Rick Jackson's questions to Duos Technologies Group Inc (DUOT) leadership • Q2 2025
Question
Rick Jackson of True North Financial Solutions sought clarification on the revenue sources for the edge data centers (EDCs) and confirmed the math on the cost-to-revenue ratio per unit. He also asked about the projected annual revenue from 65 EDCs and questioned whether SG&A expenses would need to increase to support the revenue growth required to meet full-year guidance.
Answer
CEO Charles Ferry explained that EDC revenue comes from customers like carriers and cloud providers leasing cabinet space in the colocation facilities. CFO Adrian Goldfarb confirmed the cost per EDC is around $1.2-$1.4 million, generating $300k-$400k in first-year revenue, and that 65 units could generate over $20 million in recurring annual revenue. Goldfarb also stated that SG&A is expected to remain flat, as the company is adequately staffed and is actively seeking cost efficiencies, particularly in the rail business.