10-Q · May 15, 2026
Duos Technologies reported a significant decline in revenue and increased losses in Q1 2026 compared to the previous year. Despite this, the company has improved its gross margin, which increased to 59% from 27%…
Earnings analysis · 10-Q
DUOT earnings analysis
Filed August 19, 2026 · Our reading of the company's report
The latest report
Duos delivered strong Q2 execution, with $6.175 million of revenue, approximately 30% year-over-year growth, and $1.37 of EPS versus a $0.52 estimate. Operating performance improved to approximately $0.05 million of…
Read full summary
Duos delivered strong Q2 execution, with $6.175 million of revenue, approximately 30% year-over-year growth, and $1.37 of EPS versus a $0.52 estimate. Operating performance improved to approximately $0.05 million of operating income, but the filing does not provide sufficient detail to assess current gross margin, free cash flow, or balance-sheet trends. Management maintained its 2026 targets of more than $50 million of revenue, 25 MW deployed, and positive adjusted EBITDA. Newly disclosed GPU-as-a-service risks—including exposure to 1 customer, nonpayment risk, and GPU residual-value risk—temper the improved quarterly results.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.37
- Operating margin
- 0.8%
What stood out
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Revenue grew 30% year over year
Q2 revenue was $6.175 million, up approximately 30% from $4.75 million in Q2 2025 and above the $6.06 million consensus estimate by approximately 1.9%.
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EPS materially beat consensus
Reported EPS was $1.37 versus a $0.52 consensus estimate, a $0.85 beat or approximately 163.5%. The earnings result also improved from a $0.30 loss per share in Q2 2025.
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Operations returned to profitability
Operating income was approximately $0.05 million, implying an operating margin of roughly 0.8%, versus a 60.0% operating loss margin in Q2 2025.
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Technology Solutions led growth
Technology Solutions was identified as the primary driver of revenue growth, although the filing extract does not provide a separate segment revenue amount.
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2026 outlook was maintained
The company reaffirmed its 2026 targets of more than $50 million in revenue, 25 MW deployed, and positive full-year adjusted EBITDA rather than raising them.
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No material control changes
Disclosure controls were deemed effective as of June 30, 2026, and management reported no changes in internal control that materially affected or were reasonably likely to materially affect reporting.
What to watch
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Single-customer concentration
The GPU-as-a-service business is expected to concentrate revenue with 1 customer, increasing exposure to customer concentration and payment risk.
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Customer credit risk
Hydra Host, the third-party operator, does not guarantee customer credit performance, leaving Duos exposed to the full risk of nonpayment.
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GPU residual-value risk
Duos will retain ownership of GPU servers after the customer contract ends, creating residual-value exposure to changes in technology, pricing, and market demand.
Management's outlook
Management reaffirmed 2026 expectations for 25 MW deployed, total revenue exceeding $50 million, and positive full-year adjusted EBITDA. No numeric EPS guidance was provided.
Earlier filings 4
10-K · March 31, 2026
The 2025 Form 10-K frames Duos as a strategic transition from legacy machine-vision products toward a distributed digital infrastructure platform led by Duos Edge AI and modular Edge Data Centers (EDCs). Management…
10-Q · November 13, 2025
Duos reported Q3 revenue of $6,877,283, up from $3,238,910 in Q3 2024, with gross margin expanding to $2,516,402 (≈36.6%) and a smaller operating loss of $1,115,980. EPS improved to a $(0.06) loss from $(0.18) a year…
10-Q · May 15, 2025
Duos reported Q1 revenue of $4,952,185 (up $3,881,505 vs Q1 2024) with gross margin of $1,313,659 (26.5%). Loss narrowed to $(2,079,663) or $(0.18) per share versus $(2,752,309) and $(0.38) in prior-year quarter, but…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.