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Duos Technologies Group (DUOT)
NASDAQ:DUOT
US Market
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Duos Technologies Group (DUOT) AI Stock Analysis

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Duos Technologies Group

(NASDAQ:DUOT)

Rating:51Neutral
Price Target:
$8.00
▲(1.91%Upside)
Duos Technologies' overall stock score is driven primarily by its significant financial challenges and mixed technical analysis. While there is positive momentum from recent earnings growth and strategic business expansions, the negative profitability and valuation metrics weigh heavily on the overall score.
Positive Factors
Business Opportunities
Duos announced a major new contract for $42 million to deploy and operate a fleet of mobile gas turbines, highlighting expanding business opportunities.
Future Growth
The company maintained guidance for revenue of $28 – 30 million, indicating confidence in future growth.
Negative Factors
Financial Performance
The backlog at Q4 was significantly increased to $51 million, up from $19 million, indicating a substantial pipeline of future work.

Duos Technologies Group (DUOT) vs. SPDR S&P 500 ETF (SPY)

Duos Technologies Group Business Overview & Revenue Model

Company DescriptionDuos Technologies Group (DUOT) is a technology company specializing in intelligent security and analytical technology solutions. It operates primarily in the rail, transportation, and logistics sectors, providing advanced systems that enhance security, safety, and efficiency. The company's core products include high-performance intelligent systems for rail inspection, such as Railcar Inspection Portals (RIP), which utilize a combination of hardware and software to automate the inspection process and improve operational throughput.
How the Company Makes MoneyDuos Technologies Group generates revenue primarily through the sale and installation of its intelligent technology platforms and systems. Key revenue streams include the sale of turnkey rail inspection systems, ongoing maintenance and support services, and software licensing fees. The company's offerings are designed to automate and streamline inspection processes, resulting in cost savings and enhanced operational efficiency for its clients. Additionally, Duos Technologies may engage in partnerships and collaborations with other organizations in the transportation and logistics industries to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Duos Technologies Group Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: 6.37%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
Duos Technologies showed significant growth and expansion in its Power and Edge Data Center businesses, resulting in a strong revenue increase and improved gross margin. However, challenges remain in the rail industry, and the company continues to operate at a net loss despite reductions. The overall sentiment leans positive due to the strong performance in the AMA and Edge Data Center segments, alongside a promising revenue pipeline.
Q1-2025 Updates
Positive Updates
Significant Increase in Contracted Megawatts
Duos Technologies has successfully contracted 570 megawatts with APR Energy’s gas turbine fleet, an increase of 180 megawatts since the last report. They expect to contract an additional 160 megawatts in the coming weeks, bringing the total to approximately 730 megawatts.
Expansion of Edge Data Centers
Duos Technologies has customer commitments for an additional 8 Edge Data Centers and plans to deploy 15 by the end of the year. The deployment of Edge Data Centers is expected to generate more than $3 million in annual recurring revenue starting in 2026.
Record Revenue Growth
Total revenues for Q1 2025 increased 363% to $4.95 million compared to $1.07 million in Q1 2024. The majority of this revenue was driven by Duos Energy's Asset Management Agreement with New APR.
Improved Gross Margin
Gross margin for Q1 2025 increased 1288% to $1.31 million compared to $90,000 in Q1 2024, primarily due to the performance of the AMA with New APR.
Reduction in Net Operating Loss
Net operating loss for Q1 2025 totaled $1.79 million, a decrease from a net operating loss of $2.76 million for Q1 2024, owing to increased revenues.
Strong Backlog and Pipeline
Current contracts and backlog represent more than $45 million in revenue, with $17.4 million projected to be recognized in 2025 and additional expected near-term awards and renewals.
Negative Updates
Challenges in Rail Industry
While Duos has not achieved the hoped-for success in the rail industry, they continue to develop world-class technologies and plan to introduce new products.
Increase in Operating Expenses
Operating expenses for Q1 2025 increased 9% to $3.1 million compared to $2.86 million for Q1 2024, largely due to non-cash stock-based compensation charges.
Continued Net Loss
Net loss for Q1 2025 totaled $2.08 million compared to a net loss of $2.75 million for Q1 2024, showing a 24% decrease but still indicating losses.
Company Guidance
During Duos Technologies' First Quarter 2025 earnings call, the company provided an optimistic outlook, highlighting significant progress across its business segments. The Power line of business saw a substantial increase in contracted gas turbine capacity, reaching 570 megawatts, with expectations to rise to 730 megawatts shortly. The Edge Data Center business, Duos Edge AI, secured commitments for an additional 8 centers, aiming for 15 deployments by year-end. Financially, Duos reported a 363% increase in total revenues to $4.95 million for Q1 2025, driven by the Asset Management Agreement with New APR Energy, which contributed $3.9 million. Gross margin surged 1288% to $1.31 million, primarily due to the performance of the AMA. The company reiterated its guidance for consolidated revenue between $28 million and $30 million for the year, with expectations to achieve positive adjusted EBITDA by year-end, despite a net loss reduction of 24% compared to Q1 2024.

