Duos Technologies Group, Inc. Q2 FY2025 earnings call

• Strategy Pivot: Shift to Edge Data Center business with 15 EDCs planned in Texas in 2025 and growing pipeline for 2026.
• Asset Management Agreement: Installed 150-megawatt gas turbine plant in Mexico in 35 days and delivered turbines to US AI data center; steady recurring revenues stabilize financials.
• Financial Transformation: Raised over $50 million, average trading volume increased, balance sheet strength improved with $3.81 million cash at end of Q2 2025.
• Edge Data Center Progress: First EDC in Amarillo commercialized, 5 more being installed, with plans to expand to 150 EDCs over time.
• Railcar Inspection Portal: Modest uptick in interest, with reassessment of strategy underway.

Asset Management Agreement (Duos Energy): In Q2 2025, recurring services and consulting revenue was approximately $5.69 million, with $4.76 million primarily from the asset management agreement with New APR. For the 6 months ended 2025, total revenues increased to $10.69 million from $2.58 million in the prior year, driven significantly by the AMA. Railcar Inspection Portal: Largely flat, but the rail industry acknowledges broad future use. Edge Data Center (EDC): First EDC in Amarillo fully commercialized; plan to install 15 EDCs in Texas in 2025, 65 by end of 2026, and 150 in subsequent 18 months.

• Revenue: Expect revenues to continue growing in next 2 quarters, aiming for $28 million to $30 million in consolidated revenue for 2025.
• Profitability: Anticipate achieving profitability in Q4 2025 on adjusted EBITDA basis.
• Backlog and Pipeline: Current backlog over $40 million, with ~$12.3 million projected in 2025 and $5-6 million in near-term awards/renewals.

• Uncertain Rail Industry Adoption: Slow progress in Railcar Inspection Portal adoption despite industry acknowledgment.
• Execution Risks for EDC Expansion: Potential challenges in executing on installation targets and managing multiple simultaneous EDC installations.
• Market and Regulatory Risks: Impacts from market conditions and regulations in data center and power businesses.

Q: What is the fully diluted share count?

A: Adrian G. Goldfarb states it's exactly 25 million.

Q: What's the per share impact of noncash stock-based comp?

A: Adrian G. Goldfarb says noncash comp is ~$1 million per quarter, which is ~$0.04 per share on 25 million shares.

Q: ARPU for Edge Data Centers?

A: Charles Parker Ferry says each pod is expected to earn around $350,000 to $500,000 annually.

Q: Expansion of power/EDC into North America/international?

A: Charles Parker Ferry mentions APR has opportunities in US, Mexico, Canada, and Puerto Rico, focusing on less risky jurisdictions.