-- Company Raises Outlook for 2026 --
-- Q4'25 Revenue of $38.5 million, up 32% year-over-year
-- Q4'25 Ending ARR1 of $120.5 million, up 21% year-over-year
-- Q4'25 Net Income of $10.9 million, with Net Profit Margin of 28%
-- Q4'25 Adjusted EBITDA2 of $1.8 million, with Adjusted EBITDA Margin2 of
5%
-- Q4'25 Ending Cash, Cash Equivalents and Marketable Securities of $69.0
million, up $12.8 million sequentially
WALTHAM, Mass.--(BUSINESS WIRE)--March 10, 2026--
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 year ended December 31, 2025.
"We are pleased to be reporting solid fourth quarter results, which capped a year of significant improvement across the Company," said John Kedzierski, President and Chief Executive Officer of Evolv Technology. "We continue to deliver advanced weapons screening capabilities at scale for more than 1,200 customers worldwide through a tightly integrated platform that combines proprietary hardware, real-world visitor data sets, and AI-driven software, delivered via long-term subscriptions that foster durable customer relationships and high-quality recurring revenue. Looking ahead, we believe AI-based weapons screening will continue to become increasingly prevalent, and we look forward to capitalizing on this still-nascent market opportunity to help make the world a safer place to live, work, learn, and play."
Results for the Fourth Quarter of 2025
Total revenue for the fourth quarter of 2025 was $38.5 million, an increase of 32% compared to $29.1 million for the fourth quarter of 2024. Revenue for the fourth quarter of 2025 was primarily driven by strong new customer additions and continued expansion of deployments across the existing customer base. Annual Recurring Revenue ("ARR")(1) was $120.5 million at the end of fourth quarter of 2025, an increase of 21% compared to $99.4 million at the end of the fourth quarter of 2024. Net income for the fourth quarter of 2025 was $10.9 million, or $0.06 per basic share and $0.06 per diluted share, compared to net loss of $(15.7) million, or $(0.10) per basic and diluted share, in the fourth quarter of 2024. Adjusted earnings (loss)(2) for the fourth quarter of 2025 was $(5.3) million, or $(0.03) per diluted share, compared to adjusted earnings (loss)(2) of $(4.4) million, or $(0.03) per diluted share, for the fourth quarter of 2024. Adjusted EBITDA(2) for the fourth quarter of 2025 was $1.8 million compared to $0.4 million in the fourth quarter of 2024. As of December 31, 2025, the Company had cash, cash equivalents and marketable securities of $69.0 million.
Results for 2025
Total revenue for the twelve months ended December 31, 2025 was $145.9 million, an increase of 40% compared to $103.9 million for the twelve months ended December 31, 2024. Net loss for the twelve months ended December 31, 2025 was $(33.1) million, or $(0.20) per basic and diluted share, compared to $(54.0) million, or $(0.34) per basic and diluted share, in the twelve months ended December 31, 2024. Adjusted earnings (loss)(2) for the twelve months ended December 31, 2025 was $(16.8) million, or $(0.10) per diluted share, compared to adjusted earnings (loss)(2) of $(35.3) million, or $(0.23) per diluted share, for the twelve months ended December 31, 2024. Adjusted EBITDA(2) for the twelve months ended December 31, 2025 was $11.1 million compared to $(21.0) million in the twelve months ended December 31, 2024.
The following table summarizes the breakdown of recurring and non-recurring revenue(3) for each period presented:
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ------------------------------
2025 2024 % Change 2025 2024 % Change
------- ------- ---------- -------- -------- ----------
Recurring
revenue $29,547 $23,678 25% $112,098 $ 87,419 28%
Non-recurring
revenue 8,957 5,422 65% 33,807 16,446 106%
------ ------ --- ---- ------- ------- ---- ---
Total revenue $38,504 $29,100 32% $145,905 $103,865 40%
The following table summarizes operating cash flows for each period presented:
Twelve Months Ended
December 31,
--------------------------
2025 2024
-------- -------
Net loss $ (33,138) $(54,017)
Adjustments to reconcile net loss to net
cash provided by operating activities 38,542 22,504
Changes in operating assets and liabilities 13,265 660
-------- -------
Net cash provided by (used in) operating
activities $ 18,669 $(30,853)
======== =======
Company Comments on Outlook for 2026
The Company today commented on its business outlook for 2026. 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 2026 to be between $172 to $178 million, reflecting growth of approximately 18% to 22% year-over-year. The Company expects ending ARR at December 31, 2026 to increase to approximately $145 to $150 million, reflecting growth of approximately 20% to 25% year-over-year. The Company continues to expect ARR growth to exceed total revenue growth as previously disclosed changes to the Company's selling model and pricing continue to reshape contractual revenue recognition toward a higher mix of recurring revenue and reduced one-time revenue. The Company currently expects approximately 50% of the Company's new unit deployments in 2026 to be delivered under the Company's pure subscription model, with the remaining 50% deployed through the Company's purchase-subscription model. The Company expects to deliver positive full year Adjusted EBITDA(1) in 2026 with Adjusted EBITDA(1) margins in the high single digits.
