Duos Technologies Group, Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Duos Technologies Q2 2026 Earnings Summary

Overview: Duos completed its transformation into a pure-play AI infrastructure and Edge Data Center company. Key milestones include divestiture of the rail business (Duos Technologies, Inc., now independent under DuosTI) on August 5, 2026, and sale of its 5% stake in New APR Energy for ~$60M ($50.4M cash received, $10M holdback receivable), generating a $53.2M gain. Focus now on Duos Edge AI (colocation/hosting) and Duos Technology Solutions. Leadership strengthened with Dipan Patel as COO; new CFO search ongoing.

Financial Performance (Continuing Operations)

  • Revenue: $6.18M in Q2 2026, +30% vs. $4.77M in Q2 2025. For H1 2026: $8.32M vs. $8.68M in H1 2025 (decline reflects wind-down of low-margin AMA revenue offset by new Technology Solutions revenue).
  • Revenue Mix: Technology Solutions $3.23M (from $0 in Q2 2025); Related party/consulting $2.91M (includes $2.71M one-time APR deferred revenue acceleration).
  • Gross Margin: $3.45M (55.8% of revenue), +94% vs. $1.78M (37.3%) in Q2 2025. H1 2026: $4.5M (54.1%) vs. $3.03M (34.9%). Structural improvement from shift to higher-margin services.
  • Operating Expenses: $3.4M in Q2 (+2% vs. $3.32M in Q2 2025); H1 $7.63M vs. $5.11M (investments in growth/hiring/stock comp ahead of H2 ramp).
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Operator: Good afternoon, and welcome to Duos Technologies' Q2 2026 earnings conference call. Joining us for today's call are Duos' CEO, Doug Recker, and CFO, Adrian Goldfarb. Following their remarks, we will open the call to your questions. Then, before we conclude today's call, I will provide the necessary cautions regarding the forward-looking statements made by management during this call. Now, I would like to turn the call over to Mr. Recker. Sir, please go ahead. Doug Recker: Welcome, everyone, and thank you for joining us today. Earlier today, we issued our earnings press release, and we will file our 10-Q for Q2 2026 by Wednesday, August 19, 2026. Copies will be available in the investor relations section of our website. I encourage all listeners to view the press release and our 10-Q filing to better understand some of the details we will be discussing during this afternoon's call. At a high level, the Q2 represented another important step in our transformation into a data center and AI infrastructure company. Throughout the quarter, we continued executing on our strategy of extending our Edge Data Center platform, growing Duos Technology Solutions, and advancing several key strategic initiatives designed to support long-term revenue growth and profitability. Adrian will provide details on the quarter's financial performance. I would like to spend a few minutes discussing the key operational developments and strategic progress we made during the quarter. Beginning w
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