Revenue Performance - Revenue for the nine months ended September 30, 2025, was $107.4 million, compared to $74.8 million for the same period in 2024, representing a 43.6% increase[155]. - Total revenue for the three months ended September 30, 2025, was $42,850,000, a 57% increase from $27,360,000 in the same period of 2024[187]. - Total revenue for the nine months ended September 30, 2025, reached $107,401 million, a 44% increase from $74,765 million in the same period of 2024[204]. Net Loss - The company reported a net loss of $44.0 million for the nine months ended September 30, 2025, compared to a net loss of $38.3 million for the same period in 2024[155]. - The net loss for the three months ended September 30, 2025, was $1,796,000, a 94% improvement from a net loss of $30,443,000 in the same period of 2024[187]. - For the nine months ended September 30, 2025, the net loss increased to $44.0 million from $38.3 million for the same period in 2024[233]. Revenue Breakdown - Product revenue surged to $9,242,000, up 588% from $1,344,000 year-over-year, with a gross profit margin of 14% compared to a loss margin of 95% in the prior year[189]. - Subscription revenue increased by 27% to $22,685,000 from $17,909,000, with a gross profit margin of 52%, down from 59%[190]. - Service revenue for the three months ended September 30, 2025, was $7,808 million, a 28% increase from $6,085 million in the prior year[192]. - License fee and other revenue increased by 54% to $3,115 million for the three months ended September 30, 2025, compared to $2,022 million in 2024[193]. - Product revenue surged by 194% to $14,092 million for the nine months ended September 30, 2025, compared to $4,789 million in 2024[206]. - Subscription revenue increased to $62,122 million for the nine months ended September 30, 2025, up 30% from $47,783 million in 2024[207]. - Service revenue grew by 26% to $21,224 million for the nine months ended September 30, 2025, compared to $16,903 million in 2024[208]. - License fee and other revenue surged by 88% to $9,963 million for the nine months ended September 30, 2025, from $5,290 million in 2024[209]. Customer Growth - The company added 62 new customers during the three months ended September 30, 2025, contributing to revenue growth[188]. - The company added 179 new customers during the nine months ended September 30, 2025, contributing to increased adoption of its solutions[205]. Expenses and Cost Management - Research and development expenses are expected to decrease for the year ending December 31, 2025, due to cost-cutting measures including a reduction in force[171]. - Sales and marketing expenses are also projected to decline for the year ending December 31, 2025, as a result of similar cost-cutting initiatives[172]. - General and administrative expenses saw a significant increase in 2024 due to legal fees and consulting expenses, but are expected to remain lower in Q4 2025[174]. - Research and development expenses decreased by 16% to $15,207 million for the nine months ended September 30, 2025, down from $18,056 million in 2024[210]. - Sales and marketing expenses fell by 27% to $34,494 million for the nine months ended September 30, 2025, compared to $47,182 million in 2024[211]. - General and administrative expenses increased by 12% to $44,789 million for the nine months ended September 30, 2025, from $39,843 million in 2024[212]. Cash Flow and Liquidity - As of September 30, 2025, the company had $56.2 million in cash and cash equivalents, with outstanding debt of $28.5 million[219]. - The company had cash, cash equivalents, and marketable securities totaling $56.2 million as of September 30, 2025, which is expected to fund operating expenses and capital expenditures for at least twelve months[222][229]. - The company is required to maintain a minimum liquidity of $15.0 million, with actual liquidity reported at $71.1 million as of September 30, 2025[224][228]. - Cash used in investing activities for the nine months ended September 30, 2025, was $43.2 million, primarily for the purchase of property and equipment[236]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $34.7 million, mainly from $30.0 million in proceeds from the Initial Term Loan[238]. Strategic Initiatives - The company entered into a non-exclusive contract manufacturing agreement with Plexus Corp. on November 5, 2025, aimed at enhancing scalability and operational resiliency[148]. - The company is focused on expanding its market presence internationally, with expectations of increased adoption of its products in foreign markets[154]. - The company has discontinued quoting under the Distribution and License Agreement, transitioning to a purchase subscription model for hardware sales[163]. - The company anticipates continued strategic investments to support growth in its emerging technology field[223]. Market Conditions - The company expects to continue experiencing fluctuations in revenue as venues shift towards touchless security screening solutions[151]. - The company anticipates fluctuations in gross margins based on customer demand and strategic management decisions affecting sales and fulfillment models[170]. - The company faces uncertainties related to trade restrictions and tariffs that could adversely affect its financial condition[225].

