Rekor Systems (Rekor Systems) Gross Margin % : 53.19% (As of Dec. 2023)

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What is Rekor Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Rekor Systems's Gross Profit for the three months ended in Dec. 2023 was $5.89 Mil. Rekor Systems's Revenue for the three months ended in Dec. 2023 was $11.07 Mil. Therefore, Rekor Systems's Gross Margin % for the quarter that ended in Dec. 2023 was 53.19%.

Warning Sign:

Rekor Systems Inc gross margin has been in long-term decline. The average rate of decline per year is -3%.

The historical rank and industry rank for Rekor Systems's Gross Margin % or its related term are showing as below:

REKR' s Gross Margin % Range Over the Past 10 Years
Min: 37.69 Med: 51.51 Max: 69.79
Current: 52.77

During the past 8 years, the highest Gross Margin % of Rekor Systems was 69.79%. The lowest was 37.69%. And the median was 51.51%.

REKR's Gross Margin % is ranked better than
62.02% of 2628 companies
in the Software industry
Industry Median: 41.71 vs REKR: 52.77

Rekor Systems had a gross margin of 53.19% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Rekor Systems was -3.00% per year.

Rekor Systems Gross Margin % Historical Data

The historical data trend for Rekor Systems's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Rekor Systems Gross Margin % Chart

Rekor Systems Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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69.79

61.90

60.70

45.33

52.77

Rekor Systems Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															46.71	53.63	51.76	52.63	53.19

Competitive Comparison of Rekor Systems's Gross Margin %

For the Software - Infrastructure subindustry, Rekor Systems's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Rekor Systems's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Rekor Systems's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Rekor Systems's Gross Margin % falls into.

Rekor Systems Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Rekor Systems's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	18.4	/	34.933
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(34.933 - 16.499)	/	34.933
	=	52.77 %

Rekor Systems's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	5.9	/	11.066
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11.066 - 5.18)	/	11.066
	=	53.19 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Rekor Systems (NAS:REKR) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Rekor Systems had a gross margin of 53.19% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Rekor Systems Gross Margin % Related Terms

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Rekor Systems (Rekor Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Rekor Systems Inc (NAS:REKR) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

38E:Germany

Address

6721 Columbia Gateway Drive, Suite 400, Columbia, MD, USA, 21046

Website

https://www.rekor.ai

Rekor Systems Inc is a United States-based company. It is engaged in providing real-time roadway intelligence through AI-driven decisions. Rekor bridges commercial and government sectors with actionable, real-time vehicle recognition data. The firm uses artificial intelligence to analyze video streams and transform them into AI-driven decisions. Its machine learning software can turn most IP cameras into accurate vehicle recognition devices used to help protect lives, increase brand loyalty, and enhance operations and logistics. Its geographical segments are the United States, Canada, and Others, of which the majority of its revenue comes from the United States.

Executives

Timothy J Davenport	director	C/O REKOR SYSTEMS, INC., 6721 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Sanjay E Sarma	director	C/O REKOR SYSTEMS, INC., 6721 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Robert Alan Berman	director, 10 percent owner, officer: Chief Executive Officer	C/O NOVUME SOLUTIONS, INC., 14420 ALBEMARLE POINT PLACE, SUITE 200, CHANTILLY VA 20151
Arctis Global Llc	10 percent owner	AM TOWERS, 207 CALLE DEL PARQUE, 7TH FLOOR, SAN JUAN PR 00912-3242
Debra Shakerdge-hennessy	officer: Chief People Officer	C/O REKOR SYSTEMS, INC., 6721 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
David Philip Desharnais	officer: President	C/O REKOR SYSTEMS, INC., 7172 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Eyal Hen	officer: CFO	REKOR SYSTEMS, INC., 14420 ALBERMARLE POINT PLACE, SUITE 200, CHANTILLY VA 20151
Glenn S Goord	director	NOVUME SOLUTIONS, INC., 14420 ALBEMARLE POINT PLACE, SUITE 200, CHANTILLY VA 20151
Matthew Anthony Hill	officer: Chief Science Officer	324 ANNISON DRIVE, COMMERCE TOWNSHIP MI 48382
Rodney Hillman	officer: COO	3201 GLOUCHESTER DRIVE, FALLSTON MD 21047
Christopher Kadoch	officer: Chief Technology Officer	C/O REKOR SYSTEMS, INC., 7172 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Noam Shai Maital	officer: CEO, Waycare Technologies Ltd.	13535 VENTURA BLVD, SUITE C 410, SHERMAN OAKS CA 91423
Michael David Dunbar	officer: Chief Revenue Officer	C/O REKOR SYSTEMS, INC., 7172 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Goldman Sachs Group Inc	10 percent owner	200 WEST STREET, NEW YORK NY 10282
Goldman Sachs & Co. Llc	10 percent owner	200 WEST STREET, NEW YORK NY 10282