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1. Company Snapshot

1.a. Company Description

Duos Technologies Group, Inc.designs, develops, deploys, and operates intelligent technology solutions in North America.Its technology platforms used in its solutions include centraco, an enterprise information management system; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications, as well as Praesidium to manage various image capture devices and some sensors for input into the centraco software.


The company's proprietary applications include Railcar Inspection Portal for the automated inspection of freight and transit trains while in motion; Vehicle Undercarriage Examiner to inspect the undercarriage of railcars; Thermal Undercarriage Examiner; Enterprise Command and Control Suite for information consolidation, connectivity, and communications; and Automated Logistics Information Systems, a proprietary intelligent system to automate security gate operations.It also provides IT asset management services for data centers operators; maintenance and technical support services; consulting and auditing; software licensing with optional hardware sales; and training services.The company is headquartered in Jacksonville, Florida.

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1.b. Last Insights on DUOT

Duos Technologies Group's recent performance was driven by several positive factors. The company's Q2 2025 earnings call revealed a significant $50 million revenue pipeline, which is expected to be fulfilled with over $40 million in expected cash on hand. Additionally, Duos Edge AI was awarded a patent, further solidifying its position in the industry. The company also appointed a data center industry leader to its board, bringing valuable expertise to the table. Furthermore, Duos Edge AI expanded its strategic partnership with FiberLight, enhancing its offerings. These developments have positioned the company for potential growth.

1.c. Company Highlights

2. Duos Technologies' Q3 2025 Earnings: A Strong Leap Forward

Duos Technologies reported a significant surge in total revenues for Q3 2025, increasing 112% to $6.88 million compared to $3.24 million in Q3 2024. For the 9 months ended 2025, revenues more than doubled to $17.57 million. Gross margin for Q3 2025 also saw a substantial increase of 174% to $2.52 million. The company's adjusted EBITDA turned positive, totaling $491,000, a quarter ahead of projections. Actual EPS came out at '-0.06', beating estimates of '-0.12'. The strong financial performance was largely driven by the Asset Management Agreement with APR Energy, contributing $5.15 million to Q3 2025 revenue.

Publication Date: Dec -02

📋 Highlights
  • Revenue Surge:: Q3 2025 revenue jumped 112% to $6.88M YoY, with 9-month revenue hitting $17.57M (202% YoY), driven by the APR Energy agreement ($5.15M contribution).
  • Gross Margin Expansion:: Q3 gross margin soared 174% to $2.52M, with 9-month margin up 569% to $5.35M, reflecting operational efficiency.
  • Positive EBITDA Early:: Adjusted EBITDA turned positive at $491K in Q3, a quarter ahead of projections, with a $35M cash balance (422% YoY) and $50M shareholders’ equity.
  • Edge Computing Pivot:: Goal to deploy 15 Edge Data Centers by 2025 (6 installed, 4 more planned), with $26M in backlog and $9.5M expected in Q4 2025.

Strategic Shifts and Management Changes

The company is undergoing significant strategic shifts under new leadership. Adrian Goldfarb transitioned out of the CFO role, succeeded by Leah Brown. Duos is pivoting into the Edge Computing space, planning to deploy 15 Edge Data Centers by the end of 2025. The company has a substantial backlog of nearly $26 million, with $9.5 million expected to be recognized in Q4 2025. Chuck Ferry emphasized the company's positioning in the growing demand for AI computing power and Edge Computing, with discussions ongoing with 2-3 large developers for strategic Edge Computing opportunities.

Valuation Insights

With a P/S Ratio of 14.06 and an EV/EBITDA of -35.14, the market seems to be pricing in significant growth expectations. The company's strong balance sheet, with over $35 million in cash and short-term receivables, and shareholders' equity standing at nearly $50 million, supports its strategic initiatives. Analysts estimate next year's revenue growth at 43.2%, indicating a continued upward trajectory.

Innovation and Expansion Plans

Duos has received a U.S. patent for its modular data center design, enhancing its competitive advantage. The company is expanding its presence in the data center market, focusing on adding accretive business. With Doug Recker, who has over 30 years of experience in the data center space, at the helm as President, Duos is well-positioned to capitalize on the growing demand for edge computing and data center infrastructure. The launch of Duos Technology Solutions as a strategic sourcing partner is expected to contribute to revenue growth in 2026.

Growth Drivers and Market Opportunities

The growing demand from AI and cloud customers is driving the need for edge computing and data center infrastructure. Duos is seeing increased demand from hyperscalers, data center developers, and other customers. The company's ability to deploy quickly in Tier 3 and Tier 4 markets, along with its modular data center design, positions it well to capitalize on this trend. Initial deals have been smaller, but larger discussions are underway with hyperscalers and other customers.

