2. Rekor Systems, Inc. (NASDAQ:REKR)
With notable exposure to artificial intelligence and growing investor interest, Rekor Systems, Inc. (NASDAQ:REKR) earns a spot on our list of the most popular AI penny stocks to buy.
Rekor Systems, Inc. (NASDAQ:REKR) is starting to convert execution into tangible momentum, evident from its first-ever cash-generating quarter. The company appears to be well-positioned for growth, as it reports narrowing losses and multi-year contract wins.
The year 2025, which proved to be transformative for Rekor Systems, Inc. (NASDAQ:REKR) according to management, saw revenue grow approximately 5% year-over-year with gross margin expansion from 49% in 2024 to 56%. As a result, the company was able to narrow the adjusted EBITDA loss by approximately 38%.
The fourth quarter, in particular, stood out, as operating cash flow turned positive for the first time in the company’s history.
That turnaround was also driven by strong operational progress, including the integration of the STS and ATD subsidiaries, the onshoring of Rekor Command engineering operations to the United States, and the full commercialization of the company’s three core products: Rekor Scout, Rekor Discover, and Rekor Command.
With those developments, Rekor Systems, Inc. (NASDAQ:REKR) remains focused on the transition from a development-heavy model to a product-first portfolio. At the same time, management said it expects the strategy to reduce R&D costs and improve customer responsiveness and service delivery.
A contract win followed that backdrop.
On May 4, 2026, Rekor Systems, Inc. (NASDAQ:REKR) secured a contract valued at $16.8 million over a multi-year term after its agreement with the Oklahoma District Attorneys Council was extended. As part of the agreement, the company will remain the technology partner for the state’s Uninsured Vehicle Enforcement Diversion Program.
Having served as the operational driver for the program since 2020, the company has supported Oklahoma’s improvement from having one of the nation’s worst uninsured driving rates to ranking 27th nationally.
That particular development unlocks a potentially significant long-term recurring revenue opportunity, which will be supported by the company’s strengthened financial health.
Rekor Systems, Inc. (NASDAQ:REKR), a technology company, delivers roadway intelligence and data-driven mobility insights. Its offerings include comprehensive, continuous, and real-time roadway intelligence that leverages artificial intelligence (AI), machine learning, and holistic data to deliver intelligent infrastructure for smart mobility.
