Revenue Growth - Total revenue for Q3 2025 increased 112% to $6.9 million compared to $3.2 million in Q3 2024, driven by the Asset Management Agreement with New APR Energy[5] - Total revenue for the first nine months of 2025 increased 202% to $17.6 million from $5.8 million in the same period last year[12] - The company expects total revenue for 2025 to range between $28 million and $30 million, representing an increase of 285% to 312% from 2024[19] - Total revenues for the three months ended September 30, 2025, were $6,877,283, a significant increase from $3,238,910 in the same period of 2024, representing a growth of 113%[28] - The company reported $5,152,805 in revenues from services and consulting related parties for the three months ended September 30, 2025, with no comparable revenue in the same period of 2024[28] Profitability and Loss - Gross margin for Q3 2025 improved 174% to $2.5 million from $0.9 million in Q3 2024, primarily due to the performance under the AMA[7] - Net loss for Q3 2025 decreased by 26% to $1.04 million compared to a net loss of $1.4 million in Q3 2024, attributed to increased revenues from the AMA[10] - The gross margin for the nine months ended September 30, 2025, was $5,349,017, compared to $799,167 for the same period in 2024, indicating a substantial improvement in profitability[28] - The net loss for the three months ended September 30, 2025, was $1,040,254, a decrease from a net loss of $1,401,663 in the same period of 2024, reflecting a 26% improvement[28] - For the nine months ended September 30, 2025, the net loss was $6,637,948, an improvement from a net loss of $7,358,143 in the same period of 2024, representing a decrease of approximately 9.8%[34] - The basic and diluted net loss per share for the three months ended September 30, 2025, was $(0.06), an improvement from $(0.18) in the same period of 2024[28] Cash and Liquidity - Cash and cash equivalents at September 30, 2025, totaled $33.20 million, up from $6.27 million at December 31, 2024[11] - Cash and cash equivalents increased to $33,201,498 as of September 30, 2025, up from $6,266,296 at December 31, 2024, showing a significant liquidity improvement[30] - The company ended the period with cash of $33,201,498, compared to $646,113 at the end of the same period in 2024, marking an increase of approximately 5,128%[34] Operating Expenses - Operating expenses for Q3 2025 increased 28% to $3.6 million compared to $2.8 million in Q3 2024, largely due to non-cash stock-based compensation[8] - Operating expenses for the nine months ended September 30, 2025, totaled $11,695,308, compared to $8,696,909 for the same period in 2024, reflecting a 34% increase[28] - Depreciation and amortization expenses rose to $1,962,342 from $1,472,965, reflecting an increase of approximately 33.3%[34] - Stock-based compensation increased significantly to $3,103,309 from $281,405, representing an increase of approximately 1,103%[34] Assets and Liabilities - Total assets reached $69,794,280 as of September 30, 2025, compared to $34,958,677 at December 31, 2024, indicating a growth of 100%[30] - The company had total liabilities of $20,292,465 as of September 30, 2025, down from $32,697,346 at December 31, 2024, indicating a reduction of 38%[30] - The company reported a significant increase in contract liabilities, which rose to $6,462,375 from $0, indicating a new liability category[34] Investments and Financing - The company raised over $50 million to capitalize on growth in the data center market and retired all debt[3] - Cash flows from investing activities totaled $7,873,079, significantly higher than $1,555,544 in the previous year, reflecting an increase of approximately 406%[34] - Cash provided by financing activities was $45,840,224, a substantial increase from $5,959,962 in the same period last year, representing an increase of approximately 668%[34] - The company made substantial investments in property and equipment, totaling $7,813,557, compared to $1,547,439 in the previous year, an increase of approximately 405%[34] Future Outlook - The company anticipates potential increases in recurring revenue and improvements in gross margin as part of its future growth strategy[25] - The company has a contract backlog of approximately $25.8 million, with $12.4 million expected to be recognized in the remainder of 2025[18] - Duos Technologies announced the deployment of its sixth Edge Data Center, with nine additional data centers scheduled for Q4 2025[3]

