Management is executing a total divestiture of the legacy Rail division within 60 days to eliminate SG&A overhead and address stagnant growth and regulatory hurdles.

The company has transitioned to a pure-play data center model, leveraging the new Duos Technology Solutions division to bypass traditional distribution and procure infrastructure at 20% to 30% lower costs.

Performance in 2025 was primarily driven by a $22.4 million contribution from an asset management agreement with APR Energy, which provided the capital necessary to pivot toward edge computing.

Management successfully met an aggressive goal to deploy 15 edge data centers (EDCs) in the second half of 2025, targeting underserved Tier 3 and Tier 4 markets.

The strategy has evolved from kilowatt-scale modular pods to megawatt-scale high-density EDCs to meet unprecedented demand for AI inference and training workloads.

A strategic competitive advantage was established through a patented 'clean room' technology that protects sensitive GPU hardware from dust and particles, ensuring manufacturer warranties remain valid.

The new GPU-as-a-Service (GPUaaS) model is expected to generate significantly higher monthly recurring revenue, with margins exceeding 80% due to the high density of power and compute.

Full-year 2026 revenue guidance is set at $50 million to $55 million, with a significant portion of recognition weighted toward the second half of the year.

Management expects to achieve sustained positive EBITDA in the second half of 2026 as high-margin GPUaaS and colocation contracts come online.

The company plans to deploy an additional 20 megawatts of capacity by year-end 2026, targeting a total deployment goal of 25 megawatts.

A recently signed GPUaaS contract is projected to generate approximately $176 million in revenue over a 36-month term, with an expected annual EBITDA contribution of $40 million.

Strategic focus remains on Tier 3 and Tier 4 markets where power is more accessible and permitting is faster, allowing for a 90-to-120-day deployment timeline.

Completed a $65 million capital raise in March 2026 to fund the deployment of 2,304 NVIDIA GPUs and expand high-density EDC footprint.

The divestiture of the Rail division is intended to free up company resources and cut significant SG&A expenses, though specific financial impacts were not detailed.

Management flagged a $1 million revenue miss in 2025 relative to projections, attributed to the timing of revenue recognition for the new Technology Solutions division.

The company retains a 5% equity stake in the parent of APR Energy following the conclusion of the asset management agreement.

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Management emphasized their patented clean room technology as a primary differentiator, noting that GPU providers may not honor warranties if hardware is exposed to dust in modular environments.

The CEO noted that while large competitors like Crusoe are entering the market, Duos has a head start with 15 physical pods already deployed and operational.

Management explained that Tier 3 and 4 markets allow for much faster speed-to-market because they can access existing excess power at substations without competing against hyperscalers.

The company can deploy pods in 90 to 120 days in these markets, whereas Tier 1 markets face significant infrastructure and permitting delays.

The new Technology Solutions division has already secured a $10 million backlog in its first three months, which management expects to record as revenue within 2026.

The sales funnel for this division is estimated at over $150 million, driven by direct-to-manufacturer sourcing that reduces costs for large-scale data center components.

The first major GPUaaS contract is on track for revenue generation starting in the August 2026 timeframe.

The customer, described as a 'Tier 1' entity under a strict NDA, is already discussing five additional 5-megawatt sites following the initial deployment.

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