Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) saw its stock price surge 5.93% in after-hours trading on Thursday, following the release of its impressive third-quarter financial results and an upgraded full-year outlook.
The security technology company reported Q3 revenue of $42.9 million, marking a significant 57% increase year-over-year and substantially beating the analyst consensus estimate of $33.7 million. The strong performance was primarily driven by robust new customer acquisitions and expanded deployments across existing clients. Notably, the company's largest-ever customer order contributed approximately $3 million to the quarter's revenue.
Evolv Technologies also demonstrated improved profitability, with Adjusted EBITDA reaching $5.1 million for the quarter, compared to a loss of $3.0 million in the same period last year. The company's net loss narrowed to $1.8 million, or $0.01 per share, beating analyst expectations of a $0.03 per share loss. Annual Recurring Revenue (ARR) grew to $117.2 million, up 25% year-over-year, indicating strong momentum in the company's subscription-based business model.
In light of these strong results, Evolv Technologies raised its full-year 2025 revenue guidance to between $142 million and $145 million, representing a 37% to 40% year-over-year growth. This upgraded outlook, coupled with the company's expectation of positive full-year Adjusted EBITDA with margins in the high single digits, has bolstered investor confidence in Evolv's growth trajectory and path to profitability.
The after-hours stock price jump reflects the market's positive reaction to Evolv Technologies' strong financial performance and optimistic future outlook, as the company continues to capitalize on the growing demand for AI-based security solutions.
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