Revenue Growth - Revenues for the three months ended September 30, 2025, increased by 112% to $6,877,283 compared to $3,238,910 in the same period of 2024[298]. - Services and consulting revenue surged by 324% to $6,589,373, primarily driven by the Asset Management Agreement with New APR, generating $4,248,680 in revenue[300]. - Total revenues for the nine months ended September 30, 2025, reached $17,565,509, a 202% increase from $5,820,086 in 2024[311]. - Services revenue for the nine months ended September 30, 2025, increased by 377% to $17,163,518, primarily driven by the AMA with New APR[312]. Cost and Expenses - The cost of revenues for the three months ended September 30, 2025, rose by 88% to $4,360,881, reflecting increased costs associated with services and consulting[303]. - Operating expenses for the three months ended September 30, 2025, totaled $2,839,379, a 28% increase from $3,632,382 in 2024, with general and administration costs rising by 66%[307]. - Operating expenses for the nine months ended September 30, 2025, increased by 34% to $11,695,308, with general and administration costs rising by 71%[320]. Profitability and Loss - The gross margin for the quarter was $2,516,402, compared to $919,099 in the same quarter of 2024[298]. - Gross margin for the three months ended September 30, 2025, improved by 174% to $2,516,402, driven by the execution of the AMA with New APR[306]. - Net loss for the three months ended September 30, 2025, decreased by 26% to $1,040,254 from $1,401,663 in 2024, with net loss per share improving to $0.06 from $0.18[310]. - Net loss for the nine months ended September 30, 2025, was $6,637,948, a 10% decrease from $7,358,143 in 2024, with net loss per share improving to $0.49 from $0.98[324]. Cash Flow and Financing - Net cash used in operating activities increased to $11,031,943 for the nine months ended September 30, 2025, compared to $6,200,147 for the same period in 2024[326]. - Net cash used in investing activities rose to $7,873,079 in 2025 from $1,555,544 in 2024, reflecting ongoing investments in capitalized construction-in-progress costs for edge data centers[327]. - The company generated $45,840,224 from financing activities in the first nine months of 2025, significantly up from $5,959,962 in 2024, primarily due to an ATM offering and a public stock offering[328]. Strategic Initiatives - The Company is actively deploying Edge Data Centers, with the first site operational as of September 30, 2025, and an additional 14 expected to be operational in Q4 2025[291]. - The Company is shifting to a modular and subscription-based approach for its Railcar Inspection Portal, enhancing recurring revenue streams through "RIP-as-a-Service"[291]. - The Company anticipates continued growth in services revenue from power, hosting, and related data center services throughout 2025 and into 2026[302][315]. - Management is focused on cost elimination and realigning resources to improve growth and profitability, with a positive outlook on contracted backlog and new commercial projects[334]. Financial Position - As of September 30, 2025, the company reported a working capital surplus of $27,574,533 and a net loss of $6,637,948 for the nine months ended September 30, 2025[325][332]. - The accumulated deficit as of September 30, 2025, was $81,005,957, indicating ongoing financial challenges despite a working capital surplus[332]. - The company raised over $11,500,000 from the sale of Series E and F Convertible Preferred Stock in 2023, and additional capital through various offerings in 2024 and 2025, strengthening its financial position[333]. Investments and Assets - The Company holds a 5% interest in Sawgrass Parent, accounting for it as an Equity Method Investment with an initial carrying value of $7.2 million[348][349]. - The Company recorded $7.2 million of deferred revenue for services to be performed under the AMA, with no revenue recognized during the year ended December 31, 2024[349]. - An intangible asset valued at $11,161,428 was recorded in May 2024, representing non-monetary consideration under a 5-year customer contract for maintenance services[356]. - The intangible asset is amortized over its useful life of five years, with an immediate amortization of $199,008 related to pre-contract costs[358][359]. Impairment and Valuation - The Company assesses its equity method investment for impairment, with no impairment losses recognized during the year ended December 31, 2024, or the nine months ended September 30, 2025[355]. - The Company has not indicated any impairment of the intangible asset as of September 30, 2025[361]. - The Hypothetical Liquidation at Book Value (HLBV) method is used to reflect the Company's claim on net assets under the Agreement with Sawgrass Parent[351]. - The Company will continue to present the equity method investment at its initial fair value unless the HLBV calculation yields a profit or the investment becomes impaired[353]. - The Company expects its hypothetical claim on net assets to remain zero until other investors have received their Total Contributed Capital and the MOIC Threshold has been met[352].

