-- Company Raises Revenue Outlook for 2025 to $142-$145 Million, up 37%-40% Year-Over-Year --
-- Q3'25 Revenue of $42.9 million, up 57% year-over-year
-- Q3'25 Ending ARR1 of $117.2 million, up 25% year-over-year
-- Q3'25 Net Loss of $(1.8) million, with Net Profit Margin of (4)%
-- Q3'25 Adjusted EBITDA2 of $5.1 million, with Adjusted EBITDA Margin2 of
12%
WALTHAM, Mass.--(BUSINESS WIRE)--November 13, 2025--
Evolv Technologies Holdings, Inc $(EVLV)$, a leading security technology company pioneering AI-based solutions designed to help create safer experiences, today announced financial results for the quarter ended September 30, 2025.
"We made meaningful progress across many key measures of the business in the third quarter--including subscribers, revenue, and annual recurring revenue, as well as important indicators of profitability and liquidity, " said John Kedzierski, President and Chief Executive Officer of Evolv Technology. "Through strong new customer acquisition and expanding deployments with existing customers, we continue to deliver real-world impact at scale--screening millions of visitors every day across over 1,000 customers. Looking ahead, we're encouraged by the growing demand for our solutions and are confident in our ability to close the year with momentum as we advance on our goal of building a high-growth, profitable, and cash-generative business."
Results for the Third Quarter of 2025
Total revenue for the third quarter of 2025 was $42.9 million, an increase of 57% compared to $27.4 million for the third quarter of 2024. Revenue for the third quarter of 2025 was primarily driven by strong new customer additions and continued expansion of deployments across the existing customer base. Revenue for the period also reflected certain notable items that contributed approximately $7.5 million from the following: (i) approximately $3.0 million of revenue (primarily product revenue) associated with the largest customer order in the Company's history; (ii) approximately $3.0 million attributable to IP license fees and other revenue associated with the Company's distribution fulfillment model which is being phased out; and (iii) approximately $1.5 million from short-term rental agreements that concluded in the period. Annual Recurring Revenue ("ARR")(1) was $117.2 million at the end of third quarter of 2025, an increase of 25% compared to $93.7 million at the end of the third quarter of 2024. Net loss for the third quarter of 2025 was $(1.8) million, or $(0.01) per basic and diluted share, compared to $(30.4) million, or $(0.19) per basic and diluted share, in the third quarter of 2024. Adjusted earnings (loss)(2) for the third quarter of 2025 was $(3.4) million, or $(0.02) per diluted share, compared to adjusted earnings (loss)(2) of $(6.9) million, or $(0.04) per diluted share (as restated), for the third quarter of 2024. Adjusted EBITDA(2) for the third quarter of 2025 was $5.1 million compared to $(3.0) million in the third quarter of 2024. As of September 30, 2025, the Company had cash, cash equivalents and marketable securities of $56.2 million.
Results for the First Nine Months of 2025
Total revenue for the nine months ended September 30, 2025 was $107.4 million, an increase of 44% compared to $74.8 million for the nine months ended September 30, 2024. Net loss for the nine months ended September 30, 2025 was $(44.0) million, or $(0.26) per basic and diluted share, compared to $(38.3) million, or $(0.25) per basic and diluted share, in the nine months ended September 30, 2024. Adjusted earnings (loss)(2) for the nine months ended September 30, 2025 was $(11.5) million, or $(0.07) per diluted share, compared to adjusted earnings (loss)(2) of $(30.8) million, or $(0.20) per diluted share, for the nine months ended September 30, 2024. Adjusted EBITDA(2) for the nine months ended September 30, 2025 was $9.3 million compared to $(21.3) million in the nine months ended September 30, 2024.
