Shares of Evolv Technologies Holdings, Inc. (EVLV) have gained 1.2% over the past four weeks to close the last trading session at $5.5, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $10 indicates a potential upside of 81.8%.The mean estimate comprises four short-term price targets with a standard deviation of $0.41. While the lowest estimate of $9.50 indicates a 72.7% increase ...

Core Viewpoint - Evolv Technologies Inc. reported solid fourth-quarter earnings, exceeding revenue and earnings expectations, highlighting its innovative AI-powered weapons detection systems as a key driver for growth [2][3][7] Financial Performance - Revenue for Q4 reached $38.50 million, surpassing the forecast of $36.44 million by 5.65% [3] - Adjusted earnings per share were 6 cents, significantly better than the expected loss of 8 cents per share [3] Stock Performance - Following the earnings report, EVLV stock experienced modest gains, recovering from an initial loss of over 2% [4] - The stock has shown significant volatility, with a 60% increase over the past 12 months but a decline of over 25% in 2026 prior to the earnings announcement [4] Business Model and Technology - Evolv Technologies focuses on frictionless security screening, utilizing AI to enhance the efficiency of weapons detection at various venues [5][6] - The company's systems employ advanced sensors and AI to analyze potential threats in real-time, improving throughput and reducing false alarms [6] Market Position and Outlook - The AI-powered weapons detection platform is contributing to recurring revenue growth, and management has raised guidance for the full year 2026 [7] - Despite the large and growing addressable market, competitive risks and an unproven profitability track record render the investment speculative [7]

Core Insights - Evolv Technologies reported its fifth consecutive quarter of positive adjusted EBITDA, with Q4 adjusted EBITDA at $1.8 million, up from $0.4 million year-over-year, and a full-year adjusted EBITDA of $11.1 million, marking a $32 million improvement from a $21 million loss in 2024 [1][6] Financial Performance - Q4 revenue reached $38.5 million, reflecting a 32% year-over-year increase, while full-year revenue totaled $145.9 million, representing 40% growth [3][6] - Annual recurring revenue (ARR) at the end of 2025 was $120.5 million, a 21% increase year-over-year, with remaining performance obligation (RPO) at $293.4 million, up 13% year-over-year [2][6] Operational Highlights - The company deployed over 8,000 systems, screening more than 4 million people daily, and expects to exceed 10,000 units deployed by the end of 2026 [4][10] - Evolv added over 60 new customers in Q4, ending the year with more than 1,200 customers globally [10] Product and Market Developments - The eXpedite bag-screening product gained traction, with 65 customers, and 16 new customers purchasing it in Q4 [12] - Evolv raised its 2026 revenue outlook to $172 million to $178 million, with an ARR target of approximately $145 million to $150 million, indicating 20% to 25% growth [13] Margin and Cost Management - Adjusted gross margin in Q4 was 50%, down from 62% year-over-year, attributed to a shift to direct fulfillment of purchase subscription orders and a one-time accrual of approximately $1 million [5][7][8] - Management expects gross margins in 2026 to be "in line or slightly better" than 2025, despite a projected $1 million headwind from memory chip costs [9][14] Cash Flow and Financial Position - Evolv ended Q4 with $69 million in cash and cash equivalents, an increase of $12.8 million sequentially, and anticipates being cash flow positive in the second half of 2026 [17]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $38.5 million, reflecting a 32% year-over-year increase, and full-year revenue of $145.9 million, representing a 40% year-over-year growth [11][28] - Annual recurring revenue (ARR) at the end of 2025 was $120.5 million, showing a 21% year-over-year growth [11][29] - Adjusted EBITDA for 2025 was $11.1 million, compared to a loss of $21 million in 2024, marking a $32 million improvement [12][29] - Total cash equivalents and marketable securities increased by $12.8 million sequentially in Q4 to $69 million, indicating strong cash collection efforts [12][30] Business Line Data and Key Metrics Changes - The company welcomed over 60 new customers in Q4, bringing the total to over 1,200 customers globally [13] - The fourth quarter saw a 13% year-over-year increase in remaining performance obligation (RPO) to $293.4 million [13][29] - The company added 12 new school districts and 3 universities in Q4, contributing to a total of approximately 300 million students and visitors screened [15][16] Market Data and Key Metrics Changes - The company expanded its presence in the healthcare sector, screening over 1 million patients, healthcare workers, and visitors daily across medical facilities [16] - In the sports and live entertainment market, the company added 65 new customers in 2025, screening nearly 1.5 million visitors daily [18] - The workplace segment saw multiple new Fortune 500 customers, highlighting