Even when a business is losing money, it’s possible for shareholders to make money if they buy a good business at the right price. For example, Duos Technologies Group (NASDAQ:DUOT) shareholders have done very well over the last year, with the share price soaring by 134%. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt.
Given its strong share price performance, we think it’s worthwhile for Duos Technologies Group shareholders to consider whether its cash burn is concerning. For the purpose of this article, we’ll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). Let’s start with an examination of the business’ cash, relative to its cash burn.
A company’s cash runway is calculated by dividing its cash hoard by its cash burn. Duos Technologies Group has such a small amount of debt that we’ll set it aside, and focus on the US$33m in cash it held at September 2025. In the last year, its cash burn was US$16m. That means it had a cash runway of about 2.0 years as of September 2025. Arguably, that’s a prudent and sensible length of runway to have. You can see how its cash balance has changed over time in the image below.
View our latest analysis for Duos Technologies Group
At first glance it’s a bit worrying to see that Duos Technologies Group actually boosted its cash burn by 49%, year on year. On a more positive note, the operating revenue improved by 159% over the period, offering an indication that the expenditure may well be worthwhile. If revenue is maintained once spending on growth decreases, that could well pay off! Considering the factors above, the company doesn’t fare badly when it comes to assessing how it is changing over time. While the past is always worth studying, it is the future that matters most of all. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.
While Duos Technologies Group seems to be in a fairly good position, it’s still worth considering how easily it could raise more cash, even just to fuel faster growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company’s annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).
