With over $40 million in expected cash on hand, Duos is now fully capitalized to fulfill its $50 million revenue pipeline and advance deployment of an additional 65 Edge Data Centers Offering included primary participation from fundamental institutional investors, including a leading long-only mutual fund, several preeminent global investment managers, and existing investors JACKSONVILLE, Fla., July 30, 2025 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT) a provide ...

JACKSONVILLE, Fla., July 30, 2025 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT) a provider of adaptive, versatile and streamlined Edge Data Center (“EDC”) solutions tailored to meet evolving needs in any environment, today announced that it is commencing an underwritten public offering of shares of its common stock (or common stock equivalents). The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be c ...

Core Insights - Duos Technologies Group, Inc. is expanding its Edge Data Center (EDC) infrastructure with the deployment of two new EDCs in Corpus Christi, Texas, aimed at enhancing carrier access and supporting local markets [1][3][4] - The Corpus Christi project is part of Duos Edge AI's broader strategy to deploy 15 EDCs nationwide by 2025, focusing on underserved and high-growth markets [4][6] - The new EDCs will serve as central communication hubs for various sectors, including mobile operators, enterprises, education, and healthcare, thereby driving local economic growth [1][3] Company Strategy - Duos Edge AI emphasizes rapid execution and scalability in deploying next-generation edge infrastructure, which is crucial for meeting increasing demand for localized computing power [3][4] - The company aims to bridge the digital divide by providing high-powered edge computing solutions that minimize latency and optimize performance, particularly in underserved communities [5][6] - The modular design and rapid 90-day deployment capability of the EDCs allow for efficient scaling and integration with existing infrastructure [4][5] Market Impact - The deployment of EDCs in Corpus Christi is expected to enhance service readiness for regional partners and remove barriers to edge connectivity [3][4] - By positioning EDCs within 12 miles of end users, Duos Edge AI aims to significantly improve data processing capabilities for applications requiring real-time responses [5][6] - The initiative is aligned with the growing demand for high-speed computing solutions in various sectors, supporting the digital economy and local development [1][3]

Core Insights - Duos Technologies Group, Inc. has been added to the Russell Microcap® Index, effective June 30, 2025, which is a significant achievement for the company [1][4] - Membership in the Russell Microcap® Index enhances visibility with institutional investors and reflects the company's progress in strategic initiatives [4] - The Russell indexes are widely utilized by investment managers and institutional investors, serving as benchmarks for approximately $10.6 trillion in assets as of June 2024 [4] Company Overview - Duos Technologies Group, Inc. is based in Jacksonville, Florida, and focuses on intelligent technology solutions for Machine Vision and AI applications, including real-time analysis of fast-moving vehicles and Edge Data Centers [6] - The company operates through its subsidiaries, Duos Technologies, Inc., Duos Edge AI, Inc., and Duos Energy Corporation [6] Industry Context - The annual Russell US Indexes reconstitution ranks the 4,000 largest US stocks by total market capitalization, determining membership based on objective market-capitalization rankings and style attributes [3] - FTSE Russell, the global index provider, calculates thousands of indexes that benchmark markets and asset classes in over 70 countries, covering 98% of the investable market globally [7]

Core Insights - Duos Technologies Group, Inc. has announced a strategic partnership with Region 3 Education Service Center to deploy a new Edge Data Center in Victoria, Texas, enhancing its presence in the education sector and rural markets [1][3] - The Victoria EDC will support 37 school districts, providing secure and scalable local computing capabilities for AI-based learning platforms, telemedicine, and EHR systems [3][4] - This deployment is part of Duos Edge AI's 2025 roadmap, aiming for 15 contracted EDCs by year-end, with nine sites already identified [4][6] Company Overview - Duos Edge AI specializes in high-function Edge Data Center solutions designed to minimize latency and optimize performance, particularly in underserved communities [6][8] - The company’s modular architecture is engineered to SOC 2 Type II compliance, featuring N+1 power redundancy and dual generators for enhanced reliability [3][4] - Duos Edge AI aims to position its edge data centers within 12 miles of end users, significantly closer than traditional data centers, enabling timely processing of data for real-time applications [6] Market Impact - The partnership with Region 3 ESC is expected to accelerate digital equity and expand Duos Edge AI's market footprint while contributing to sustainable long-term revenue [4] - The initiative will also create new job opportunities in the Victoria area and foster collaboration with local businesses [4] - The deployment aligns with the increasing demand for localized, low-latency compute infrastructure across Texas, the Southeast, and Midwest [4][6]

