REKR Q2 2026 Earnings Call: Wachstum der wiederkehrenden Umsätze und Profitabilitätsziel für H2

Wichtigste Erkenntnisse

• Der Umsatz im 2. Quartal 2026 stieg im Jahresvergleich um 2 % auf 12,7 Millionen US-Dollar, während der Umsatz im ersten Halbjahr um 6 % auf 22,9 Millionen US-Dollar zulegte.
• Die wiederkehrenden Umsätze wuchsen im 2. Quartal um 14 % auf 6,7 Millionen US-Dollar und in den ersten sechs Monaten um 21 % auf 13,3 Millionen US-Dollar. Damit übertrafen sie das gesamte Umsatzwachstum.
• Die bereinigte Bruttomarge stieg im 2. Quartal von 50 % auf 56 %, unterstützt durch Effizienzgewinne bei der Bereitstellung sowie einen höheren Anteil an margenstärkerer Software und wiederkehrenden Umsätzen.
• Der bereinigte EBITDA-Verlust verringerte sich im Jahresvergleich um 79 % auf rund 1,2 Millionen US-Dollar. Der operative Mittelabfluss sank im Quartal auf 2,4 Millionen US-Dollar.
• Das Management rechnet in der zweiten Hälfte des Jahres 2026 mit dem Erreichen der Profitabilität beim bereinigten EBITDA, vorbehaltlich einer weiterhin konsequenten Umsetzung und Kostendisziplin.
• Das Unternehmen strebt an, im 3. Quartal 2026 erste kommerzielle Bedingungen mit Startpartnern für Go Secure zu finalisieren und gleichzeitig die wiederkehrenden Umsätze mit Straßendaten weiter auszubauen.

Wichtigste Finanzdaten

Die Betriebsausgaben für Allgemeine Verwaltung, Vertrieb und Marketing sowie Forschung und Entwicklung sanken im 2. Quartal um 4 Millionen US-Dollar und im ersten Halbjahr um 4,3 Millionen US-Dollar im Vergleich zu den jeweiligen Vorjahreszeiträumen.

Das Quartal enthielt einen nichtzahlungswirksamen Ertrag von 2,8 Millionen US-Dollar aus der Neubewertung einer Leasingverbindlichkeit. Laut Management trug dieser Einmaleffekt zusammen mit dem Umsatzwachstum, einem höheren bereinigten Bruttoergebnis und Kostensenkungen zum ausgewiesenen Betriebsergebnis bei.

Geschäfts- und operative Entwicklung

Wiederkehrende Umsätze blieben der Hauptwachstumstreiber. Dem Management zufolge verlagert sich der Mix zunehmend hin zu vertraglich fixierten, wiederkehrenden und margenstärkeren Erlösen. Das Wachstum im 2. Quartal hing nicht von einer großen, einmaligen Software-Transaktion ab.

Das Unternehmen hat im Juni Go Secure Video auf den Markt gebracht. Das Produkt versieht Videos bereits bei der Aufnahme mit einer kryptografischen Signatur und prüft Einzelbild für Einzelbild, ob Inhalte verändert wurden. Dasselbe Authentizitäts-Framework wurde nun auf Audioaufnahmen ausgeweitet, einschließlich der Erkennung von Schnitten, Löschungen und synthetischer Ersetzung.

Das Management erklärte, dass es sich in aktiven Gesprächen mit potenziellen Startpartnern für Go Secure befinde und bei den kommerziellen Bedingungen einen umsichtigen Ansatz verfolge. Das Unternehmen geht davon aus, dass die Technologie über die ursprünglichen Einführungsmärkte hinaus eingesetzt werden könnte.

Im Bereich Transport verwies das Management auf die anhaltende Nachfrage von Behörden nach nicht-invasiven, KI-gestützten Systemen, da Kunden von in die Fahrbahn eingebetteten Sensoren abrücken. Das Data-as-a-Service-Modell stützt das Wachstum der wiederkehrenden Umsätze. Vom Vertrag in South Carolina wird erwartet, dass er die bestehende Präsenz des Unternehmens erweitert und Möglichkeiten für weitere Aufträge in diesem Bundesstaat schafft.

Prognose des Managements

Das Management geht davon aus, dass der Großteil der im ersten Halbjahr umgesetzten Kostensenkungen im 3. und 4. Quartal 2026 seine volle Wirkung entfalten wird.