Estimate Issued November 13, 2025 Issued March 10, 2026 ------------------------ ------------------------ --------------------- Total Revenue (Millions) $160-$165 $172-$178 Ending ARR at 12/31/26 (Millions) n/a $145-$150 Adjusted EBITDA Margin(2) n/a 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. 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 four 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 (loss) 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, loss on impairment of intangible asset, 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 leased 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 Securities and Exchange 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, loss on impairment of intangible asset, 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 impairment of intangible asset, 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, which management believes provides a more meaningful representation of operating results. 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, loss on impairment of intangible asset, 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. 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," "potential," "continue," "project," "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; our ability to renew customer contracts, our ability to renew customer contracts at terms favorable to the Company, 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 sustainability 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 Form 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 INCOME (LOSS)
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Revenue:
Product revenue $ 7,545 $ 1,675 $ 21,637 $ 6,464
Subscription revenue 21,717 17,263 83,839 65,046
Service revenue 8,151 6,564 29,375 23,467
License fee and
other revenue 1,091 3,598 11,054 8,888
----------- ----------- ----------- -----------
Total revenue 38,504 29,100 145,905 103,865
Cost of revenue:
Cost of product
revenue 7,825 2,166 24,320 10,735
Cost of subscription
revenue 8,971 8,604 36,684 27,846
Cost of service
revenue 2,657 1,476 8,410 5,225
Cost of license fee
and other revenue 423 113 1,189 597
----------- ----------- ----------- -----------
Total cost of
revenue 19,876 12,359 70,603 44,403
----------- ----------- ----------- -----------
Gross profit 18,628 16,741 75,302 59,462
Operating expenses:
Research and
development 5,412 5,390 20,619 23,446
Sales and marketing 11,132 13,455 45,626 60,637
General and
administrative 10,069 16,759 54,858 56,602
Restructuring costs -- -- 2,662 860
Loss on impairment
of property and
equipment -- 15 -- 224
----------- ----------- ----------- -----------
Total operating
expenses 26,613 35,619 123,765 141,769
----------- ----------- ----------- -----------
Loss from operations (7,985) (18,878) (48,463) (82,307)
Other income, net:
Interest expense (1,018) -- (1,732) --
Interest income 487 548 1,536 2,942
Other income
(expense), net (18) (50) 99 (83)
Change in fair value
of contingent
earn-out liability 10,138 1,218 12,435 16,310
Change in fair value
of contingently
issuable/returnable
common stock
liability/asset 2,683 311 2,614 2,529
Change in fair value
of public warrant
liability 6,595 1,131 435 6,592
----------- ----------- ----------- -----------
Total other
income, net 18,867 3,158 15,387 28,290
----------- ----------- ----------- -----------
Loss before income
taxes 10,882 (15,720) (33,076) (54,017)
Provision for income
taxes -- -- $ 62 $ --
----------- ----------- ----------- -----------
Net income (loss) $ 10,882 $ (15,720) $ (33,138) $ (54,017)
=========== =========== =========== ===========
Net income (loss)
income attributable
to common
stockholders --
basic and diluted $ 10,810 $ (15,720) $ (33,138) $ (54,017)
=========== =========== =========== ===========
Weighted average
common shares
outstanding
Basic 174,625,931 158,997,410 168,419,211 156,573,886
Diluted 189,125,126 158,997,410 168,419,211 156,573,886
Net income (loss)
per share
Basic $ 0.06 $ (0.10) $ (0.20) $ (0.34)
Diluted $ 0.06 $ (0.10) $ (0.20) $ (0.34)
Net income (loss) $ 10,882 $ (15,720) $ (33,138) $ (54,017)
Other comprehensive
(loss) income
Cumulative
translation
adjustment (4) 96 (109) 21
----------- ----------- ----------- -----------
Total other
comprehensive
(loss) income (4) 96 (109) 21
----------- ----------- ----------- -----------
Total comprehensive
income (loss) $ 10,878 $ (15,624) $ (33,247) $ (53,996)
=========== =========== =========== ===========
EVOLV TECHNOLOGY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
December 31, 2025 December 31, 2024
------------------- ---------------------
Assets
Current assets:
Cash and cash equivalents $ 49,150 $ 37,015
Marketable securities 19,885 14,927
Accounts receivable, net 30,841 28,392
Inventory 9,317 16,963
Current portion of contract
assets 878 799
Current portion of
commission asset 6,062 5,429
Prepaid expenses and other
current assets 35,169 17,921
-------------- --------------
Total current assets 151,302 121,446
Contract assets, noncurrent 15 657