The following table summarizes the breakdown of recurring and non-recurring revenue(3) for each period presented:
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- -----------------------------
2025 2024 % Change 2025 2024 % Change
------ ------ ---------- ------- ------ ----------
Recurring
revenue $30,120 $23,764 27% $ 82,551 $63,741 30%
Non-recurring
revenue 12,730 3,596 254% 24,850 11,024 125%
------ ------ ---- --- ------- ------ ---- ---
Total revenue $42,850 $27,360 57% $107,401 $74,765 44%
The following table summarizes operating cash flows for each period presented:
Nine Months Ended
September 30,
----------------------
2025 2024
------- -------
Net loss $(44,020) $(38,297)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities 44,660 15,634
Changes in operating assets and liabilities 2,458 (11,394)
------- -------
Net cash provided by (used in) operating
activities $ 3,098 $(34,057)
======= =======
Company Comments on Outlook for 2025
The Company today commented on its business outlook for 2025. The Company's outlook is based on the current indications for its business, which may change at any time. The Company expects total revenues in 2025 to be between $142 to $145 million, reflecting growth of 37% to 40% compared to 2024. The Company believes that this revenue growth, coupled with a focus on operational efficiency, will drive improved profitability and cash flow. The Company expects to deliver positive full year Adjusted EBITDA(1) in 2025 with Adjusted EBITDA(1) margins in the high single digits. The Company expects to be cash flow positive in the fourth quarter of 2025.
Issued November 13,
Estimate Issued August 14, 2025 2025
------------------------ ---------------------- -----------------------
Total Revenue (Millions) $132-$135 $142-$145
Total Revenue Growth Rate 27%-30% 37%-40%
Adjusted EBITDA Margin(2) Mid-Single Digits High Single Digits
Company to Host Live Conference Call and Webcast
The Company's management team plans to host a live conference call and webcast at 4:30 p.m. Eastern Time today to discuss the financial results as well as management's outlook for the business for both 2025 and 2026. The conference call will be webcast live at http://ir.evolvtechnology.com.
About Evolv Technology
Evolv Technologies Holdings, Inc (NASDAQ: EVLV) is designed to transform human security to make a safer, faster, and better experience for the world's most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered screening and analytics. Its mission is to transform security to create a safer world to live, work, learn, and play. Evolv has digitally transformed the gateways in many places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv's advanced systems have scanned more than three billion people since 2019. Evolv has been awarded the U.S. Department of Homeland Security $(DHS)$ SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT) as well as the Security Industry Association (SIA) 2024 New Products and Solutions (NPS) Award in the Law Enforcement/Public Safety/Guarding Systems category, as well as Sport Business Journal's (SBJ) 2024 awards for "Best In Fan Experience Technology" and "Best In Sports Technology". Evolv$(R)$, Evolv Express(R), Evolv Insights(R), Evolv Visual Gun Detection$(TM)$, Evolv eXpedite(TM), and Evolv Eva(TM) are registered trademarks or trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visit evolv.com.
(1) We define Annual Recurring Revenue, or ARR, as subscription revenue and the recurring service revenue related to purchase subscriptions for the final month of the quarter normalized to a one-year period. Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, upgrades or downgrades, or price increases or decreases) that may cause any such contract not to be renewed on its existing terms. In addition, the amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades, downgrades or other changes in pending renewals, as well as the effects of professional services revenue and acquisitions or divestitures. As a result, ARR should be viewed independently of, and not as a substitute for or forecast of, revenue and deferred revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.
(2) Non-GAAP Financial Measures In this press release, the Company's adjusted gross profit (loss), adjusted gross margin, adjusted operating expenses, adjusted operating income (loss), adjusted EBITDA, adjusted EBITDA margin, adjusted earnings (loss), and adjusted earnings per diluted share are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. Adjusted gross profit and adjusted gross margin exclude stock-based compensation expense, amortization of capitalized stock-based compensation, non-recurring employee restructuring and other separation costs, and non-recurring inventory charges, which management believes provides a more meaningful representation of contribution margin. Adjusted operating expenses is defined as operating expenses less stock-based compensation expense, loss on impairment of lease equipment, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of on-going operating expense levels. Other non-recurring legal and regulatory costs include non-recurring legal, accounting and professional fees related to the internal investigation, subsequent restatement, certain non-recurring regulatory, litigation and legal matters, as well as fees related to the resolution of the U.S. Federal Trade Commission investigation, net of estimated insurance recoveries. Adjusted operating income (loss), is defined as loss from operations, excluding stock-based compensation expense, amortization of capitalized stock-based compensation, loss on impairment of leased equipment, non-recurring employee restructuring and other separation costs, non-recurring inventory charges, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Adjusted EBITDA and Adjusted EBITDA margin is defined as net income (loss) plus depreciation and amortization, stock-based compensation, interest expense (income), provision for income taxes, change in fair value of contingent earn-out liability, change in fair value of contingently issuable common stock liability, change in fair value of public warrant liability, loss on impairment of leased equipment, loss on disposal of leased equipment, non-recurring employee restructuring and other separation costs, non-recurring inventory charges, and other non-recurring legal and regulatory costs. Adjusted earnings (loss) and Adjusted earnings (loss) per diluted share are defined as net income (loss) plus stock-based compensation, amortization of capitalized stock-based compensation, change in fair value of contingent earn-out liability, change in fair value of contingently issuable common stock liability, change in fair value of public warrant liability, loss on impairment of leased equipment, non-recurring employee restructuring and other separation costs, non-recurring inventory charges, and other non-recurring legal and regulatory costs. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operating performance. However, non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures included in this press release. The Company is unable to provide a reconciliation of Adjusted EBITDA to Net Income (Loss) and Adjusted EBITDA Margin to Net Profit Margin, each measure's most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort, because items that impact these GAAP financial measures are not within the Company's control and/or cannot be reasonably predicted. These items may include, but are not limited to, predicting forward-looking share-based compensation, changes in the fair value of contingent earn out liabilities, changes in the fair value of contingently issuable common stock liabilities and changes in fair value of public warrant liabilities. Such information may have a significant, and potentially unpredictable, impact on the Company's future financial results.
(3) Recurring revenue includes the recurring portion of revenue associated with pure subscription contracts and hardware purchase subscription contracts. Non-recurring revenue includes revenue that is non-recurring in nature, such as product revenue, shipping revenue, and revenue from installation, training, and professional services.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release and related presentation materials other than statements of historical facts, including without limitation statements regarding our strategy, goals, demand for our products, market opportunities, and future financial and operational results. Words such as "believe" "may," "will," "expect," "should," "could," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "project," "plan," "target," "forecast", "is/are likely to" or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. The forward-looking statements in this press release and related presentation materials are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the amount of insurance reimbursements expected to be received for defense costs for counsel and consultants in connection with the securities litigation and related Securities and Exchange Commission (the "SEC") and Department of Justice matters, and the following: our history of losses and ability to reach profitability; our reliance on reseller partners; expectations regarding the Company's strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures; the Company's reliance on third party contract manufacturing and distribution, and a global supply chain; the Company recognizes a substantial portion of its revenue ratably over the term of its agreements, and, as a result, downturns or upturns in sales may not be immediately reflected in its operating results; the rate of innovation required to maintain competitiveness in the markets in which the Company competes; the competitiveness of the market in which the Company competes; the failure of our products to detect threats could result in injury or loss of life, which could harm our brand, reputation, and results of operations; the loss of designation of our Evolv Express(R) system as a Qualified Anti-Terrorism Technology under the Homeland Security SAFETY Act; risks related to our business model, which is predicated, in part, on building a customer base that will generate a recurring stream of revenues through the sale of our subscription contracts; the ability for the Company to obtain, maintain, protect and enforce the Company's intellectual property rights and use of "open source" software; the concentration of the Company's revenues on a single solution; the Company's ability to timely design, produce and launch its solutions, the Company's ability to invest in growth initiatives and pursue acquisition opportunities; the limited liquidity and trading of the Company's securities; risks related to existing and changing tax laws; geopolitical risk and changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; operational risk; risks related to material weaknesses in our internal control over financial reporting and our remediation plans; risks related to increasing attention to and evolving expectations for, environmental, social, and governance initiatives; the impact of fluctuating general economic and market conditions and reductions in spending; the need for additional capital to support business growth, which might not be available on acceptable terms, if at all; and litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on resources. These and other important factors discussed in our most recent report
on From 10-Q or 10-K filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. The forward-looking statements in this press release and related presentation materials are based upon information available to us as of the date hereof, and while we believe such information forms a reasonable basis for such statements, it may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
You should review this press release and the documents that we reference in this press release and related presentation materials with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release and related presentation materials, whether as a result of any new information, future events or otherwise.