Core Insights - Duos Technologies Group, Inc. reported a quarterly loss of $0.06 per share, outperforming the Zacks Consensus Estimate of a loss of $0.12, and showing improvement from a loss of $0.24 per share a year ago, resulting in an earnings surprise of +50.00% [1] - The company generated revenues of $6.88 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.8%, but showing significant growth from $3.24 million in the same quarter last year [2] - Duos Technologies Group, Inc. shares have increased approximately 61.4% year-to-date, significantly outperforming the S&P 500's gain of 16.4% [3] Earnings Outlook - The future performance of Duos Technologies Group, Inc. will largely depend on management's commentary during the earnings call and the company's earnings outlook, which includes current consensus earnings expectations for upcoming quarters [4] - The estimate revisions trend for the company was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] - Current consensus EPS estimate for the upcoming quarter is $0.01 on $10 million in revenues, while for the current fiscal year, it is -$0.46 on $28 million in revenues [7] Industry Context - The Technology Services industry, to which Duos Technologies Group, Inc. belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Bit Digital, Inc., is expected to report results soon, with a projected quarterly loss of $0.00 per share, reflecting a year-over-year change of +100% [9]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 increased 112% to $6.88 million, compared to $3.24 million in Q3 2024 [16] - For the nine months ended 2025, total revenues increased 202% to $17.57 million from $5.82 million in the same period last year [17] - Adjusted EBITDA profitability was achieved one quarter ahead of projections, totaling over $491,000 for Q3 2025 [23] - Net loss for Q3 2025 totaled $1.04 million, a 26% reduction compared to a net loss of $1.4 million for Q3 2024 [21] Business Line Data and Key Metrics Changes - A significant portion of Q3 2025 revenue, approximately $6.59 million, came from recurring services and consulting, with $5.15 million from the asset management agreement with APR Energy [17] - Cost of revenues for Q3 2025 increased 88% to $4.36 million compared to $2.32 million for Q3 2024 [18] - Gross margin for Q3 2025 increased 174% to $2.52 million, compared to $919,000 for Q3 2024 [18] Market Data and Key Metrics Changes - The company is positioned to address the growing demand for edge computing, with discussions ongoing with two to three large developers [5] - The backlog represents nearly $26 million in revenue, with about $9.5 million projected to be recognized in Q4 2025 [25] Company Strategy and Development Direction - The company is pivoting to focus resources into the edge computing space and adding additional data center service offerings [6] - Plans for the future include establishing a standalone Duos business focused on the data center space by 2026 [7] - The company is also in the process of hiring a team to seek business opportunities in the overall data center market [35] Management's Comments on Operating Environment and Future Outlook - Management noted that the asset management agreement with APR Energy has been a major success and contributor to growth during the transition [10] - The company anticipates that growth in the data center market from edge deployments will offset any lower revenues from the asset management agreement in 2026 [11] - The outlook for Duos is promising, with expectations for continued growth and improved financials [38] Other Important Information - The company achieved a significant improvement in liquidity, with over $35 million in cash and short-term receivables as of Q3 2025, up approximately 422% year-over-year [24] - The company has paid off all outstanding debt and master capital leases, leaving nearly $12 million in fixed assets [24] Q&A Session Summary Question: How is growing demand from AI and cloud customers affecting your business? - The growing demand is positively impacting both Duos and APR Energy, with hyperscalers seeking more computing power due to challenges in scaling large data centers [39][40] Question: Can you elaborate on what drove the 112% year-over-year revenue increase and how sustainable this trajectory looks heading into 2026? - The asset management agreement with APR Energy has driven revenue growth, and the company is confident in replacing this revenue with edge data center business and new infrastructure opportunities [42][44] Question: Can you update us on the current progress and timing for the remaining edge data center installations? - Six edge data centers are currently operational, with four more scheduled for installation this month and five more by the end of the year [45] Question: How does the new modular data center patent enhance your competitive advantage? - The patent introduces a clean room environment that protects hardware and meets strict auditing standards, providing a significant competitive edge in the market [46][48] Question: Where are you prioritizing your target markets for edge deployments? - The education sector has been a key focus, with the first contract outside Texas secured in Illinois, driven by the need for better connectivity in Tier 3 and Tier 4 markets [50][51]

