Rekor Systems Inc (NAS:REKR)

Q2 2026 Rekor Systems Inc Earnings Call Transcript

Aug 13, 2026 / 08:30 PM GMT

Release Date Price: $0.7094 (+3.87%)

Transcript 10-Q8-K

Key Points

Positve

Revenue grew 2% year-over-year in Q2 2026 to $12.7 million, with recurring revenue up 14% to $6.7 million.
Adjusted gross margin expanded to 56% in Q2 2026 from 50% in Q2 2025, driven by improved product mix and operational efficiency.
Adjusted EBITDA loss narrowed sharply by 79% year-over-year to approximately $1.2 million in Q2 2026.
Operating expenses decreased by $4 million in Q2 2026 and $4.3 million in the first half of 2026, reflecting successful cost reduction measures.
Cash used in operations improved by $9.6 million (61%) for the first half of 2026, with Q2 cash burn reduced to $2.4 million.
Launched GoSecure Video and extended to audio, positioning the company as a potential standard for media authenticity with active launch partner discussions.
Won a new South Carolina contract, expanding footprint and supporting refinancing efforts for existing revenue sharing notes.
Expect to reach profitability on an adjusted EBITDA basis in the second half of 2026, assuming continued execution and cost discipline.

Negative

Total revenue growth was modest at only 2% year-over-year in Q2 2026, indicating slower overall expansion.
ALPR market faces increased public scrutiny, new rules on data retention and sharing, and a more active litigation environment, lengthening sales cycles.
The company recorded a one-time gain of $2.8 million from lease remeasurement, which artificially boosted operating income and may not be repeatable.
Cash balance remains relatively low at just over $10 million, with ongoing operating cash burn of $2.4 million in Q2 2026.
The company is still evaluating refinancing options for its prime revenue sharing notes, indicating potential financial restructuring risk.
GoSecure commercial terms are not yet finalized, with definitive agreements expected only in the third quarter, creating uncertainty.
The company's profitability target for the second half of 2026 is conditional on continued execution and cost discipline, which may not be sustained.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

REKR.OQ - Rekor Systems Inc
Q2 2026 Rekor Systems Inc Earnings Call
Aug 13, 2026 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon, ladies and gentlemen, and welcome to today's Record Systems, Inc. Conference call.

My name is Melissa, and I will be your coordinator for today.

At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press *0 on your telephone keypad.

As a reminder, this conference is being recorded for replay purposes.

Before we start, I must remind you that statements made in this conference call concerning future revenues, results of operations, financial position, markets, economic conditions, products and product releases, partnerships, and any

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