Rekor Systems (REKR) investor relations material

Executive summary

• Revenue for Q1 2026 increased 12% year-over-year to $10.3 million, driven by growth across all product lines.

• Gross margin expanded to 53% from 48% in Q1 2025, reflecting improved product mix.

• Net loss narrowed to $9.36 million from $10.87 million in Q1 2025, reflecting improved operating results.

• Recurring revenue grew 28% year-over-year, now representing a significant portion of total revenue.

• The company continues to focus on AI-driven roadway intelligence solutions for public safety, urban mobility, and transportation management.

Financial highlights

• Q1 2026 revenue was $10.3 million, up from $9.2 million in Q1 2025.

• Adjusted gross margin improved to 52.5% from 48.2% year-over-year.

• Operating expenses decreased 3% to $14.2 million, with notable reductions in selling, marketing, and R&D.

• EBITDA loss improved to $6.5 million from $7.4 million; Adjusted EBITDA loss was $6.5 million.

• Cash and equivalents at quarter-end were $12.6 million, down from $16.9 million at year-end 2025.

Outlook and guidance

• Management expects continued focus on recurring revenue contracts and cost containment.

• Cost savings from headcount reductions and operational realignment are expected to be more fully realized in Q2 2026.

• Management anticipates continued EBITDA improvement through 2026 as revenue grows and cost initiatives take effect.

• Substantial doubt exists regarding the ability to continue as a going concern over the next twelve months without additional capital.

• The company is actively exploring external financing and may reduce or defer expenses if needed.