Duos Technologies Post Earnings Updates

DUOT (earnings): Q2 rev $6.18M from continuing ops; Technology Solutions $3.23M (from ~$0 y/y), but Data Center Hosting just $33K—GPUaaS/colo ramp not yet visible. Mgmt reaffirmed $50M+ 2026 revenue (needs ~$41.7M in H2, ~5x H1), driven by ~$26M GPUaaS (2,304 NVIDIA B300s coming online) + ~$25M Tech Solutions backlog. Guides Q4 adj EBITDA $8-10M and $17-18M recurring infra rev (>$70M ARR, >70% GM). At Q4 run-rate ~6x P/S, ~8.5x EV/EBITDA—steep discount to peers (APLD/CIFR/CORZ/WULF at 8-15x P/S, 25-51x EV/EBITDA). Sub-20MW, no-water, stranded-power model may dodge tightening data-center regs. New Axe Compute deal (>$500M/5yr, Axe funds up to $140M equity, Duos keeps 51%) addresses dilution overhang; early 2027 rev est >$160M. $112M cash. Author sees $20 on peer multiple; thesis is execution-dependent.

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