Duos Technologies Reports $47.8 Million Net Income and 30% Revenue Growth in Latest Quarter

Duos Technologies Group, Inc. reported significant financial improvements in its latest quarterly filing, showcasing a net income of $47.8 million for the three months ended June 30, 2026, compared to a net loss of $3.5 million in the same period last year. This turnaround was driven by a 30% increase in total revenues, which reached $6.2 million, up from $4.8 million in the prior year. The company attributed this growth to the successful launch of its Technology Solutions business, which generated $3.2 million in revenue, and a substantial gain of $53.2 million from the sale of investments related to its equity interest in Sawgrass Parent.

The financial performance for the first half of 2026 also reflected a positive trend, with total revenues of $8.3 million, slightly down from $8.7 million in the previous year. The decrease was primarily due to a 49% drop in services and consulting revenue from related parties, which fell to $4.5 million as the company wound down its Asset Management Agreement (AMA) with New APR. However, the cost of revenues decreased significantly by 32%, leading to a gross margin of $4.5 million, up from $3.0 million in the prior year.

Strategically, Duos Technologies has undergone a significant transformation, including the divestiture of its legacy rail technology business, Duos Technologies, Inc., which was completed on August 5, 2026. This move allows the company to focus on its core operations in edge data centers and technology solutions. The company has also expanded its infrastructure services, which have become its largest source of revenue from continuing operations. The Technology Solutions segment has seen rapid growth, driven by increased demand for data center construction and modernization.

Operationally, Duos Technologies has made strides in expanding its customer base and enhancing its service offerings. The company reported a cash balance of $112.3 million as of June 30, 2026, a significant increase from $15.5 million at the end of 2025. This liquidity position is expected to support ongoing investments in its edge data center platform and GPU-as-a-service operations. The company has also secured a data center facility in Columbus, Georgia, for $30 million, which will further bolster its infrastructure capabilities.

Looking ahead, Duos Technologies is optimistic about its growth trajectory, focusing on scaling its edge data center deployments and enhancing its technology solutions. The company anticipates that these initiatives will drive increased revenue and profitability in the coming years, despite the inherent risks associated with market conditions and operational execution. The management remains committed to executing its strategic plan and believes it is well-positioned to capitalize on the growing demand for digital infrastructure and AI-related services.