.82% | 1% |
| Operating Income Growth % | - | 53.74% | -28.98% | 50.9% | -169.47% | -168.69% | -57.26% | -49.58% | -8.59% | -4840.98% | -125.41% | 221.79% | - |
| EBITDA | -17.65M | -18.87M | -44.83M | -34.22M | -79.36M | -28.46M | -9.89M | -6.16M | -3.99M | -3.95M | -42.01K | 439.66K | 194.44K |
| EBITDA Margin % | -35.64% | -38.96% | -97.4% | -97.96% | -398.4% | -245.84% | -107.07% | -112.58% | -8.22% | -17.84% | -0.35% | 4.55% | 1.69% |
| EBITDA Growth % | 58.79% | 57.9% | -31% | 56.88% | -178.89% | -187.81% | -60.58% | -54.33% | -1.02% | -9302.09% | -109.55% | 126.12% | - |
| D&A (Non-Cash Add-back) | 6.16M | 6.26M | 9.49M | 7.89M | 6.42M | 3.38M | 1.96M | 1.38M | 1.05M | 688.96K | 51.87K | 70.27K | 79.65K |
| EBIT | -27.69M | -29.2M | -58.9M | -44.01M | -84.37M | -31M | -12.09M | -9.55M | -5.19M | -5.12M | -93.88K | 369.39K | 114.79K |
| Net Interest Income | -2M | -2.1M | -2.65M | -3.6M | -21K | -27K | -2.45M | -3.91M | -492K | -213.49K | -165.08K | 0 | -16 |
| Interest Income | 191K | 120K | 365K | 43K | 51K | 62K | 54K | - | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.19M | 2.22M | 3.01M | 3.64M | 72K | 89K | 2.5M | 3.91M | 492K | 213.49K | 165.08K | 0 | 16 |
| Other Income/Expense | -6.09M | -6.29M | -7.04M | -3.54M | 1.34M | 619K | -2.09M | -4.82M | -557K | -697.4K | -165.08K | 0 | -16 |
| Pretax Income | -29.91M | -31.42M | -61.37M | -45.65M | -84.44M | -31.21M | -13.94M | -12.36M | -5.67M | -5.34M | -258.95K | 369.39K | 114.78K |
| Pretax Margin % | -60.4% | -64.85% | -133.32% | -130.69% | -423.9% | -269.68% | -150.95% | -225.96% | -11.68% | -24.1% | -2.14% | 3.82% | 1% |
| Income Tax | 42K | 42K | 45K | 32K | -987K | -3.82M | 23K | 47K | 29.25K | -294.67K | -219.97K | 0 | -40 |
| Effective Tax Rate % | -0.14% | -0.13% | -0.07% | -0.07% | 1.17% | 12.23% | -0.17% | -0.38% | -0.52% | 5.52% | 84.95% | 0% | -0.03% |
| Net Income | -29.95M | -31.46M | -61.41M | -45.69M | -83.11M | -26.78M | -14.18M | -15.88M | -5.7M | -5.04M | -38.98K | 369.39K | 114.78K |
| Net Margin % | -60.48% | -64.93% | -133.42% | -130.78% | -417.24% | -231.38% | -153.58% | -290.44% | -11.74% | -22.77% | -0.32% | 3.82% | 1% |
| Net Income Growth % | 44.2% | 48.77% | -34.42% | 45.03% | -210.34% | -88.84% | 10.72% | -178.5% | -13.14% | -12831.29% | -110.55% | 221.83% | - |
| Net Income (Continuing) | -29.95M | -31.46M | -61.41M | -45.69M | -83.45M | -27.4M | -13.96M | -12.4M | -5.71M | -5.04M | -38.98K | 369.39K | 114.78K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 339K | 614K | -220K | -3.48M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.22 | -0.26 | -0.71 | -0.72 | -1.68 | -0.65 | -0.64 | -0.72 | -0.37 | -0.43 | -0.00 | 0.03 | 0.01 |
| EPS Growth % | 59.19% | 63.38% | 1.39% | 57.14% | -158.46% | -1.56% | 11.11% | -94.59% | 13.95% | - | -110.57% | - | - |
| EPS (Basic) | - | -0.26 | -0.71 | -0.72 | -1.68 | -0.65 | -0.64 | -0.72 | -0.37 | -0.43 | -0.00 | 0.03 | 0.01 |
| Diluted Shares Outstanding | 136.65M | 119.67M | 86.72M | 63.17M | 49.81M | 41.16M | 24.19M | 20.03M | 15.41M | 11.77M | 13.93M | 13.93M | 13.93M |
| Basic Shares Outstanding | 136.65M | 119.67M | 86.72M | 63.17M | 49.81M | 41.16M | 24.19M | 20.03M | 15.41M | 11.67M | 13.93M | 13.93M | 13.93M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 72.49% | 278.72% |
Persistent negative operating margins
As reported in recent financial filings, Rekor's revenue growth has exhibited significant volatility, with the most recent quarterly figure of 11.6% YoY failing to sustain the higher growth rates observed in previous periods, suggesting a potential deceleration in the company's municipal and state-level contract acquisition pipeline.
The inconsistent revenue trajectory appears to reflect the lumpy nature of government procurement cycles rather than a steady, compounding adoption of the Rekor One platform. Investors should monitor whether this variability indicates a saturation of pilot programs or an inability to convert initial deployments into long-term, recurring software revenue streams.
Based on the provided income statement data, Rekor's gross margin has fluctuated significantly, ranging from a low of 38.2% in 2026Q1 to a peak of 63.4% in 2025Q3, indicating that the company's product mix remains heavily influenced by lower-margin hardware deployments versus higher-margin software subscriptions.
This lack of margin stability suggests that the company has yet to achieve a favorable revenue mix that would allow for consistent profitability. The reliance on hardware to drive initial footprint expansion may continue to pressure margins until the software-as-a-service component reaches a critical mass relative to the total cost of goods sold.
According to the company's historical income statements, Rekor continues to operate with deeply negative margins, as evidenced by the -85.9% operating margin in 2026Q1, which demonstrates that operating expenses are currently scaling in tandem with, or faster than, the company's gross profit generation.
The persistent gap between revenue and operating expenses suggests that the company has not yet realized the benefits of operating leverage. Without a significant reduction in SG&A relative to top-line growth, the path to achieving positive operating income appears to remain distant and highly dependent on future scale.
Based on the reported figures, Rekor's net margin of -91.2% in 2026Q1 highlights a substantial cash burn that warrants further investigation into the company's long-term liquidity and the potential necessity for future dilutive capital raises to sustain its current operational and research-heavy cost structure.
Short-sellers would likely focus on the disconnect between the company's high-growth narrative and the reality of its persistent net losses. The inability to narrow these losses over the observed ten-quarter period suggests that the current business model may be structurally incapable of self-funding its growth without external capital support.
Quick answers to the most common questions about buying REKR stock.
For fiscal year 2025, Rekor Systems, Inc. (REKR) reported total revenue of $48.5M. This represents a 320.6% increase compared to $11.5M in 2014.
Rekor Systems, Inc. (REKR) reported a net loss of $31.5M for the fiscal year ending 2025.
Rekor Systems, Inc. (REKR) reported an operating income of $-25.1M, resulting in an operating profit margin of -51.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Rekor Systems, Inc. (REKR) generated $27.1M in gross profit for the year, representing a gross profit margin of 55.9%. This demonstrates the company's core pricing power and production efficiency.