Duos Technologies Group (DUOT) Q2 2026 earnings summary

Executive summary

• Completed transformation to a pure-play AI infrastructure and Edge Data Center company, divesting legacy rail business and finalizing APR Energy asset sale.

• Secured major multi-year agreements, including a five-year, $111M colocation deal and a $500M+ expansion for 55MW of AI data center capacity.

• Achieved significant net income of $48.7M for Q2 2026, driven by a $53.2M gain on sale of investments.

• Technology Solutions became the largest revenue source, with rapid growth in customer orders and contract liabilities.

• Strong liquidity position with $112.3M in cash and a working capital surplus of $119.6M as of June 30, 2026.

Financial highlights

• Q2 2026 revenue from continuing operations rose 30% year-over-year to $6.18M, driven by technology solutions and consulting.

• Gross margin for Q2 2026 increased to 55.8% from 37.3% in Q2 2025, reflecting a shift to higher-margin services.

• Net income from continuing operations was $48.7M, compared to a $1.6M loss in Q2 2025, aided by a $53.2M gain on investment sales.

• Adjusted EBITDA turned positive at $0.5M for Q2 2026, with expectations for further expansion in Q4.

• Ended Q2 with $112.3M in cash and $207.4M in equity, effectively debt-free.

Outlook and guidance

• Reaffirmed 2026 revenue guidance to exceed $50M, with $26M expected from GPU-as-a-service and $25M from technology solutions backlog.

• Q4 2026 recurring infrastructure revenue projected at $17M-$18M, annualized run rate above $70M.

• Early 2027 framework targets at least $160M in total revenue, with significant adjusted EBITDA margin expansion.

• Bookings at end of Q2 represent $43.5M in revenue, all expected to be recognized in 2026.

• Company believes it has sufficient liquidity to fund operations and growth for at least 12 months.