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]

Summary of Duos Technologies Group Conference Call (October 21, 2025) Company Overview - **Company Name**: Duos Technologies Group (NasdaqCM: DUOT) - **Business Focus**: Transitioning from rail inspection to data center infrastructure, with a focus on modular data centers in tier three and tier four markets [2][3][22] Key Points and Arguments Business Strategy - **Expansion into Data Centers**: The company is expanding its operations into the data center infrastructure space, leveraging its existing technology and infrastructure [2][3] - **Modular Data Centers**: Introduction of micro data centers aimed at improving connectivity in underserved markets, particularly in education and healthcare sectors [8][9][12] - **Cost Model Shift**: Transitioning clients from a capital expenditure (CapEx) model to an operational expenditure (OpEx) model by providing modular data centers that reduce their upfront costs [11][12] Market Opportunities - **Target Markets**: Focus on tier three and tier four markets, starting with Amarillo, Texas, and expanding to Corpus Christi and Illinois [9][23] - **Partnerships**: Collaborating with local education sectors and healthcare providers to establish anchor tenants for the data centers [18][24] - **Carrier Collaboration**: Bringing in multiple carriers to enhance connectivity and create a "carrier hotel" effect, which locks in market share [13][22] Financial Performance - **Historical Financials**: Previous revenues fluctuated between $7 million to $15 million, largely due to the lumpy nature of the rail business [28] - **Recent Capital Raise**: Successfully raised $45 million, the largest in the company's history, to fund expansion into edge data centers [30] - **Debt-Free Status**: Currently has no debt and approximately $35 million in cash on the balance sheet [30] Future Growth Plans - **Projected Growth**: Plans to deploy 15 additional data centers by the end of the year and 45 more in the following year [22][31] - **Recurring Revenue Model**: All revenue from the Duos Edge AI subsidiary is expected to be annual recurring revenue, enhancing financial stability [42] Competitive Advantage - **Unique Technology**: Recently awarded a patent for a clean room design in modular data centers, which helps maintain equipment warranties and improves operational efficiency [20][21] - **No Direct Competition**: Currently, the company does not face direct competition in its specific modular data center model [21] Additional Important Information - **Management Team**: The management team includes experienced professionals with backgrounds in data centers and technology [27][25] - **Focus on Telecom Sector**: The company aims to build a robust network in the telecom sector, which is critical for its growth strategy [22] - **Long-Term Contracts**: Contracts are typically long-term (five years plus five-year renewals), providing a stable revenue stream [44] This summary encapsulates the key insights from the conference call, highlighting the strategic direction, market opportunities, financial outlook, and competitive advantages of Duos Technologies Group.

INVESTOR PRESENTATION OCTOBER 2025 FROM AI TO INFRASTRUCTURE: EXPANDING THE EDGE DUOS TECHNOLOGIES GROUP, INC. | NASDAQ: DUOT © 2025 - ALL RIGHTS RESERVED | Nasdaq: DUOT | This presentation, as well as other written or oral statements made from time to time, includes "forward-looking statements". Forward-looking statements are not based on historical information and include, without limitation, statements regarding our future financial condition and future results of operations, business strategy and plans ...