EVOLV TECHNOLOGY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Revenue:
Product revenue $ 9,242 $ 1,344 $ 14,092 $ 4,789
Subscription revenue 22,685 17,909 62,122 47,783
Service revenue 7,808 6,085 21,224 16,903
License fee and
other revenue 3,115 2,022 9,963 5,290
----------- ----------- ----------- -----------
Total revenue 42,850 27,360 107,401 74,765
Cost of revenue:
Cost of product
revenue 7,960 2,616 16,495 8,569
Cost of subscription
revenue 10,923 7,348 27,713 19,242
Cost of service
revenue 2,338 1,404 5,753 3,749
Cost of license fee
and other revenue 323 183 766 484
----------- ----------- ----------- -----------
Total cost of
revenue 21,544 11,551 50,727 32,044
----------- ----------- ----------- -----------
Gross profit 21,306 15,809 56,674 42,721
Operating expenses:
Research and
development 5,608 5,810 15,207 18,056
Sales and marketing 11,715 14,966 34,494 47,182
General and
administrative 12,579 13,976 44,789 39,843
Restructuring costs -- -- 2,662 860
Loss from impairment
of property and
equipment -- 209 -- 209
----------- ----------- ----------- -----------
Total operating
expenses 29,902 34,961 97,152 106,150
----------- ----------- ----------- -----------
Loss from operations (8,596) (19,152) (40,478) (63,429)
Other (expense) income,
net:
Interest expense (713) -- (714) --
Interest income 436 628 1,049 2,394
Other income
(expense), net (44) 34 117 (33)
Change in fair value
of contingent
earn-out liability 7,521 (8,321) 2,297 15,092
Change in fair value
of contingently
issuable/returnable
common stock
liability/asset 2,178 (2,056) (69) 2,218
Change in fair value
of public warrant
liability (2,578) (1,576) (6,160) 5,461
----------- ----------- ----------- -----------
Total other
income
(expense), net 6,800 (11,291) (3,480) 25,132
----------- ----------- ----------- -----------
Loss before income
taxes (1,796) (30,443) (43,958) (38,297)
Provision for income
taxes -- -- $ 62 $ --
----------- ----------- ----------- -----------
Net loss $ (1,796) $ (30,443) $ (44,020) $ (38,297)
=========== =========== =========== ===========
Net (loss) income
attributable to
common stockholders
-- basic and
diluted $ (1,796) $ (30,443) $ (44,020) $ (38,297)
=========== =========== =========== ===========
Weighted average
common shares
outstanding --
basic and diluted 172,790,098 157,709,229 166,327,570 155,760,149
Net loss per share -
basic and diluted $ (0.01) $ (0.19) $ (0.26) $ (0.25)
Net loss $ (1,796) $ (30,443) $ (44,020) $ (38,297)
Other comprehensive
income (loss)
Cumulative
translation
adjustment 26 (86) (105) (75)
----------- ----------- ----------- -----------
Total other
comprehensive
income (loss) 26 (86) (105) (75)
----------- ----------- ----------- -----------
Total comprehensive
loss $ (1,770) $ (30,529) $ (44,125) $ (38,372)
=========== =========== =========== ===========
EVOLV TECHNOLOGY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
September 30, 2025 December 31, 2024
-------------------- ---------------------
Assets
Current assets:
Cash and cash equivalents $ 31,504 $ 37,015
Marketable securities 24,723 14,927
Accounts receivable, net 48,883 28,392
Inventory 8,770 16,963
Current portion of
contract assets 1,212 799
Current portion of
commission asset 5,956 5,429
Prepaid expenses and other
current assets 30,593 17,921
--------------- --------------
Total current assets 151,641 121,446
Contract assets, noncurrent 381 657
Commission asset, noncurrent 7,759 7,567
Property and equipment, net 126,919 123,661
Operating lease right-of-use
assets 12,730 13,993
Other assets 4,859 735
--------------- --------------
Total assets $ 304,289 $ 268,059
=============== ==============
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $ 4,724 $ 10,492
Accrued expenses and other
current liabilities 33,954 19,508
Current portion of
deferred revenue 77,904 64,506
Current portion of
operating lease
liabilities 2,765 2,203
--------------- --------------
Total current
liabilities 119,347 96,709
Deferred revenue, noncurrent 18,464 20,266
