Duos Technologies 2025 Q1 Earnings Losses Narrow 24% as Revenue Surges 363%

Duos Technologies (DUOT) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The total revenue soared to $4.95 million, marking a 362.5% increase from $1.07 million in Q1 2024. The company exceeded expectations by significantly reducing its net loss by 24% to $2.08 million. Duos Technologies maintained its guidance for 2025, expecting revenue to reach between $28 million and $30 million, reflecting a 285% to 312% increase from the previous year.

Revenue
The revenue for Q1 2025 saw a dramatic rise, driven primarily by the services and consulting segment, which accounted for $972,751. Revenue from services and consulting-related parties reached $3.91 million, while technology systems contributed $64,684. This impressive growth was largely attributed to the Asset Management Agreement with New APR Energy.

Earnings/Net Income
Duos Technologies reported a narrowing of its losses, with earnings per share improving from a loss of $0.38 to a loss of $0.18, a 52.6% enhancement. The net loss decreased to $2.08 million from $2.75 million in the previous year, showcasing an improvement in financial performance. This EPS improvement indicates a positive trend for the company.

Post-Earnings Price Action Review
The strategy of purchasing Duos Technologies' stock when its revenues miss expectations and holding for 30 days has historically resulted in a 5.5% loss over the backtested period. This performance suggests that the strategy failed to yield positive returns, likely due to investors reacting negatively to revenue shortfalls. Despite this, the company's latest earnings report shows promising progress, which could influence future investor sentiment. The revenue growth and narrowed losses may shift market perceptions, potentially leading to more favorable post-earnings price actions in upcoming quarters.

CEO Commentary
"I am delighted with the progress we have made in the first quarter and am very impressed at the speed at which the Duos team has adapted to the new opportunities in the Data Center and Power business," said Chuck Ferry, CEO of Duos Technologies Group. He noted that the significant revenue increase was primarily driven by the execution of the Asset Management Agreement with New APR Energy, contributing to a strong start in services and consulting. Despite challenges, including delays in deploying Railcar Inspection Portals, he remains confident in the long-term potential of the business, particularly as they anticipate further growth in the second half of the year.

Guidance
Duos Technologies Group expects total revenue for the fiscal year ending December 31, 2025, to range between $28 million and $30 million, representing an increase of 285% to 312% from 2024. The company also anticipates recognizing approximately $17.4 million from its backlog in 2025, alongside an estimated $7.0 to $8.0 million in near-term awards and renewals. Management reiterated its guidance for achieving positive adjusted EBITDA in the latter half of the year while expecting to incur losses in the first half of fiscal 2025.

Additional News
Duos Technologies is on track to expand its Edge Data Center footprint significantly by the end of 2025. The company aims to have 15 Edge Data Centers under contract, reflecting its strategic pivot toward energy infrastructure and data processing solutions. This expansion is poised to address the growing demand for low-latency data processing. Additionally, APR Energy, a key partner, continues to leverage its asset management agreement with Duos Technologies, enhancing operational support and contributing to the company's strategic objectives.