Duos Technologies Group (DUOT) Q1 2026 earnings summary

Executive summary

• Transitioned business model toward digital infrastructure, AI, and technology-enabled services, focusing on edge data centers, energy consulting, and technology solutions.

• Reduced scope of services under the Asset Management Agreement (AMA) with New APR, impacting related party revenue and costs.

• Expanded Technology Solutions business to support infrastructure deployments and recurring revenue streams.

Financial highlights

• Revenue for Q1 2026 was $2.72M, down 45% year-over-year from $4.95M in Q1 2025.

• Gross margin improved to 59% from 27% year-over-year, driven by lower cost of revenues and high-margin deferred revenue recognition.

• Net loss increased to $3.49M from $2.08M year-over-year, primarily due to lower revenues and higher operating expenses, including increased stock-based compensation.

• Net cash provided by financing activities was $60.1M, mainly from a public equity offering; cash at period end was $33.0M.

Outlook and guidance

• Management expects increased services revenue from hosting and technology solutions throughout 2026, driven by new edge data center deployments and growth in the data center market.

• The company believes it has sufficient liquidity and capital to fund operations and strategic initiatives for at least the next twelve months.

• Focus remains on scaling edge data centers, expanding GPU-as-a-service, and growing energy and technology solutions platforms.