Long-term debt, noncurrent 28,528 --
Operating lease liabilities,
noncurrent 11,107 12,326
Contingent earn-out
liability, noncurrent 10,512 12,809
Contingently issuable common
stock liability, noncurrent 3,638 4,001
Public warrant liability,
noncurrent 10,457 4,297
--------------- --------------
Total liabilities 202,053 150,408
Stockholders' equity:
Preferred stock, $0.0001
par value; 100,000,000
authorized at September
30, 2025 and December 31,
2024; no shares issued and
outstanding at September
30, 2025 and December 31,
2024 -- --
Common stock, $0.0001 par
value; 1,100,000,000
shares authorized at
September 30, 2025 and
December 31, 2024;
173,803,265 and
159,602,069 shares issued
and outstanding at
September 30, 2025 and
December 31, 2024,
respectively 17 16
Additional paid-in capital 501,040 472,331
Accumulated other
comprehensive loss (137) (32)
Accumulated deficit (398,684) (354,664)
--------------- --------------
Stockholders' equity 102,236 117,651
--------------- --------------
Total liabilities and
stockholders' equity $ 304,289 $ 268,059
=============== ==============
EVOLV TECHNOLOGY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
----------------------
2025 2024
------- -------
Cash flows from operating activities:
Net loss $(44,020) $(38,297)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 17,859 11,933
Write-off of inventory and change in
inventory reserve 2,016 3,151
Loss from impairment of property and
equipment -- 209
Loss on disposal of property and equipment 3,503 --
Stock-based compensation 15,816 21,364
Non-cash interest expense 195 --
Amortization of premium on marketable
securities, net of change in accrued
interest 10 261
Non-cash lease expense 1,263 1,116
Change in allowance for expected credit
losses 66 371
Change in fair value of earn-out liability (2,297) (15,092)
Change in fair value of contingently
issuable common stock 69 (2,218)
Change in fair value of public warrant
liability 6,160 (5,461)
Changes in operating assets and liabilities
Accounts receivable (20,557) (13,679)
Inventory 11,079 (8,327)
Commission assets (719) (1,005)
Contract assets (137) 993
Other assets 437 333
Prepaid expenses and other current
assets (17,331) (4,093)
Accounts payable 1,845 216
Deferred revenue 11,596 13,559
Accrued expenses and other current
liabilities 16,902 1,655
Operating lease liability (657) (1,046)
------- -------
Net cash provided by (used in) operating
activities 3,098 (34,057)
------- -------
Cash flows from investing activities:
Development of internal-use software (4,311) (4,773)
Purchases of property and equipment (29,109) (24,443)
Purchases of marketable securities (34,481) (14,567)
Proceeds from maturities of marketable
securities 24,675 55,635
------- -------
Net cash (used in) provided by investing
activities (43,226) 11,852
------- -------
Cash flows from financing activities:
Proceeds from exercise of stock options 8,406 1,151
Proceeds from long-term debt 26,316 --
------- -------
Net cash provided by financing activities 34,722 1,151
------- -------
Effect of exchange rate changes on cash and
cash equivalents (105) (75)
------- -------
Net decrease in cash, cash equivalents and
restricted cash (5,511) (21,129)
------- -------
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at
beginning of period 37,015 67,437
------- -------
Cash, cash equivalents and restricted cash at
end of period $ 31,504 $ 46,308
======= =======
EVOLV TECHNOLOGY
SUMMARY OF KEY OPERATING STATISTICS
(Unaudited)
Three Months Ended or as of,
-------------------------------------------------------------------------
March June March
31, 30, September December 31, June 30, September
($ in thousands) 2024 2024 30, 2024 31, 2024 2025 2025 30, 2025
------- ------- ---------- --------- -------- -------- -----------
New customers 53 84 52 60 54 63 62
Annual recurring
revenue $79,192 $87,011 $ 93,676 $ 99,351 $105,990 $110,516 $ 117,200
Recurring revenue $18,961 $21,016 $ 23,764 $ 23,678 $ 25,753 $ 26,678 $ 30,120
