Q3 2025 Rekor Systems Inc Earnings Call
Speaker #1: today's Recourse Systems Conference I'll be your coordinator for today. If Good afternoon, ladies and gentlemen, and welcome to you require operator assistance during the conference, please press star zero.
Speaker #1: As a reminder, this conference is being recorded for replay Call. Good My name is Alicia, and want to read you the company's remind you that statements made in this abbreviated Safe Harbor Statement.
Speaker #1: revenues, results of operations, financial positions, markets, economic conditions, products partnerships, and any other statements prediction of future performance or and product releases, events are forward-looking statements.
Speaker #1: Such statements can involve known and unknown risks, uncertainties, that may be construed as a actual results to differ materially from those expressed or implied by such statements.
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Speaker #1: Non-GAAP results will also be discussed on the call. The company believes the presentation of non-GAAP information provides operations and is provided for informational company's ongoing useful supplementary data concerning the purposes only.
Speaker #1: I would like to turn the presentation over to the Interim President and CEO of Rekor Systems, Mr. Robert Berman.
Speaker #2: Good afternoon, everyone. I'm incredibly proud of what the recourt team has accomplished this quarter. company's history so I'm call. But we are going to switch things up a pleased to lead off today's The best-performing quarter in our bit today.
Speaker #2: Before updates, I'll first turn the diving into the business and technology call over to our CFO, Eyal Hen, for some important financial and organizational updates.
Speaker #2: Eyal, the floor is yours.
Speaker #3: afternoon to everyone joining Thank you, Robert, and good us. After nearly seven years with Recourse, I've made the decision to step down from my role as chief financial privilege to help lead the officer.
Speaker #3: company through its transformation and growth journey and I'm deeply proud to conclude this It's been tremendous chapter with the strongest Recourse's the dedication and talent of our entire history.
Speaker #3: team. I'm also very pleased to introduce my successor, Joe Nalepa, who will take over as chief financial It's truly a testament to officer. Joe has served as Recourse's corporate controller for the past six and a half years and has been deeply CFO role over the past involved in every aspect of the year.
Speaker #3: brings both internal Joe institutional knowledge and financial rigor with prior experience as a manager at KPMG. His long-term tenure at Recourse and commitment to excellence make him the ideal person to step into this role.
Speaker #3: There will be no learning curve with Joe. His appointment by our board ensures a seamless transition, maintaining continuity and stability. I remain overwhelmingly optimistic about Recourse's future and live with complete confidence in the company's strategy.
Speaker #3: Our team and the tremendous momentum the company has built. It's been an honor working alongside such a talented and mission-driven team. Recourse's success. With that, it's my pleasure to turn the call over to our incoming CFO, Joe Nalepa, to discuss the financials.
Speaker #4: of luck to you and your family. quarter. performance for the I'd also like to thank all our investors who have joined us on today's call.
Speaker #4: of luck to you and your family. quarter. performance for the I'd also like to thank all our investors who future is bright and I look forward to financial results for the three and nine months ended September been focusing on execution and operational efficiency and are 30th, 2025.
Speaker #4: make. During the third quarter of 2025, Recourse Thank you, Eyal. delivered its best financial And best consecutive quarter of performance in its history, marking our third We've results.
Speaker #4: We delivered record revenue of $14.2 million, an increase of 35% compared to Q3 2024 and 15% compared to Q3 2025. On a year-to-date basis, we have achieved $35.8 million, up 9% from the first nine months of 2024.
Speaker #4: This increase represents continued and urban mobility recorded revenue of businesses. We continue to see strong growth across our public safety active deployments, giving us confidence in our ability to continue to momentum in our sales pipeline and drive growth going forward.
Speaker #4: Recurring revenue for the third quarter 2025 totaled $6.5 million, representing an 18% increase compared to the recurring revenue in 2024. For the nine months ended September 30, 2025, recurring revenue was $17.5 million, up 5% year over year.
Speaker #4: This reflects our expanding our recurring revenue base through long-term software and long-term strategy of data as a service subscription contracts. Our adjusted gross margin for the quarter was 44% in Q3 2024.
Speaker #4: For the first nine months of 2025, adjusted gross margin was 55% versus 48% in the prior year period. This improvement was largely driven by a greater portion of compared to our service and hardware-based contracts.
