Shares of Evolv Technologies Holdings, Inc. (EVLV) are soaring 9.36% in early trading on Friday, building on pre-market gains following the release of impressive second-quarter financial results, an upward revision of its full-year 2025 guidance, and positive analyst coverage. The AI-based security technology company's performance has exceeded analyst expectations, driving significant investor enthusiasm.

Evolv reported robust Q2 2025 results, with revenue reaching $32.54 million, marking a substantial 27.4% increase year-over-year and surpassing analyst expectations of $30.95 million. The company's bottom line also showed significant improvement, with adjusted earnings per share narrowing to a loss of $0.02, beating the consensus estimate of a $0.04 loss. Notably, Evolv's Annual Recurring Revenue (ARR) reached $110.5 million, up 27% year-over-year, indicating strong customer acquisition and expansion.

Adding to the positive sentiment, Evolv raised its full-year 2025 revenue guidance to between $132 million and $135 million, representing a growth rate of 27% to 30%. The company also anticipates achieving positive full-year Adjusted EBITDA in 2025 and expects to be cash flow positive in Q4 2025. Furthermore, TD Cowen reinstated coverage of Evolv with a Buy rating and a $10 price target, while Cantor Fitzgerald maintained its Overweight rating. These factors combined have fueled the stock's significant rise, as investors respond positively to the company's strong performance, optimistic outlook, and favorable analyst views in the AI-based security technology sector.