Duos Technologies Group, Inc. Signs ~$200M LOI and Appoints Doug Recker as CEO

Rhea-AI Summary

Duos Technologies (Nasdaq: DUOT) signed a non-binding LOI with Hydra Host to deploy a high-density NVIDIA GPU cluster, modeled to generate approximately $176 million revenue over 36 months and projected annual EBITDA exceeding $40 million. A 10MW Iowa site is under LOI and Duos appointed Doug Recker as CEO effective April 1, 2026. The LOI also contemplates ~$25 million incremental colocation revenue and supports Duos' High-Power Edge Data Center expansion; agreements remain subject to financing and definitive documentation.

Positive

• $176M revenue expected over 36 months
• Projected annual $40M+ EBITDA
• Modeled gross margins of 80%+
• 10MW Iowa site LOI for high-density power
• $25M incremental colocation revenue over 36 months

Negative

• LOI is non-binding and contingent on financing and final terms
• Definitive documentation between Duos and Hydra Host not yet executed
• Transaction execution depends on customer confirmation and closing conditions

Key Figures

GPUaaS revenue: $176 million Annual EBITDA: $40 million+ Gross margin: more than 80% +5 more

8 metrics

GPUaaS revenue $176 million Expected revenue over 36-month GPU-as-a-Service term

Annual EBITDA $40 million+ Modeled annual EBITDA from NVIDIA GPU hosting LOI

Gross margin more than 80% Modeled gross margin on GPUaaS deployment

Colocation revenue $25 million Expected incremental colocation revenue over 36 months

Contract term 36 months Duration of expected GPUaaS and colocation revenues

LOI headline value $200 million Approximate size of NVIDIA GPU hosting LOI

Iowa power capacity 10MW Utility power access at planned high-density site in Iowa

Targeted capacity 75MW Long-term objective for distributed AI infrastructure capacity

Market Reality Check

Price: $8.79 Vol: Volume 153,207 is at 0.74...

normal vol

$8.79 Last Close

Volume Volume 153,207 is at 0.74x the 20-day average of 206,210, suggesting no pre‑news volume spike. normal

Technical Shares trade slightly above the 200-day MA ($8.79 vs. $8.45), indicating a modestly constructive longer-term trend before this LOI.

Peers on Argus

Momentum data flagged mixed moves among peers, with one scanner peer down and an...

1 Up 1 Down

Momentum data flagged mixed moves among peers, with one scanner peer down and another up, indicating this DUOT news is more stock-specific than part of a broad software/AI rotation.

Historical Context

5 past events · Latest: Feb 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 05	Prelim 2025 results	Positive	-4.2%	Announced ~$28M 2025 revenue and positive adjusted EBITDA trend.
Jan 22	Innovation award	Positive	+7.6%	Subsidiary won Outstanding Innovation Award for modular EDC platform.
Jan 13	Texas EDC deployment	Positive	-2.0%	Deployed patented EDC for rural Texas school district and regional compute.
Jan 07	Abilene EDC launch	Positive	-2.2%	Opened carrier‑neutral EDC serving 40+ school districts in Texas.
Dec 30	EDC footprint expansion	Positive	+16.7%	Expanded EDC network in Texas and Chicagoland as part of growth strategy.

Pattern Detected

Recent positive operational and growth updates have produced mixed reactions, with several selloffs on seemingly positive news and only some events aligning with optimistic headlines.

Recent Company History

Over the last few months, Duos has steadily built its Edge Data Center footprint and narrative. On Dec 30, 2025, it highlighted EDC expansion within Texas and into Chicagoland, which coincided with a 16.72% move higher. Subsequent AI-focused deployments in Texas on Jan 7 and Jan 13 saw modest negative reactions despite constructive tone. An innovation award on Jan 22 aligned with a 7.59% gain. Preliminary $28M 2025 revenue on Feb 5 drew a -4.23% reaction. Today’s large LOI and CEO transition fit this ongoing pivot toward Edge AI and digital infrastructure.

