Duos Technologies Group Inc ((DUOT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Duos Technologies Group Inc. recently held its earnings call, revealing a robust financial performance with strong revenue growth and an early achievement of positive adjusted EBITDA. The company’s strategic initiatives, such as the Asset Management Agreement and Edge Data Center expansion, have been pivotal in driving these results. However, the call also highlighted challenges, including a stagnant Railcar inspection portal business and rising operating expenses, which the company is addressing through diversification and expansion efforts.
Significant Revenue Growth
Duos Technologies reported a remarkable 112% increase in total revenues for Q3 2025, reaching $6.88 million compared to $3.24 million in Q3 2024. For the first nine months of 2025, revenues surged by 202% to $17.57 million, up from $5.82 million in the same period last year. This growth was primarily fueled by the company’s Asset Management Agreement with APR Energy.
Positive Adjusted EBITDA
The company achieved adjusted EBITDA profitability one quarter ahead of schedule, totaling over $491,000 with a 7% margin. This early profitability underscores the effectiveness of Duos Technologies’ strategic initiatives and operational efficiencies.
Edge Data Center Expansion
Duos Technologies is on track to deploy 15 Edge Data Centers by the end of the year, with six already operational. This expansion is a key component of the company’s growth strategy, aiming to enhance its service offerings and market reach.
Strong Liquidity Position
The company significantly bolstered its liquidity, with cash and short-term receivables increasing to over $35 million, a 422% rise from $6.7 million in Q3 2024. This strong liquidity position provides Duos Technologies with the financial flexibility to pursue further growth opportunities.
U.S. Patent for Modular Data Center
Duos Technologies was granted a U.S. patent for an entryway for modular data centers, which offers clean room level environment protection. This patent is expected to enhance the company’s competitive advantage in the data center market.
Successful Asset Management Agreement
The Asset Management Agreement with APR Energy has been a significant contributor to the company’s revenue and growth, with a substantial portion of Q3 2025 revenue derived from recurring services and consulting.
Flat Railcar Inspection Portal Business
The Railcar inspection portal business has remained largely flat, prompting Duos Technologies to focus on restructuring and reallocating resources to support the growth of its Edge Data Center operations.
Operating Expenses Increase
Operating expenses for Q3 2025 rose by 28% to $3.63 million, compared to $2.84 million in Q3 2024. This increase was mainly due to noncash stock-based compensation, highlighting the need for cost management as the company grows.
Net Operating Loss
Despite a net operating loss of $1.12 million for Q3 2025, this was an improvement from the $1.92 million loss in Q3 2024, indicating progress towards profitability.
Dependence on Asset Management Agreement
There are concerns about the company’s reliance on the Asset Management Agreement with APR Energy, which concludes in 2026. This underscores the importance of diversifying revenue sources to ensure long-term stability.
Forward-Looking Guidance
Duos Technologies provided optimistic forward-looking guidance, projecting a revenue range of $28 million to $30 million for 2025. The company aims to deploy 15 Edge Data Centers by year-end and is expanding into new markets, leveraging its new modular data center patent to enhance its competitive edge. With a backlog projected at $26 million and $9.5 million expected in Q4, Duos Technologies is poised for continued growth.
In summary, Duos Technologies Group Inc.’s earnings call reflected a positive sentiment with strong revenue growth and early profitability. The company is actively addressing challenges in its Railcar inspection portal business and rising operating expenses by focusing on diversification and expansion. With a solid liquidity position and strategic initiatives in place, Duos Technologies is well-positioned for future growth and market expansion.