Feb. 21 at 5:52 AM
$REKR
I have come close to throwing in the towel on REKR. Nothing has changed in their fundamentals. The only disappointing thing they are doing is continuing to dilute. I get it they need the money. Hopefully 2026 will be the pivotal year where things turn around. this is a 4 pp read from supergroup which says REKR should pull thru. Just give it a little more time.
No, REKR (Rekor Systems) is not going out of business. The company is actively operating, reporting record revenue growth, securing major government contracts, and raising capital to fund expansion. It has low cash (~
$3M as of the most recent quarter before the December raise) and negative operating cash flow, with ongoing losses and debt, but it continues to execute on its AI-powered roadway intelligence business (license plate recognition, traffic data, etc.) without any bankruptcy, delisting, or shutdown signals.
The stock has continued to decline primarily due to repeated share dilutions from equity offerings (including a big
$15M registered direct offering closed in mid-December 2025 at
$1.75 per unit, adding ~8.57M shares plus warrants), persistent unprofitability (TTM revenue ~
$49M but net loss ~
$44M, EPS -0.42), negative cash flow, and typical small-cap/penny-stock volatility in an AI/growth sector. Despite strong Q3 2025 results (record
$14.2M revenue, +35% YoY, adjusted gross margins up to 63%, loss narrowed), the market has focused on dilution risks, slow contract revenue ramps, and broader skepticism about near-term profitability. The price sat around
$0.76–
$0.83 in mid-February 2026 (down sharply from the December offering price and earlier levels), with long-term holders facing big losses.
Yes, it is being shorted, but not at extreme levels. As of January 30, 2026, short interest was ~11.02 million shares (~9% of the float / ~8% of shares outstanding), with 3.7–4.5 days to cover at recent volumes. Borrow fees are very low (~0.4–0.5%), so it's not hard-to-borrow or squeeze-prone like some meme stocks.
Next earnings report is expected around March 27–30, 2026 (likely Q4 2025 / full-year results; exact date not yet confirmed by the company but follows historical patterns).
There is reasonable hope for the company if it executes on its contracts and margins. Analysts (e.g., a January 2026 Seeking Alpha "Buy" write-up) see 2026 as an inflection year: large statewide deals are starting to ramp, the shift to high-margin Data-as-a-Service (DaaS) is working, and there's a healthy pipeline. Revenue has accelerated, gross margins are expanding, and adjusted EBITDA losses are shrinking. The core roadway intelligence business serves a growing smart-mobility market, and new initiatives add upside. That said, risks remain high—continued dilution, cash burn, execution delays on government contracts, and the need to reach sustained profitability.
Yes, they are still getting new contracts and plenty of work. Highlights include:
Largest-ever Georgia DOT statewide multi-year contract (announced October 2025): minimum
$50M over up to 8 years, potential >
$100M with cooperative purchasing.
Texas DOT statewide blanket purchase order (earlier 2025).
Additional wins like a
$1M+ initial South Carolina virtual weigh stations deal and expansions into more states with the Rekor Discover platform.
These are multi-year, recurring-revenue style deals that should build visibility into 2026+.
The "deep hack or deep fake" business refers to their deepfake/synthetic media detection initiative (likely what you meant—there's no "deep hack" product). In October 2025, Rekor announced plans via a new subsidiary (Rekor Labs) to launch AI-powered tools for detecting manipulated video, audio, and images. This leverages their existing computer vision expertise (originally for verifying traffic camera data). Development started in 2023; proof-of-concept and alpha stages are complete. Full commercial launch is targeted for the first half of 2026 (so imminent), across verticals like government/security, media, insurance fraud, etc. They estimate the global deepfake detection market could exceed
$30B in the next decade. No revenue yet—it's pre-launch—but it's positioned as a high-potential diversification.
Other recent/not-so-good items with REKR:
Positive/new: Record Q3 2025 results (November 2025 release), margin expansion, contract wins, deepfake pivot, and privacy-focused ALPR advocacy.
