Recurring revenue (Edge Data Centers)

FY 2025

$3.3 million " " "

$3.5 million "

raised

Rail subscription revenue

FY 2025

$2–3 million " " "

no guidance "

no current guidance

Full Year Revenue

FY 2025

no prior guidance

$28 million–$30 million "

no prior guidance

Earnings Guidance

FY 2025

no prior guidance

“First Half: losses; Second Half: break even/profits; Full Year: positive adjusted EBITDA” "

no prior guidance

Capital Raising Guidance

FY 2025

no prior guidance

$10 million–$15 million "

no prior guidance

EDC Acquisitions

FY 2025

no prior guidance

Acquisition of 9 edge data centers "

no prior guidance

Edge Data Center Expansion and Deployment

In Q1, the company introduced the Duos Edge AI strategy with a pipeline of over 200 centers. " " In Q2, there were plans for four installations in Texas with expected ARR starting in Q4 and a broader target of 15 centers by end‑2025. " " Q3 detailed six centers ready for deployment, strategic partnerships with Accu-Tech, and discussions with hyperscalers. " "

Q4 reported that one center in Amarillo is fully commercialized and producing revenue, with two more in Tampa under installation. The current deployment cadence is 2–3 centers per quarter, and clear deployment and financing plans are in place. " " "

Consistent growth with clearer deployment progress. The sentiment remains positive with robust recurring revenue potential and strong strategic partnerships.

Rail Business Recurring Revenue and Subscription Model

Q1 discussed a transition to a subscription model with a slight revenue dip and expectations for a turnaround in H2. " " Q2 detailed a landmark 5‑year AI subscription agreement and early subscriber traction. " Q3 highlighted growing recurring revenue, increased backlog, and new pilot programs with Amtrak and Canadian National. " " "

Q4 reaffirmed the shift toward a subscription model for the rail business, addressing challenges like slow adoption in a traditionally conservative industry. New interest from organizations such as DHS and Customs and Border Protection was also noted. "

Ongoing transition with promising backlog growth. Despite the inherent slow adoption, the shift is supported by new pilot programs and subscriber interest, suggesting a steadily positive outlook.

Execution Risks and Project Delays

Q1 reported significant revenue timing issues due to a major customer delaying delivery. " " Q2 highlighted delays in Amtrak installations and challenges with RIP deployments, with uncertainties over project completion timelines. " " " Q3 continued to address delays, particularly related to the Amtrak contract and variability in edge data center scheduling. " " "

Q4 continued to experience execution risks, including customer-driven delays in railcar inspection portal deployments. However, partial contract compensation and focused strategic planning to accelerate edge center installations are being implemented. " " "

Persistent challenges with execution and project delays. Though delays remain a concern, the company is actively managing these risks with mitigation measures and strategic adjustments.

Hyperscaler Partnerships and Demand Generation

No mention in Q1; Q2 contained indirect references through growing demand for edge centers and power opportunities. " " In Q3, there were active discussions with hyperscalers to accelerate edge data center deployment and a clear statement of extremely high demand. " "

Q4 provided detailed examples of active discussions with 5–6 major hyperscalers, including AWS involvement at the Amarillo center. The enhanced focus aligns with strong demand for both edge data centers and power solutions. "

Emerging as a key focus area. The increased clarity and concrete examples in Q4 point to an expanding strategic relationship environment and growing positive industry momentum.

Tariff Uncertainty and Raw Material Cost Pressure

These topics were not mentioned in Q1, Q2, or Q3 earnings calls.

Q4 introduced these risks, with management noting that while tariffs are expected eventually, they have not impacted operations yet. Raw material cost pressures for rail and edge centers are being monitored, with some measures already in place by partners. "

New emerging risk factor. Although current sentiment is neutral since no direct impacts have materialized, these topics warrant future close attention as potential cost pressures.

Energy Division Competition and Power Business Expansion

Q1 did not cover this topic. Q2 outlined the formation of Duos Energy Corporation with a growing pipeline tied to data center demand and highlighted early-stage power project initiatives. " " Q3 emphasized a competitive landscape in the power business, with discussions around asset management agreements and partnerships with firms like Fortress, along with a detailed view of equipment capabilities. " " "

Q4 elaborated further on energy division activities, noting high behind‑the‑meter power demand in the U.S. data center market, significant contracted megawatts, and synergies between power and data center segments. Detailed contracts and international considerations were also mentioned. " "

Robust expansion amid competition. The energy division continues to grow with ambitious contracts and high demand, despite a competitive market, supporting a positive long‑term outlook.

Decline in Focus on Product Innovation and Software Upgrades

Q1 highlighted strong commitment to innovation with new machine vision systems for rail inspection and major software enhancements like the R4 update for the Centraco system. " " " Q2 and Q3 did not concentrate on this subject.

In Q4, there was no mention of any decline in focus on product innovation or software upgrades.

No evidence of decline. The absence of negative commentary in later periods suggests that product innovation remains stable, with earlier Q1 communications still reflective of the company’s commitment.