Duos Technologies Group Executes Definitive Agreement with Hydra Host

Rhea-AI Summary

Duos Technologies (Nasdaq: DUOT) executed a definitive contract with Hydra Host to deploy a high-density NVIDIA GPU cluster, securing a $176M GPUaaS contract over 36 months and an $18M customer prepayment. The program targets gross margins >80%, projected annual revenue of $50M+ and annual EBITDA of $40M+.

Deployment includes an initial 4.3+ MW high-power EDC, manufacturing underway, and funding from a completed $65M public offering plus hardware financing to enable immediate buildout.

Positive

• $176M GPUaaS contract over 36 months
• $18M customer prepayment at inception
• Projected $50M+ annual revenue and $40M+ EBITDA
• Gross margins expected to exceed 80%
• Funded by completed $65M public offering enabling immediate deployment

Negative

• Initial deployment concentrated with a single 4.3MW anchor tenant
• Contract revenue concentrated over a 36-month term

Key Figures

Annual revenue run-rate: $50M+ Annual EBITDA: $40M+ GPUaaS contract value: $176M +5 more

8 metrics

Annual revenue run-rate $50M+ Expected annual revenue from Hydra Host contract

Annual EBITDA $40M+ Expected annual EBITDA from Hydra Host contract

GPUaaS contract value $176M Expected revenue over 36-month GPUaaS term

Customer prepayment $18M Initial pre-payment at contract inception

Gross margin 80%+ Projected gross margins on GPUaaS contract

Initial EDC power 4.3+ MW Initial colocation commitment from anchor tenant

Recent offering proceeds $65M Recently completed public offering funding partnership

Long-term capacity goal 75MW Company objective for distributed capacity

Market Reality Check

Price: $7.37 Vol: Volume 298,858 is below t...

low vol

$7.37 Last Close

Volume Volume 298,858 is below the 20-day average of 492,874 (relative volume 0.61x). low

Technical Price $7.37 is trading below the 200-day MA at $8.45.

Peers on Argus

DUOT was down 2.12% pre-news while peers were mixed: SSTI -2.83%, AEYE -4.00%, H...

2 Up 1 Down

DUOT was down 2.12% pre-news while peers were mixed: SSTI -2.83%, AEYE -4.00%, HIT -2.02%, SVCO +0.92%, DMRC +12.93%. Moves do not show a unified sector trend.

Historical Context

5 past events · Latest: Mar 03 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 03	Equity offering close	Negative	-2.9%	Closed $65M common stock offering to fund Edge Data Center expansion.
Feb 27	Major AI LOI	Positive	-14.1%	Signed ~$200M Hydra Host GPU cluster LOI and named Doug Recker as CEO.
Feb 26	Equity offering priced	Negative	-14.1%	Priced $65M stock offering with underwriter option and warrants.
Feb 26	Equity offering proposed	Negative	-14.1%	Proposed underwritten public offering to fund Edge Data Center growth.
Feb 05	2025 revenue update	Positive	-4.2%	Reported $28M 2025 revenue with strong YoY growth and positive EBITDA trends.

Pattern Detected

Recent positive business milestones and financings have often been followed by negative next-day price reactions.

Recent Company History

Over the past months, DUOT has shifted toward Edge Data Centers and AI infrastructure. On Feb 5, 2026, it reported $28M 2025 revenue with strong growth, yet shares fell. A late-February LOI with Hydra Host for a modeled $176M AI GPU project and multiple equity offerings around $65M also saw negative reactions. Today’s definitive Hydra Host contract formalizes that earlier LOI and leverages the capital raised to fund deployment.

Regulatory & Risk Context

Active S-3 Shelf · $250,000,000

Shelf Active

Active S-3 Shelf Registration 2026-02-11

$250,000,000 registered capacity

The company has an effective Form S-3 shelf filed on 2026-02-11 permitting up to $250,000,000 of securities, and has already used it via recent 424B5 offerings. This provides flexibility to issue additional securities subject to future prospectus supplements.

Market Pulse Summary

This announcement converts a prior Hydra Host LOI into a definitive GPUaaS contract targeting $176M ...

Analysis

This announcement converts a prior Hydra Host LOI into a definitive GPUaaS contract targeting $176M in revenue over 36 months, with projected gross margins above 80% and $40M+ in annual EBITDA. It builds directly on the recent $65M public offering and positions Duos’ Edge Data Center platform for higher-density AI workloads. Key watchpoints include execution on the initial 4.3+MW deployment and progress toward the 75MW long-term capacity goal.