Not so good: The December 2025
$15M offering (at a discount to prior levels) caused immediate dilution and stock pressure; cash position remains tight; still deeply unprofitable with high share count (~136M outstanding); stock has been a long-term loser for many holders despite business progress.
Shorters' main complaints (inferred from the setup and typical critiques): Heavy dilution from frequent raises to fund the burn; no near-term profitability path; slow revenue recognition on big government contracts; competition in AI/roadway tech; execution and scaling risks; and the stock's history of hype cycles followed by misses. At only ~9% short interest it's not a "crowded" short, but the low borrow cost makes it easy for bears to stay in while waiting for more dilution or missed milestones.
Overall, the business shows real momentum with contracts and tech expansion, but the stock remains high-risk due to capital structure issues and volatility. This is classic small-cap growth territory—plenty of upside potential in 2026 if ramps deliver, but no guarantees. Do your own due diligence or consult an advisor; I'm not providing investment advice.DOES REKR have the ability to work with the government on certain ongoing projects are they certified to do this.Yes, Rekor Systems (REKR) has the demonstrated ability to work with government entities on ongoing projects, including major state-level transportation and public safety initiatives. The company has secured and is actively executing several significant government contracts, primarily with state Departments of Transportation (DOTs) and related agencies.
Key examples from recent announcements (2025–2026):
Georgia Department of Transportation (GDOT): Largest statewide multi-year contract (announced October 2025), valued at a minimum of
$50 million over up to 8 years, with potential to exceed
$100 million. This involves deploying Rekor Discover® and Data-as-a-Service (DaaS) for traffic data collection, validation, modernization, roadway monitoring, and safety enforcement. It's available for cooperative use by cities, counties, and other Georgia entities without separate bids.
Texas Department of Transportation (TxDOT): Multi-year statewide contract (June 2025) with an eight-figure blanket purchase order for Rekor Command® platform deployment across metropolitan, urban, and rural districts to enhance incident management, traffic operations, congestion reduction, and safety.
California Department of Transportation (CalTrans) and TxDOT: Early deployments of Rekor Discover® (announced October 2025), signaling scalable statewide opportunities following the Georgia win.
Other wins: Additional public safety/licensing contracts, virtual weigh stations in South Carolina (initial
$1M+ order), and ongoing work with various agencies.
These are real, revenue-generating projects where Rekor is providing AI-powered roadway intelligence solutions (e.g., license plate recognition, traffic analysis, incident detection) to government partners.
Regarding certifications and compliance for government work:
Rekor operates through subsidiaries like Rekor Recognition Systems, Inc., which holds a CAGE Code (1N9Z7) and UEI (SME7NHNWFF67), standard identifiers required for doing business with the U.S. federal government (via SAM.gov registration).
While most of Rekor's highlighted contracts are with state DOTs (not direct federal), these often involve compliance with federal standards (e.g., data privacy, cybersecurity, reporting for federally funded projects). Rekor emphasizes industry-leading security, including SOC 2 Type II certification (achieved 2024, covering data protection and controls for platforms like Rekor Scout®, Discover™, and Command™).
In SEC filings and contracts, Rekor confirms compliance with government contracting laws, representations, and certifications where applicable (e.g., no debarment, accurate size/status claims). They handle privacy-focused ALPR (Automated License Plate Recognition) in line with U.S. standards.
No evidence of issues like debarment, suspension, or exclusion from government work. Their ability to win and execute large state contracts indicates they meet necessary qualifications, including technical, security, and procurement requirements.
In short, Rekor is not only capable but actively engaged in ongoing government projects, with strong validation through these high-profile, multi-year awards. This positions them well in the growing smart infrastructure and roadway intelligence space, though as with any small-cap, execution and revenue ramp-up remain key. This isn't investment advice—always verify latest details via official sources like Rekor's investor relations or SEC filings.
