Duos Technologies (DUOT) recently reported earnings and beat estimates, causing the stock to surge more than 20%. That’s the headline — but the jump wasn’t just about the figures on paper. The rally was also about what the company has turned into. Over the past few months, Duos sold off its legacy railroad-inspection business and rebuilt itself as a firm focused entirely on AI data centers. The second-quarter report was the first real look at that new company, and the market sentiment was strongly positive.
The reinvention is showing up in the numbers. Revenue rose 30% year-over-year (YOY) to $6.18 million while gross margin increased from 37.3% to 55.8%. Duos also posted its first positive operating quarter. The company now has more than 75 megawatts of data-center capacity under contract, driven by its deepening partnership with Axe Compute (AGPU). A new set of agreements added 55 MW and is expected to bring in over $500 million in base payments across five years. Management reaffirmed its goal of more than $50 million in revenue this year, and early projections point to at least $160 million in 2027.