EVOLV TECHNOLOGY
RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES
(In thousands)
(Unaudited)
Three Months Ended,
-------------------------------------------------------------------------------------
December March
March 31, June 30, September 31, 31, June 30, September 30,
2024 2024 30, 2024 2024 2025 2025 2025
------------ ------------ ----------- -------- -------- -------- -------------
(Restated) (Restated)
Operating
expenses, GAAP $ 34,061 $ 37,128 $ 34,961 $35,619 $33,539 $33,711 $ 29,902
Stock-based
compensation (6,292) (7,254) (7,263) (3,159) (4,660) (5,265) (5,121)
Loss on
impairment of
leased
equipment -- -- (209) (15) -- -- --
Non-recurring
employee
restructuring
and other
separation
costs -- (1,000) -- (2,060) (2,137) (827) (6)
Other
non-recurring
legal and
regulatory
costs (476) (2,185) (2,339) (7,284) (3,561) (5,979) 36
------- ------- ------ ------ ------ ------ ------
Adjusted operating
expenses $ 27,293 $ 26,689 $ 25,150 $23,101 $23,181 $21,640 $ 24,811
EVOLV TECHNOLOGY RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS
PROFIT, GAAP GROSS MARGIN TO ADJUSTED GROSS MARGIN AND GAAP INCOME
(LOSS) FROM OPERATIONS TO ADJUSTED OPERATING INCOME (LOSS) (In
thousands) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ -------------------------
2025 2024 2025 2024
------ ------ ------- ------
Revenue $42,850 $27,360 $107,401 $74,765
Cost of revenue 21,544 11,551 50,727 32,044
------ ------ ------- ------
Gross profit,
GAAP 21,306 15,809 56,674 42,721
Stock-based
compensation 269 244 770 555
Amortization
of
capitalized
stock-based
compensation 114 23 324 52
Non-recurring
employee
restructuring
and other
separation
costs -- -- 6 --
Non-recurring
inventory
charges -- 1,471 -- 2,607
------ ------ ------- ------
Adjusted gross
profit* $21,689 $17,547 $ 57,774 $45,935
Gross margin % 49.7% 57.8% 52.8% 57.1%
Adjusted gross
margin % 50.6% 64.1% 53.8% 61.4%
*Beginning in the three month period ended September 30, 2025, and on
a go-forward basis, management has determined that the loss on
disposal of leased equipment should no longer be considered a
non-recurring expense, and accordingly, loss on disposal of leased
equipment is now reflected within non-GAAP gross margins and adjusted
loss from operations.
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ----------------------
2025 2024 2025 2024
------ ------- ------- -------
Loss from
operations,
GAAP $(8,596) $(19,152) $(40,478) $(63,429)
Stock-based
compensation 5,390 7,507 15,816 21,364
Amortization
of
capitalized
stock-based
compensation 114 23 324 52
Loss on
impairment of
lease
equipment -- 209 -- 209
Non-recurring
employee
restructuring
and other
separation
costs 6 -- 2,976 1,000
Non-recurring
inventory
charges -- 1,471 -- 2,607
Other
non-recurring
legal and
regulatory
costs (36) 2,339 9,504 5,000
------ ------- ------- -------
Adjusted loss
from
operations* $(3,122) $ (7,603) $(11,858) $(33,197)
*Beginning this quarter, and on a go-forward basis, management
has determined that the loss on disposal of leased equipment
should no longer be considered a non-recurring expense, and
accordingly, loss on disposal of leased equipment is now
reflected within non-GAAP gross margins and adjusted loss from
operations.
EVOLV TECHNOLOGY RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED
EBITDA AND NET PROFIT MARGIN TO ADJUSTED EBITDA MARGIN (In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- --------------------------
2025 2024 2025 2024
------ ------- ------- -------
Net loss $(1,796) $(30,443) $(44,020) $(38,297)
Depreciation &
amortization 6,541 4,575 17,859 11,933
Stock-based
compensation 5,390 7,507 15,816 21,364
Interest expense
(income) 277 (628) (335) (2,394)
Provision for income
taxes -- -- 62 --
Change in fair value
of contingent
earn-out liability (7,521) 8,321 (2,297) (15,092)
Change in fair value
of contingently
issuable/returnable
common stock
liability/asset (2,178) 2,056 69 (2,218)
Change in fair value
of public warrant
