<span item_type="fundamental" item_id="e772e2f7b4e4f98e1cf781ad4f5e3b63" counter_id="ST/US/DUOT" env="prod"></span><span item_type="announcement" item_id="650192281729178497" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 2.722 M, missing the estimate of USD 9.6 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD -0.15, missing the estimate of USD -0.03.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -3.719 M.</p><p></p><h4>Total Revenues</h4><p>Duos Technologies Group, Inc. reported total revenues of $2,722,027 for Q1 2026, a 45% decrease compared to $4,952,185 in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Segment Revenue (Q1 2026)</h4><ul><li>Technology systems: $44,259<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li><li>Technology solutions: $562,454<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li><li>Services and consulting: $532,467<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li><li>Services and consulting - related parties: $1,552,572<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li><li>Hosting Revenue: $30,275<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li></ul><h4>Segment Revenue (Q1 2025)</h4><ul><li>Technology systems: $64,684<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li><li>Technology solutions: $0<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li><li>Services and consulting: $972,751<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li><li>Services and consulting - related parties: $3,914,750<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li><li>Hosting Revenue: $0<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></li></ul><h4>Cost of Revenues</h4><p>Cost of revenues for Q1 2026 decreased by 69% to $1,111,659, compared to $3,638,526 for Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Gross Margin</h4><p>Gross margin for Q1 2026 increased by 23% to $1,610,368, compared to $1,313,659 for Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Operating Expenses</h4><p>Operating expenses for Q1 2026 increased by 69% to $5,241,914, compared to $3,103,287 for Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span> Sales and marketing: $488,847 in Q1 2026 vs. $294,975 in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span> Research and development: $0 in Q1 2026 vs. $424,431 in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span> General and administrative: $4,753,067 in Q1 2026 vs. $2,383,881 in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Net Operating Loss</h4><p>Net operating loss for Q1 2026 totaled -$3,631,546, compared to a net operating loss of -$1,789,628 for Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Net Loss</h4><p>Net loss for Q1 2026 totaled -$3,492,245, compared to -$2,079,663 for Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Net Loss Per Common Share</h4><p>Net loss per common share was -$0.15 for the three months ended March 31, 2026, and -$0.18 for the three months ended March 31, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA for Q1 2026 was -$1,500,000.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Cash and Cash Equivalents</h4><p>Cash and cash equivalents at March 31, 2026, totaled $33,030,791, compared to $15,472,229 at December 31, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Cash Flow from Operating Activities</h4><p>Net cash used in operating activities was -$1,361,911 for Q1 2026, compared to -$4,673,425 for Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Cash Flow from Investing Activities</h4><p>Net cash used in investing activities was -$41,189,127 for Q1 2026, compared to -$581,623 for Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Cash Flow from Financing Activities</h4><p>Net cash provided by financing activities was $60,109,600 for Q1 2026, compared to $2,788,033 for Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Operational Highlights</h4><p>Duos Technologies Group, Inc. completed a $65 million capital raise in March 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span> The company secured a $176 million GPU-as-a-Service (GPUaaS) contract with Hydra Host in March 2026, with approximately $26 million in revenues expected in the second half of 2026 and $135 million over the remaining contract period, projecting gross margins exceeding 80% and annual EBITDA of approximately $40 million from this partnership.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span> The company has 10 MW contracted and plans to deploy 15 MW in 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span> The planned divestiture of the legacy rail inspection business is expected to be finalized in the second half of 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p><h4>Outlook / Guidance</h4><p>Duos Technologies Group, Inc. reconfirmed its expectation for total revenue to exceed $50 million in 2026, supported by approximately $43.5 million in current bookings and an additional $1.1 million in deferred revenue from 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span> A significant portion of this revenue is anticipated in the second half of the year, aligning with project timing and infrastructure deployments.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span> The company expects profitability to improve as revenue ramps, anticipating positive adjusted EBITDA in the second half of 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1396536/000107997326000696/ex99x1.htm"></span></p>

Duos Tech | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 2.722 M