Overview

• US modular data center provider's Q1 revenue fell 45% yr/yr on legacy business ramp-down

• Net loss widened to $3.49 mln as higher operating expenses offset improved gross margin

• Company reaffirmed 2026 revenue target above $50 mln, with growth expected in H2

Outlook

• Duos expects 2026 revenue to exceed $50 mln, reaffirming prior guidance

• Company anticipates positive adjusted EBITDA in the second half of 2026

• Significant portion of 2026 revenue expected in second half, tied to project deployments

Result Drivers

• LEGACY BUSINESS RAMP-DOWN - Co said revenue decline was mainly due to reduced scope of services from Duos Energy and New APR Asset Management Agreement

• OPERATING EXPENSES UP - Co attributed higher operating expenses to increased sales and marketing and general administrative costs, offset by lower R&D from reduced rail business

• GROSS MARGIN IMPROVEMENT - Co said gross margin rose due to reduced personnel-related costs and lower manufacturing activity, with high-margin revenue from equity interests

Company press release: ID:nGNX9jqgg6

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		-$3.49 mln
Q1 EBIT		-$3.63 mln
Q1 Operating Expenses		$5.24 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Duos Technologies Group Inc is $17.00, about 89.5% above its May 15 closing price of $8.97

• The stock recently traded at 76 times the next 12-month earnings vs. a P/E of 78 three months ago

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