Speaker #4: high-margin software sales we expect margins to continue to fluctuate 63% compared to As Eyal has noted previously, revenue. A key highlight this a larger share of total quarter was our continued focus on operating efficiency.
Speaker #4: stabilize as our software and data Total operating expenses excluding depreciation and amortization declined 24% a 3.7 million dollar reduction. Year to by 7.8 million, an 18% improvement compared to the same period quarter over quarter, representing last year.
Speaker #4: These reductions were achieved across all major areas of the business and reflect discipline, cost containment, and a deliberate realignment of resources to support our strategy.
Speaker #4: The combination of record revenue and operational efficiencies resulted in significant improvements in our profitability. Adjusted EBITDA loss for Q3 2025 was $1.5 million, an improvement of 7.9 million or 84% from Q3 2024.
Speaker #4: On a year-to-date basis, adjusted EBITDA loss improved by 10.8 million, to $14.5 million, compared to $25.3 million in the prior year period. These results reflect record performances across the company as we continue to manage our operating expenses to align with our growth as our revenue base continues to expand.
Speaker #4: Before I turn it back to Robert, I want to say how truly honored and excited I am to serve as CFO and move forward with our efforts to focus on transparency, financial discipline, and execution that supports our long-term strategy.
Speaker #4: We have a clear strategy, a strong foundation, and a dedicated team driving results to create value for our shareholders. I look forward to building on our progress we have made and helping lead the next phase of growth.
Speaker #4: attention. Robert, back to you. Thank you for your
Speaker #2: Joe, welcome officially to your new role. We've had a longstanding relationship, and I am pleased to see you take on this leadership position.
Speaker #2: With your prior experience at KPMG and long tenure at Recours, we are fortunate to have you here and to take the reins from Eyal.
Speaker #2: As outlined this quarter represents a third straight quarter of positive results for both investors and the company. We are seeing clear signs that Recours is reaching a point where the growth of recurring revenue and expanding market demand are aligning with operational discipline to drive sustainable growth.
Speaker #2: These results reflect the momentum outlined in our prior announcement, where we stated that Recours expected record quarterly revenue, along with a significantly improved and adjustment in EBITDA.
Speaker #2: And gross margin. We continue to work towards these objectives. In early October, we achieved a major milestone by securing our largest statewide multi-year contract with the Georgia Department of Transportation, valued at a minimum of $50 million over the contract's full term.
Speaker #2: This contract further validates our leadership and roadway intelligence and data infrastructure, providing a long-term growth foundation in one of the most strategically important transportation markets in the country.
Speaker #2: We also received recognition for our work in South Carolina, where Recours Technology powers the state's virtual weigh station network. The program was recently awarded a state technology innovation award for establishing a nearly 100% accuracy rate in overweight truck targeting.
Speaker #2: A model that other states can follow. This project showcases Recours' ability to effectively use AI and connected infrastructure to deliver measurable value and efficiency to state agencies.
Speaker #2: Furthermore, three new and very large states have begun using Recours Discover. Beyond our core operations, I'd like to briefly mention a new initiative Recours plans to enter, the Global Deepfake Detection Market.
Speaker #2: While we can't speak in detail yet, this opportunity builds on Recours' years of experience in the video analytics for government agencies and particularly law enforcement.
Speaker #2: For some time, even before deepfakes were a notion, and the public's mind, we've considered the evidential implications of synthetic media and deepfake technologies and positioned ourselves to protect our customers and the public at large in this critical area.
Speaker #2: These efforts have now been concentrated in Recours Labs, which is operating as an independent entity, and there's more to come on this one time is right.
Speaker #2: We continue to see strong performance across our core portfolio. Recours Discover and Command have generated considerable attention and adoption in the market. More importantly, we are now seeing an organic convergence of these two technologies in newer fees issued by transportation authorities.
Speaker #2: This reflects a growing industry movement towards integrated data and intelligence solutions—a approach that Recours has been pioneering for years. Importantly, too, our data-as-a-service business model is proving to be a major differentiator.
Speaker #2: Agencies increasingly want data without the hardware burden. Deployment headaches and maintenance issues. Recours is perfectly positioned to meet that demand, with AI-driven solutions that are scalable, cloud-based, and high margin.
Speaker #2: I also want to take a moment to recognize the continued strength of Recours Scout. While Discover and Command received much of the public attention, a significant portion of our revenue continues to come from Scout.
