DUOT · Duos Technologies Group, Inc.

Revenue increased 271.2% to $27.0 million in FY 2025 from $7.3 million in FY 2024, primarily attributable to the increase in revenues generated by Duos Energy through the AMA with New APR. This transformation scaled the top line dramatically, enabling the company to reallocate fixed operating and servicing costs for technology systems to support the AMA—an allocation not possible in the prior year when the agreement was not yet in effect. Gross profit followed suit, surging 1,579% to $7.9 million with a 29.2% margin, as high-margin AMA contributions offset legacy rail challenges and demonstrated the leverage from the new revenue stream.

Despite these gains, operating income remained negative at -$9.8 million, an 11% improvement from -$11.0 million, while the operating margin stood at -36.1%. The decrease in net loss to -$9.8 million from -$10.8 million, with diluted EPS improving 54% to -$0.64, underscores how revenue growth mitigated but did not eliminate underlying pressures. Cost reductions, including lower personnel-related expenses and fewer service calls, contributed to this narrowing, yet opex expansion tied to scaling operations prevented breakeven.

Cash flow dynamics highlighted investment priorities. Net cash from operating activities worsened to -$13.7 million from -$3.5 million, reflecting working capital needs from the revenue ramp, including receivables buildup during AMA execution. Capital expenditures ballooned to $23.7 million from $1.8 million, driven by higher investment in capitalized construction-in-progress for manufacturing and deploying Edge Data Centers. This resulted in free cash flow of -$37.4 million, signaling aggressive execution of the diversification strategy into Technology solutions and Edge Data Center subsidiaries.

On a long-term basis, liquidity hinges on successful revenue expansion across operating segments. The company has seen contracted backlog growth and positive signs from new commercial projects, indicating improvements in future revenues. Management believes ongoing actions, including capital access, position the firm to continue as a going concern, grow the business, and achieve profitability—though execution requires customer adoption and carries risks outlined in Item 1A. The company expects to continue this plan amid potential variances from assumptions.