Duos Technologies Reports Record 2025 Results, Driving Momentum in AI and Edge Infrastructure

Core Insights - Duos Technologies Group, Inc. achieved a record annual revenue of approximately $27 million in 2025, representing over 270% year-over-year growth, driven by the expansion of its Edge Data Center platform and the launch of GPU-as-a-Service [1][3][13] Financial Performance - In Q4 2025, the company generated $9.46 million in revenue, a 548% increase from $1.46 million in Q4 2024, with $9.08 million coming from services revenue [3][6] - The full-year revenue for 2025 was approximately $27 million, up from $7.28 million in 2024, marking a 271% increase [13] - Gross margin for Q4 2025 improved to $2.53 million from a loss of $330,000 in Q4 2024, primarily due to the performance of Duos Energy under the Asset Management Agreement with New APR [8][10] - Operating expenses for Q4 2025 increased by 116% to $5.95 million compared to $2.76 million in Q4 2024, largely due to non-cash stock-based compensation [9][10] Capital and Investments - The company completed a $45 million capital raise in July 2025 and an additional $65 million in March 2026, significantly strengthening its balance sheet [3][22] - Cash and cash equivalents at the end of 2025 totaled $15.47 million, up from $6.27 million at the end of 2024 [12] Strategic Initiatives - Duos Technologies launched GPU-as-a-Service and high-density colocation offerings, including a contract to deploy 2,304 NVIDIA GPUs, expected to generate significant recurring revenue [3][4] - The company established Duos Technologies Solutions, Inc., which generated approximately $10 million in new backlog within its first quarter of operations [3][4] - The company is transitioning to a data center-focused platform, emphasizing Duos Edge AI and Technology Solutions as primary growth drivers while planning to divest its legacy rail inspection business [3][4] Market Outlook - The company expects total revenue for 2026 to exceed $50 million, supported by a backlog of approximately $25.8 million in contracts, with $12.4 million expected to be recognized during the year [20][21]