Speaker #2: Which remains a cornerstone of our technology portfolio and a recognized leader in vehicle and license plate recognition. As part of our ongoing effort to strengthen and expand this business, I am pleased to announce that Jennifer, Jen, Candelaria, will join Recours as general manager of Scout.
Speaker #2: Jen will be based in our Columbia, Maryland office and will report directly to me. Jen brings more than a decade of global leadership experience across North America, Europe, Asia, Latin America, and the Caribbean.
Speaker #2: She has a strong track record in technical sales, product management, and business development, with prior leadership roles at Motorola Solutions and Milestone Systems AI Business Unit, Briefcam.
Speaker #2: Her experience building high-performance teams and driving strategic growth aligns perfectly with our goals for Scout. Jen will oversee the full P&L for Scout business, lead sales strategy, market share expansion, and partner channel engagement to accelerate both revenue and margin.
Speaker #2: Her appointment significantly strengthens our overall leadership team and reinforces our commitment to operational excellence across all business lines. As we enter the first quarter of the year and look ahead to 2026, Rekor continues to be positioned for substantial growth.
Speaker #2: The momentum we built across our technology platforms—customer base, and financial performance—underscores that Recours transformation is delivering lasting value. And we would like to thank our shareholders, employees, and partners for their continued trust and support.
Speaker #2: And lastly, I'd like to publicly thank Eyal, once again, for his dedicated service to Recours. And with that, Operator, we'll now turn the call over for questions.
Speaker #1: Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one, or your telephone keypad.
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Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.
Speaker #1: Thank you. Our first question comes from the line of Louis Del Palma with William Blair. Please proceed.
Speaker #2: Good afternoon, Robert Eyal. And Jonah, and Eyal, it was a pleasure working with you and congrats—Jonah—on your appointment as CFO. My first question for Robert, what type of product does the Recours team envision developing with the deepfake detection division?
Speaker #2: And would the product be software as a service, or do you imagine it would be more of a solution in which it requires your personnel combined with your software?
Speaker #3: So this is Robert, and thanks for the question. And by the way, it's Joe Nalepa, right? So who is assuming the role of CFO.
Speaker #3: But let me answer you by saying that the product that we had previously announced is being developed by a subsidiary, which is operating independently as Recours Labs under the management of the director.
Speaker #3: And given what's going on in that space and the competition and competition for IP and other things, there's not much more we can say about what we're doing than what we've said.
Speaker #3: I know that's probably not satisfying, but we expect to get a product in the market in '26, and we just want to be careful.
Speaker #3: Look, Recours has a long history of working with AI and machine vision, which is video and audio. And this came to our attention back in '23, so it's not something that's just kind of popped up one day and we decided, "Oh my God, deepfakes." Right?
Speaker #3: So we have been looking at it. We actually started developing some technology around it for our customers that were requesting. Okay, this technology. So that's really all we can say about it at this point in time.
Speaker #3: I wish I could say more but really
Speaker #3: can't. Definitely.
Speaker #2: Definitely exciting. And how should we think about the EBITDA trajectory and margins over the next several quarters? I think you've been able to take OpEx out of the model and you're also in the process of scaling the Georgia contract, so how should we think of margins and EBITDA?
Speaker #3: I think the way you should think about it is exactly what we've been saying. We've always said that we expect as things progress that our margins will increase.
Speaker #3: We expect that they will stabilize higher than we've reported this quarter. And that's just part of the development process of the technology that we're putting in the field.
Speaker #3: I think the most important thing is what was said earlier about our clients are looking for the data as a service business model. They're not interested in technology and hardware and maintenance contracts and so forth.
Speaker #3: They need the data that they need to operate the roadways. Look, everyone here understands what's happening. You hear all these things about robotaxis and companies doing this, that, and the other thing.
Speaker #3: Well, the DOTs have to keep pace. They've got to keep the roadways safe. And they have to do that through managing data and the idea of delivering the data as a service as opposed to delivering technology and supplying it and maintaining it as a contractor is where it's headed.
Speaker #3: And that means higher margins, longer-term contracts, and a better business model for a company like Recours. So I think it's consistent with where we projected that we were going.
Speaker #3: And we're seeing that. And we're seeing that in results today, right?
Speaker #2: Great. And do you see many other contracts similar to the Georgia contract in your pipeline, such that other states will look at Georgia as the model or the paradigm and they perhaps won't need to do a rigorous RFP process?
Speaker #2: They can trust that Georgia did the proper due diligence and they can expedite the process and go straight with
Speaker #2: you. Yeah.
Speaker #3: Well, look, I think obviously states procure the way they procure, but I think the good news is that they do follow each other. And at the end of the day, I believe that what we're seeing—okay, which we pioneered—was the concept of data as a service.
Speaker #3: And delivering the solutions that these agencies are looking for. And that's where it's headed. What we're seeing now, which I think we said during the call, is that this is unprompted.
Speaker #3: We're seeing RFPs come out that we're responding to that are asking for this business model with the solutions that we have. And what's really interesting about it is we're seeing a convergence of both the discover and the command platform.
Speaker #3: And what I mean by that is when people think about DOTs, they have two sides. They have operations, which is maintaining roadways, operating the roadways, public safety, and all the things that go along with that.
Speaker #3: And then you have more long-term things like planning for how you maintain your roadways over the next 10, 15, or 20 years. What we're seeing is that now the DOTs are looking to combine that into a single pane of glass where they can get the data they need through one supplier—okay, not by buying hardware and not by having a contractor install equipment and having to worry about, 'Is it working?'
Speaker #3: Is it not working?" But by a company like Recours that says, "Guess what? We'll give you all of this data that you need to do both planning and operations with.
Speaker #3: And pay us for the data. And it's not giving you what you need to operate your roadway system, then don't pay us." Right? And if people think about today's world, everyone's used to getting things as a service.
Speaker #3: And that's something that I'm proud to say we pioneered. Okay? We fought long and hard to make that business model work. When we first started years ago, people said, "Well, I'm not sure that that's going to work." But that's exactly what we're starting to see.
Speaker #3: So we're seeing RFPs come from states that, again, are unprompted. They're just showing up. And they're looking for exactly what Recours does. And the way we do business, more importantly, they're asking for that from the companies that are going to bid that.
Speaker #3: And I think Rekor is uniquely positioned to offer those services and solutions because, frankly, we pioneered a lot of it.
Speaker #2: Thanks, Robert. And thanks,
Speaker #2: everyone. Yeah.
Speaker #3: Thank
Speaker #3: you. Thank
Speaker #4: you. As a reminder, it is star one to ask a question. Our next question comes from the line of Tim Moore with Clear Street.
Speaker #4: Please proceed.
Speaker #5: Thanks. Hey, all. Best wishes for your next phase outside of Recours. I remember meeting at your headquarters a year ago and speaking many times since then.
Speaker #5: So good luck with everything.
Speaker #5: And. Thank you. And my first question is about your command wind that you were piloting a few years back in Austin, Texas. And that contract clearly came through quite well in June or so.
Speaker #5: So just wondering, is Austin starting to ramp up? Is the plan there to kind of tackle Austin because that's where the pilot was and then really go out to Dallas, Fort Worth, and then do Houston?
Speaker #5: Is there any kind of just color you can add on that in the ramp-up?
Speaker #3: That's a great question. Austin has issued a PO, okay? Under the RFP that Recours won, we have an expanded contract with them. Eyal, I think it's or Joe, what, three years?
Speaker #3: I'm not sure what it is. But it took the full benefit of the pricing that was in the RFP and we've been working closely with Techstats Procurement Group to they wanted to kind of roll us out to the other districts in a certain way.
Speaker #3: And when you work with states, you follow their lead and you do the best you can to support what they're asking you to do.
Speaker #3: So I think we'll see a successful rollout in Texas beyond Austin. Right? And we're just in that process right now with the Techstat Procurement team.
Speaker #3: Right? But look, I just one additional thing about our business is it's B2G. Always hard. But the good news is that when you win, you're in.
Speaker #3: And you're there for a long time. And that's the nice thing about this business. Right? So it's a double-edged sword. A little painful on the front end, but on the back end, it's very rewarding.
Speaker #3: And I think that that's we're on the back end. Especially given Georgia and other states like Texas and others as well. So.
Speaker #5: Great. Just to play on that thread of you're winning, you're in, which is great. How does the Caltrans value discover contracts stack up? Do you think that's a third of the value of what you've been doing either in Georgia or Texas?
Speaker #5: Just kind of curious.
Speaker #3: Look, California is a large state. And I love to talk about the size of that potential opportunity. But I'd hate to get ahead of ourselves and then have the folks at Caltrans get all upset and say, "Wait a second.
Speaker #3: We're just doing this that or the other thing." But look, it's a massive opportunity. And we were pleased to be asked by them to come out and showcase the tech for Caltrans and all their districts.
Speaker #3: And that's exactly what we're doing. But look, we're going to slow things down a bit and be more methodical about what we're telling the market.
Speaker #3: But the good news is the tech is being adopted. The business model is being adopted. The states have to do this stuff. And Recours is in a premium position to be able to deliver these services because, again, we pioneered a lot of this.
Speaker #3: So I think it just makes us very unique.
Speaker #3: Right? Okay.
Speaker #5: Good. Good. I just have one last question. And it's for Eyal, Joe, you, Robert, whoever wants to answer it. Now that you nailed down the Texas contract, the extended higher value Georgia contract, that Caltrans, do you expect to do revenue-sharing note again?
Speaker #5: Because, I mean, that would definitely help improve liquidity. I'm just kind of curious what the thoughts are around that.
Speaker #3: Eyal, you can certainly handle that because you've been working on it and transferring it over to Joe. But
Speaker #3: please.
Speaker #2: Yeah. We are working
Speaker #2: as part of improving our liquidity. We are working with the banker as we announced before. To have another series of this note, now with Georgia and Texas coming in to add to the pool.
Speaker #2: That gives us the opportunity to raise money through this revenue-sharing note tool that we have last year and a half. So definitely, yes, we are working towards this.
Speaker #2: And you will know when this is being executed. But we are working with the banker as we announced before through this second series of
Speaker #5: Okay. Well, thanks, notes. Eyal. And best wishes again. I'll turn it back over.
Speaker #3: Thank you.
Speaker #4: Thank you. As a reminder, it's star one to ask a question. Our next question comes from the line of Mike Lattimore, with Mossman Capital Markets.
Speaker #4: Please proceed.
Speaker #2: Yeah. Hi. This is Vijay Devar for Mike Lattimore. Should we get a full parade of portion of the new Georgia contract in the fourth
Speaker #2: quarter?
Speaker #3: I'm
Speaker #3: not sure we caught that, Eyal,
Speaker #3: Joe. Can you repeat the
Speaker #2: question, please?
Speaker #3: Can you repeat the question, please?
Speaker #2: Yeah. Do you expect a full parade of portion of the new Georgia contract in the fourth
Speaker #2: quarter? Yes, we
Speaker #3: do. Georgia contract is October and we anticipate in effect. Since to build them under the new contract,
Speaker #3: yes.
Speaker #2: Okay.
Speaker #2: And tell me the status of the discover deployments in
Speaker #2: Georgia. of discover deployments again? in Georgia?
Speaker #2: Georgia. of discover deployments again? in Georgia?
Speaker #3: Can you repeat the question
Speaker #2: The status
Speaker #3: detail. But we have new discover deployments going in in Georgia a couple of other states as well. So I'm not sure that we and Florida.
Speaker #3: And work. So trust that we're taking full advantage of working everywhere And other states allow the we can, getting as many systems in as possible.
Speaker #3: have all those exact numbers. And just so you know, I think we can't get into the kind of towards the end of the year, we shift our resources around because some states slow down work over the Thanksgiving to New Year's holiday.
Speaker #3: I think we put a record number of systems in in Florida. And a very short period of time. And Eyal, Joe, I'm not sure I have to you guys have those numbers handy.
Speaker #3: They're going in. I'm sorry. Can you repeat that for me for a sec? Sorry. The Georgia contract is in full effect. We have And a PO from them.
Speaker #2: All
Speaker #2: finally, are cities joining the Georgia procurement contract All right. But.
Speaker #3: next year, so it processes. Within the state and it's in effect. speak.
Speaker #4: question. Thank you. Our next question comes investor. Please
Speaker #6: Hi. Thanks for taking my For the call. The international market, I believe, Recours attended the ITS European back on May 19th. And Mark Okay.
Speaker #6: was over there earlier in the year. Can you give us any feedback on any of
Speaker #6: that? Sure.
Speaker #3: I mean, this is new for us. Right? Because we haven't looked to do business outside of the US borders. Other than with the Scout platform.
Speaker #3: But we are actively engaged with a number of customers in Europe. And look, the technology works here. It works there. So we hope to be doing business in Europe and outside the US in
Speaker #3: 2026.
Speaker #6: And
Speaker #6: And the QSR sector, is that any push for that? Or are you just no revenue there?