the growing demand for security solutions in high-traffic environments [20] Company Strategy and Development Direction - The company aims to build a scalable, high-growth hardware-enabled subscription business, focusing on modern technology-enabled security solutions [7][23] - The strategy includes investing in product innovation and expanding the installed base while maintaining a disciplined approach to market expansion [23][35] - The company anticipates that weapon screening will become standard infrastructure in certain buildings, similar to sprinkler systems [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for security solutions due to escalating threat levels across various public venues [7] - The company raised its 2026 revenue guidance to $172 million-$178 million, reflecting strong momentum and a healthy pipeline [22][31] - Management expects ARR growth to outpace revenue growth in 2026, with adjusted EBITDA margins expanding into the high single digits [22][35] Other Important Information - The company will host its 2026 Investor Day on June 9, 2026, to provide updates on strategy and product innovation [5][6] - The company has made significant changes to its pricing model and fulfillment strategy, which are expected to enhance long-term revenue capture [22][31] Q&A Session Summary Question: Context for raised revenue guidance and ARR growth - Management anticipates ARR to accelerate throughout the year due to changes in pricing and fulfillment strategies [40][42] Question: Overall gross margin trends - Management expects gross margins to improve in 2026 compared to 2025, driven by increased gross profit dollars from RPO [43][44] Question: Linkage between cash flow and adjusted EBITDA forecast - Management expects to be cash flow positive in the second half of 2026, with improved cash flow trajectory anticipated [49][50] Question: Mix between new and existing customers - The company reported a roughly 50/50 split between new customer acquisitions and existing customer expansions [55][67] Question: Impact of AHA certification on hospital deals - Management believes the partnership with the American Hospital Association will accelerate hospital deals, especially with regulatory changes mandating weapon screening [68]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $38.5 million, reflecting a 32% year-over-year increase, and full-year revenue of $145.9 million, representing a 40% year-over-year growth [11][25] - Annual recurring revenue (ARR) at the end of 2025 was $120.5 million, showing a 21% year-over-year growth [11][29] - Adjusted EBITDA for 2025 was $11.1 million, a significant improvement from a loss of $21 million in 2024, resulting in an adjusted EBITDA margin of 7.6% for the full year [12][29] Business Line Data and Key Metrics Changes - The company welcomed over 60 new customers in Q4, bringing the total to over 1,200 customers globally, with a strong trend of existing customers upgrading to the Gen2 Express platform [13][57] - The fourth quarter saw a 13% year-over-year increase in remaining performance obligation (RPO), reaching $293.4 million [13][30] Market Data and Key Metrics Changes - The company added 12 new school districts and three universities in Q4, screening approximately 300 million students and visitors throughout the year [15][16] - In the healthcare sector, the company is now screening over 1 million patients, healthcare workers, and visitors daily across medical facilities [16][21] Company Strategy and Development Direction - The company aims to build a scalable, high-growth hardware-enabled subscription business, emphasizing the importance of security solutions in a complex global environment [7][24] - The company is focused on expanding its product portfolio, particularly with the early success of its eXpedite autonomous AI-based bag screening solution [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for modern technology-enabled security solutions, anticipating that weapon screening could become standard infrastructure in various buildings [24][23] - The company raised its revenue guidance for 2026 to a range of $172 million to $178 million, expecting ARR growth of 20% to 25% [23][33] Other Important Information - The company reported a cash increase of $12.8 million sequentially in Q4, totaling $69 million, highlighting strong cash collection efforts [12][31] - The company plans to host its 2026 Investor Day on June 9, 2026, to provide further updates on strategy and financial outlook [5][6] Q&A Session Summary Question: Context for raised revenue guidance and ARR growth - Management anticipates ARR to accelerate throughout the year due to changes in pricing and fulfillment models, which will take time to reflect in ARR per unit [42][44] Question: Overall adjusted gross margins trend - Management expects gross margins to be in line or slightly better in 2026 compared to 2025, with more gross profit dollars being pushed into RPO [45][46] Question: Linkage between cash flow and adjusted EBITDA forecast for 2026 - Management expects to be cash flow positive in the second half of 2026, with improved cash flow trajectory