Rekor Systems Reports Strong 2024 Financial Results Highlighted by Record Revenue and Significant Operational Improvements
Record Gross Revenue: Achieved record annual gross revenue of $46.0 million, representing a 32% increase from $34.9 million in 2023.
Fourth Quarter Results: Gross revenue reached an all-time quarterly high of $13.3 million in Q4 2024, marking a 20% increase compared to Q4 2023.
Improved Adjusted EBITDA: Substantially narrowed Adjusted EBITDA loss from $6.7 million in Q4 2023 to $4.7 million in Q4 2024, underscoring enhanced operational efficiency.
COLUMBIA, Md., March 31, 2025 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ:REKR), a global leader in roadway intelligence, today announced its financial results for the fiscal year that ended December 31, 2024. Throughout 2024, Rekor demonstrated substantial progress in efficiently scaling operations while consistently delivering increased value to customers and shareholders.
In addition to achieving significant financial milestones, the Company reported several noteworthy operational and strategic achievements:
Rekor Scout® Certified for Deployment in New Jersey: Rekor's leading-edge platform, Rekor Scout®, earned official certification for use in New Jersey, marking a key step forward in the expansion of its innovative roadway monitoring technology and creating significant opportunities for further market penetration.
Electric Vehicle Movement Study in Phoenix Metropolitan Region: Successfully deployed Rekor's Vehicle Insite application across 90 sites in the Phoenix metropolitan area to study electric vehicle (EV) usage patterns. This project underscores the Company's capacity for managing complex, large-scale deployments and positions Rekor as a leader in intelligent infrastructure supporting sustainable transportation solutions.
Strategic Partnership with Soundhound AI: Rekor partnered with Soundhound AI to pioneer groundbreaking emergency vehicle technologies, integrating advanced audio-visual artificial intelligence capabilities. This first-of-its-kind collaboration will revolutionize emergency response by significantly enhancing situational awareness and responsiveness.
Additionally, the Company expanded its AI-powered Rekor Command® platform in the fourth quarter to further support traffic and emergency operations centers. Data overload and a lack of real-time insights often hinder effective decision-making in the fast-paced traffic management environment. The new Rekor Command® Priority Ranking feature took the first step in providing traffic and emergency operations center operators with AI-powered decision support, enabling them to prioritize and respond to high-impact incidents more quickly, accurately, and efficiently in real-time.
Recently, the Company unveiled the next evolution in AI-powered decision support with the launch of the Rekor Command® Related Events feature, enabling operators to treat all events in a geographic area as a single event rather than a series of isolated, individual events, supporting faster and improved communications with both responders and the public, and ensuring accurate, comprehensive, and timely information sharing. Rekor's continued investment in AI-driven traffic management center decision support highlights its ongoing commitment to improving roadway safety and efficiency.
"We are pleased with our financial and operational achievements in 2024," said Rekor CFO Eyal Hen. "Our record revenue growth, alongside consistent improvement in operational efficiency, highlights our dedication to strategic execution and innovation. With our expanding market presence and strong partnerships, Rekor is well-positioned for continued momentum throughout 2025 and beyond."
In early January, the Rekor Board of Directors established an Executive Committee to review Company operations, focusing on strategically realigning resources and evaluating the Company's go-to-market approach. This initiative aims to accelerate revenue growth and reduce dependence on external financing. As part of this strategic realignment, the Company made selective workforce reductions and appointed new executive leaders with significant experience scaling companies globally in the critical infrastructure sector.
These executives will guide sales and operational resources, focusing specifically on Rekor Scout® products and services for public safety and commercial markets and Rekor Discover® products designed for advanced roadway data collection. Rekor Scout® solutions serve diverse users, from local police departments and government agencies to commercial and residential property owners worldwide. Rekor Discover® has gained substantial domestic traction in multiple states, including Georgia, South Carolina, Virginia, New Mexico, Arkansas, and Florida.
