Rekor Systems, Inc. (NASDAQ: REKR) released preliminary and unaudited financial results for the second quarter ended June 30, 2026, reporting expected revenue of approximately $12.6 million, a 22% sequential increase and approximately 2% growth compared with the second quarter of 2025.

The Columbia, Maryland-based company expects an adjusted EBITDA loss of approximately $1.3 million for the quarter, which it says represents a 78% improvement year over year. Adjusted gross margin is expected to be approximately 55%, up from approximately 53% in the first quarter of 2026. Cash at quarter-end is expected to be approximately $10 million.

During the first half of 2026, Rekor reduced its headcount by approximately 20% and consolidated certain overseas engineering operations, which it previously estimated would reduce annual operating expenses by approximately $7.5 million. The company states it has identified additional cost efficiencies unrelated to workforce reductions that it expects could generate several million dollars in further annualized savings.

Chief Financial Officer Joseph Nalepa said in a statement that the revenue improvement "reflects the ongoing economics of the business as it is structured today" and was not dependent on a large, non-recurring software transaction.

During the quarter, Rekor launched Go-Secure.Video, a media-authentication technology the company describes as creating cryptographic proof of video authenticity from the moment of capture. The company also launched the Rekor Scout Axis Agent with Go-Secure.Video for use with supported Axis cameras. Rekor said it is in discussions with several large global companies regarding potential launch-partner relationships and OEM integrations, and it suggested an initial commercial transaction could occur in the third quarter of 2026, though no assurances were given.

The company stated it expects to achieve profitability on an adjusted EBITDA basis during the second half of 2026. These preliminary results remain subject to completion of normal quarter-end closing and review procedures, and actual results may differ from current estimates.