Duos Technologies Group, Inc. (DUOT): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into Duos Technologies Group, Inc. (DUOT) to see where the rubber meets the road in late 2025, and frankly, the story is one of dramatic pivot and high-stakes execution. After years focused on the Railcar Inspection Portal (RIP) business, the real action now is the massive revenue surge-projected between $28 million and $30 million for the full year-driven by the recurring service revenue from their energy and Edge Data Center (EDC) expansion, not just the one-time hardware sales. We're looking at a company that's using its AI/vision tech foundation to chase a new, high-growth recurring revenue stream, aiming for adjusted EBITDA profitability by Q4 2025; let's break down exactly how their Product, Place, Promotion, and Price strategies are set up to deliver on that promise below.

Duos Technologies Group, Inc. (DUOT) - Marketing Mix: Product

You're looking at the core offerings of Duos Technologies Group, Inc. (DUOT) as of late 2025. The product strategy clearly leans heavily into recurring revenue streams derived from their intelligent technology deployments, especially in the rail sector and the newer Edge Data Center (EDC) space. The technology is designed to be integrated hardware paired with proprietary software-as-a-service (SaaS) or service agreements.

Railcar Inspection Portal (RIP) for automated undercarriage analysis

The Railcar Inspection Portal (RIP) remains a foundational offering for Duos Technologies Group, Inc. This system is built to conduct fully automated railcar inspections of trains moving at full speed, eliminating the need for personnel to crawl underneath cars. The technology is designed to detect mechanical issues, safety concerns, and even illegal riders.

Here are some operational metrics related to the RIP technology:

• The company reported having 13 Railcar Inspection Portals in operation across the North American rail network as of August 2023, with new systems being manufactured for high-speed rail deployment.
• Across those 13 portals, over 3.8 million comprehensive railcar scans were performed through the first half of 2023.
• Advanced RIPs are capable of capturing safety data at speeds up to 125 miles per hour.
• The AI-powered inspection can assess trains moving at full speed with as many as 120 cars or more.

AI-powered machine vision for freight and passenger rail safety

The machine vision component is where the proprietary Artificial Intelligence (AI) adds significant value, moving beyond simple image capture to actionable defect detection. This AI is what allows Duos Technologies Group, Inc. to offer safety enhancements that translate directly into operational savings for rail operators.

The AI algorithms are trained to detect a wide range of issues. For example, some AI models achieved over 95% accuracy in defect detection in prior reporting periods. The system's catalog of AI detections is extensive, covering issues like low-hanging air hoses, open doors, and dragging equipment.

Centrally managed enterprise information system (CentriTrak)

While specific 2025 financial figures tied directly to a product named CentriTrak aren't immediately available, the overall financial structure shows a massive shift toward managed services, which implies the central management of deployed systems like this. The company's business model is increasingly service-oriented, supporting the deployment and operation of its technology solutions.

Intelligent technology solutions for transportation and security

Duos Technologies Group, Inc.'s intelligent solutions span rail, logistics, and government sectors. Beyond the RIP, the company has developed the Automated Logistics Information System (ALIS) specifically to automate gatehouse operations where transport trucks enter and exit large logistics and intermodal facilities. The company's AI capabilities are branded under offerings like Truevue360 Artificial Intelligence.

The financial performance in 2025 demonstrates the success of pivoting toward service-based revenue, which underpins the deployment of these intelligent systems:

For the first nine months of 2025, total revenue reached $17.6 million, and the company maintained its full-year 2025 revenue guidance between $28 million and $30 million. The backlog at the end of Q1 2025 stood at $17.8 million plus $7.0 - $8.0 million in near-term awards.

Integrated hardware and proprietary software-as-a-service (SaaS) offerings

The product strategy integrates specialized hardware, such as the Railcar Inspection Portals and Edge Data Centers (EDCs), with proprietary software delivered as a service or through long-term agreements like the Asset Management Agreement (AMA) with New APR Energy. The company is actively expanding its EDC footprint, which represents a key hardware component of their distributed computing strategy.

Here's the status of the EDC deployment as of late 2025:

• The company announced the deployment of its sixth Edge Data Center.
• An additional nine data centers were scheduled for deployment in Q4 2025.
• The company had orders for a total of 10 units so far, with a goal to reach 15 deployed units by the end of 2025.
• Revenues from the EDC business started in April 2025.

This structure is clearly driving the financial results; for Q3 2025, recurring services and consulting revenue accounted for approximately $6,600,000 of the total $6.9 million revenue, showing the heavy reliance on the recurring service component of the integrated offering. Honestly, the shift is defintely toward the service side.

Duos Technologies Group, Inc. (DUOT) - Marketing Mix: Place

The Place strategy for Duos Technologies Group, Inc. centers on high-touch, direct engagement within specific, high-value industrial sectors, primarily rail and energy infrastructure. Distribution isn't about stocking shelves; it's about the physical deployment and ongoing servicing of complex, proprietary technology systems directly at the customer's operational sites.