liability 2,578 1,576 6,160 (5,461)
Loss on impairment
of leased
equipment -- 209 -- 209
Loss on disposal of
leased equipment 1,870 -- 3,503 --
Non-recurring
employee
restructuring and
other separation
costs 6 -- 2,976 1,000
Non-recurring
inventory charges -- 1,471 -- 2,607
Other non-recurring
legal and
regulatory costs (36) 2,339 9,504 5,000
------ ------- ------- -------
Adjusted EBITDA $ 5,131 $ (3,017) $ 9,297 $(21,349)
Net profit margin % (4.2)% (111.3)% (41.0)% (51.2)%
Impact of
adjustments from
Net loss to
Adjusted EBITDA 16.2% 100.3% 49.6% 22.6%
------ ------- ------- -------
Adjusted EBITDA
margin % 12.0% (11.0)% 8.7% (28.6)%
EVOLV TECHNOLOGY
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EARNINGS (LOSS)
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Net loss $ (1,796) $ (30,443) $ (44,020) $ (38,297)
Stock-based
compensation 5,390 7,507 15,816 21,364
Amortization of
capitalized
stock-based
compensation 114 23 324 52
Change in fair value
of contingent
earn-out liability (7,521) 8,321 (2,297) (15,092)
Change in fair value
of contingently
issuable/returnable
common stock
liability/asset (2,178) 2,056 69 (2,218)
Change in fair value
of public warrant
liability 2,578 1,576 6,160 (5,461)
Loss on impairment
of lease equipment -- 209 -- 209
Non-recurring
employee
restructuring and
other separation
costs 6 -- 2,976 1,000
Non-recurring
inventory charges -- 1,471 -- 2,607
Other non-recurring
legal and
regulatory costs (36) 2,339 9,504 5,000
----------- ----------- ----------- -----------
Adjusted loss $ (3,443) $ (6,941) $ (11,468) $ (30,836)
Weighted average common
shares outstanding --
diluted 172,790,098 157,709,229 166,327,570 155,760,149
Adjusted loss per share
-- diluted $ (0.02) $ (0.04) $ (0.07) $ (0.20)
*Stock-based compensation, amortization of capitalized stock-based compensation, and
non-recurring restructuring and other employee separation costs were recorded in the
condensed consolidated statements of operations and comprehensive loss (income) as
follows. Prior period amounts are being shown for comparative purposes:
Three Months Ended,
-------------------------------------------------------------------
March June March June
31, 30, September December 31, 30, September
2024 2024 30, 2024 31, 2024 2025 2025 30, 2025
------ ------ ---------- ---------- ------ ------ -----------
Stock-based
compensation:
Cost of product
revenue $ -- $ 5 $ 4 $ 8 $ 8 $ 17 $ 32
Cost of
subscription
revenue 91 110 169 154 137 167 146
Cost of service
revenue 44 51 63 61 67 74 72
Cost of license
fee and other
revenue 3 7 8 10 7 24 19
Research and
development 902 1,222 1,243 1,153 1,115 1,154 1,227
Sales and
marketing 2,959 2,724 2,516 2,747 1,048 1,710 1,480
General and
administrative 2,431 3,308 3,504 (741) 1,972 2,401 2,414
Restructuring
costs -- -- -- -- 525 -- --
----- ----- --------- ----- ----- ----- -------
Total
stock-based
compensation $6,430 $7,427 $ 7,507 $ 3,392 $4,879 $5,547 $ 5,390
Amortization of
capitalized
stock-based
compensation:
Cost of
subscription
revenue $ 8 $ 8 $ 13 $ 47 $ 59 $ 60 $ 63
Cost of service
revenue 6 7 10 38 44 47 51
----- ----- --------- ----- ----- ----- -------
Total
amortization
of
capitalized
stock-based
compensation $ 14 $ 15 $ 23 $ 85 $ 103 $ 107 $ 114
Non-recurring
employee
restructuring and
other separation
costs:
Cost of service
revenue $ -- $ -- $ -- $ -- $ -- $ 6 --
Research and
development -- -- -- -- -- 31 --
Sales and
marketing -- 140 -- 63 -- 613 $ 6
General and
administrative -- -- -- 1,997 -- 183 --
Restructuring
costs -- 860 -- -- 2,137 -- --
----- ----- --------- ----- ----- ----- -------
Total
non-recurring
employee
restructuring
and other
separation
costs $ -- $1,000 $ -- $ 2,060 $2,137 $ 833 $ 6
View source version on businesswire.com: https://www.businesswire.com/news/home/20251113279465/en/
CONTACT: Investor Relations:
Brian Norris
Senior Vice President of Finance and Investor Relations
bnorris@evolvtechnology.com
(END) Dow Jones Newswires
November 13, 2025 16:05 ET (21:05 GMT)