Core Points - Duos Technologies Group, Inc. has appointed Brigadier General (Ret.) James Craig Nixon as the new Chairman of its Board of Directors, effective immediately [1] - Brigadier General Nixon succeeds Kenneth Ehrman, who served as Chairman since 2020 and stepped down to focus on his role at Halo Collar [3] - CEO Chuck Ferry expressed confidence in Nixon's leadership, highlighting his military and business experience as valuable for the company's growth in data infrastructure and energy sectors [4] - Nixon has over 29 years of military service and has transitioned into business leadership, previously serving as CEO of ACADEMI and Constellis Group, which generates over $1 billion in annual revenue [4] - Nixon is also a founding partner of the McChrystal Group and currently leads Nixon Six Solutions, advising various organizations [5] - Nixon emphasized the company's potential in critical infrastructure sectors and its foundation in AI and machine vision, indicating a focus on long-term opportunities [6] - Duos Technologies Group, Inc. specializes in intelligent technology solutions for Machine Vision and AI applications, including real-time analysis and power consulting [7][8]

Financial Performance - Duos Technologies Group, Inc. reported a quarterly loss of $0.18 per share, which aligns with the Zacks Consensus Estimate, an improvement from a loss of $0.38 per share a year ago [1] - The company posted revenues of $4.95 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 15.16%, compared to revenues of $1.07 million in the same quarter last year [2] - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $5.65 million, and for the current fiscal year, it is -$0.38 on revenues of $28.3 million [7] Market Performance - Duos Technologies Group, Inc. shares have increased approximately 21.2% since the beginning of the year, significantly outperforming the S&P 500, which gained only 0.2% [3] - The company has surpassed consensus revenue estimates three times over the last four quarters, indicating a positive trend in revenue performance [2] Earnings Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The estimate revisions trend for Duos Technologies Group, Inc. is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6] Industry Context - The Technology Services industry, to which Duos Technologies Group, Inc. belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Duos Technologies Group (DUOT) Q1 2025 Earnings Call May 15, 2025 04:30 PM ET Company Participants Charles Ferry - CEO & DirectorAdrian Goldfarb - CFODan Weston - General Manager Conference Call Participants Mike Latimore - Managing Director & Senior Research AnalystEdward Woo - Director of Research & Senior Analyst Operator Good afternoon. Welcome to Duos Technologies First Quarter twenty twenty five Earnings Conference Call. Joining us today's call are Duos' CEO, Chuck Ferry and CFO, Adrian Goldfarb. Foll ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 increased 363% to $4,950,000 compared to $1,070,000 in Q1 2024 [11] - Gross margin for Q1 2025 increased 1288% to $1,310,000 compared to $90,000 for Q1 2024 [13] - Net loss for Q1 2025 totaled $2,080,000 compared to a net loss of $2,750,000 for Q1 2024, representing a 24% decrease in net loss [15] Business Line Data and Key Metrics Changes - The power line of business contracted 570 megawatts with APR Energy's gas turbine fleet, an increase of 180 megawatts since the last report [3] - The edge data center business, DuosEdge AI, has customer commitments for an additional eight edge data centers, expecting to complete installations in the next six months [4][8] - Revenues from the asset management agreement (AMA) with APR Energy are expected to positively impact gross margins [11] Market Data and Key Metrics Changes - Current contracts and backlog represent more than $45,000,000 in revenue, with approximately $17,400,000 projected to be recognized in Q2 2025 [18] - The company expects to enter 2026 with more than $3,000,000 in annual recurring revenue from multi-year contracts [9] Company Strategy and Development Direction - The company is focused on executing its strategy to grow into a larger entity through three distinct divisions: Duos Technologies, DuosEdge AI, and DuosEnergy [6] - The edge AI division is actively marketing remote data centers to serve local communities and businesses, with plans to deploy 15 edge data centers by the end of the year [7][8] - The company is evaluating opportunities to acquire additional assets to grow the overall value of APR Energy [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the power business and the edge data center market, noting that both lines of business are currently performing well [34][36] - The company anticipates breakeven or potential profitability in the third and fourth quarters, with a focus on minimizing losses in the first half of the year [19] Other Important Information - The company has improved its balance sheet, with shareholders' equity now over $5,100,000 and cash of $6,480,000 [16] - The company has retired $1,000,000 of debt during the quarter and expects to retire an additional $1,200,000 by year-end [17] Q&A Session Summary Question: What is the expected gross margin for the power business throughout the year? - Management indicated that a gross margin of around 32% is a good range to expect for the year, with opportunities to improve [26][27] Question: Any updates on hyperscaler opportunities in the data center business? - Management confirmed active discussions with three or four hyperscalers interested in utilizing edge data centers and behind-the-meter power solutions [28][29] Question: Has there been any change in the sales cycle due to tariffs? - Management reported no significant impact from tariffs on the power or edge data center businesses, stating that both lines are performing well [33][34] Question: How does the company plan to allocate resources for new projects? - Management noted that they are maintaining a high utilization rate of their assets and are evaluating opportunities for additional acquisitions to support growth [45][46]