Robert A. Berman, Interim President and CEO and Board Chairman, concluded: "Our strategic realignment underscores Rekor's commitment to disciplined growth, operational efficiency, and enhancing shareholder value. By focusing our resources on proven, high-impact products such as Rekor Scout® and Rekor Discover® and strengthening our leadership with seasoned executives who have successfully scaled global infrastructure businesses, we are well-positioned to accelerate revenue growth while reducing our reliance on external capital."
Year and Three Months Ended December 31, 2024 Financial Results
This section highlights the changes for the year and three months ended December 31, 2024, compared to the year and three months ended December 31, 2023.
Revenues
Year ended December 31,
Three Months ended December
2024
2023
Change
2024
2023
Change
(Dollars in thousands, except percentages)
$
%
(Dollars in thousands, except percentages)
$
%
Revenue
$
46,028
$
34,933
$
11,095
32%
$
13,277
$
11,066
$
2,211
20%
Cost of revenue, excluding depreciation and amortization
23,344
16,499
6,845
41%
6,380
5,180
1,200
23%
Adjusted Gross Profit
$
22,684
$
18,434
$
4,250
23%
$
6,897
$
5,886
$
1,011
17%
Adjusted Gross Margin
49.3%
52.8%
-3.5%
-7%
51.9%
53.2%
-1.2%
-2%
The increase in revenue for the year and three months ended December 31, 2024, compared to the for the year and three months ended December 31, 2023, was primarily attributable to our Urban Mobility revenue stream, which consists of revenue derived from roadway data aggregation activities. For the year and three months ending December 31, 2024, revenue attributable to ATD was $10,125,000 and $2,697,000, respectively, and is included as part of the Urban Mobility revenue stream.
Cost of Revenue, excluding Depreciation and Amortization
For the year and three months ended December 31, 2024, the cost of revenue, excluding depreciation and amortization, increased compared to the corresponding prior periods primarily due to an increase in personnel and other direct costs, such as hardware, that were incurred to support our increase in revenue. Additionally, during the year and three months ended December 31, 2024, $3,672,000 and $1,085,000 of the increase was related to our acquisition of ATD. The additional increase in the cost of revenue, excluding depreciation and amortization, as well as the reduction in the Adjusted Gross Margin, was related to the mix of sales in 2024. Typically, our software sales carry a higher Adjusted Gross Margin.
Loss from Operations, excluding impairment of intangible assets
Year ended December 31,
Change
Three Months ended December
Change
2024
2023
$
%
2024
2023
$
%
Loss from operations excluding impairment of intangible assets
$
(44,109
)
$
(42,116
)
$
(1,993
)
-5
%
$
(8,264
)
$
(9,346
)
$
1,082
12
%
Loss from operations, excluding impairment of intangible assets for the year and three months ended December 31, 2024, compared to the year and three months ended December 31, 2023, increased primarily due to some of the additional operating costs of ATD, including the additional depreciation and amortization of intangible assets associated with the acquisition.
EBITDA and Adjusted EBITDA
The Company calculates EBITDA as net loss before interest, taxes, depreciation, and amortization. The Company calculates Adjusted EBITDA as net loss before interest, taxes, depreciation, and amortization, adjusted for (i) impairment of intangible assets, (ii) loss on extinguishment of debt, (iii) stock-based compensation, (iv) losses or gains on sales of subsidiaries, and (v) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the U.S. ("U.S. GAAP") and should not be considered as an alternative to net earnings or cash flow from operating activities as indicators of our operating performance or as a measure of liquidity or any other measures of performance derived in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors, and other interested parties to evaluate a Company's ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.
The following table sets forth the components of the EBITDA and Adjusted EBITDA for the periods included (dollars in thousands):
Year ended December 31,
Three Months ended December
2024
2023
2024
2023
Net loss
$
(61,410
)
$
(45,685
)
$
(20,355
)
$
(11,324
)
Provision for income taxes
45
32
45
32
Interest expense, net
2,645
3,596
551
1,020
Depreciation and amortization
9,493
7,894
2,418
1,969