Direct B2B sales model targeting Class I railroads in North America

Duos Technologies Group, Inc. employs a direct Business-to-Business sales model, focusing on large-scale industrial clients. For its core rail segment, this means direct engagement with major freight and transit operators. The company has a strategic partnership with a Class 1 railroad to roll out its subscription-based railcar inspection system. As of October 2024, Duos Technologies Group, Inc. was supporting four Class 1 railroads and Amtrak with its Railcar Inspection Portal (RIP) technology, which includes 13 portals deployed across Canada, Mexico, and the United States. Amtrak, specifically, engaged Duos Technologies Group, Inc. to build two sophisticated, high-speed systems. The distribution of their technology is geographically broad across North America, as evidenced by over 2.3 million comprehensive railcar scans performed in the first quarter of 2025 across 13 portals located in the U.S., Canada, and Mexico, which represented approximately 24% of the total freight car population in North America at that time. The company's primary operational base supports this direct deployment model.

The key distribution points for the rail segment can be summarized:

• Primary operational base in Jacksonville, Florida, at 7660 Centurion Parkway, Suite 100.
• Systems deployed across the U.S., Canada, and Mexico.
• Active support for four Class 1 railroads and Amtrak as of late 2024.
• Railcar Inspection Portals (RIPs) are the physical delivery mechanism.

Strategic installations at key rail chokepoints and border crossings

The placement of the Railcar Inspection Portals (RIPs) is strategic, designed to intercept trains where inspection is most critical, often near major operational hubs or border crossings to maximize efficiency and security screening. The deployment across the U.S., Canada, and Mexico inherently places these systems at key logistical chokepoints for North American freight movement. The technology is designed to automate mechanical and security inspection of fast-moving trains, trucks, and automobiles. For instance, the company announced in February 2023 that it had 30 of its artificial intelligence models in operation for a Class 1 customer location in Mexico, indicating established cross-border operational presence.

Global reach through potential expansion into international rail markets

While the core focus remains North American rail, Duos Technologies Group, Inc.'s distribution reach extends internationally through its energy subsidiary. The Asset Management Agreement (AMA) with New APR Energy, signed in late 2024, involved the deployment of six gas turbine generators (150MW) in Mexico. Furthermore, Duos Technologies Group, Inc. noted active discussions regarding deployment of these energy assets to international projects, suggesting a global distribution channel for its power solutions, even if the rail technology deployment remains heavily concentrated in North America.

Primary operational base in Jacksonville, Florida, for engineering and support

All engineering, development, and operational support for Duos Technologies Group, Inc.'s intelligent technology solutions emanate from its headquarters. The company is based in Jacksonville, Florida, with its corporate address listed as 7660 Centurion Parkway, Suite 100, Jacksonville, FL 32256. This location serves as the central hub for the design, development, and deployment oversight for its Machine Vision, AI, and Edge Data Center solutions, supporting the physical distribution of hardware and the remote delivery of software/AI services.

Distribution relies on long-term, high-value customer contracts

The entire distribution model is underpinned by securing long-term, high-value contracts, which provide revenue visibility and justify the capital expenditure for system deployment. The revenue stream is shifting toward recurring services, which is the ultimate goal of the distribution strategy. Here's a look at the contracted revenue visibility as of the end of the third quarter of 2025:

For the rail inspection portals, the payment structure itself dictates a form of distribution control: 30% or more is due and payable prior to delivery of the hardware system. The remaining balances are tied to service and maintenance, which is paid annually in advance, ensuring the ongoing relationship and support-a critical component of the 'Place' strategy for recurring revenue.

Duos Technologies Group, Inc. (DUOT) - Marketing Mix: Promotion

You're looking at how Duos Technologies Group, Inc. (DUOT) communicates its value proposition to the market as of late 2025. The promotion strategy heavily leans on validating its technology through performance metrics and direct engagement with investors and industry decision-makers, especially given the pivot toward Edge Data Centers (EDC) and energy services.

Focused B2B sales team and technical presentations to rail executives

The promotion of Duos Technologies Group, Inc.'s core inspection technology is grounded in quantifiable operational success. For instance, in the first quarter of 2025, the company reported performing over 2.3 million comprehensive railcar scans across 13 portals in the U.S., Canada, and Mexico. This volume represents approximately 24% of the total freight car population in North America, serving as concrete evidence of system utilization and reliability for rail executive audiences. Management actively uses these metrics when presenting to potential clients and partners.

Participation in industry-specific trade shows (e.g., Railway Interchange)

Duos Technologies Group, Inc. prioritizes direct engagement with investors and industry peers through targeted events. In early 2025, management delivered a corporate presentation and held one-on-one meetings at The Microcap Conference 2025, which took place January 28-30, 2025, in Atlantic City, NJ. Later in the year, President Doug Recker and CFO Adrian Goldfarb presented at the LD Micro Main Event XIX on Tuesday, October 21, 2025, highlighting operational progress and the expansion across EDCs and digital infrastructure.

