Rekor Systems 🤖 (REKR) turnaround

$REKR still looks seriously undervalued here going into Q2 after everything discussed on the earnings call.

People are acting like this company has nothing, but they already have real contracts, statewide DOT deployments, recurring revenue growing through their AI roadway platform, and major government relationships in place. The Oklahoma $16.8M deal alone showed the kind of scale they’re starting to land, and the DaaS side keeps building.

The part that stands out to me is the direction things are heading. They’ve already talked about EBITDA neutrality around late Q2/early Q3 with a path to positive EBITDA by the end of 2026. Cost reductions are kicking in while contracts are beginning to convert at a better rate.

Then you’ve got the Rekor Scout rollout coming in Q3. I honestly think the deepfake side of this is being massively overlooked. AI-generated and manipulated video is becoming a serious issue for courts, lawyers, law enforcement, insurers and government agencies. Verification/authentication is going to become a necessity, not a luxury.

This is supposedly a $30B+ market and Rekor isn’t coming into it as some unknown startup. They already work with government agencies, already operate in regulated environments, and already have the infrastructure and relationships in place. Add in the approved patent and proprietary tech they’ve been building around this and it gives them a much stronger position than most people realise.

Yet the stock is still trading like the company is on the verge of collapse.

Meanwhile they’re continuing to execute, build recurring revenue and expand into markets with real long-term demand. If Q2 shows continued growth and improving margins, I think sentiment changes very quickly from here.