Duos Technologies Group reported a sharp swing to profit in the second quarter of 2026, with earnings per share of $1.61 versus analysts’ estimate for a loss of $0.02. Revenue came in at $6.18 million, below the $10.7 million forecast. The company said the quarter marked a major step in its shift into AI infrastructure and edge data centers.
The stock rose 12.84% in the regular session to $10.28 and climbed another 8.37% after hours to $11.14. Management said the company has completed its transition from rail technology to a pure-play AI infrastructure and edge data center platform.
Financial Highlights
Revenue from continuing operations rose to $6.18 million from $4.77 million a year earlier, driven by growth in technology solutions and related-party services. Gross margin improved to 55.8% of revenue from 37.3% a year ago. Operating income was $50,000, compared with an operating loss of $1.54 million in the prior-year quarter.
Outlook
Management reaffirmed its expectation for more than $50 million in total revenue in 2026 and pointed to at least $160 million in revenue for 2027. The company said it expects positive adjusted EBITDA in both the third and fourth quarters, with adjusted EBITDA projected at $8 million to $10 million in the fourth quarter.