Duos Technologies Q1 revenue falls on legacy business ramp-down

Duos Technologies

18/05/2026 12:39

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)