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

An effective Form S-3 shelf filed on Feb 11, 2026 allows Duos to issue up to $250,000,000 of various securities over time, with at least one prospectus supplement (424B5 on Feb 26, 2026) already filed, indicating active use of this capital-raising capacity.

Market Pulse Summary

This announcement details a major non-binding LOI with Hydra Host, targeting about $176 million of G...

Analysis

This announcement details a major non-binding LOI with Hydra Host, targeting about $176 million of GPUaaS revenue and $25 million of colocation revenue over 36 months, with modeled EBITDA above $40 million per year and gross margins over 80%. It also confirms a CEO transition toward an Edge AI and digital infrastructure strategy. Investors may track progress toward definitive agreements, site build-outs up to 75MW of capacity, and capital-raising activity under the $250,000,000 shelf.

Key Terms

ebitda, gpu-as-a-service, colocation, edge data center, +2 more

6 terms

ebitda financial

"3-Year NVIDIA GPU hosting LOI delivers $40M+ annual EBITDA 10MW site secured..."

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.

gpu-as-a-service technical

"The project supports an underlying GPU-as-a-Service (“GPUaas”) partnership..."

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.

colocation technical

"the collaboration establishes a pathway for incremental colocation revenue..."

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.

edge data center technical

"High-Power Edge Data Center (“EDC”) business line, designed to serve AI companies..."

An edge data center is a small, local facility that stores and processes digital information close to where it is created or used — like a neighborhood warehouse for internet traffic instead of a central city depot. Because it cuts the delay between devices and servers, it matters to investors as a way companies improve performance for real‑time services (streaming, connected devices, 5G) while potentially lowering network costs and unlocking new revenue streams.

ground lease financial

"The Company has also entered into a non-binding letter of intent for a ground lease in Iowa..."

A ground lease is a long-term agreement where someone rents land from the owner, often for many decades. The person renting can build on or develop the land, but they don’t own it outright; the land remains owned by someone else. This matters because it affects how property is used and who benefits from its future value.

gpu hosting technical

"to provide GPU hosting and GPU-as-a-Service solutions."

GPU hosting is a service that provides remote access to computers equipped with graphics processing units (GPUs), which are specialized chips designed to run heavy calculations for tasks like artificial intelligence, video rendering, and scientific modeling. For investors, it matters because demand for GPU-hosted capacity signals revenue growth and capital needs for providers—think of it as renting a powerful engine by the hour: higher demand can boost sales and valuations, while shortages or high costs can squeeze margins and slow expansion.

AI-generated analysis. Not financial advice.

3-Year NVIDIA GPU hosting LOI delivers $40M+ annual EBITDA 10MW site secured to accelerate expansion of distributed AI infrastructure in 2026 

JACKSONVILLE, Fla., Feb. 27, 2026 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT) has signed a non-binding letter of intent (“LOI”) with Hydra Host to deploy a high-density NVIDIA GPU cluster for a leading global technology customer. The project supports an underlying GPU-as-a-Service (“GPUaas”) partnership that is expected to generate approximately $176 million in revenue over a 36-month term. The deployment is modeled to support gross margins more than 80% and projected annual EBITDA exceeding $40 million.

In addition to the GPUaaS deployment, the collaboration establishes a pathway for incremental colocation revenue, which we expect to total approximately $25 million over the 36-month term. This LOI serves as a validation of Duos’ recently launched High-Power Edge Data Center (“EDC”) business line, designed to serve AI companies and high-performance compute tenants requiring premium rackspace and dedicated high-density power, delivered in an industry-leading 90 days with guaranteed power access.

The Company has also entered into a non-binding letter of intent for a ground lease in Iowa with access to up to 10MW of utility power, establishing a strategic high-density deployment site. Additional locations are under evaluation as Duos advances toward its long-term objective of building up to 75MW of distributed capacity.

