Core Insights - The AI market in 2025 demonstrated resilience, with significant gains in major indices like the S&P 500 and Nasdaq 100, despite moments of volatility [1] - The AI ecosystem extends beyond major players, highlighting the importance of various supporting companies [2] Company Summaries - **Innodata Inc.**: Achieved record revenue of over $62 million in Q3 2025, reflecting a 20% year-over-year growth. The company anticipates a full-year growth of 45% for 2025, with profit margins increasing to 26% [4][6] - **Evolv Technologies Inc.**: Generated $42.85 million in revenue in Q3 2025, marking a 57% year-over-year growth. The company expects annual recurring revenue to grow over 20% in 2026 [7][8] - **Aeva Technologies Inc.**: Experienced revenue growth from $800,000 in Q4 2023 to $5.5 million in Q2 2025, despite a dip to $3.5 million in Q3 2025. The company has secured a deal to be the exclusive LiDAR provider for a major European OEM [11][13] - **Soundhound AI Inc.**: Revenue soared over 120% year-over-year in 2025, with narrowing losses and a path to profitability in 2026. The stock has faced volatility but shows signs of potential recovery [14][16]

Group 1 - Evolv Technologies Holdings Inc. (NASDAQ:EVLV) is recognized as a promising small-cap industrial stock priced under $50, with a bullish outlook from analysts [1] - Northland Securities analyst Michael Latimore has reaffirmed a Buy rating for Evolv Technologies, setting a price target of $9.5, indicating a potential upside of nearly 38% for investors [1] - The consensus among analysts is positive, with all four covering Evolv Technologies assigning Buy ratings, leading to an estimated 1-year average price target of $9.83, which suggests a 39.4% upside from the current stock level [2] Group 2 - On December 16, Evolv Technologies announced the deployment of its Evolv Express product at Pechanga Arena, a 14,000-seater venue in San Diego, marking an expansion of its presence in key locations [3] - Evolv Technologies specializes in AI-enabled security solutions, providing end-to-end security screening and analytics for public venues, hospitals, and schools [4]

Core Viewpoint - Evolv Technologies Holdings, Inc. (EVLV) shares have seen a 0.7% increase over the past four weeks, closing at $6.77, with a potential upside of 45.9% based on Wall Street analysts' mean price target of $9.88 [1][2] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $0.25, indicating a consensus among analysts. The lowest estimate of $9.50 suggests a 40.3% increase, while the highest target of $10.00 indicates a 47.7% increase [2] - A low standard deviation signifies a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Market Sentiment - Analysts are optimistic about EVLV's earnings prospects, as indicated by a positive trend in earnings estimate revisions. The Zacks Consensus Estimate for the current year has increased by 15% over the past month, with no negative revisions [11][12] - EVLV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside in the near term [13] Caution on Price Targets - While the consensus price target is a commonly referenced metric, it should not be the sole basis for investment decisions due to the questionable reliability of analysts in setting these targets [3][10] - Analysts may set overly optimistic price targets influenced by business relationships, which can lead to inflated expectations [8]

Group 1 - Evolv Technologies Holdings, Inc. (EVLV) has gained approximately 68.9% year-to-date, outperforming the average gain of 29% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for EVLV's full-year earnings has increased by 15% over the past 90 days, indicating improved analyst sentiment and earnings outlook [4] - Evolv Technologies belongs to the Computers - IT Services industry, which is currently ranked 84 in the Zacks Industry Rank, while the industry has seen an average loss of 13.4% this year [6] Group 2 - The Computer and Technology group is ranked 1 within the Zacks Sector Rank, which includes 16 different groups [2] - Evolv Technologies has a Zacks Rank of 2 (Buy), suggesting it is positioned to potentially outperform the broader market in the near term [3] - Another stock in the Computer and Technology sector, Flex (FLEX), has also performed well with a year-to-date return of 62.6% and a Zacks Rank of 2 (Buy) [5][7]

Core Insights - Evolv Technologies Holdings, Inc. is a 12-year-old security technology company that specializes in AI-powered screening and analytics solutions, having started selling its products and services in 2019 [1] Company Overview - Evolv Technologies focuses on providing advanced security solutions that leverage artificial intelligence for screening and analytics [1]

Core Insights - Evolv Technologies Holdings Inc. has entered a strategic partnership with Plexus Corp to enhance its manufacturing and supply chain capabilities, aiming to meet the increasing demand for its security screening products [1][2]. Group 1: Partnership Details - The collaboration combines Evolv's product expertise with Plexus' design, supply chain, and manufacturing capabilities, facilitating large-scale production and distribution [2]. - The partnership is expected to provide increased capacity, a scalable platform for global expansion, and long-term cost-saving opportunities through Plexus' manufacturing scale and procurement efficiencies [2][3]. Group 2: Market Opportunities and Support - The partnership will open new market opportunities through Plexus' sustaining services solution and enhance resiliency with geographic coverage, redundancy, and 24/7 global support [3]. - Evolv currently has sufficient inventory and committed production capacity to ensure uninterrupted service and consistent delivery to customers during the integration with Plexus [3]. Group 3: Company Background - Evolv Technologies specializes in AI-based weapons detection for security screening both in the US and internationally [4]. - Plexus Corp provides electronic manufacturing services across various regions including the US, Asia-Pacific, Europe, the Middle East, and Africa [4].

