Rekor Systems Reports 32% Revenue Growth to $46M, Faces Increased Net Losses

Rekor Systems, Inc. reported a significant increase in revenue for the fiscal year ending December 31, 2024, achieving $46.0 million, a 32% rise from $34.9 million in 2023. This growth was primarily driven by the Urban Mobility product line, which generated $28.7 million, up from $16.8 million the previous year. Despite the revenue increase, the company recorded a net loss of $61.4 million, compared to a loss of $45.7 million in 2023. The increase in losses was attributed to higher operating expenses, including a $10.2 million impairment charge related to intangible assets, as well as increased costs associated with the acquisition of All Traffic Data Systems (ATD).

The acquisition of ATD, completed on January 2, 2024, for approximately $20.6 million, marked a strategic development for Rekor, enhancing its capabilities in traffic data collection. The acquisition contributed $10.1 million to the Urban Mobility revenue stream in 2024. The company also reported a rise in total operating expenses to $77.0 million from $60.6 million in the prior year, driven by increased general and administrative costs, which included payroll and related expenses associated with the ATD operations.

Operationally, Rekor's workforce grew to 323 employees as of March 18, 2025, with 319 in full-time positions. The company has focused on expanding its customer base, with recurring revenue increasing by 9% to $22.6 million, reflecting its shift towards a subscription-based model. The company also reported approximately $14.5 million in performance obligations as of December 31, 2024, indicating future revenue potential from existing contracts.

Looking ahead, Rekor faces challenges in achieving profitability, as indicated by its ongoing net losses and reliance on external financing. The company has entered into an At Market Issuance Sales Agreement to raise up to $25 million, which it hopes will support its operations and growth initiatives. Management remains optimistic about the future, citing the growing demand for smart city solutions and the potential for increased government investment in infrastructure as key drivers for its business strategy. However, the company acknowledges the risks associated with market conditions and competition in the rapidly evolving technology landscape.