Duos Technologies Group Financial Statement Overview

Summary
Duos Technologies Group faces substantial financial challenges with high leverage, negative profitability margins, and reliance on financing to sustain operations. Despite strong revenue growth, the persistent net losses and negative cash flows highlight the need for strategic improvements to enhance financial stability and profitability.
Income Statement
45
Neutral
Duos Technologies Group shows mixed performance with significant challenges. The TTM (Trailing-Twelve-Months) data indicates a negative gross profit margin of 15.1% and a severe net profit margin of -90.4%, highlighting profitability issues. The revenue growth rate is strong at 53.3% from 2024 to TTM 2025, but with high negative EBIT and EBITDA margins at -89.7% and -64.5% respectively, profitability remains a concern.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 1.52, indicating significant leverage, which poses financial risk. The return on equity (ROE) is deeply negative at -196.0%, reflecting poor returns for shareholders. Furthermore, the equity ratio of 15.1% suggests limited equity buffer relative to total assets, underscoring financial vulnerability.
Cash Flow
50
Neutral
The cash flow analysis highlights significant challenges with free cash flow and operating cash flow both negative. The free cash flow growth rate shows deterioration, and while the financing activities provide cash inflows, the operating cash flow to net income ratio remains negative. This indicates reliance on external financing amidst operating losses.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.28M7.47M15.01M8.26M8.04M
Gross Profit469.21K1.31M4.75M-2.56M2.79M
EBITDA-7.92M-10.37M-6.27M-5.44M-6.14M
Net Income-10.76M-11.24M-6.86M-6.97M-6.93M
Balance Sheet
Total Assets34.96M12.84M13.09M9.48M6.41M
Cash, Cash Equivalents and Short-Term Investments6.27M2.44M1.12M893.72K3.97M
Total Debt8.53M5.05M5.34M5.21M1.85M
Total Liabilities32.70M7.48M9.04M8.70M4.52M
Stockholders Equity2.26M5.37M4.05M781.49K1.88M
Cash Flow
Free Cash Flow-5.32M-9.84M-8.52M-7.13M-4.52M
Operating Cash Flow-3.49M-8.75M-7.87M-6.58M-4.23M
Investing Cash Flow-1.84M-1.09M-644.89K-552.94K-287.33K
Financing Cash Flow9.15M11.16M8.75M4.06M8.43M

Duos Technologies Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.85
Price Trends
50DMA
7.63
Positive
100DMA
6.71
Positive
200DMA
5.93
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.80
Neutral
STOCH
53.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUOT, the sentiment is Positive. The current price of 7.85 is above the 20-day moving average (MA) of 7.50, above the 50-day MA of 7.63, and above the 200-day MA of 5.93, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.80 is Neutral, neither overbought nor oversold. The STOCH value of 53.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DUOT.

Duos Technologies Group Risk Analysis

Duos Technologies Group disclosed 21 risk factors in its most recent earnings report. Duos Technologies Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Duos Technologies Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$55.87M-10.79%3.21%-550.35%
63
Neutral
$34.26B5.42-11.67%1.85%5.30%-18.55%
51
Neutral
$98.16M-189.13%89.27%26.30%
51
Neutral
$60.21M-170.91%-70.08%-330.51%
37
Underperform
$62.53M-19.87%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DUOT
Duos Technologies Group
7.85
5.06
181.36%
PHUN
Phunware
3.38
-1.63
-32.53%
INLX
Intellinetics
14.00
6.65
90.48%
SURG
SurgePays
2.94
-0.13
-4.23%

Duos Technologies Group Corporate Events

Shareholder Meetings
Duos Technologies Holds Annual Stockholders Meeting
Neutral
May 30, 2025

On May 29, 2025, Duos Technologies Group, Inc. conducted its annual meeting of stockholders, where key decisions were made regarding the company’s governance and financial oversight. During the meeting, all director nominees were elected, and the appointment of Salberg & Company, P.A. as the independent certified public accounting firm for the fiscal year ending December 31, 2025, was ratified.

The most recent analyst rating on (DUOT) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Duos Technologies Group stock, see the DUOT Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Duos Technologies Amends Sales Agreement for $10.5M
Neutral
May 29, 2025

On May 27, 2025, Duos Technologies Group, Inc. amended its At-The-Market Issuance Sales Agreement with Ascendiant Capital Markets, LLC, increasing the placement shares by $10,500,000. This amendment allows the company to offer and sell additional common stock through an at-the-market offering, enhancing its financial flexibility and potentially impacting its market positioning.

The most recent analyst rating on (DUOT) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Duos Technologies Group stock, see the DUOT Stock Forecast page.

Executive/Board Changes
Duos Technologies Appoints James Nixon as Chairman
Neutral
May 19, 2025

On May 13, 2025, Duos Technologies Group announced the election of James Craig Nixon as the Chairman of the Board. The Board also appointed members to its committees, with Ned Mavrommatis, James Craig Nixon, and Frank A. Lonegro taking on roles in the Audit, Compensation, and Corporate Governance and Nominating Committees, potentially impacting the company’s governance and strategic direction.

The most recent analyst rating on (DUOT) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Duos Technologies Group stock, see the DUOT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Duos Technologies Reports 363% Revenue Surge in Q1 2025
Positive
May 19, 2025

Duos Technologies Group reported a significant 363% increase in revenue for the first quarter of 2025, reaching approximately $5 million, primarily driven by its services and consulting business under the Asset Management Agreement with New APR Energy. The company also saw improvements in gross margin and a decrease in net loss, despite delays in deploying its high-speed Railcar Inspection Portals, and anticipates continued growth throughout 2025 with expected revenues between $28 million and $30 million.

The most recent analyst rating on (DUOT) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Duos Technologies Group stock, see the DUOT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025