Company Overview - Evolv Technologies provides AI-based touchless security screening systems designed to detect firearms, improvised explosive devices, and tactical knives as visitors walk through at a normal pace [5][8] - The company generates revenue through the sale and subscription of hardware and software solutions for security screening, analytics, and visitor management, serving sectors such as entertainment, education, healthcare, and other public spaces [8] Financial Performance - As of November 20, 2025, Evolv Technologies had a market capitalization of $987.46 million, with a revenue of $136.50 million and a net income of -$59.74 million for the trailing twelve months (TTM) [4] - In the most recent quarter, sales grew by 57%, and annual recurring revenue increased by 25%, with management expecting to generate positive operating cash flows in the upcoming quarter [11] Investment Position - Mittelman Wealth Management initiated a new position in Evolv Technologies, acquiring 1,511,866 shares valued at $11.41 million, representing a 7.47% allocation of the fund's $152.74 million in reportable U.S. equity assets [2][3] - Evolv Technologies has become the sixth-largest position for Mittelman Wealth Management, indicating strong institutional interest in the stock [9] Market Performance - As of November 20, 2025, Evolv's shares were priced at $5.66, reflecting a 107.0% increase over the past year, significantly outperforming the S&P 500 by 97 percentage points [3] - The stock is trading at 7 times sales, which is comparatively lower than a peer like Axon Enterprise, which trades at 16 times sales, suggesting a potentially attractive investment opportunity [11]

Core Insights - Archer, a global leader in Governance, Risk, and Compliance (GRC), has announced new capabilities for its Archer Evolv platform, enhancing compliance assurance for organizations in near real time [1]. Company Developments - The introduction of new Compliance and Control Management (CCM) capabilities aims to help organizations better manage their compliance requirements [1].

Group 1 - Evolv Technologies Holdings, Inc. reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.07, and an improvement from a loss of $0.19 per share a year ago, resulting in an earnings surprise of +85.71% [1] - The company achieved revenues of $42.85 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 27.25%, compared to $27.36 million in the same quarter last year [2] - Evolv Technologies shares have increased approximately 70.1% year-to-date, significantly outperforming the S&P 500's gain of 16.5% [3] Group 2 - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for Evolv Technologies was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - Current consensus EPS estimate for the next quarter is -$0.07 on revenues of $35.34 million, and for the current fiscal year, it is -$0.40 on revenues of $133.62 million [7] Group 3 - The Computers - IT Services industry, to which Evolv Technologies belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $42.9 million, representing a 57% year-over-year increase, driven by strong new customer acquisition and expanded deployments [7][21] - Annual recurring revenue (ARR) reached $117.2 million, reflecting a 25% year-over-year growth [11][25] - Adjusted EBITDA was positive at $5.1 million, compared to a loss of $3 million in the same quarter last year, resulting in an adjusted EBITDA margin of 12% [28][29] - Adjusted gross margin was 51% in Q3, down from 64% in the same period last year [27][29] Business Line Data and Key Metrics Changes - The company welcomed over 60 new customers in Q3, raising the year-end estimate for active subscriptions to between 8,000 and 8,100 [12][21] - The deployment of the new autonomous AI-powered bag screening solution, Expedite, gained traction with 12 new customers added in Q3, primarily in schools [13][19] - The company reported a sequential 8% increase in remaining performance obligation (RPO), which stood just shy of $300 million at the end of Q3 [12][25] Market Data and Key Metrics Changes - The company noted strong demand across various sectors, including education, healthcare, and sports, with significant contracts signed in these markets [16][17] - The largest customer contract in the company's history, involving more than 250 units, contributed approximately $3 million in revenue in Q3 [25][30] Company Strategy and Development Direction - The company is transitioning to a direct distribution model, which is expected to enhance recurring revenue and cash flow over time [10][23] - The management emphasized the importance of ARR growth and plans to add more units in 2026 than in 2025, with expectations for ARR growth to outpace total revenue growth [22][35] - A new strategic partnership with Plexus aims to expand production capacity and operational resiliency [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's market position and the ongoing transition to a direct fulfillment model, which simplifies the buying process for channel partners [45][46] - The company raised its 2025 revenue growth outlook to 37%-40%, up from previous guidance of 27%-30% [21][29] - For 2026, the company anticipates revenue of $160 million to $165 million, with ARR expected to grow by at least 20% year-over-year [34][35] Other Important Information - The company has made significant product updates, including new software versions aimed at improving performance and user experience [19][20] - The company screened over 3 billion visitors since the launch of Evolv Express, demonstrating the impact of its technology on community safety [13][14] Q&A Session Summary Question: Can you help me understand the revenue recognition for the large contract? - Management explained that the legacy distribution model results in more upfront revenue, but they expect normalization in revenue recognition as they transition to direct fulfillment [40][41] Question: What impact do you expect from the new strategic contract manufacturer agreement? - Management anticipates cost synergies and larger scale manufacturing capabilities from the partnership with Plexus, which will eventually include all product lines [42] Question: What is the attachment rate for Expedite with Express machines? - Management reported that 11 out of 12 new Expedite customers also acquired Express, indicating strong cross-selling success [43] Question: What percentage of bookings came from existing customers? - Over 50% of bookings came from existing customers, with significant expansions noted [47] Question: Are there promising new verticals for growth? - The company sees opportunities in various sectors, including sports, entertainment, education, and healthcare, while maintaining a consistent vertical mix [48]