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]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 increased 280% to $5,740,000 compared to $1,510,000 in Q2 2024 [9] - For the six months ended 2025, total revenues increased 314% to $10,690,000 from $2,580,000 in the same period last year [9] - Gross margin for Q2 2025 increased 808% to $1,520,000 compared to negative $215,000 for Q2 2024 [11] - Net loss for Q2 2025 totaled $3,520,000 compared to a net loss of $3,200,000 for Q2 2024, a 10% increase attributed to noncash stock-based compensation [15] Business Line Data and Key Metrics Changes - The asset management agreement (AMA) with APR Energy has stabilized financials, contributing approximately $5,690,000 in recurring services and consulting revenue in Q2 2025 [9][10] - The railcar inspection portal business has remained flat, but is expected to see broader usage in the coming years [3] - Operating expenses for Q2 2025 increased 65% to $4,960,000 compared to $3,000,000 for Q2 2024, largely due to noncash stock-based compensation [12] Market Data and Key Metrics Changes - The company has successfully installed and delivered a 150 megawatt gas turbine power plant in Mexico in 35 days, indicating strong operational capabilities [2] - The edge data center business is gaining momentum, with plans to install 15 edge data centers in Texas this year [2] Company Strategy and Development Direction - The company is pivoting to the edge data center business, with a growing pipeline of opportunities for 2026 [2] - The management team has identified the need to diversify into at least two distinct businesses to achieve significant growth and profitability [5] - The company expects to achieve breakeven to profitability by Q4 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the guidance issued for the year, citing improved financial conditions compared to the previous year [3] - The company anticipates continued revenue growth in the next two quarters, driven by the execution of the AMA and the deployment of edge data centers [8] - Management highlighted the overwhelming demand for behind-the-meter power solutions for large U.S.-based data center operators [22] Other Important Information - The company raised over $50,000,000 in capital, significantly improving its balance sheet and allowing for expansion into new markets [7] - Current contracts in backlog represent more than $40,000,000 in revenue, with approximately $12,300,000 projected to be recognized in 2025 [18] Q&A Session Summary Question: What is the fully diluted share count? - The fully diluted share count is currently 25,000,000 shares [27] Question: Can you provide insight on noncash stock-based compensation? - Noncash compensation is roughly about $1,000,000 a quarter [30] Question: Will the company consider posting non-GAAP earnings numbers? - The company will consider using non-GAAP financials in the future [31] Question: What is the expected revenue per unit for the edge data centers? - Each edge data center is expected to earn around $300,000 to $500,000 annually once fully operational [37] Question: What is the timeline for cash flow from the edge data centers? - It takes about 90 days to manufacture and deliver an edge data center, followed by approximately two weeks for installation [48] Question: What is the gross profit margin once the edge data centers are operational? - The targeted gross profit margin is in the mid-70s, with EBITDA targeted just above 50% [53]

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]