Das Unternehmen hat zudem weitere Effizienzpotenziale außerhalb des Personalbereichs identifiziert, von denen jährliche Einsparungen in Höhe von mehreren Millionen US-Dollar erwartet werden. Das Management plant, diese Maßnahmen im 3. Quartal umzusetzen, wobei eine spürbare Wirkung für das 4. Quartal 2026 und bis ins Jahr 2027 erwartet wird.

Aufgrund des anhaltenden Wachstums der wiederkehrenden Umsätze, einer bereinigten Kostenbasis und Kapitaldisziplin rechnet das Management damit, in der zweiten Hälfte des Jahres 2026 die Profitabilität beim bereinigten EBITDA zu erreichen. Dieses Ziel bleibt an eine weiterhin konsequente Umsetzung und Kostendisziplin gebunden.

Für Go Secure verfolgt das Management das Ziel, im 3. Quartal 2026 die ersten kommerziellen Bedingungen mit Startpartnern abzuschließen; verbindliche Vereinbarungen sollen gegebenenfalls folgen.

Risiken und Beobachtungspunkte

Der Markt für automatische Nummernschilderkennung (ALPR) sieht sich verstärkter öffentlicher Beobachtung, strengeren Vorschriften für Datenspeicherung, -weitergabe und -zugriff sowie einem aktiveren Klageumfeld gegenüber. Laut Management haben diese Faktoren die Vertriebszyklen in der gesamten Branche verlängert.

Der Zeitplan für staatliche Beschaffungen bleibt ungewiss. Obwohl das Unternehmen bezüglich seiner Command-Pipeline mit mehreren Verkehrsministerien und anderen Gebietskörperschaften im Austausch steht, wies das Management darauf hin, dass der Zeitpunkt von Vertragsabschlüssen schwer vorherzusagen ist.

Das Ziel der bereinigten EBITDA-Profitabilität hängt von der fortlaufenden Umsetzung, dem Wachstum der wiederkehrenden Umsätze und Kostendisziplin ab. Das Unternehmen prüft zudem Refinanzierungsoptionen für bestehende Erlösbeteiligungsverpflichtungen, gab jedoch während der Telefonkonferenz keine definitiven Neuigkeiten bekannt.

Highlights der Analysten-Fragerunde

Bezüglich South Carolina erklärte das Management, dass der neue Vertrag die aktuelle Präsenz des Unternehmens erweitert und eine Plattform bietet, um weitere Aufträge in diesem Bundesstaat wie in Georgia zu verfolgen.

Hinsichtlich der Command-Pipeline erklärte das Management, dass im laufenden Kalenderjahr neue Auftragsgewinne möglich seien. Das Unternehmen verfügt über eine Pipeline und befindet sich weiterhin in Gesprächen mit mehreren Verkehrsministerien und Gebietskörperschaften, wenngleich die Zeitpläne für staatliche Auftragsvergaben unvorhersehbar sind.

Zu den Datenschutzbedenken bei ALPR äußerte das Management, dass Kunden und Aufsichtsbehörden nach wie vor prüfen, wie KI-gestützte Technologie für die öffentliche Sicherheit eingesetzt werden kann, ohne eine übermäßige Überwachung zu schaffen. Das Unternehmen ist überzeugt, dass sein langjähriger Fokus auf Datenschutz, Kundenkontrolle und verantwortungsvolle Datennutzung mit der Weiterentwicklung von Compliance-Anforderungen zu einem Vorteil werden könnte.

Vollständiges Transkript der Telefonkonferenz

Vollständiges Transkript der Telefonkonferenz

Ausführungen des Managements

Operator

Thank you. Good afternoon, ladies and gentlemen, and welcome to today's Recourse Systems, Inc. conference call. My name is Melissa, and I will be your coordinator for today. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded for replay purposes. Before we start, I must remind you that statements made in this conference call concerning future revenues, results of operations, financial position, markets, and other financial positions economic conditions, products and product releases, partnerships, and any other statement that is made to be construed as a prediction of future performance or events are forward-looking statements.

Such statements can involve known and unknown risks, uncertainties, and other factors which may cause actual results to differ materially from those expressed or implied by such statements. we ask that you refer to the full disclaimers in our earnings release. You should also review a description of the risk factors contained in our annual and quarterly filings with the SEC. Non-GAAP results will also be discussed on the call. The company believes that the presentation of non-GAAP information provides useful supplementary data concerning the company's ongoing operations and is provided for informational purposes only. I now would like to turn the presentation over to ReCore CEO, Mr. Robert Berman.

