Rekor Systems announced a new privacy‑protected framework for automated license plate recognition (ALPR) that encrypts and anonymizes vehicle data at the point of collection, releasing identifying information only with lawful authorization. The company’s U.S. patent, granted on November 19, 2025, builds on a May 2024 patent for privacy‑focused traffic monitoring, underscoring Rekor’s ongoing commitment to secure data handling in roadway‑intelligence solutions.
The launch comes after Rekor reported record third‑quarter 2025 results: revenue of $14.2 million, a 35% year‑over‑year increase, and a 63.4% gross margin. Adjusted EBITDA fell to a $1.5 million loss, a narrowing from the prior year, indicating that the company is tightening costs while expanding its software‑as‑a‑service offering. The new framework is positioned to strengthen Rekor’s competitive moat and attract additional government contracts amid growing scrutiny of surveillance technologies.
Rekor’s CEO, Robert Berman, said the privacy framework aligns with the company’s strategy of growing recurring revenue while maintaining operational discipline. Chief Science Officer Chris Kadoch added that the technology “provides agencies with reliable safeguards on personal data access,” a feature that could differentiate Rekor from competitors such as Genetec and Vigilant Solutions in the ALPR market. The framework’s emphasis on encryption and lawful data release directly addresses public concerns about surveillance and FOIA requests, potentially easing regulatory hurdles for future deployments.
Analysts have issued mixed views on Rekor’s trajectory. While some maintain a “strong buy” stance, others have downgraded the company, reflecting uncertainty around its unprofitable status and low Altman Z‑Score. The new privacy framework may improve Rekor’s appeal to federal agencies, but investors will weigh this against the company’s ongoing profitability challenges and the need for continued cost control to achieve sustainable growth.
The announcement signals Rekor’s intent to capitalize on a market that increasingly demands privacy‑compliant ALPR solutions. By securing a patent that protects vehicle data at collection, Rekor positions itself to win new contracts and expand its recurring revenue base, while the company’s recent financial improvements suggest that operational efficiencies are beginning to offset the high costs associated with its technology development. However, the company remains unprofitable, and the success of the new framework will depend on Rekor’s ability to translate the technology into revenue‑generating contracts without eroding its already thin margins.
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