Duos Technologies Group (DUOT) Q2 2026 earnings summary

Executive summary

• Completed transformation to a pure-play data center and AI infrastructure company, divesting the legacy rail business and finalizing the APR Energy asset sale.

• Strategic focus now on scaling Edge Data Center platform and technology solutions, with significant leadership additions and Russell 2000 Index inclusion.

• Signed major multi-year agreements, including a five-year, $111M colocation deal, a $500M+ expansion with Axe Compute, and a 55 MW deal with a hyperscaler.

• Secured over $100M in growth capital through a $55M direct offering and $50.4M from asset sales.

• Backlog increased to $25M, with over 75MW of contracted capacity following recent expansions.

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% (up from 37.3% a year ago), with a 94% year-over-year increase in gross profit.

• 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 25 MW deployed and $26M expected from GPU-as-a-service.

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

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

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

• Backlog includes $28M for Technology Solutions; significant revenue recognition anticipated in the second half of 2026.