Robert Berman

Thank you, and good afternoon, everyone. I'll keep this brief. Q2 shows the impact of the actions we said we were taking in the second half of 26. Revenue grew, gross margins expanded, and our adjusted EBITDA loss narrowed sharply year over year to approximately $1.2 million. Joe will walk you through the details. The key point is that this is not a one-quarter effect. We're nearing the end of a judicious cost-reduction program and have absorbed many of the one-time costs associated with that. So the savings are showing up in the run rate now. and we continue to expect additional cost efficiencies and further expansion of our recurring revenue base in the second half of 26. focus now is on continued execution, recurring growth, and reaching profitability.

On growth, I would like to start with Go Secure. We launched Go Secure video in June to cryptographically sign video at capture and prove frame by frame whether it has been altered. This is not a probability score. It's a determination. We've now extended the same approach to recorded audio, addressing splicing, deletion, and synthetic replacement under one authenticity framework. In a world of inexpensive voice cloning, altered clips, and disputed evidence, we believe the need to prove that both video and audio are real will only grow. We're now in active discussions with prospective launch partners, and we're being deliberate about commercial terms because we believe GoSecure can extend beyond the initial launch markets and has the potential to become an important media authenticity standard. Thank you. Based on where those discussions stand today, our objective is to finalize initial launch partner commercial terms during the third quarter with definitive agreements to follow as appropriate.

While we see great potential in GoSecure, demand remains meaningful in our core transportation business. As reflected in recent procurement trends, agencies are moving away from in-road sensors towards non-intrusive AI-driven systems. and our data as a service model have positioned us well for that shift, and our recurring revenue continues to grow in that area. I also want to address ALPR. This environment is more challenging with increased public scrutiny, new rules around retention sharing and access, and a more active litigation environment around data practices. That has affected sales cycles across the industry. But over time, we believe this scrutiny favors companies like ours that have taken privacy, responsible use, customer control, autoimmune, seriously and reCORE has been deliberate across these issues for years. When they Agencies and oversight bodies demand demonstrable compliance rather than after the assurance that the problems will be addressed in the future.

We believe vendors whose offerings have been designed to address these issues from the start will be better positioned. To summarize, the efficiency work is showing through the numbers. We remain confident. in achieving our goals in the back half of 26, and see meaningful opportunities in Go Secure, recurring roadway data revenue, and responsible vehicle recognition.

Joseph Nalepa

And with that, I'll now turn it over to Joe. Thanks, Robert, and good afternoon, everyone. I'm going to walk you through the second quarter and first half of 2026, then close with cash and our outlook. Second quarter revenue was $12.7 million, up 2% from $12.4 million in the second quarter of 2025. For the first six months, revenue was $22.9 million, up 6% year-over-year. An important indicator for us is recurring revenue. Compared with the respective prior year periods, recurring revenue grew 14 percent in the quarter to 6.7 million and increased 21 percent for the first six months of the year to 13.3 million.

That growth rate is running ahead of total revenue. Indicating the mix of business is shifting towards the type of revenue we've been focused on growing. Contracted, repeatable, and higher margin. The improvement in revenue this quarter did not depend on a large non-recurring software transaction. reflects the ongoing economics of the business as it is structured today. Turning now to adjusted gross profit. Adjusted gross profit increased for both the three- and six-month periods. Adjusted gross margin expanded to 56% in the second quarter from 50% in the second quarter of 2025. For the first half of 2026, adjusted gross margin rose to 55% from 49%.

Two things primarily drove that improvement. First, revenue growth allowed us to operate more efficiently across deployments. And second, the improvement in our product mix. Adjusted gross margin in our business is largely a function of how much higher margin, software, and recurring revenue we carry relative to service-related work. And that mix has been moving in our Shifting to operating expenses, this is where the work from the first half of the year becomes visible. Across all major areas, general and administrative, selling and marketing, and research and development, expenses decreased by $4 million in the quarter and $4.3 million for the first six months ended June 30, 2026, compared to the prior year periods. That reduction comes from the actions we've discussed over the past few quarters.

We reduced headcount during the first half of the year and worked towards optimizing our engineering operations. But we've also identified further efficiencies unrelated to workforce that we expect to produce several million dollars worth of additional annualized savings. We expect to execute on these in the third quarter with a noticeable impact in the fourth quarter of 2026 and into 2027. The quarter also included a one-time gain of $2.8 million associated with the re-measurement of one of our lease liabilities. This was an expected non-cash item that was tied to our continued operational realignment. As a result, the company recorded income from operations in the second quarter. This was driven by the one-time gain related to the remeasurement, along with revenue growth, higher adjusted gross profit, and the organizational efficiency measures we took at the beginning of the year now flowing through the numbers.