Commission asset, noncurrent 7,867 7,567
Property and equipment, net 127,522 123,661
Operating lease right-of-use
assets 12,303 13,993
Other assets 5,400 735
-------------- --------------
Total assets $ 304,409 $ 268,059
============== ==============
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $ 9,770 $ 10,492
Accrued expenses and other
current liabilities 35,293 19,508
Current portion of deferred
revenue 74,924 64,506
Current portion of
operating lease
liabilities 2,989 2,203
-------------- --------------
Total current
liabilities 122,976 96,709
Deferred revenue, noncurrent 16,716 20,266
Long-term debt 28,596 --
Operating lease liabilities,
noncurrent 10,654 12,326
Contingent earn-out liability,
noncurrent 374 12,809
Contingently issuable common
stock liability, noncurrent 1,809 4,001
Public warrant liability,
noncurrent 3,862 4,297
-------------- --------------
Total liabilities 184,987 150,408
Stockholders' equity:
Preferred stock, $0.0001
par value; 100,000,000
authorized at December 31,
2025 and December 31, 2024;
no shares issued and
outstanding at December 31,
2025 and December 31, 2024 -- --
Common stock, $0.0001 par
value; 1,100,000,000
shares authorized at
December 31, 2025 and
December 31, 2024;
175,399,488 and
159,602,069 shares issued
and outstanding at
December 31, 2025 and
December 31, 2024,
respectively 18 16
Additional paid-in capital 507,347 472,331
Accumulated other
comprehensive loss (141) (32)
Accumulated deficit (387,802) (354,664)
-------------- --------------
Stockholders' equity 119,422 117,651
-------------- --------------
Total liabilities and
stockholders' equity $ 304,409 $ 268,059
============== ==============
EVOLV TECHNOLOGY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Twelve Months Ended
December 31,
--------------------------
2025 2024
-------- -------
Cash flows from operating activities:
Net loss $ (33,138) $(54,017)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Depreciation and amortization 24,340 17,375
Write-off of inventory and change in
inventory reserve 2,891 2,578
Loss on impairment of property and
equipment -- 224
Loss on impairment of intangible asset -- 983
Loss on disposal of property and
equipment 3,787 --
Stock-based compensation 21,096 24,756
Non-cash interest expense 482 --
(Accretion) amortization of (discount)
premium on marketable securities, net of
change in accrued interest (126) 447
Non-cash lease expense 1,690 1,420
Change in allowance for expected credit
losses (134) 152
Change in fair value of earn-out
liability (12,435) (16,310)
Change in fair value of contingently
issuable/returnable common stock
liability/asset (2,614) (2,529)
Change in fair value of public warrant
liability (435) (6,592)
Changes in operating assets and
liabilities
Accounts receivable (2,315) (6,997)
Inventory 9,118 (7,852)
Commission assets (933) (1,360)
Contract assets 563 905
Other assets 750 467
Prepaid expenses and other current
assets (22,577) (964)
Accounts payable 3,775 192
Deferred revenue 6,868 12,815
Accrued expenses and other current
liabilities 18,902 4,534
Operating lease liability (886) (1,080)
-------- -------
Net cash provided by (used in) operating
activities 18,669 (30,853)
-------- -------
Cash flows from investing activities:
Development of internal-use software (5,627) (6,125)
Purchases of property and equipment (31,367) (31,189)
Purchases of marketable securities (39,388) (29,367)
Proceeds from maturities of marketable
securities 34,556 65,282
-------- -------
Net cash used in investing activities (41,826) (1,399)
-------- -------
Cash flows from financing activities:
Proceeds from exercise of stock options 9,085 1,809
Proceeds from long-term debt 26,316 --
-------- -------
Net cash provided by financing activities 35,401 1,809
-------- -------
Effect of exchange rate changes on cash
and cash equivalents (109) 21
-------- -------
Net increase (decrease) in cash and cash
equivalents 12,135 (30,422)
-------- -------
Cash and cash equivalents
Cash, cash equivalents, and restricted cash
at beginning of period 37,015 67,437
-------- -------
Cash and cash equivalents at end of period $ 49,150 $ 37,015
======== =======
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 December 31,
($ in thousands) 2024 2024 30, 2024 31, 2024 2025 2025 30, 2025 2025
------- ------- ---------- --------- -------- -------- ---------- ------------
New customers 53 84 52 60 54 63 62 64
Annual recurring
revenue $79,192 $87,011 $ 93,676 $ 99,351 $105,990 $110,516 $ 117,200 $ 120,467
Recurring revenue $18,961 $21,016 $ 23,764 $ 23,678 $ 25,753 $ 26,678 $ 30,120 $ 29,547
The following table includes the Company's remaining performance obligations for the fiscal quarters from December 31, 2024 through September 30, 2025, which have been updated to reflect immaterial adjustments made as part of the Company's 2025 year end financial reporting process. These changes had no impact on the Company's statements of operations and comprehensive income (loss), balance sheets, or statements of cash flows for any periods presented.
