DUOTNasdaqServices-Prepackaged SoftwareUS GAAP · USD

Duos Technologies Group, Inc

Duos Technologies Group is a U.S.-based technology and services company that builds machine-vision, AI, and edge-computing systems for rail and other industrial inspection use cases. The company is also expanding into power-generation support and edge data center hosting, using its software, systems integration, and operations capabilities to create more recurring revenue streams.

Revenue27.0m USD
+271.2 %y/y
Operating profit (EBIT)-9.8m USD
+11.1 %y/y
EBIT margin-36.1%
+114.7 ppy/y
Net income-9.8m USD
+8.6 %y/y
Free cash flow-37.4m USD
−603.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-20-100102030m USD2020: 8.0 m USD2020: EBIT -6.6 m USD20202021: 8.3 m USD2021: EBIT -7.5 m USD20212022: 15 m USD2022: EBIT -6.9 m USD20222023: 7.5 m USD2023: EBIT -11 m USD20232024: 7.3 m USD2024: EBIT -11 m USD20242025: 27 m USD2025: EBIT -9.8 m USD202527-9.8
RevenueOperating profit (EBIT)

Business

Share of revenue
Rail inspection technology systems45 %

Hardware and software used to scan, inspect, and analyze rail assets and railcars.

AI and software services20 %

Computer vision, deep learning, analytics, and subscription data services tied to rail operations.

Technical support and maintenance15 %

Ongoing support, service contracts, and maintenance for installed rail and technology systems.

Power generation services15 %

Asset management, sales, and operational support for mobile gas turbines and related energy assets.

Edge data center hosting5 %

Localized hosting and edge computing services for enterprise and government clients.

Products

Reported · share of revenue
82.7%14.4%FY2025100 %
  • Services and Consulting Related Parties82.7 %
  • Services and Consulting14.4 %
  • Turnkey Projects1.4 %
  • Technology Solutions1.3 %
  • Hosting Revenue0.2 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The core customer base includes Class 1 railroads, railcar owners, railcar lessors, and rail operators that need automated inspection and compliance tools. The company is also selling into power-generation and infrastructure-related customers through asset management arrangements, as well as enterprise and government users for edge data center hosting. Growth depends on customers adopting long-term service agreements because the solutions often require upfront capital and operational change.

Class 1 railroads

Buy rail inspection portals, data access, and service contracts to improve safety, compliance, and operating efficiency.

Railcar owners and lessors

Use subscription-based inspection data and analytics to monitor asset condition and reduce downtime.

Rail operators and maintenance customers

Purchase technical support and maintenance for installed systems and ongoing rail technology services.

Power generation and infrastructure clients

Use Duos Energy's asset management and operational support for mobile gas turbines and BTM power solutions.

Enterprise and government hosting customers

Buy edge data center hosting for localized processing and lower-latency compute needs.

Strategy

Duos is trying to convert its rail technology base into more recurring revenue through subscription services, long-term contracts, and data monetization. At the same time, it is diversifying into edge computing and power-generation support to reduce dependence on the slower-adoption rail market and broaden its addressable market. The strategy is to show clear ROI, improve uptime, and align products with regulatory standards so customers are more willing to commit to multi-year deployments.

Expand recurring rail revenueShort term

Subscription and service contracts should reduce lumpiness and improve visibility.

Scale Duos EnergyShort term

Power-generation services are expected to become a meaningful revenue driver and diversify the business.

Build edge computing footprintMedium term

Edge data centers create a new hosting revenue stream and extend the platform beyond rail.

Broaden inspection marketsMedium term

Applying the core scanning technology to other vehicle types can open new verticals.

Geography

Q1/2026

The company is headquartered in the United States and appears to generate most of its business there, given its rail, power, and hosting customer base. Its rail business is tied to U.S. railroad standards and regulation, while the new energy and edge-computing initiatives are also being deployed domestically. Geography matters mainly because the business depends on U.S. infrastructure, regulatory compliance, and customer proximity for installation and operations.

North America100 %

Risks

The business is exposed to customer adoption risk because rail and infrastructure solutions often require large upfront investment and long sales cycles. It is also taking on execution risk as it expands into energy and edge computing, where operational complexity, capital needs, and partner dependence are higher. As a small company with a going-concern disclosure, Duos remains sensitive to financing availability, contract timing, and the pace at which new offerings convert into stable revenue.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer concentration2Execution risk in new energy and hosting businesses3
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Liquidity and going-concern riskImpact: Critical

    The company states continued operations depend on executing its plan and accessing additional capital.

    Exposure: Corporate level

  2. Customer concentrationImpact: HighLikelihood: Medium

    A major railroad agreement and a small number of energy counterparties can drive a large share of revenue.

    Exposure: Rail and power contracts

  3. Execution risk in new energy and hosting businessesImpact: HighLikelihood: Low

    Duos is expanding into unfamiliar operating models that require reliable deployment and partner coordination.

    Exposure: Duos Energy and Edge Data Centers

  4. Customer adoption and long sales cyclesImpact: High

    Rail operators may be slow to approve capital-intensive inspection systems and service conversions.

    Exposure: Core rail technology business

  5. Regulatory and standards complianceImpact: Medium

    Rail products must keep pace with FRA and AAR requirements, which can raise development costs.

    Exposure: Rail inspection systems

Accounting

Judgemental items
Revenue recognition under ASC 606

The company sells systems, support, subscriptions, and hosting, so timing depends on performance obligations and contract structure.

Impact: Can shift revenue between periods and affect gross margin comparability

Related-party AMA revenue

The New APR asset management agreement is a major revenue source and may not behave like ordinary third-party sales.

Impact: Can create concentration and comparability issues

Equity-method investment accounting

The 5% interest in the ultimate parent of New APR is recorded using estimates and a reporting lag.

Impact: Can affect earnings volatility and balance sheet carrying value

Deferred revenue and contract liabilities

The five-year customer contract includes deferred revenue that is recognized over time.

Impact: Affects future revenue recognition and backlog visibility

Intangible asset valuation and impairment

The company recorded a significant intangible asset tied to customer contract rights and must test it for recoverability.

Impact: Potential non-cash charges if assumptions weaken

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026

Duos Technologies Group, Inc (DUOT) Revenue, Earnings & Financials 2025 – Clarifo