Rekor shares at $0.3262 ahead of results, Nasdaq deadline extension
Key Facts
Rekor Systems shares closed at $0.3262 on November 11, 2026, according to EL7 data, ahead of the date the company said it would release third-quarter results. Rekor set November 12, after the market close, to report its financial results. It also announced a call to discuss the results that day at 4:30 p.m. Eastern Time. The dates come as the company faces Nasdaq's minimum bid price requirement. The exchange had granted it an extension to regain compliance through April 26, 2027.
In its latest documented financial results for the preceding period, Rekor reported revenue of $12.7 million in the second quarter of 2026, up 23% sequentially and 2% year over year. Recurring revenue was $6.7 million, up 14% from the second quarter of the previous year. For the first half, recurring revenue reached $13.3 million, an annual increase of 21%. Adjusted gross margin rose to 56% in the second quarter, compared with 50% in the same quarter of 2025. Adjusted EBITDA loss narrowed to $1.2 million, an annual improvement of 79%.
The company attributed the improvement in adjusted earnings in the second quarter to lower payroll and related costs, alongside revenue growth and improved gross margin. In its results statement, it said, "Lower payroll and related costs, alongside revenue growth and improved gross margin, drove the improvement in adjusted EBITDA." Rekor cut its workforce by 20% during the first half of 2026 and reorganized its engineering operations. Management said it had identified additional efficiency opportunities, separate from workforce reductions, that it expects to generate millions of dollars in additional annual savings. The company also attributed lower operating cash consumption to working capital management.
The company had $10.0 million in cash at the end of the second quarter of 2026, while operating cash burn during the quarter reached $2.4 million. In the first half, cash used in operating activities improved by $9.6 million, or 61%, compared with the same period a year earlier. Its quarterly report showed that the principal of its Series A revenue-sharing notes stood at $15.0 million on June 30, 2026, with maturity on December 15, 2026. On the same date, the company reported $9.8 million in cash and cash equivalents. Rekor said available cash was insufficient to fund its current level of operations, raising substantial doubt about its ability to continue as a going concern for the twelve months following the issuance of its second-quarter results.
On October 27, Nasdaq granted Rekor an additional 180-day compliance period, ending April 26, 2027, to regain the minimum bid price of $1 per share. The notice requires the closing bid price to be at least $1 for ten consecutive business days. If the company does not regain compliance by the deadline, Nasdaq said it would issue written notice that the securities would be delisted. The closing price recorded on November 11 was $0.3262. The company's next announced dates are the release of third-quarter results after the market close on November 12, followed by the results call at 4:30 p.m. Eastern Time.