Jacksonville’s Duos Technologies posts 271% revenue surge as AI infrastructure pivot accelerates (Courtesy of the Jacksonville Business Journal) — Jacksonville-based Duos Technologies Group Inc. is coming off a record year, posting triple-digit revenue growth and accelerating its push into AI infrastructure and edge data centers.
The Nasdaq-listed company [Nasdaq: DUOT] reported full-year 2025 revenue of approximately $27.02 million, up 271% from $7.28 million in 2024, marking the highest annual revenue in its history.
“2025 marked a pivotal year for Duos as we scaled our platform and firmly positioned the Company at the intersection of AI compute and edge infrastructure,” CEO Doug Recker said in a statement.
Record growth driven by services and infrastructure shift
The company’s growth was primarily driven by service-based revenue tied to its Asset Management Agreement with New APR Energy, which accounted for a significant portion of 2025 performance.
Fourth-quarter results underscored that acceleration. Duos reported $9.46 million in revenue for Q4 2025, up 548% from $1.46 million in the same period a year prior.
Recurring services and consulting revenue made up the bulk of that total, reflecting the company’s ongoing transition toward more predictable revenue streams.
Gross margin improved to $2.53 million in the fourth quarter, compared to negative $330,000 in Q4 2024, driven largely by performance under the New APR agreement and associated high-margin revenue contributions.
Strategic pivot into AI and edge data centers
The results come as Duos continues a broader shift away from its legacy rail-focused business toward edge data centers and AI infrastructure.
During 2025, the company deployed 15 modular Edge Data Center pods and expanded into high-density configurations designed to support hyperscaler and AI workloads. In essence, Duos constructs what it calls data center “pods” in off-site facilities before delivering them to substations where excess power is already available — dramatically shortening deployment timelines.
Its strength is found in speed. Where a traditional data center takes between $10 million to $12 million per megawatt to construct, Recker previously told the Business Journal, Duos lands between $6 million to $7 million.
The company also launched GPU-as-a-Service and high-power colocation offerings, including a contract to deploy 2,304 NVIDIA GPUs across its platform.
That strategy builds on a previously reported milestone: a $176 million agreement to deploy a high-density NVIDIA GPU cluster in Iowa through its Duos Edge AI subsidiary.
“This will be our first pod where we actually own and run GPUs,” Recker said earlier this year. “We actually own the infrastructure and own the GPUs in this model.”
The company has positioned its modular “pod” approach as a faster, lower-cost alternative to traditional data center construction, targeting Tier 3 and Tier 4 markets.
Capital raises support expansion
Duos bolstered its balance sheet with two capital raises over the past year, including $45 million in July 2025 and $65 million in March 2026.
Those funds are intended to support the expansion of its edge data center platform and high-performance compute infrastructure.
“With a $65 million capital raise, the launch of our GPU-as-a-Service offering, and the deployment of high-density infrastructure supporting hyperscale workloads, we are addressing a clear and growing shortage of power and compute capacity across the market,” Recker said.
The company also launched Duos Technologies Solutions, Inc., a new division focused on infrastructure sourcing, logistics and deployment for data center and IT environments.
The unit generated approximately $10 million in backlog within its first quarter of operations, according to the company.
At the same time, Duos has begun transitioning away from its legacy rail inspection business — an effort spearheaded by Recker as he climbed the leadership ranks — with plans to divest that segment and focus on higher-growth opportunities.
The expected new installation in Iowa represented the clearest expression yet of that shift.
2026 outlook points to continued growth
Duos ended 2025 with approximately $25.8 million in backlog and expects to exceed $50 million in total revenue in 2026.
A significant portion of that revenue is expected to be recognized in the second half of the year as additional edge data centers come online and infrastructure deployments ramp up.
“Demand continues to accelerate from enterprises, neo-cloud, and hyperscale customers,” Recker said, “particularly for megawatt-scale solutions.”