As of
-----------------------------------------------------
December
December March 31, June 30, September 31,
($ in thousands) 31, 2024 2025 2025 30, 2025 2025
--------- --------- --------- --------- --------
Remaining
performance
obligation (as
reported) $266,704 $261,233 $275,451 $298,560 $293,589
Adjustment (7,592) (8,444) (8,415) (8,829) --
------- ------- ------- ------- -------
Remaining
performance
obligation (as
adjusted) $259,112 $252,789 $267,036 $289,731 $293,589
======= ======= ======= ======= =======
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 December
2024 2024 30, 2024 2024 2025 2025 30, 2025 31, 2025
------------ ------------ ----------- -------- -------- -------- ----------- ----------
(Restated) (Restated)
Operating
expenses, GAAP $ 34,061 $ 37,128 $ 34,961 $35,619 $33,539 $33,711 $ 29,902 $26,613
Stock-based
compensation (6,292) (7,254) (7,263) (3,159) (4,660) (5,265) (5,121) (5,006)
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 2,225
------- ------- ------ ------ ------ ------ ------ ------
Adjusted
operating
expenses $ 27,293 $ 26,689 $ 25,150 $23,101 $23,181 $21,640 $ 24,811 $23,832
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 Twelve Months Ended
December 31, December 31,
------------------------ --------------------------
2025 2024 2025 2024
------ ------ ------- -------
Revenue $38,504 $29,100 $145,905 $103,865
Cost of revenue 19,876 12,359 70,603 44,403
------ ------ ------- -------
Gross profit,
GAAP 18,628 16,741 75,302 59,462
Stock-based
compensation 274 233 1,044 788
Amortization
of
capitalized
stock-based
compensation 150 85 474 137
Loss on
impairment of
intangible
asset -- 983 -- 983
Non-recurring
employee
restructuring
and other
separation
costs -- -- 6 --
Non-recurring
inventory
charges -- 123 -- 2,730
------ ------ ------- -------
Adjusted gross
profit* $19,052 $18,165 $ 76,826 $ 64,100
Gross margin % 48.4% 57.5% 51.6% 57.2%
Adjusted gross
margin % 49.5% 62.4% 52.7% 61.7%
*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 Twelve Months Ended
December 31, December 31,
------------------- ----------------------
2025 2024 2025 2024
------ ------- ------- -------
Loss from
operations,
GAAP $(7,985) $(18,878) $(48,463) $(82,307)
Stock-based
compensation 5,280 3,392 21,096 24,756
Amortization
of
capitalized
stock-based
compensation 150 85 474 137
Loss on
impairment of
leased
equipment -- 15 -- 224
Loss on
impairment of
intangible
asset -- 983 -- 983
Non-recurring
employee
restructuring
and other
separation
costs -- 2,060 2,976 3,060
Non-recurring
inventory
charges -- 123 -- 2,730
Other
non-recurring
legal and
regulatory
costs (2,225) 7,284 7,279 12,284
------ ------- ------- -------
Adjusted loss
from
operations* $(4,780) $ (4,936) $(16,638) $(38,133)
*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.
