Duos Technologies Group (DUOT) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a strategic pivot to a data center-focused platform, scaling modular edge data centers and expanding GPU hosting and technology solutions as primary growth drivers.

• The company is winding down legacy rail operations and the New APR Energy Asset Management Agreement, impacting current revenue.

• Significant progress was made in divesting the rail division and expanding the data center and AI infrastructure business.

• Strong customer demand for modular, high-density data centers and AI workloads is driving backlog and pipeline growth.

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

Financial highlights

• Q1 2026 consolidated revenue was $2.72 million, down 45% year-over-year from $4.95 million in Q1 2025, mainly due to the planned wind-down of legacy agreements.

• Gross profit reached $1.61 million, with a 59% gross margin, a significant year-over-year improvement from 27%.

• Net loss was $3.49 million, compared to $2.08 million in Q1 2025, reflecting lower revenues and higher operating expenses.

• Adjusted EBITDA for Q1 2026 was -$1.5 million.

• Ended Q1 2026 with $33 million in cash, bolstered by a $65 million capital raise in March.

Outlook and guidance

• Reaffirmed 2026 revenue guidance to exceed $50 million, with the majority recognized in the second half of the year.

• GPU-as-a-Service expected to contribute $26 million, and Technology Solutions backlog another $26 million to 2026 revenue.

• Bookings at Q1 end represented $43.5 million in revenue for 2026, with $1.1 million deferred revenue from 2025 to be recognized.

• Anticipates a return to positive adjusted EBITDA as revenue ramps in H2 2026.

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