Key Terms

gpu-as-a-service, edge data centers, edcs, ebitda, +2 more

6 terms

gpu-as-a-service technical

"The GPU-as-a-Service (“GPUaaS”) contract is expected to generate"

GPU-as-a-Service is a pay-as-you-go model that lets businesses rent powerful graphics processing units (GPUs) over the internet instead of buying the hardware outright. It matters to investors because it lowers upfront costs and speeds time-to-market for companies using AI, data analysis, or 3D rendering—similar to renting a high-performance car for a specific trip rather than owning one—and can make firms more flexible, scalable, and capital-efficient.

edge data centers technical

"multiple high-density modular Edge Data Centers (“EDCs”) which are specifically"

Edge data centers are small, local computer hubs placed close to where digital activity happens—near neighborhoods, factories, or cell towers—so data can be processed nearby instead of traveling to a distant main center. For investors, they matter because they reduce delays and bandwidth costs for services like streaming, industrial sensors, and real‑time apps, creating new revenue opportunities and different capital or operating cost profiles compared with traditional large data centers.

edcs technical

"multiple high-density modular Edge Data Centers (“EDCs”) which are specifically"

Endocrine-disrupting chemicals (EDCs) are substances that can interfere with the body’s hormonal system, like a tiny key that jams a lock and alters normal signals. They matter to investors because regulation, product bans, liability claims, or changing consumer preferences around EDCs can affect costs, sales, and reputation for manufacturers and retailers of affected goods. Awareness of EDC risks helps investors assess regulatory exposure and long-term demand shifts in related industries.

ebitda financial

"expected annual EBITDA of approximately $40 million."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

colocation technical

"includes an initial 4.3+ MW colocation commitment from a leading"

Colocation is the practice of placing a trader’s computer servers inside or next to an exchange’s data center so their orders travel the shortest possible distance to the exchange’s computers. For investors this matters because even tiny gains in speed can mean better trade prices or reduced slippage—like being first in line at a checkout—so firms that colocate can gain steady, measurable advantages or incur extra costs that affect returns.

hyperscalers technical

"inbound interest from AI Hyperscalers, NeoCloud operators and other"

Hyperscalers are large technology companies that operate massive computing networks and data centers to provide cloud services, data storage, and online infrastructure at an enormous scale. They are essential to the digital economy because they enable businesses and organizations to handle vast amounts of data and run complex applications efficiently. For investors, hyperscalers represent powerful engines of growth and innovation in the technology sector.

AI-generated analysis. Not financial advice.

Contract expected to deliver $50M+ in Annual Revenue and $40M+ in Annual EBITDA
Contract includes additional 4.3MW deployment under new high power EDC model

JACKSONVILLE, Fla., March 13, 2026 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT), through its operating subsidiary Duos Edge AI, Inc., a provider of advanced digital infrastructure solutions, today announced it has executed a definitive contract with Hydra Host, pursuant to the previously announced letter of intent, to deploy a high-density NVIDIA GPU cluster for a leading global technology company. The project establishes Duos Edge AI as an emerging provider of distributed AI infrastructure supporting large-scale compute workloads. The GPU-as-a-Service (“GPUaaS”) contract is expected to generate approximately $176M in revenue over a 36-month term, an initial $18M customer pre-payment, projected gross margins exceeding 80% and expected annual EBITDA of approximately $40 million. 

Duos and its operating subsidiary Duos Edge AI, Inc. have entered into a commercial partnership with Hydra Host to deliver GPU hosting and GPU-as-a-Service solutions at scale. The partnership is fully funded through the Company's recently completed $65 million public offering and hardware financing arrangements already in place, ensuring deployment can commence immediately without reliance on additional equity financing.

“The initial deployment will be located at a strategic site and will consist of multiple high-density modular Edge Data Centers (“EDCs”) which are specifically designed to support large-scale AI workloads,” said Doug Recker, newly appointed CEO effective April 1^st, 2026. “Manufacturing of the EDCs is currently underway, with critical power modules already ordered to support deployment timelines.”

The first phase also includes an initial 4.3+ MW colocation commitment from a leading global technology company, which will serve as the project’s anchor tenant. This deployment represents the largest Edge Data Center project in Company history, with additional colocation revenue expected alongside the GPUaaS contract as the site scales toward its full power capacity.

