First this is going to be a long post written by [sanemind71961](https://stocktwits.com/sanemind71961). I'll start with my summary since you clowns all have ADD and can't read more then 4 words. Ron DeSantis just came out saying Florida will be investing in AI to help with its traffic congestion. It already has a 100 million contract with Georgia, with small contracts with other states. So YOLO FOMO this its going to 2-3$ by earnings at the end of march.
[sanemind71961](https://stocktwits.com/sanemind71961) long post for the 1% that has the attention span.
The stock has continued to decline primarily due to repeated share dilutions from equity offerings (including a big $15M registered direct offering closed in mid-December 2025 at $1.75 per unit, adding \~8.57M shares plus warrants), persistent unprofitability (TTM revenue \~$49M but net loss \~$44M, EPS -0.42), negative cash flow, and typical small-cap/penny-stock volatility in an AI/growth sector. Despite strong Q3 2025 results (record $14.2M revenue, +35% YoY, adjusted gross margins up to 63%, loss narrowed), the market has focused on dilution risks, slow contract revenue ramps, and broader skepticism about near-term profitability. The price sat around $0.76–$0.83 in mid-February 2026 (down sharply from the December offering price and earlier levels), with long-term holders facing big losses.
The "deep hack or deep fake" business refers to their deepfake/synthetic media detection initiative . In October 2025, Rekor announced plans via a new subsidiary (Rekor Labs) to launch AI-powered tools for detecting manipulated video, audio, and images. This leverages their existing computer vision expertise (o Development started in 2023; proof-of-concept and alpha stages are complete. Full commercial launch is targeted for the first half of 2026 (so imminent), across verticals like government/security, media, insurance fraud, etc. They estimate the global deepfake detection market could exceed $30B in the next decade. No revenue yet it's pre-launch but it's positioned as a high-potential diversification.
Other recent/not-so-good items with REKR
Positive/new: Record Q3 2025 results (November 2025 release), margin expansion, contract wins, deepfake pivot, and privacy-focused ALPR advocacy.
Not so good: The December 2025 $15M offering (at a discount to prior levels) caused immediate dilution and stock pressure; cash position remains tight; still deeply unprofitable with high share count (\~136M outstanding); stock has been a long-term loser for many holders despite business progress.
Georgia Department of Transportation (GDOT): Largest statewide multi-year contract (announced October 2025), valued at a minimum of $50 million over up to 8 years, with potential to exceed $100 million. This involves deploying Rekor Discover® and Data-as-a-Service (DaaS) for traffic data collection, validation, modernization, roadway monitoring, and safety enforcement. It's available for cooperative use by cities, counties, and other Georgia entities without separate bids.
Texas Department of Transportation (TxDOT): Multi-year statewide contract (June 2025) with an eight-figure blanket purchase order for Rekor Command® platform deployment across metropolitan, urban, and rural districts to enhance incident management, traffic operations, congestion reduction, and safety.
California Department of Transportation (CalTrans) and TxDOT: Early deployments of Rekor Discover® (announced October 2025), signaling scalable statewide opportunities following the Georgia win.
Other wins: Additional public safety/licensing contracts, virtual weigh stations in South Carolina (initial $1M+ order), and ongoing work with various agencies.
These are real, revenue-generating projects where Rekor is providing AI-powered roadway intelligence solutions (e.g., license plate recognition, traffic analysis, incident detection) to government partners.
Regarding certifications and compliance for government work:
