Rekor Aims for 7-10% R&D Spend, Shifts Engineering to Domestic Operations
By Bullbit Editorial · March 31, 2026
WhatRekor plans to allocate 7-10% of its gross revenue towards research and development (R&D) by the second half of 2026, marking a significant shift in its investment strategy.
WhyThis move aims to enhance innovation and competitiveness, as the company seeks to stay ahead in the rapidly evolving automotive technology landscape.
SignalThe onshoring of engineering operations indicates Rekor's commitment to reducing reliance on international suppliers and improving supply chain resilience.
TargetBy normalizing R&D expenditure, Rekor aims to drive product development, improve quality, and increase market share in the growing intelligent transportation systems market.
RiskHowever, the increased R&D spend may strain the company's financial resources, potentially impacting profitability and cash flow, particularly if the investments do not yield expected returns.