Revenue: As of FY2026 Q2, the actual value is USD 12.66 M, beating the estimate of USD 12.61 M.

EPS: As of FY2026 Q2, the actual value is USD 0.

EBIT: As of FY2026 Q2, the actual value is USD -34 K.

Rekor Systems, Inc. reported its financial results for the second quarter ended June 30, 2026, and the first six months of 2026.

Revenue

Rekor Systems, Inc. achieved revenue of $12.7 million for the second quarter ended June 30, 2026, marking a 23% sequential increase and a 2% year-over-year increase. For the first six months of 2026, revenue increased to $22.9 million, up approximately 6% year over year from $21.557 million in the prior-year period. Recurring revenue grew 14% year over year to $6.7 million in Q2 2026 and 21% to $13.3 million for the first six months of 2026.

Gross Profit and Margin

Adjusted gross profit for Q2 2026 was $7.111 million, up from $6.114 million in Q2 2025. The adjusted gross margin improved to 56.2% in Q2 2026, up from 49.5% in Q2 2025. For the first six months of 2026, adjusted gross profit was $12.495 million, compared to $10.551 million in the prior-year period. The adjusted gross margin for the first half of 2026 rose to 54.5% from 48.9% in the first half of 2025.

Operating Profit/Loss

Income from operations for Q2 2026 was $222 thousand, a significant improvement compared to a loss of - $7.735 million in Q2 2025. For the six months ended June 30, 2026, the loss from operations was - $8.595 million, an improvement from - $17.874 million in the prior-year period. This represents an improvement of $7.957 million or 103% for the three months, and $9.279 million or 52% for the six months.

Operating Expenses

Combined general and administrative, selling and marketing, and research and development expenses decreased by $4.0 million for the three months ended June 30, 2026, and by $4.3 million for the six months ended June 30, 2026, compared to the prior-year periods. General and administrative expenses were $5.149 million in Q2 2026, down from $6.936 million in Q2 2025. Selling and marketing expenses decreased to $686 thousand in Q2 2026 from $1.700 million in Q2 2025. Research and development expenses were $2.435 million in Q2 2026, down from $3.652 million in Q2 2025. The company also recognized a one-time net loss on lease remeasurement of $2.753 million in Q2 2026.

Net Loss

Net loss for Q2 2026 was - $551 thousand, a substantial improvement from a net loss of - $8.658 million in Q2 2025. For the first six months of 2026, net loss was - $9.912 million, compared to - $19.532 million in the prior-year period.

EBITDA and Adjusted EBITDA

EBITDA for Q2 2026 was $1.338 million, an improvement from - $6.511 million in Q2 2025. Adjusted EBITDA loss narrowed to - $1.203 million in Q2 2026, representing a 79% improvement from - $5.788 million in Q2 2025. For the first six months of 2026, Adjusted EBITDA loss was - $7.688 million, an improvement from - $13.146 million in the prior-year period.

Cash Flow and Position

Rekor Systems, Inc. ended the second quarter of 2026 with $10.0 million in cash. Operating cash burn for the quarter was $2.4 million. For the six months ended June 30, 2026, cash used in operating activities improved by $9.6 million, or 61%, compared with the prior-year period. Cash and cash equivalents were $9.766 million as of June 30, 2026, down from $16.566 million as of December 31, 2025.

Operational Metrics

Headcount decreased by 20% in the first half of 2026. The company launched Go-Secure.Video and the Rekor Scout Axis Agent integration during the quarter.

Outlook

Rekor Systems, Inc. reaffirms its path to Adjusted EBITDA profitability in the second half of 2026. Management believes the reduction in cash consumption provides further evidence of improved financial performance. The company is also evaluating options to refinance its existing Prime Revenue Sharing Notes.