By Katherine Hamilton

Evolv Technologies shares rose after the company raised its sales outlook for the year and said it had resolved some legal and regulatory issues.

The stock was up 8% to $7.93 on Friday, touching a 52-week high of $8.91. Shares have doubled in value this year.

The maker of AI-powered security technology said Thursday it now expects full-year sales to be $132 million to $135 million, up from prior guidance of $125 million to $130 million.

Revenue in the second quarter jumped 29% to $32.5 million, surpassing analysts' forecast of $30.9 million. Annual recurring revenue rose 27% to $110.5 million.

Evolv posted a loss of $40.5 million, or 25 cents a share, compared with a profit of $3.4 million, or 2 cents a share, the year before. The adjusted loss was 2 cents a share.

Evolv has also resolved several regulatory and legal concerns. Management said during an analyst call Friday that the company is no longer the subject of a Justice Department investigation. Evolv had said in November it received a voluntary document request from the U.S. Attorney's Office of the Southern District of New York.

It also said it settled in principle a former securities class action lawsuit. The company expects its exposure to be around $1 million, which will be primarily covered by insurance.

TD Cowen analysts led by Shaul Eyal reinstated a buy rating for Evolv. "We are encouraged by the diminished regulatory risks that have been put to rest as well as improved fundamental outlook," Eyal said in a note.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

August 15, 2025 13:55 ET (17:55 GMT)

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