Adjusted EBITDA loss for the quarter was $1.2 million, up a 79% improvement from the second quarter of 2025. Lower payroll and payroll-related costs drove most of that improvement, with revenue growth and margin expansion contributing as well. Turning to cash, we ended Q2 2026 with a healthy amount of cash slightly exceeding $10 million while our operating cash burn for the quarter was reduced to $2.4 million. For the six months ended June 30, 2026 compared to 2025, our cash used from operations improved by $9.6 million or 61%. This highlights the improvement in our cash consumption and reinforces our belief that the underlying business is moving in the right direction. We are actively evaluating options to refinance our existing prime revenue sharing nodes. Our growing contract portfolio and the impact of our recent win in South Carolina should help support the refinancing. provide additional information when there's something definitive to report.

Looking to the back half of the year, three things give us confidence. First, the full period benefit of the majority of the cost reductions. Many of these actions were taken during the first half, so the third and fourth quarter should reflect a cleaner expense base than the first half of the year did. Second, continued revenue growth in our recurring revenue. Third, continued discipline around capital management. Taken together, we expect to reach profitability on an adjusted EBITDA basis during the second half of 2026, assuming continued execution and cost discipline. Thank you for your time and your continued support.

With that, I will turn it back to the operator for questions.

Operator

Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. If you're choosing speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Mike Lattimore with Northland Capital Markets.

Unknown Speaker

with your question. Hey, hi, this is Vijay Devar for Mike Lattimore. A couple of questions. One, so how does the new South Carolina contract expand your opportunity versus the prior contract.

Robert Berman

Joe, you want to have one? Yes. Thanks for the question. The South Carolina contract will expand our current footprint in South Carolina. It will also give us the ability, similar to Georgia, to go out and get additional work in South Carolina and really expand our footprint in that market.

Unknown Speaker

Understood. How is the pipeline for command? Do you expect new wins this calendar year?.

Robert Berman

Joe, you want to handle that? Yes. The pipeline for command, we continue to monitor it. I do believe that there is the potential for new wins. You know, I think one of the things I continually mention is working with government, it's sometimes difficult to predict when they'll put pen to paper. But we do have a pipeline, and we're in communication with multiple different DOTs and different jurisdictions. Thank you very much. You're welcome. Thank you.

Operator

Thank you. Once again, if you'd like to join the question, please press star 1 on your telephone keypad. Our next question comes from the line of Matt Sokol, private investor.

Unknown Speaker

Yes, hi everyone. Thank you for the time. I was just trying to get a little bit more understanding regarding like the privacy issues that your competitors are facing and what your sales team is doing to hopefully alleviate some of those concerns and possibly get more wins in the future. Thank you.

Robert Berman

Mike, this is Robert. Are you referring to the privacy issues around ALPR? Yes, ALPR. Look, sure, as we said, the industry is in quite a flux. There's been a massive amount of press over the last even several months, six months, a year, but it's becoming more every day. And I think we're headed in a world where people are trying to figure out how you deploy technology, especially when you have AI and you do this to help public safety at the same time not create a surveillance state. And ReCore has always been about privacy. If you look at some of the patents we filed, you know, half a decade ago, they were always around how the state is used. So I think, as I said, you know, in the call that the industry is the law enforcement agencies. government, city councils and all are kind of pausing things, you know.

Some of our competitors are losing contracts. That doesn't mean they're turning around and hiring another vendor to replace them. They're trying to sort this all. And we think that the way we've positioned ourselves and we've stood fast for the last, you know, number of years on how we'll allow our data to be used and how our systems work to protect privacy. And I think that'll work in our favor, you know, in the months to come as, as you know, the government sorted out.

Operator

Once again, as a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad. We'll pause a moment to allow for any other questions. Mr. Berman, it seems there are no other questions at this time. I'll turn the floor back to you for final comments.

Robert Berman

Okay, well, listen, thanks, everyone, and stay tuned because I think the back half of the year we're going to deliver the same way we did in the first six months of the year. So appreciate all your support and look forward to talking to you again soon. Be well.

Operator

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

This live transcript is auto-generated without human intervention or review.

[Call has ended.]