Duos Technologies Q2 Revenue Surges 280%, Outpacing Estimates, Despite GAAP Loss

Duos Technologies Group reported Q2 2025 revenue of $5.74 million, a 280% YoY increase, driven by its new energy services portfolio and Asset Management Agreement with New APR Energy. However, the company reported a GAAP EPS loss of $0.30, missing the consensus estimate of a $0.215 GAAP loss. Gross margins improved, but persistent net losses point to ongoing challenges balancing rapid growth with profitability.

Duos Technologies Group, Inc. (DUOT) reported a significant 280% year-over-year (YoY) increase in revenue for the second quarter (Q2) 2025, reaching $5.74 million. The growth was primarily driven by the company's new energy services portfolio and the execution of its Asset Management Agreement (AMA) with New APR Energy, which contributed approximately $5.69 million in recurring services and consulting revenue [2].

Despite the impressive revenue growth, Duos Technologies reported a GAAP earnings per share (EPS) loss of $0.30, missing the consensus estimate of a $0.215 GAAP loss [3]. The company attributed this loss to increased operating expenses, including non-cash stock-based compensation and one-time costs related to the AMA with New APR Energy. Gross margins improved significantly, reaching $1.52 million from a negative $0.21 million a year earlier, primarily due to high-margin revenue streams linked to the AMA [3].

The company's strategic focus on energy services and edge computing has led to the commercialization of its first Texas Edge Data Center and plans to install 15 more by year-end, accelerating through FiberLight partnerships [2]. Duos Technologies also reported substantial revenue from its Duos Energy segment, which delivers energy management services and oversees the deployment of gas turbine generators.

Looking ahead, Duos Technologies expects full-year revenue to be in the range of $28 million to $30 million, supported by an order backlog of $40.7 million and strong contract coverage for services and consulting [3]. The company aims to achieve breakeven in Q3 2025, indicating a possible turnaround from historical losses if revenue trends continue and operating expenses are managed effectively.

References:
[1] https://www.duostechnologies.com/2025/08/14/duos-technologies-group-reports-second-quarter-2025-results/
[2] https://www.ainvest.com/news/duos-technologies-group-2025-q2-earnings-call-key-contradictions-edge-data-centers-rail-revenue-forecasts-2508/
[3] https://www.aol.com/finance/duos-technologies-q2-revenue-jumps-121923354.html