anticipated [51][52] Question: Mix between new logos and existing customers - The company reported a 50/50 split between new customer acquisitions and existing customer expansions, which is expected to continue [72][72] Question: Impact of AHA certification on hospital deals - Management is optimistic that the AHA partnership will accelerate hospital deals, especially with regulatory changes mandating weapon screening [74][74]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $38.5 million, reflecting a 32% year-over-year increase, and full-year revenue of $145.9 million, representing a 40% year-over-year growth [11][26] - Annual recurring revenue (ARR) at the end of 2025 was $120.5 million, showing a 21% year-over-year growth [11][30] - Adjusted EBITDA for 2025 was $11.1 million, compared to a loss of $21 million in 2024, marking a $32 million improvement [12][30] - Total cash equivalents and marketable securities increased by $12.8 million sequentially in Q4 to $69 million, indicating strong cash collection efforts [12][31] Business Line Data and Key Metrics Changes - The company added over 60 new customers in Q4, bringing the total to over 1,200 customers globally [13][56] - The fourth quarter saw a 13% year-over-year increase in remaining performance obligation (RPO), reaching $293.4 million [13][30] - The company reported strong demand for its Gen Two Express platform, with existing customers upgrading [13][30] Market Data and Key Metrics Changes - The company continues to expand in the education sector, adding 12 new school districts and 3 universities in Q4, screening approximately 300 million students and visitors throughout the year [16][17] - In healthcare, the company is now screening over 1 million patients, healthcare workers, and visitors daily across medical facilities [17] - The sports and live entertainment market saw the addition of 65 new customers in 2025, with nearly 1.5 million visitors screened daily [19][20] Company Strategy and Development Direction - The company aims to build a scalable, high-growth hardware-enabled subscription business, focusing on modern technology-enabled security solutions [6][7] - The strategy includes investing in product innovation and expanding the customer base while maintaining a disciplined approach to working capital management [24][25] - The company anticipates that weapon screening will become standard infrastructure in certain buildings, similar to sprinkler systems [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for security solutions due to escalating threat levels in public venues and workplaces [6][7] - The company raised its revenue guidance for 2026 to a range of $172 million to $178 million, expecting ARR growth of 20% to 25% [24][32] - Management highlighted the importance of innovation in weapon detection accuracy and cost as key to maintaining a competitive edge [25] Other Important Information - The company will host its 2026 Investor Day on June 9, 2026, to provide updates on strategy and product innovation [5] - The company is transitioning to a direct fulfillment model for purchase subscriptions, which is expected to enhance revenue and gross profit over time [26][30] Q&A Session Summary Question: Context for raised revenue guidance despite modest sequential ARR growth - Management anticipates ARR to accelerate throughout the year due to changes in pricing and fulfillment models [41][43] Question: Overall adjusted gross margins trend for 2026 - Management expects gross margins to be in line or slightly better in 2026 compared to 2025, with more gross profit dollars being pushed into RPO [44][45] Question: Timing for production from Plexus relationship - Management confirmed that full ramp with Plexus is expected in the second half of 2026, which will provide a tailwind to gross margins [46][47] Question: Mix between new logos and existing customers - Management indicated a consistent 50/50 split between new customer acquisitions and existing customer expansions [55][69] Question: Impact of AHA certification on hospital deals - Management expressed optimism that the AHA partnership will accelerate hospital deals, especially with regulatory changes mandating weapon screening [70]

Core Insights - Evolv Technologies reported a quarterly loss of three cents per share, missing the consensus estimate of a loss of two cents [2] - Quarterly revenue reached $38.5 million, exceeding the Street estimate of $36.44 million and increasing from $29.1 million in the same period last year [2] Financial Performance - Q4 Ending Annual Recurring Revenue (ARR) was $120.5 million, reflecting a 21% year-over-year increase [3] - Q4 Net Income stood at $10.9 million, with a Net Profit Margin of 28% [3] - Q4 Adjusted EBITDA was $1.8 million, resulting in an Adjusted EBITDA Margin of 5% [3] - Q4 Ending Cash, Cash Equivalents, and Marketable Securities totaled $69.0 million, an increase of $12.8 million sequentially [3] Management Commentary - The CEO, John Kedzierski, expressed satisfaction with the solid fourth quarter results, highlighting significant improvements across the company throughout the year [2]