Speaker #6: Or? Again, it's more
Speaker #3: Scout. And it's not something that we're prepared to talk to today about. But look, we are Recours with its vehicle recognition software has some unique tools which allows for property owners to extract anonymized information from vehicles that are on their property.
Speaker #3: So that's something that has a lot of commercial application. And I think that's an area that we're going to be focused on in '26.
Speaker #3: And hopefully, with Jen joining us, we'll be able to produce some real results with that. But I think that's something that we think has some strong opportunity.
Speaker #3: Look, companies want to know who's on their property, where they're coming from. And if you can do that in an anonymized way, which Recours can do, and we have some IP and we have some patents on how we do that, then look, we expect to take advantage of that in the commercial sector.
Speaker #3: So it's an area we're certainly focused on. So that's a good question. So thank
Speaker #6: And do you see the technology being
Speaker #6: used anywhere else? For example, maybe you. seaports for shipping containers? For example? Or?
Speaker #3: Well, that's a really good question. And without getting into too much detail, I could just tell you that state DOTs and the federal government have a strong interest in tracking what comes in through a port, onto a tractor-trailer, onto a highway, and so forth.
Speaker #3: And that's what makes, again, Recours unique. Because not only do we have the ability to do what we do on the roadways with respect to discover, but given the ability to recognize vehicles, also the ability to recognize DOT numbers and other things related to what might be on the side of a shipping container.
Speaker #3: So yes, that's very much something that we're looking at and working on. And I think it's a really good question. And I think that's, at the end of the day, how all this kind of gets stitched together and why it has
Speaker #3: value. And my last
Speaker #6: question, as a long-term shareholder, do you believe the possibility is what's holding the elevation in the share price and maintaining it there in your opinion?
Speaker #3: Look, it's tough being a small public company in this world. Right? It's just tough. Right? But I think the good news is that I think we've proven that we could advance the company.
Speaker #3: We can increase our revenue. We can control our costs. We can do so without impairing revenue. And we can drive the company to profitability.
Speaker #3: And at the end of the day, it's really the value of the technology. And there's a lot of value to what we've developed that it took years to do.
Speaker #3: And it's not easily replicated. So I personally expect that that value is going to monetize in the share price at some point. People are going to realize it.
Speaker #6: And you don't expect a slowdown in this quarter with the holidays, Thanksgiving, Christmas, New Year's?
Speaker #3: Well, look, there's some seasonality in our business. Certain DOTs do limit the amount of work that you do roadside for Thanksgiving to New Year's.
Speaker #3: But we're shifting our manpower around to those states where we can work. And we think there's a good chance that the growth can overcome the little bit of seasonality that you have.
Speaker #3: But at the end of the day, this stuff really doesn't matter. Because once the company gets its sea legs, and it grows, it's just going to grow.
Speaker #3: Because it's still very early. Right? And the more important thing is that the pipeline is there. The adoption is there. The expansion is there.
Speaker #3: And as I said earlier, the RFPs that we're seeing on prompted from our customers, it just tells you that Recours is headed in the right direction.
Speaker #3: And that we're providing what they want, right? So it's a really big market, and we haven't even touched the tip of the iceberg. It takes time.
Speaker #6: questions. And I appreciate all the hard work everyone's doing
Speaker #6: at Recours. Yeah.
Speaker #3: Thank you. I appreciate it. Thanks for the input.
Speaker #3: support. Thank
Speaker #1: you. As a reminder, it's star one to ask a question. Is there no further questions at this time? I'd like to pass the call back over to Robert for any closing remarks.
Speaker #3: Yeah. Operator, I just want to make sure that there's no further questions from any shareholders. Sometimes we hear that there were. And that people didn't get a chance to ask.
Speaker #3: But there are no further questions. The queue is clear.
Speaker #1: Yes. That's correct.
Speaker #3: Okay. Well, look, everyone, thank you so much for the support. Thank you for joining the call. And it's early. It's early in the game for Recours.
Speaker #3: But I think we've proven that we're headed in the right direction. You just don't land contracts with states the likes of Recours has and not have something that's really there.
Speaker #3: Okay? So it's a good sign. And again, I think we're headed in the right direction both with the company's technology as well as the business model.
Speaker #3: And we're looking forward to a great year in 2026. And seeing you all in the next call. So thank you all. Appreciate it.