Duos Technologies 2025 Q2 Earnings Improved EPS, But Net Loss Widen

Duos Technologies (DUOT) reported its fiscal 2025 Q2 earnings on August 14, 2025. The company delivered a notable improvement in its earnings per share, narrowing its loss to $0.30 from $0.43 a year ago. Despite this EPS progress, the net loss widened slightly, raising concerns. The report included updated guidance and strategic updates, signaling long-term optimism.

Duos Technologies exceeded expectations with a 279.7% year-over-year revenue increase to $5.74 million. The growth was primarily driven by strong performance in services and consulting, while the company reaffirmed its full-year revenue guidance. The management expressed confidence in achieving breakeven or profitability by Q4 2025.

Revenue
The company’s 2025 Q2 revenue surged by 279.7% to $5.74 million from $1.51 million in the same period last year. Technology systems contributed $41,397 to the total, while services and consulting brought in $926,241. Services and consulting-related parties accounted for a significant portion at $4.76 million. Hosting, the smallest revenue segment, added $8,000 to the quarter’s results.

Earnings/Net Income
Duos Technologies improved its earnings per share by 30.2%, reducing the loss to $0.30 per share from $0.43 per share in 2024 Q2. However, the company’s net loss increased to $3.52 million in 2025 Q2, a 9.8% rise from the $3.20 million loss in the prior year, indicating that the earnings improvement did not fully translate into bottom-line growth.

Price Action
DUOT shares edged up 1.64% in the latest trading day but fell 4.25% over the most recent full trading week and dropped 11.57% month-to-date. The mixed short-term performance reflects investor uncertainty around the company’s profitability timeline.

Post-Earnings Price Action Review
A strategy of buying Duos Technologies shares after the earnings report and holding for 30 days has historically underperformed, delivering a negative return of -11.20% over the past three years. This significantly trailed the benchmark return of 46.48%, with an excess return of -57.68%. The approach yielded a compound annual growth rate of -4.01%, highlighting substantial underperformance. Additionally, the strategy was marked by a high maximum drawdown of 0.00% and a Sharpe ratio of -0.04, underscoring the elevated risk and volatility associated with this investment approach.

CEO Commentary
Charles Parker Ferry, CEO of Duos Technologies, highlighted the company’s strategic shift toward the Edge Data Center (EDC) business as a key driver of growth. He noted the successful execution of the asset management agreement with APR Energy and the rapid deployment of a 150-megawatt power plant in Mexico. Ferry emphasized the expanding pipeline for 2026 and the stabilization of recurring revenue streams. Looking ahead, the CEO outlined plans to expand EDC installations, including 15 in Texas for 2025, and to enhance data center expertise for stronger market positioning. Ferry expressed optimism about achieving profitability by Q4 2025 and long-term growth through the EDC and energy businesses.

Guidance
Adrian G. Goldfarb, CFO, reiterated the company’s full-year revenue guidance of $28–$30 million, projecting continued growth in the next two quarters driven by EDC deployments, asset management agreement performance, and improved technology system revenues. The company aims to reach breakeven or profitability by Q4 2025 on an adjusted EBITDA basis. With a current backlog exceeding $40 million and $12.3 million expected in 2025, management sees a strong outlook for recurring revenue growth. Ferry confirmed the plan to install 15 EDCs in 2025, with a target of 65 by 2026 and 150 by mid-2028.

Additional News
On August 15, 2025, Punch Newspapers reported several key developments in Nigeria. The Federal Capital Territory Police Command praised the destruction of suspected criminal hideouts in the Apo District, signaling ongoing efforts to enhance public safety. Meanwhile, a report indicated that many Nigerians are favoring Abu Dhabi and Dubai for capital protection, reflecting growing interest in offshore investments. In corporate news, Chocolate City Group appointed Ifeyinwa Anyadiegwu as its new vice president, marking a significant leadership change in the entertainment sector.