COLUMBIA, Md. — February 24, 2026 — Leads & Copy —
Rekor Systems, Inc. (NASDAQ: REKR) will consolidate its worldwide engineering operations to increase efficiency and align its cost structure with current revenue levels.
The company will move engineering work from Israel to its U.S.-based teams, consolidating all key product development and technology functions in the United States. The move supports efforts to streamline operations and focus resources on initiatives that impact revenue, customer delivery, platform performance, and scalable growth.
The shift mirrors an industry movement to relocate artificial intelligence development work to the U.S., especially where these technologies support U.S. government agencies and critical infrastructure, and address 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 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. The 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 said the company closely examined its global footprint. He added the company is operating in line with current revenue while maintaining the ability to execute strategic priorities. Nalepa said consolidating engineering operations in the United States improves coordination across product and delivery teams and is a significant step toward lowering annual operating expenses. He expects this and other actions to reduce the company’s 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 said Rekor remains focused on driving disciplined growth while continuing to evaluate opportunities to improve efficiency and deliver long-term shareholder value.
Rekor Systems, Inc. develops and implements roadway intelligence systems using AI-enabled computer vision and machine learning. Rekor collects, connects, and organizes the world’s mobility data. The company’s Rekor One® Roadway Intelligence Engine transforms data points into intelligence through proprietary computer vision, machine learning, and big data analytics that power platforms and applications. The solutions provide insights that give governments and businesses a picture of roadways while providing a collaborative environment.
Source: Rekor Systems, Inc.
