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Rekor Systems

REKR
38
Software - Infrastructure · Technology
Price
$0.61
+0.02 (+3.56%)
Market Cap
$83.6M
Exchange
NASDAQ
Winston Score
38
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Good
Cash Flow
Weak
Stability
Mixed
Valuation
Data not available

Share count rising — dilution

+190.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 41.2M (2021) → 119.7M (2025)

Winston Score History

The full picture

Rekor Systems is a technology company that uses artificial intelligence to collect and analyze data about vehicles and traffic on roads. Its main product is a platform that reads license plates, identifies vehicle types, and tracks traffic patterns in real time. Government agencies, law enforcement, and transportation departments are its primary customers.

Rekor earns revenue by selling software subscriptions and data services to state and local governments across the United States. The company is small, with a market cap around $100 million, and it operates mostly in North America. Its competitive edge comes from combining roadside sensors with AI software to build what it calls a national traffic intelligence network — data that is hard for competitors to replicate quickly. However, Rekor is currently spending far more than it earns, with a deeply negative operating margin, so its biggest near-term risk is whether it can grow revenue fast enough to reach profitability before needing to raise additional capital.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+94.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$15M/ year

Declining (-22% vs prior year)

30.1% of revenue

2.0x the sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

19.7%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~12 months

$10M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

Growth context

Rekor Systems is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
56.2%
Premium pricing power — 56.2% gross margin
Profit after running costs
Operating Margin
1.8%
Thin — 1.8% operating margin
Return on the money invested
ROCE
-34.6%
Weak — -34.6% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+9.8%
Steady sales growth (+9.8% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-26.2%
Burning cash (-26.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.34
Conservative — low debt load (0.34)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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