Duos Finalizes $176M GPUaaS Deal, Projecting 80%+ Gross Margins and $40M+ Annual EBITDA
Summary
Duos Technologies Group has executed a definitive contract with Hydra Host for a GPU-as-a-Service (GPUaaS) solution, valued at approximately $176 million over a 36-month term. The agreement includes an initial $18 million customer prepayment and is expected to generate over $50 million in annual revenue and $40 million in annual EBITDA, with gross margins exceeding 80%. This definitive agreement follows the non-binding Letter of Intent (LOI) announced on February 27, which indicated a contract worth over $200 million. The company confirmed the project is fully funded through its recently completed $65 million public offering and existing hardware financing arrangements. This represents the largest Edge Data Center project in Duos' history and a significant validation of its High-Power EDC business line for AI workloads, establishing a major new revenue stream. The company is actively evaluating additional high-density deployment sites, indicating potential for further growth in this segment.
At the time of this announcement, DUOT was trading at $7.51 on NASDAQ in the Technology sector, with a market capitalization of approximately $217.7M. The 52-week trading range was $3.84 to $12.17. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.