Financial Performance - The company incurred net losses of $33.1 million and $54.0 million for the years ended December 31, 2025 and 2024, respectively, with an accumulated deficit of $387.8 million as of December 31, 2025[96]. - The company may not achieve or maintain profitability in the future, as it has a history of losses and faces uncertainties in forecasting future operating results[96]. - The company’s financial results may fluctuate significantly due to various factors, including the timing of large volume customer sales and changes in customer demand[99]. - The company has experienced significant growth in customers and units under subscription, making renewals a critical driver of recurring revenue[133]. - There is a risk of losing recurring revenue if customers do not renew their four-year subscriptions or if renewals occur at lower revenue levels[132]. - The company has limited historical experience managing renewals at the current scale, increasing exposure to customer churn[134]. Revenue Recognition - The company recognizes a substantial portion of its revenue ratably over the term of agreements with customers, which may not immediately reflect sales fluctuations in operating results[90]. - The company recognizes a substantial portion of its revenue ratably over a four-year period, which may delay the reflection of downturns in sales in its operating results[115]. Research and Development - The company expects to continue to expend substantial resources on research and development and sales and marketing, including a significant expansion of its sales organization[97]. - The company intends to make strategic investments in research and development, sales and marketing, which may lead to earlier recognition of costs compared to anticipated revenue benefits[116]. - Significant resources are being invested in research and development to address evolving security risks, but new technologies may render existing products less attractive[155]. Operational Risks - The company faces risks related to maintaining successful relationships with reseller partners, which are crucial for marketing, selling, and distributing its products[103]. - The company has experienced material weaknesses in internal control over financial reporting, contributing to the restatement of prior financial statements for the years ended December 31, 2022 and 2023[93]. - The company may face challenges in integrating and managing future acquisitions, which could disrupt operations and harm operating results[120]. - The company may experience defects or quality issues in its products, leading to increased costs and potential reputational harm[114]. - The company is exposed to risks related to currency fluctuations that may negatively impact pricing and sales in certain regions[117]. - The company may incur significant costs related to liability claims if its products fail to detect security threats, which could harm its reputation and financial performance[126]. - Customers face challenges in implementing products, which may impair perceptions and affect the company's reputation[128]. International Expansion - The company’s expansion into international markets exposes it to additional operational, regulatory, and compliance risks that could adversely affect its business[92]. - International expansion introduces operational and regulatory risks, including compliance with local product certification and cybersecurity requirements[147]. - International expansion may lead to increased compliance obligations under foreign data protection and privacy laws, requiring significant investment in local infrastructure[148]. - Operational challenges in international markets include foreign currency fluctuations, longer sales cycles, and increased logistics costs, which could adversely affect financial results[149]. - Customer demand for AI-based weapons detection systems varies significantly by country, impacting long-term revenue growth potential outside the U.S.[150]. - The company plans to prioritize investment in markets with aligned customer demand and regulatory frameworks while focusing on domestic priorities[151]. Cybersecurity and Data Privacy - The company’s products and operations collect and store personal data, exposing it to privacy, cybersecurity, and regulatory risks[92]. - Cybersecurity risks are heightened due to the collection and storage of personal data, which could result in additional costs and liabilities[166]. - The company has experienced cyber-attacks, including phishing and ransomware attempts, which could materially impact operations and financial condition[170]. - Compliance with varying state laws regarding data breaches may be difficult and costly, potentially leading to regulatory scrutiny and additional liability[171]. - The company faces significant risks related to potential security breaches, which could lead to user notifications, litigation, and regulatory actions, adversely affecting its financial condition[172]. - The company is required to comply with various data privacy laws, including GDPR and UK GDPR, which impose strict requirements on data processing and could result in significant