3. NewsRoom

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Duos Technologies Group (NASDAQ:DUOT) Shares Up 1.2% – Here’s What Happened

Dec -03

Source: defenseworld.net

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Duos Technologies Group, Inc. (DUOT) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Duos Technologies Group, Inc. (DUOT) Reports Q3 Loss, Lags Revenue Estimates

Nov -13

Source: zacks.com

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Duos Technologies Reports 112% Increase in Quarterly Revenue

Nov -12

Source: globenewswire.com

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Duos Edge AI Joins Nomad Futurist Foundation as Inspiration Sponsor

Nov -06

Source: globenewswire.com

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Duos Technologies: Well Capitalized With Appealing Growth Runway

Nov -06

Source: seekingalpha.com

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Duos Technologies Group Sets Third Quarter 2025 Earnings Call for Wednesday, November 12, 2025, at 4:30 PM ET

Nov -05

Source: globenewswire.com

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Duos Technologies Group, Inc. (DUOT) Soars 6.5%: Is Further Upside Left in the Stock?

Oct -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.74%)

6. Segments

Rail

Expected Growth: 4.65%

Duos Technologies Group's Rail segment growth of 4.65% is driven by increasing demand for automated rail inspection systems, expansion into new geographic markets, and growing adoption of artificial intelligence and machine learning technologies in rail operations. Additionally, rising concerns over rail safety and security are fueling investments in advanced surveillance and monitoring systems.

Artificial Intelligence

Expected Growth: 40.27%

Duos Technologies Group, Inc.'s Artificial Intelligence segment growth of 40.27% is driven by increasing demand for automation and efficiency in various industries, government investments in AI research, and the company's strategic partnerships and acquisitions. Additionally, the growing need for predictive analytics, cybersecurity, and data-driven decision making are also contributing to this rapid growth.

Commercial

Expected Growth: 7.77%

Duos Technologies Group, Inc.'s commercial segment growth of 7.77% is driven by increasing demand for its rail inspection services, expansion into new markets, and strategic partnerships. Additionally, the company's investments in AI-powered technology and its ability to provide real-time data analytics to customers have contributed to its growth.

Government

Expected Growth: 10.47%

Government segment growth of 10.47% in Duos Technologies Group, Inc. is driven by increasing demand for advanced security and surveillance systems, expansion of government infrastructure projects, and rising need for intelligent transportation systems. Additionally, growing adoption of AI-powered solutions and cybersecurity services also contribute to this growth.

7. Detailed Products

Truevue

A real-time intelligent video analytics platform that provides advanced object detection, tracking, and alerting capabilities.

dcVue

A data-centric integration platform that enables the integration of disparate data sources and systems.

Chassis

A modular, scalable, and customizable hardware platform designed for AI and computer vision applications.

prISM

A proprietary, AI-powered analytics platform that provides real-time insights and predictive analytics.

8. Duos Technologies Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Duos Technologies Group, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the technology industry.

Bargaining Power Of Customers

Duos Technologies Group, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Duos Technologies Group, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate contracts mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the technology industry, including significant capital requirements and the need for specialized expertise. Additionally, Duos Technologies Group, Inc. has established a strong brand and customer base, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The technology industry is highly competitive, and Duos Technologies Group, Inc. faces intense rivalry from established players and new entrants. The company must continually innovate and differentiate its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.48%
Debt Cost 3.95%
Equity Weight 51.52%
Equity Cost 9.77%
WACC 6.95%
Leverage 94.10%

11. Quality Control: Duos Technologies Group, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cepton

A-Score: 4.8/10

Value: 8.4

Growth: 4.1

Quality: 5.2

Yield: 0.0

Momentum: 7.5

Volatility: 3.7

1-Year Total Return ->

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Duos Technologies

A-Score: 4.0/10

Value: 6.0

Growth: 3.8

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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E2open

A-Score: 3.9/10

Value: 7.5

Growth: 3.2

Quality: 2.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

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Digital Turbine

A-Score: 3.4/10

Value: 6.0

Growth: 3.4

Quality: 1.6

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

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LivePerson

A-Score: 3.3/10

Value: 10.0

Growth: 2.3

Quality: 6.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Phunware

A-Score: 3.0/10

Value: 7.5

Growth: 4.3

Quality: 3.4

Yield: 0.0

Momentum: 1.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.84$

Current Price

9.84$

Potential

-0.00%

Expected Cash-Flows