Building on this milestone, Duos has appointed Doug Recker as Chief Executive Officer, effective April 1, 2026, as the Company accelerates its transformation into a focused Edge AI and digital infrastructure platform. Mr. Recker succeeds Chuck Ferry, who will continue to serve as a member of the board of directors. Mr. Recker will lead Duos’ next phase of growth focused on scaling modular EDCs, expanding GPU hosting capabilities, and executing a disciplined capacity expansion strategy.

"We are thrilled to partner with the Duos team on this opportunity," said Aaron Ginn, Chief Executive Officer & Co-Founder of Hydra Host. "Their ability to deliver immediate access to power combined with an industry-leading deployment speed makes them a standout in the market. We see significant runway ahead as we look to expand our collaboration around colocation and Duos' High-Power EDC model, which we believe is purpose-built to address a market where demand for AI compute capacity is fundamentally outpacing the speed at which traditional data center supply can be delivered."

“This initial customer marks a pivotal step in accelerating the buildout of Duos Edge AI and strengthens our ability to execute on our distributed infrastructure strategy,” said Doug Recker, Chief Executive Officer. “We are now entering an exciting phase of execution, further reinforced by our recently announced LOI with Hydra Host, which underscores growing third-party demand for our distributed AI infrastructure model and validates the scalability of our platform. With secured power, rapid deployment capabilities, and expanding strategic partnerships, we believe Duos is well positioned to pursue high-value infrastructure opportunities. Our focus remains on disciplined expansion, capital-efficient growth, and delivering sustainable long-term value for our shareholders.”

Under Mr. Recker’s leadership, Duos and its operating subsidiaries, including Duos Edge AI, Inc., are entering into a commercial partnership with Hydra Host to provide GPU hosting and GPU-as-a-Service solutions. The partnership includes structured hardware financing arrangements designed to accelerate deployment and support growing demand for distributed AI compute.

“I would like to congratulate Doug on his promotion to CEO and for securing this milestone agreement with Hydra Host”, said Craig Nixon, Chairman of the Board. “I would also like to thank Chuck Ferry for his leadership in transitioning Duos from its original business model to the focus on Data Centers and Power which has paved the way for the much-improved financial results in 2025 and expected significant growth in 2026 and beyond.”

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

The agreement between Duos and Hydra Host is subject to negotiation and execution of definitive documentation acceptable to both parties. The LOI is non-binding and remains contingent upon financing arrangements, final commercial terms, customer execution, and other customary closing conditions.

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 does the Duos (DUOT) LOI with Hydra Host entail and how big is it?

It is a non-binding LOI to deploy a high-density NVIDIA GPU cluster, modeled for about $176 million revenue over 36 months. According to Duos, the project includes expected >$40M annual EBITDA and potential incremental colocation revenue of ~$25M.

How much EBITDA and margin does Duos (DUOT) project from the GPUaaS LOI?

Duos models projected annual EBITDA exceeding $40 million with gross margins above 80%. According to Duos, those figures are based on the 36-month GPU-as-a-Service deployment outlined in the LOI.

What is the significance of the 10MW Iowa site in Duos' (DUOT) expansion plans?

The 10MW Iowa ground lease LOI secures high-density utility power access for rapid deployment of EDCs. According to Duos, the site supports the company’s goal to scale distributed capacity and accelerate GPU hosting in 2026.

When does Doug Recker become CEO of Duos (DUOT) and what will he focus on?

Doug Recker becomes CEO effective April 1, 2026, leading Duos’ shift to Edge AI and digital infrastructure. According to Duos, his focus will be scaling modular EDCs, expanding GPU hosting, and executing disciplined capacity expansion.

Are the Duos (DUOT) and Hydra Host agreements finalized and what conditions remain?

No, the LOI is non-binding and subject to negotiation of definitive agreements, financing, final commercial terms, and customer execution. According to Duos, those customary closing conditions must be satisfied before the deal is final.