fines for non-compliance[194]. - Several U.S. states have enacted comprehensive privacy laws that impose obligations on the company regarding consumer rights and data processing transparency[192]. Legal and Regulatory Risks - The company is subject to government investigations and regulatory enforcement proceedings that could result in significant penalties and harm to its business[203]. - The company received a subpoena from the SEC in February 2024 regarding its marketing practices and is cooperating with the investigation[205]. - The company faces risks related to compliance with anti-corruption laws, which could result in fines and adversely affect its financial condition[198]. - The company may incur substantial costs related to legal proceedings, which could adversely impact its reputation and financial condition[207]. Financial Obligations and Capital Needs - The company may require additional capital to support business growth, which might not be available on acceptable terms[216]. - As of December 31, 2025, the company had a $30.0 million initial term loan drawn and outstanding, with $30.0 million delayed draw facility and $15.0 million revolving credit facility remaining undrawn[218]. - The company's Senior Secured Credit Facilities contain financial covenants that may limit operational flexibility, including a minimum annual recurring revenue covenant and a minimum EBITDA covenant effective June 30, 2027[220]. - There is no guarantee that the company will generate sufficient cash flow to meet financial covenants or service its debt obligations[221]. Market and Competitive Risks - The AI-based weapons detection market is evolving, and its growth may not meet expectations due to competition and customer adoption rates[137]. - The company utilizes AI and machine learning in product development, which presents risks related to technology reliability and competition[140]. - Compliance with emerging AI regulations is uncertain and may impose additional costs and operational challenges[144]. - The loss of the SAFETY Act Designation for the Evolv Express system could have significant reputational and financial consequences[136]. - Customer dissatisfaction due to inadequate support and training could adversely affect financial results and brand reputation[131]. - The trading price of the company's common stock has been highly volatile, influenced by various factors including financial performance and analyst coverage[224][230]. - Changes in credit ratings could negatively impact the value and liquidity of the company's debt and equity securities[219]. - The company may experience disruptions due to natural disasters or geopolitical events, which could delay product shipments and negatively impact sales[231][232]. - The company is subject to risks related to the accounting treatment of its warrants and earn-out shares, which could materially affect financial results[227][228]. Human Resources and Talent Management - The company relies heavily on its sales force for revenue growth, and it may take 6 to 12 months for new sales personnel to reach target performance levels, impacting projected growth rates[173]. - The company does not maintain keyman insurance for its executive officers, which poses a risk if key personnel, such as the CEO, were to leave[174]. - The company is experiencing escalating compensation demands and intense competition for qualified personnel, which could hinder its ability to develop and market products effectively[176]. - The company has a program for patent protection but faces challenges in enforcing its intellectual property rights, which could impair its competitive position[177]. - The company has registered several trademarks but cannot guarantee that future applications will be successful or enforceable[178]. - The company may incur significant costs related to monitoring and enforcing its intellectual property rights, which could negatively impact its financial condition[181]. Tax and Deferred Tax Assets - As of December 31, 2025, the company had federal net operating loss carryforwards of $20.1 million, which begin to expire in 2033, and an additional $248.0 million that do not expire but are limited to offsetting up to 80% of taxable income in any given year[208]. - The company reported state net operating loss carryforwards of $248.0 million and $201.1 million as of December 31, 2025 and 2024, respectively, which may offset future state taxable income and begin to expire in 2033[209]. - The company had gross U.S. federal and state research and development tax credit carryforwards of $2.4 million and $1.4 million as of December 31, 2025, which may offset future tax liabilities and begin to expire in 2035 and 2032, respectively[211]. - A full valuation allowance has been established against the net deferred tax assets as of December 31, 2025 and 2024, indicating that it is more likely than not that the company will not realize the benefits of deferred tax assets[214]. - The company believes an ownership change occurred on July 16, 2021, which may limit the utilization of net operating losses and tax credit carryforwards in the future[213].