Financial Performance - Total revenues for Q1 2025 reached $4,952,185, a 363% increase compared to $1,070,680 in Q1 2024[275] - The net loss for Q1 2025 was $2,079,663, compared to a net loss of $2,752,309 in Q1 2024, indicating an improvement in financial performance[275] - Revenues for the three months ended March 31, 2025, were $4,952,185, a 363% increase compared to $1,070,680 in the same period of 2024[282] - The net loss for the three months ended March 31, 2025, was $2,079,663, a 24% decrease from $2,752,309 in the same period of 2024[286] - Gross margin improved to $1,313,659 in Q1 2025, representing a 1,288% increase from $94,632 in Q1 2024, primarily due to revenue from the Asset Management Agreement with New APR[282] Revenue Sources - Services and consulting revenue surged by 510% to $4,887,501 in Q1 2025, primarily due to the execution of the Asset Management Agreement (AMA) with New APR[276][277] - The Railcar Inspection Portal (RIP) is being transitioned to a modular and subscription-based model, enhancing recurring revenue streams[273] - The company anticipates continued growth in services revenue from both rail and power businesses throughout 2025[278] Operational Activities - The cost of revenues increased by 273% to $3,638,526 in Q1 2025, driven by the support of the AMA and increased operational activities[279] - Total operating expenses increased by 9% to $3,103,287 in Q1 2025, up from $2,855,678 in Q1 2024, with sales and marketing expenses decreasing by 47%[283] Capital and Financing - Cash flows provided by financing activities were $2,788,033 in Q1 2025, primarily from gross proceeds of $3,954,940 from the At-The-Market offering program[290] - The company has raised over $11,500,000 from the sale of Series E and F Preferred Stock in 2023 and approximately $3,954,940 in gross proceeds during the first two months of 2025[295] - The company expects to continue executing its revenue diversification strategy and anticipates sufficient capital to support operations over the next twelve months[291][296] Future Plans and Expansion - The company is expanding into Edge Computing and power generation markets, with a focus on leveraging existing technology infrastructure[268] - A long-term agreement with a major Class 1 railroad was secured, enabling new subscription-based services for over 3,000 railcar owners and lessors[269] - The company plans to deploy six Edge Data Centers in the first half of 2025, with an additional nine sites expected in the second half of 2025[273] - Duos Energy is managing approximately 850 MW of generating capacity and has a two-year AMA valued at approximately $42 million with New APR[273] Deferred Revenue and Intangible Assets - The Company recorded $7.2 million of deferred revenue for services to be performed under the AMA agreement, with no revenue recognized during the year ended December 31, 2024[305] - The Company recognized $199,008 of deferred revenue related to a completed pilot program, with the remaining deferred revenue being recognized over the 5-year term[312] - An intangible asset with a fair value of $11,161,428 was recorded in May 2024, representing non-monetary consideration under a 5-year customer contract for maintenance services[310] - The fair value of the intangible asset was determined based on the standalone selling price of the service and goods to be provided under the contract[311] - There is no indication of impairment for the intangible asset at March 31, 2025[315] Cash Flow and Working Capital - Net cash used in operating activities was $4,673,425 for Q1 2025, compared to $2,032,719 in Q1 2024, driven by increased non-cash add-backs and a significant build-up in accounts receivable[288] - The company had a working capital deficit of $6,502,554 as of March 31, 2025, with an accumulated deficit of $76,447,672[287][294] Management and Impairment - Management believes that the anticipated steady cash flow from the Asset Management Agreement will mitigate concerns regarding the company's ability to continue as a going concern[297] - The Company assesses its equity method investment for impairment whenever events indicate that the carrying amount may not be recoverable[309] - No impairment losses were recognized during the year ended December 31, 2024, or the three months ended March 31, 2025[309]