Rekor Systems Announces Strategic On-Shoring of Overseas Engineering Operations to Advance Cost Discipline and Operational Efficiency

COLUMBIA, Md., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ:REKR) ("Rekor or the "Company"), a global leader in roadway intelligence, today announced a strategic consolidation of its worldwide engineering operations aimed at increasing operational efficiency and aligning the Company's cost structure with current revenue levels.

As part of this initiative, Rekor will move engineering work from Israel to its U.S.-based teams, consolidating all key product development and technology functions in the United States. This move supports the Company's ongoing efforts to streamline operations and focus resources on initiatives that have the most immediate impact on revenue, customer delivery, platform performance, and scalable growth.

This shift also mirrors a broader industry movement to relocate to the U.S. artificial intelligence development work, especially where these technologies support U.S. government agencies and critical infrastructure, and address heightening geopolitical risks. Continued regional instability and the potential for wider unrest in the Middle East have prompted firms to prioritize operational resilience. By focusing its engineering operations domestically, Rekor is better able to respond to concerns of federal, state, and local customers who are increasingly emphasizing secure, U.S.-based technology development and data governance.

Engineering functions previously managed by multiple international teams will now report to Rekor Chief Technology Officer Chris Kadoch. This change brings engineering leadership and product development closer to Rekor's U.S.-based commercial, customer success, and deployment teams, boosting collaboration and speeding up execution across the Company's Rekor Command® platform.

The consolidation is expected to significantly reduce the Company's cash outlays and strengthen its overall financial health.

Rekor Chief Financial Officer Joe Nalepa stated, "After closely examining our global footprint, we have taken this step to ensure that we are operating in line with current revenue while maintaining the ability to execute our strategic priorities. Consolidating our engineering operations in the United States improves coordination across our product and delivery teams and is a significant step toward lowering our annual operating expenses. We expect this and other actions to reduce our burn rate by approximately $7.5 million on an annualized basis."

The Company expects the transition to be substantially complete by the end of February. Although some longer-range initiatives will be affected, the Company does not anticipate disruption to existing customer programs or product roadmaps.

Nalepa concluded, "Rekor remains focused on driving disciplined growth while continuing to evaluate opportunities to improve efficiency and deliver long-term shareholder value."

About Rekor Systems, Inc.

Rekor Systems, Inc. (NASDAQ:REKR) is a leader in developing and implementing state-of-the-art roadway intelligence systems using AI-enabled computer vision and machine learning. As a pioneer in the implementation of digital infrastructure, Rekor is collecting, connecting, and organizing the world's mobility data – laying the foundation for a digitally-enabled operating system for the roadway. With our Rekor One® Roadway Intelligence Engine at the core of our technology, we aggregate and transform trillions of data points into intelligence through proprietary computer vision, machine learning, and big data analytics that power our platforms and applications. Our solutions provide actionable insights that give governments and businesses a comprehensive picture of roadways while providing a collaborative environment that drives the world to be safer, greener, and more efficient. To learn more, please visit our website: https://rekor.ai, and follow Rekor on social media on LinkedIn, X (formerly Twitter), Threads, and Facebook.

Forward-Looking Statements

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Media & Investor Relations Contact:Rekor Systems, Inc.

Charles Degliomini

[email protected]