Revenue Growth - Q4 2025 total revenue was $38.5 million, a 32% increase from $29.1 million in Q4 2024[3] - Total revenue for 2025 was $145.9 million, a 40% increase compared to $103.9 million in 2024[4] - The company expects total revenues in 2026 to be between $172 million and $178 million, reflecting growth of approximately 18% to 22% year-over-year[8] - Q4 2025 Annual Recurring Revenue (ARR) reached $120.5 million, up 21% from $99.4 million in Q4 2024[3] - The company anticipates ending ARR at December 31, 2026, to be approximately $145 million to $150 million, indicating growth of about 20% to 25% year-over-year[8] - Subscription revenue reached $21.7 million for the three months ended December 31, 2025, compared to $17.3 million in the prior year, reflecting a 25% growth[16] - Annual recurring revenue reached $87,011,000 for the twelve months ended December 31, 2025, up from $79,192,000 in 2024, reflecting a growth of about 10.3%[22] Profitability - Q4 2025 net income was $10.9 million, with a net profit margin of 28%[5] - The company reported a net income of $10.9 million for the three months ended December 31, 2025, compared to a net loss of $15.7 million in the same period of 2024[16] - The net profit margin for the three months ended December 31, 2025, was 28.3%, compared to a negative margin of 54.0% in the same period of 2024[30] - The company reported a net loss of $33,138,000 for the twelve months ended December 31, 2025, compared to a net loss of $54,017,000 for the same period in 2024, indicating an improvement of approximately 38.7%[20] - The company incurred stock-based compensation expenses of $21,096,000 for the twelve months ended December 31, 2025, compared to $24,756,000 in 2024, showing a reduction of approximately 14.0%[20] - The adjusted loss for the twelve months ended December 31, 2025, was $(16,797,000), an improvement from $(35,274,000) in 2024[31] - The adjusted loss per share for the twelve months ended December 31, 2025, was $(0.10), compared to $(0.23) in 2024[31] Cash and Assets - The company had cash, cash equivalents, and marketable securities of $69.0 million as of December 31, 2025, an increase of $12.8 million sequentially[5] - Cash and cash equivalents rose to $49.2 million at the end of 2025, up from $37.0 million at the end of 2024, a 33% increase[18] - Total assets increased to $304.4 million as of December 31, 2025, from $268.1 million a year earlier, representing a 14% growth[18] - Cash and cash equivalents at the end of the period increased to $49,150,000 from $37,015,000 at the beginning of the period, marking a net increase of $12,135,000[20] Expenses and Liabilities - The company’s total liabilities increased to $185.0 million as of December 31, 2025, compared to $150.4 million in 2024, reflecting a 23% rise[18] - Research and development expenses for the twelve months ended December 31, 2025, were $20.6 million, down from $23.4 million in 2024, a decrease of 12%[16] - The company reported a loss from operations of $48,463,000 for the twelve months ended December 31, 2025, compared to a loss of $82,307,000 in 2024, indicating a significant improvement of approximately 41.2%[28] - Non-recurring employee restructuring costs for the twelve months ended December 31, 2025, totaled $2,976,000, compared to $3,060,000 in 2024[31] Future Outlook - The company aims to continue expanding its subscription model to enhance recurring revenue streams and improve profitability in the future[14] - The company plans to continue focusing on market expansion and new product development to drive future growth[25] - The company expects approximately 50% of new unit deployments in 2026 to be under a pure subscription model[8] Adjusted Metrics - Q4 2025 adjusted EBITDA was $1.8 million, with an adjusted EBITDA margin of 5%[5] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $11.1 million compared to $(21.0) million in 2024[6] - The adjusted EBITDA margin for the twelve months ended December 31, 2025, was 7.6%, compared to a negative margin of 20.2% in 2024[30] - The change in fair value of contingent earn-out liability for the twelve months ended December 31, 2025, was $(12,435,000), down from $(16,310,000) in 2024[30]

Core Insights - Small-cap stocks have outperformed the S&P 500 for eight consecutive days, with the iShares Russell 2000 ETF (IWM) gaining 5.4% year-to-date [1] - Four small-cap stocks are highlighted for their strong performance and growth potential: Wolverine World Wide, Gorman-Rupp, Evolv Technologies, and Select Water Solutions [1] Company Summaries - **Wolverine World Wide (WWW)**: Reported Q4 2025 revenue of $517.5 million, exceeding estimates, with a year-over-year growth of 4.6%. Adjusted EPS was $0.45, surpassing the $0.44 estimate. Full-year net income reached $101 million, more than doubling year-over-year. The stock is up 34.5% year-to-date [1] - **Gorman-Rupp (GRC)**: Achieved record net sales of $682.4 million for full-year 2025, a 3.4% increase year-over-year. The company ended 2025 with a backlog of $244 million, up 18.4% from the previous year. The stock has gained 34.5% year-to-date [1] - **Evolv Technologies (EVLV)**: Reported Q3 2025 revenue of $42.9 million, beating estimates by 27.4% and growing 57% year-over-year. The net loss narrowed significantly to $1.8 million from $30.4 million in Q3 2024. The stock is down 26.0% year-to-date despite operational progress [1] - **Select Water Solutions (WTTR)**: Q3 2025 revenue was $322.2 million, down 13.2% year-over-year. The stock is up 29.9% year-to-date, with a consensus analyst target of $17.30, above the current trading price [1] Market Trends - The small-cap rotation is gaining attention, with the IWM's outperformance indicating a macro trend that could benefit various companies. Each highlighted stock has a fundamental catalyst supporting its growth [1]