Rekor Systems Q1 revenue rises 12%, margin expands to 53%
Rekor Systems reported Q1 2026 revenue of $10.3 million, up 12% year-over-year, with gross margin rising to 53% and EBITDA loss narrowing to $6.5 million. It cut headcount 16% and improved operating cash flow by 54%, while planning to refinance revenue-sharing notes and launch GoSecure™ video authentication in Q3 2026.
1. Q1 2026 Financial Highlights
Rekor Systems delivered Q1 2026 revenue of $10.3 million, up 12% year-over-year. Gross margin rose to 53% and EBITDA loss narrowed to $6.5 million, improving $0.9 million from Q1 2025.
2. Operational Efficiency Improvements
Cash used in operating activities improved by $4.3 million, or 54%, driven by revenue growth and cost controls. Adjusted gross margin expanded due to a higher proportion of software sales and favorable product mix.
3. Balance Sheet Actions and Headcount Reduction
The company reduced headcount by 16%, eliminating 45 positions, with most savings expected in Q2 2026. It is evaluating refinancing its Prime Revenue Sharing Notes to lower the cost of capital and support its growth trajectory.
4. GoSecure™ Video Authentication Launch
Rekor Labs plans to launch GoSecure™ in Q3 2026, a deterministic video authentication system targeting law enforcement, insurance and legal markets. The patented technology verifies footage integrity to counter AI deepfake threats.