Duos Technologies Raises $65M, Secures $176M GPUaaS Contract with Hydra Host
Duos Technologies completed a $65 million capital raise and secured a $176 million Hydra Host GPUaaS contract, including a $15 million prepayment and anticipated $26 million revenue in late 2026 with remaining $135 million over 36 months. Q1 revenues fell 45% to $2.72 million, net loss widened to $3.49 million while cash rose to $33 million.
1. First Quarter 2026 Financial Performance
Duos Technologies reported Q1 revenue of $2.72 million, down 45% from $4.95 million a year earlier. Cost of revenues fell 69% to $1.11 million and gross margin rose 23% to $1.61 million. Operating expenses climbed 69% to $5.24 million, resulting in a $3.49 million net loss ($0.15 per share) and cash reserves of $33.03 million at quarter end.
2. Capital Raise and GPUaaS Partnership
In March, the company raised $65 million in capital and secured a $176 million GPU-as-a-Service contract with Hydra Host to deploy a high-density NVIDIA B300 GPU cluster over a 36-month term. The agreement includes a $15 million customer prepayment and is expected to generate $26 million in revenue in the second half of 2026 and $135 million thereafter, fully funded by existing cash and a hardware financing arrangement.
3. Infrastructure Expansion and Outlook
Duos remains on track to achieve $50 million in revenue in 2026 by scaling modular Edge Data Centers and expanding GPU hosting capabilities, with 10 MW contracted and 15 MW planned for deployment. The company also plans to divest its legacy rail inspection business in the second half of 2026 to concentrate on Edge AI and data center solutions.