The promotion via investor conferences can be tracked by the events attended:

Investor relations and press releases to announce major contract wins

Investor confidence is actively managed through frequent, data-rich press releases detailing financial milestones. A key promotional event was the announcement on July 30, 2025, regarding the pricing of an upsized and oversubscribed underwritten public offering of common stock at $6.00 per share, which raised over $40 million in cash. This capital raise was publicized as being sufficient to fulfill the company's $50 million revenue pipeline. Furthermore, the Q3 2025 results press release on November 12, 2025, announced that total revenues for the quarter increased 112% to $6.9 million compared to $3.2 million in Q3 2024. The company reiterated its total revenue expectation for 2025 to range between $28 million and $30 million.

Digital content marketing emphasizing safety, efficiency, and regulatory compliance

The digital presence supports the B2B narrative by showcasing technology deployment and growth. For example, the September 16, 2025, press release announced the deployment of the 5th Edge Data Center (EDC). This ties into the broader narrative of expanding the EDC footprint, with management aiming to deploy 15 units by the end of 2025 and an additional 50 EDCs in 2026. The partnership announcement on November 6, 2025, where Duos Edge AI joined the Nomad Futurist Foundation as an Inspiration Sponsor, serves to position the company as a thought leader in digital infrastructure.

Publicizing contract backlog growth as a key metric for market confidence

The backlog is consistently used as a forward-looking indicator of secured revenue, which is critical for a growth-stage company. The progression of this metric is a central theme in investor communications.

• Contract backlog at the end of Q1 2025 was approximately $45.4 million.
• Contract backlog at the end of Q2 2025 was approximately $40.7 million.
• Contract backlog at the end of Q3 2025 was approximately $25.8 million in revenue.
• Of the Q3 2025 backlog, approximately $12.4 million is expected to be recognized in the remainder of calendar 2025.

The backlog figure at the end of Q3 2025 implies that the company expects to recognize approximately $17.2 million in revenue from the first nine months of 2025 plus the $12.4 million expected from the remaining backlog, which aligns with the total nine-month revenue of $17.6 million and the full-year guidance. This defintely shows how they frame near-term versus long-term revenue visibility.

Duos Technologies Group, Inc. (DUOT) - Marketing Mix: Price

Duos Technologies Group, Inc.'s pricing structure reflects the capital-intensive, project-based nature of its technology systems alongside a growing emphasis on recurring service revenue streams. The strategy balances large upfront capital expenditure recognition with long-term, predictable service fees.

Multi-year, high-value contract pricing for system installation and maintenance is exemplified by the Asset Management Agreement (AMA) with New APR Energy. This agreement, which became effective January 1, 2025, is the largest contract in Duos Technologies Group, Inc.'s history and is structured to generate significant revenue over a defined term. Pricing for system installation, such as the Railcar Inspection Portal (RIP), involves fixed-price terms, with 30% or more due and payable prior to delivery of the system.

The AMA itself is a multi-year service agreement, valued at up to $42 million over a two-year period. Furthermore, Duos Technologies Group, Inc. secured a $5 million advance payment for future services related to this AMA, providing immediate, low-cost working capital.

Significant revenue is tied to long-term service agreements (LTSAs), which are critical for stabilizing the revenue base beyond initial system sales. The AMA is specifically cited as a multi-year service agreement, and the contract backlog at the end of Q3 2025 still included remaining multi-year service and software agreements extending beyond 2025.

The pricing strategy inherently involves custom quoting, as pricing is custom-quoted, reflecting system complexity and client scale. For instance, the AMA covers the deployment and management of 850 megawatts of Gas-Powered Turbines, indicating pricing scales directly with the capacity and scope of the managed assets. Similarly, RIP service contracts vary in duration from one to five years for maintenance and support, suggesting tailored pricing based on the required service level and term length.

The shift toward a recurring revenue model based on software licensing and service fees is evident in the revenue composition for the first nine months of 2025. The company reported total revenue of $17.6 million, of which approximately $17.2 million was recurring services and consulting revenue. This recurring revenue stream is supported by specific pricing mechanisms:

• Moving to a per-module software licensing model to capture greater recurring revenue as customer use expands.
• Annual application maintenance fees for AI features, recognized ratably over the contracted term.
• Maintenance and technical support recognized ratably over the term for extended-term contracts.

The financial performance in 2025 clearly demonstrates the pricing power of the service contracts, particularly the AMA. Here's a quick look at the recurring revenue component versus total revenue through Q3 2025:

The targeted profitability on these service contracts is high, with management indicating that the gross profit margin for the AMA services is targeted at the mid-70s percent range. This high margin on recurring revenue is a key driver for the company's overall financial outlook, which projects total revenue for the full year 2025 to be between $28 million and $30 million.