Key Highlights:

• $176 million GPUaaS contract, gross margins expected to exceed 80%, projected annual revenue of $50M+ and annual EBITDA of $40M+
• Contract also includes an $18M customer prepayment at inception
• Contract includes an additional 4.3MW High-Power EDC deployment, offering meaningfully improved economics over the Company's legacy model
• Additional high-density power sites under active evaluation, providing significant runway to scale colocation opportunity

This contract represents a powerful commercial validation of Duos' High-Power EDC business line, purpose-built to serve AI companies and high-performance compute tenants requiring premium rack space, dedicated high-density power, and industry-leading rapid deployment. The model is already attracting significant inbound interest from AI Hyperscalers, NeoCloud operators and other potential AI Infrastructure customers, seeking 5 to 20MW deployments, underscoring the scalability and market demand for Duos' distributed infrastructure platform. As the Company advances its long-term objective of 75MW of distributed capacity, Duos is actively evaluating additional high-density deployment sites to meet accelerating demand.

To learn more about Duos Technologies, visit: www.duostechnologies.com   
To learn more about Duos Edge AI, visit: www.duosedge.ai   

About Duos Technologies Group, Inc.

Duos Technologies Group, Inc. (Nasdaq: DUOT), based in Jacksonville, Florida, through its wholly owned subsidiaries, Duos Technologies, Inc., Duos Edge AI, Inc., and Duos Energy Corporation, designs, develops, deploys and operates intelligent technology solutions for Machine Vision and Artificial Intelligence (“AI”) applications including real-time analysis of fast-moving vehicles, Edge Data Centers, and power consulting. For more information, visit www.duostech.com , www.duosedge.ai and www.duosenergycorp.com.

About Duos Edge AI, Inc.

Duos Edge AI, Inc. is a subsidiary of Duos Technologies Group, Inc. (Nasdaq: DUOT). Duos Edge AI's mission is to bring advanced technology to underserved communities, particularly in education, healthcare and rural industries, by deploying high-powered edge computing solutions that minimize latency and optimize performance. Duos Edge AI specializes in high-function Edge Data Center (“EDC”) solutions tailored to meet evolving needs in any environment. By focusing on providing scalable IT resources that seamlessly integrate with existing infrastructure, its solutions expand capabilities at the network edge, ensuring data uptime onsite services. With the ability to provide 100 kW+ per cabinet, rapid 90-day deployment, and continuous 24/7 data services, Duos Edge AI aims to position its edge data centers within 12 miles of end users or devices, significantly closer than traditional data centers. This approach enables timely processing of massive amounts of data for applications requiring real-time response and supporting current and future technologies without large capital investments. For more information, visit www.duosedge.ai.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated" and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. All forward-looking statements attributable to Duos Technologies Group, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

Contacts
Corporate
Fei Kwong
VP, Investor Relations and Corporate Communications
Duos Technologies Group, Inc. (Nasdaq: DUOT)
+1.904.652.1625 | DUOT@duostech.com

Duos Edge AI
Media Contact
iMiller Public Relations
+1.914.315.6424 | duosedge@imillerpr.com

This press release was published by a CLEAR® Verified individual.

FAQ

What are the financial terms of Duos Technologies' March 13, 2026 Hydra Host contract (DUOT)?

The contract is a $176M GPUaaS agreement over 36 months, with an $18M customer prepayment. According to Duos Technologies, projected gross margins exceed 80% with expected annual revenue of $50M+ and annual EBITDA of about $40M.

How much power and capacity does Duos' initial Hydra Host deployment include (DUOT)?

The initial phase includes a 4.3+ MW high-power Edge Data Center colocation commitment. According to Duos Technologies, this is the company's largest EDC project and will host high-density NVIDIA GPU clusters for large-scale AI workloads.

How is Duos Technologies funding the Hydra Host GPUaaS deployment (DUOT)?

Deployment is funded by a completed $65M public offering plus existing hardware financing arrangements. According to Duos Technologies, these capital sources enable immediate buildout without additional equity financing.

What margins and profitability does the Hydra Host contract forecast for Duos (DUOT)?

Duos forecasts gross margins exceeding 80% and expected annual EBITDA near $40M. According to Duos Technologies, those metrics reflect high-density GPU hosting economics under the new high-power EDC model.

How will the Hydra Host agreement affect Duos' long-term capacity goals (DUOT)?

The agreement advances Duos' objective to scale distributed capacity toward 75MW by adding high-density sites. According to Duos Technologies, additional high-power locations are under active evaluation to meet customer demand for 5–20MW deployments.

What immediate commercial validation does the Hydra Host deal provide for Duos Technologies (DUOT)?

The deal validates Duos' High-Power EDC business line with a large GPUaaS customer and anchor colocation commitment. According to Duos Technologies, it signals inbound interest from hyperscalers and NeoCloud operators seeking multi-megawatt deployments.