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 Twelve Months Ended
December 31, December 31,
-------------------------- --------------------------
2025 2024 2025 2024
------- ------- ------- -------
Net income (loss) $ 10,882 $(15,720) $(33,138) $(54,017)
Depreciation and
amortization 6,481 5,442 24,340 17,375
Stock-based
compensation 5,280 3,392 21,096 24,756
Interest expense
(income) 531 (548) 196 (2,942)
Provision for income
taxes -- -- 62 --
Change in fair value
of contingent
earn-out liability (10,138) (1,218) (12,435) (16,310)
Change in fair value
of contingently
issuable/returnable
common stock
liability/asset (2,683) (311) (2,614) (2,529)
Change in fair value
of public warrant
liability (6,595) (1,131) (435) (6,592)
Loss on impairment
of leased
equipment -- 15 -- 224
Loss on impairment
of intangible
asset -- 983 -- 983
Loss on disposal of
leased equipment 284 -- 3,787 --
Non-recurring
employee
restructuring and
other separation
costs -- 2,060 2,976 3,060
Non-recurring
inventory charges -- 123 -- 2,730
Other non-recurring
legal and
regulatory costs (2,225) 7,284 7,279 12,284
------- ------- ------- -------
Adjusted EBITDA $ 1,817 $ 371 $ 11,114 $(20,978)
Net profit margin % 28.3% (54.0)% (22.7)% (52.0)%
Impact of
adjustments from
Net loss to
Adjusted EBITDA (23.6)% 55.3% 30.3% 31.8%
------- ------- ------- -------
Adjusted EBITDA
margin % 4.7% 1.3% 7.6% (20.2)%
EVOLV TECHNOLOGY
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EARNINGS (LOSS)
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Net income (loss) $ 10,882 $ (15,720) $ (33,138) $ (54,017)
Stock-based
compensation 5,280 3,392 21,096 24,756
Amortization of
capitalized
stock-based
compensation 150 85 474 137
Change in fair value
of contingent
earn-out liability (10,138) (1,218) (12,435) (16,310)
Change in fair value
of contingently
issuable/returnable
common stock
liability/asset (2,683) (311) (2,614) (2,529)
Change in fair value
of public warrant
liability (6,595) (1,131) (435) (6,592)
Loss on impairment
of leased
equipment -- 15 -- 224
Loss on impairment
of intangible
asset -- 983 -- 983
Non-recurring
employee
restructuring and
other separation
costs -- 2,060 2,976 3,060
Non-recurring
inventory charges -- 123 -- 2,730
Other non-recurring
legal and
regulatory costs (2,225) 7,284 7,279 12,284
----------- ----------- ----------- -----------
Adjusted loss $ (5,329) $ (4,438) $ (16,797) $ (35,274)
Weighted average common
shares outstanding --
diluted 174,625,931 158,997,410 168,419,211 156,573,886
Adjusted loss per share
-- diluted $ (0.03) $ (0.03) $ (0.10) $ (0.23)
*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 December
2024 2024 30, 2024 31, 2024 2025 2025 30, 2025 31, 2025
------ ------ ---------- ---------- ------ ------ ---------- ----------
Stock-based
compensation:
Cost of product
revenue $ -- $ 5 $ 4 $ 8 $ 8 $ 17 $ 32 $ 39
Cost of
subscription
revenue 91 110 169 154 137 167 146 135
Cost of service
revenue 44 51 63 61 67 74 72 80
Cost of license
fee and other
revenue 3 7 8 10 7 24 19 20
Research and
development 902 1,222 1,243 1,153 1,115 1,154 1,227 1,252
Sales and
marketing 2,959 2,724 2,516 2,747 1,048 1,710 1,480 1,330
General and
administrative 2,431 3,308 3,504 (741) 1,972 2,401 2,414 2,424
Restructuring
costs -- -- -- -- 525 -- -- --
----- ----- --------- ----- ----- ----- --------- ----------
Total
stock-based
compensation $6,430 $7,427 $ 7,507 $ 3,392 $4,879 $5,547 $ 5,390 $ 5,280
Amortization of
capitalized
stock-based
compensation:
Cost of
subscription
revenue $ 8 $ 8 $ 13 $ 47 $ 59 $ 60 $ 63 $ 82
Cost of service
revenue 6 7 10 38 44 47 51 68
----- ----- --------- ----- ----- ----- --------- ------
Total
amortization
of
capitalized
stock-based
compensation $ 14 $ 15 $ 23 $ 85 $ 103 $ 107 $ 114 $ 150
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/20260310341542/en/
CONTACT: Investor Relations:
Brian Norris
Senior Vice President of Finance and Investor Relations
bnorris@evolvtechnology.com
(END) Dow Jones Newswires
March 10, 2026 16:05 ET (20:05 GMT)
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