Core Insights - Duos Technologies Group, Inc. reported a significant increase in revenue and positive adjusted EBITDA for Q3 2025, driven by its energy services business and the transition to edge computing [1][20][21] Financial Performance - Total revenues for Q3 2025 increased by 112% to $6.9 million compared to $3.2 million in Q3 2024, with a total of $17.6 million for the first nine months, marking the highest revenue for that period in the company's history [5][13] - Gross margin for Q3 2025 improved by 174% to $2.5 million, primarily due to the performance of Duos Energy under the Asset Management Agreement (AMA) with New APR [7][15] - Operating expenses for Q3 2025 rose by 28% to $3.6 million, largely due to non-cash stock-based compensation [8][16] - Net loss for Q3 2025 decreased to $1.04 million from $1.4 million in Q3 2024, reflecting improved revenue generation [11][18] Operational Highlights - The company executed against the AMA with New APR, overseeing the deployment and operations of mobile gas turbines, which significantly contributed to revenue growth [5][14] - Duos Technologies raised over $50 million to support growth in the data center market and retired all debt [8] - The company announced the deployment of its sixth Edge Data Center, with plans for nine additional data centers in Q4 2025 [8] Future Outlook - The company expects total revenue for 2025 to range between $28 million and $30 million, representing an increase of 285% to 312% from 2024 [20] - Contracts in backlog at the end of Q3 2025 represented approximately $25.8 million in revenue, with $12.4 million expected to be recognized in the remainder of the year [19][20] Management Commentary - The CEO expressed satisfaction with the continuous improvement in results and emphasized the strategic shift towards becoming a data center provider for the edge computing market [21]

Core Insights - Duos Technologies Group, Inc. has partnered with the Nomad Futurist Foundation to enhance education and leadership in digital infrastructure and edge technology sectors [1][3][5] Company Overview - Duos Edge AI, a subsidiary of Duos Technologies Group, specializes in adaptive, modular, and scalable Edge Data Center solutions [1][9] - The company aims to provide high-powered edge computing solutions that minimize latency and optimize performance, particularly in underserved communities [7][9] Partnership Details - The collaboration will focus on co-developing educational programs, community outreach initiatives, and global awareness campaigns to expand access to knowledge in technology [4][5] - Duos Edge AI's role as an Inspiration Partner will involve nurturing future technology leaders and promoting a more connected and inclusive digital future [3][5] Mission and Vision - The Nomad Futurist Foundation's mission is to inspire and empower individuals to thrive in the digital future, aligning with Duos Edge AI's commitment to innovation and education [3][5][8] - Both organizations aim to strengthen the global digital ecosystem by combining technological expertise with educational initiatives [5][8]

Core Insights - Duos Technologies (DUOT) has successfully entered the highly competitive AI and data center market, which has proven to be a beneficial move for the company [1] Company Overview - Duos Technologies has taken a significant risk by entering the AI and data center sector, which is currently one of the most competitive markets [1] Market Analysis - The AI and data center market presents incredible growth opportunities, making it an attractive sector for investment and research [1]

Group 1 - Duos Technologies (DUOT) has successfully entered the highly competitive AI and data center market, which has proven to be a beneficial move for the company [1] - The company is positioned in the tech sector, specifically focusing on SaaS and cloud businesses, which are recognized for their significant growth opportunities [1] Group 2 - The analyst has a long position in DUOT shares, indicating confidence in the company's future performance [2]

Core Viewpoint - Duos Technologies Group, Inc. will host its first live video earnings call on November 12, 2025, to discuss its financial results for Q3 2025 [1][2]. Group 1: Event Details - The live-streamed event will include prepared remarks from management followed by a Q&A session [2]. - Investors can access the broadcast through the Company's Investor Relations website or via Microsoft Teams [2]. - The call is scheduled for 4:30 p.m. ET (1:30 p.m. PT) [2]. Group 2: Company Overview - Duos Technologies Group, Inc. is based in Jacksonville, Florida, and operates through subsidiaries focused on intelligent technology solutions for Machine Vision and AI applications [5]. - The company specializes in real-time analysis of fast-moving vehicles, Edge Data Centers, and power consulting [5].

Company Overview - Duos Technologies Group, Inc. (DUOT) shares increased by 6.5% to close at $10.1, supported by strong trading volume, and have gained 26.2% over the past four weeks [1] - The company is deploying a fleet of 850MW mobile gas turbines and has launched its first production unit for its Edge Data Center business [1] Financial Performance - The upcoming quarterly report is expected to show a loss of $0.12 per share, reflecting a year-over-year improvement of 50% [2] - Revenues are projected to be $7.3 million, representing a significant increase of 125.3% compared to the same quarter last year [2] Earnings Estimates - The consensus EPS estimate for Duos Technologies has been revised 120% higher in the last 30 days, indicating a positive trend that typically leads to price appreciation [3] - A strong correlation exists between earnings estimate revisions and near-term stock price movements, suggesting potential for further strength in DUOT [3] Industry Context - Duos Technologies operates within the Zacks Technology Services industry, which includes other companies like MindWalk Holdings Corp. (HYFT) [4] - MindWalk Holdings Corp. has a consensus EPS estimate of -$0.01, unchanged over the past month, but showing an 85.7% improvement year-over-year [5]