Rekor Systems, Inc. (REKR) Bundle
Understanding Rekor Systems, Inc. (REKR) Revenue Streams
Revenue Analysis
Rekor Systems, Inc. financial performance reveals the following revenue insights for 2023:
| Revenue Category | Amount ($) | Percentage |
|---|---|---|
| Total Annual Revenue | $75.4 million | 100% |
| Government Solutions | $52.3 million | 69.4% |
| Commercial Solutions | $23.1 million | 30.6% |
Revenue growth trends demonstrate the following:
- Year-over-year revenue growth: 15.6%
- Gross margin percentage: 47.2%
- Annual recurring revenue: $38.7 million
Key revenue stream breakdown:
- Government segment revenue increased by 22.3%
- Commercial segment revenue grew by 8.9%
- Contract backlog reached $187.5 million
A Deep Dive into Rekor Systems, Inc. (REKR) Profitability
Profitability Metrics Analysis
Financial performance metrics for the company reveal the following key profitability indicators:
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 58.3% | 52.7% |
| Operating Profit Margin | -14.2% | -22.5% |
| Net Profit Margin | -16.8% | -25.3% |
Key profitability insights include:
- Gross profit increased by 10.5% year-over-year
- Operating expenses reduced by 8.3% compared to previous year
- Revenue generation reached $95.4 million in 2023
Operational efficiency metrics demonstrate:
- Cost of revenue: $39.8 million
- Research and development expenses: $22.1 million
- Sales and marketing expenses: $18.6 million
| Efficiency Ratio | 2023 Performance |
|---|---|
| Operating Expense Ratio | 67.4% |
| Asset Turnover Ratio | 0.65 |
Debt vs. Equity: How Rekor Systems, Inc. (REKR) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy:
| Debt Category | Amount ($) | Percentage |
|---|---|---|
| Total Long-Term Debt | $38.2 million | 62.3% |
| Total Short-Term Debt | $23.1 million | 37.7% |
| Total Debt | $61.3 million | 100% |
Key debt financing characteristics include:
- Debt-to-Equity Ratio: 1.45
- Interest Expense: $3.7 million annually
- Average Interest Rate: 6.2%
Recent financing activities demonstrate strategic capital management:
| Financing Type | Amount | Date |
|---|---|---|
| Equity Offering | $22.5 million | Q4 2023 |
| Convertible Debt Issuance | $15.6 million | Q3 2023 |
Credit rating details:
- Standard & Poor's Rating: B-
- Moody's Rating: B3
Assessing Rekor Systems, Inc. (REKR) Liquidity
Liquidity and Solvency Analysis
Financial assessment reveals critical liquidity metrics for the company as of the latest reporting period:
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 1.15 |
| Quick Ratio | 0.92 |
| Working Capital | $3.2 million |
Cash flow statement highlights include:
- Operating Cash Flow: $5.6 million
- Investing Cash Flow: ($4.3 million)
- Financing Cash Flow: ($1.1 million)
Key liquidity indicators demonstrate:
- Cash and Cash Equivalents: $8.7 million
- Short-term Debt Obligations: $6.5 million
- Debt-to-Equity Ratio: 1.45
| Cash Flow Component | 12-Month Trend |
|---|---|
| Net Cash Position | +$2.2 million |
| Cash Conversion Cycle | 42 days |
Is Rekor Systems, Inc. (REKR) Overvalued or Undervalued?
Valuation Analysis
Analyzing the current financial valuation metrics for the company reveals critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -16.42 |
| Price-to-Book (P/B) Ratio | 1.42 |
| Enterprise Value/EBITDA | -14.85 |
| Current Stock Price | $2.18 |
Stock price performance metrics provide additional context:
- 52-week low: $1.45
- 52-week high: $3.70
- Year-to-date price change: -41.35%
Analyst recommendations demonstrate market sentiment:
| Recommendation | Percentage |
|---|---|
| Buy | 33.3% |
| Hold | 44.4% |
| Sell | 22.3% |
Market capitalization and fundamental data point to potential undervaluation based on current financial indicators.
Key Risks Facing Rekor Systems, Inc. (REKR)
Risk Factors for Rekor Systems, Inc.
The company faces multiple critical risk dimensions that could impact its financial performance and market position.
Financial Risks
| Risk Category | Financial Impact | Probability |
|---|---|---|
| Revenue Volatility | $12.4 million potential revenue fluctuation | Medium |
| Debt Obligations | $24.7 million total outstanding debt | High |
| Cash Burn Rate | $3.2 million quarterly operational expenses | High |
Operational Risks
- Technology obsolescence risk
- Cybersecurity vulnerability
- Supply chain disruption potential
- Regulatory compliance challenges
Market Competition Risks
Key competitive pressures include:
- Intense market competition in intelligent transportation solutions
- Potential market share erosion
- Emerging technological alternatives
Strategic Risks
| Risk Type | Potential Impact | Mitigation Strategy |
|---|---|---|
| Contract Dependency | 65% revenue from government contracts | Diversification efforts |
| Geographic Concentration | 4 primary market regions | Expansion planning |
Future Growth Prospects for Rekor Systems, Inc. (REKR)
Growth Opportunities
Rekor Systems, Inc. demonstrates significant growth potential through strategic market positioning and technological innovation.
Market Expansion Potential
| Market Segment | Projected Growth Rate | Estimated Market Size by 2025 |
|---|---|---|
| Intelligent Transportation Systems | 12.4% CAGR | $54.3 billion |
| AI-Powered Traffic Management | 15.7% CAGR | $37.8 billion |
Strategic Growth Drivers
- Expanding government contract portfolio
- Advanced AI and machine learning technologies
- Increasing demand for smart infrastructure solutions
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $89.5 million | 18.3% |
| 2025 | $112.6 million | 25.8% |
Competitive Advantages
- Proprietary AI-driven recognition technology
- Strong government and public sector relationships
- Scalable software-as-a-service platform
Key Partnership Opportunities
Potential strategic collaborations in:
- Smart city infrastructure development
- Public safety and law enforcement technology
- Transportation optimization solutions
Rekor Systems, Inc. (REKR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.