Financial Performance - Total revenue for Q3 2025 was $42.9 million, a 57% increase from $27.4 million in Q3 2024[3] - Annual Recurring Revenue (ARR) at the end of Q3 2025 was $117.2 million, up 25% from $93.7 million in Q3 2024[3] - Net loss for Q3 2025 was $(1.8) million, improving from $(30.4) million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $5.1 million, compared to $(3.0) million in Q3 2024[4] - Total revenue for the first nine months of 2025 was $107.4 million, a 44% increase from $74.8 million in the same period of 2024[5] - The company expects total revenues in 2025 to be between $142 million and $145 million, reflecting growth of 37% to 40% compared to 2024[6] - The company anticipates delivering positive full-year Adjusted EBITDA in 2025 with margins in the high single digits[6] - Adjusted earnings (loss) for the first nine months of 2025 was $(11.5) million, an improvement from $(30.8) million in the same period of 2024[5] - Adjusted EBITDA for the nine months ended September 30, 2025, was $9,297,000, compared to an adjusted EBITDA loss of $21,349,000 for the same period in 2024, indicating a significant improvement[29] Cash and Assets - Cash, cash equivalents, and marketable securities as of September 30, 2025, totaled $56.2 million[3] - Cash and cash equivalents decreased to $31.50 million as of September 30, 2025, down from $37.02 million at the end of 2024[16] - Total assets increased to $304.29 million from $268.06 million at the end of 2024, indicating growth in the company's asset base[16] - The total cash, cash equivalents, and restricted cash at the end of the period was $31,504,000, down from $46,308,000 at the end of the same period in 2024[18] Customer Acquisition and Growth - The company screened millions of visitors daily across over 1,000 customers, indicating strong customer acquisition and deployment expansion[2] - The company added 62 new customers in the three months ended September 30, 2025, compared to 52 new customers in the same period of 2024[20] Expenses and Liabilities - Research and development expenses for Q3 2025 were $5.61 million, slightly down from $5.81 million in Q3 2024[14] - Current liabilities rose to $119.35 million, up from $96.71 million at the end of 2024, primarily due to increased deferred revenue[16] - The company reported a significant increase in accounts receivable, netting $48.88 million compared to $28.39 million at the end of 2024[16] - Stock-based compensation for the nine months ended September 30, 2025, was $15,816,000, a decrease from $21,364,000 in the same period of 2024[26] - Non-recurring employee restructuring and other separation costs amounted to $2,976,000 for the nine months ended September 30, 2025, compared to $1,000,000 in the same period of 2024[30] Shareholder Information - The weighted average common shares outstanding increased to 172.79 million from 157.71 million year-over-year, reflecting potential dilution[14] - The weighted average common shares outstanding – diluted for the three months ended September 30, 2025, was 172,790,098, compared to 157,709,229 for the same period in 2024[30] - Adjusted loss per share – diluted for the three months ended September 30, 2025, was $(0.02), an improvement from $(0.04) in the same period of 2024[30] Losses and Impairments - For the nine months ended September 30, 2025, the company reported a net loss of $44,020,000 compared to a net loss of $38,297,000 for the same period in 2024, representing an increase in losses of approximately 15.5%[18] - The company reported a loss from operations of $8,596,000 for the three months ended September 30, 2025, compared to a loss of $19,152,000 in the same period of 2024[26] - For the three months ended September 30, 2025, the net loss was $1,796,000 compared to a net loss of $30,443,000 for the same period in 2024[30] - The change in fair value of contingent earn-out liability resulted in a loss of $7,521,000 for the three months ended September 30, 2025, compared to a gain of $8,321,000 in the same period of 2024[30] - The company reported a loss on impairment of lease equipment of $209,000 for the three months ended September 30, 2024[30] Gains and Margins - Subscription revenue reached $22.69 million, up 26.5% from $17.91 million year-over-year[14] - Gross profit for Q3 2025 was $21.31 million, compared to $15.81 million in Q3 2024, reflecting a gross margin improvement[14] - The gross margin for the three months ended September 30, 2025, was 49.7%, down from 57.8% in the same period of 2024, while the adjusted gross margin was 50.6%, down from 64.1%[27] - The change in fair value of public warrant liability resulted in a gain of $2,578,000 for the three months ended September 30, 2025, compared to a gain of $1,576,000 in the same period of 2024[30]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Evolv Technologies Holdings, Inc. [1] Company Governance - Long-term shareholders of Evolv Technologies may seek corporate governance reforms as part of the investigation [1] - There is a possibility for the return of funds back to the company as a result of the investigation [1] Legal and Financial Implications - Shareholders may be eligible for a court-approved financial incentive award or other forms of relief and benefits [1]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Evolv Technologies Holdings, Inc. due to a class action complaint related to alleged breaches of fiduciary duties by the company's board of directors [1][2]. Summary by Sections Company Overview - Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) is facing legal scrutiny following a class action complaint filed on November 1, 2024, concerning its financial disclosures from August 19, 2022, to October 30, 2024 [1]. Financial Misstatements - The complaint alleges that Evolv's financial statements from Q2 2022 to Q2 2024 contain material misstatements affecting revenue recognition and other metrics. The company disclosed that certain sales were subject to undisclosed terms and that misconduct occurred among its personnel [2]. Stock Price Impact - Following the announcement of these issues on October 25, 2024, Evolv's stock price plummeted approximately 40%, dropping from $4.10 per share to $2.47 per share [2]. Next Steps for Investors - Long-term stockholders of Evolv are encouraged to contact Bragar Eagel & Squire for more information regarding their rights and potential claims related to the company's financial issues [3]. Law Firm Background - Bragar Eagel & Squire, P.C. is a recognized law firm specializing in representing investors in complex litigation across various courts in the United States [4].

Core Insights - Evolv Technologies (NASDAQ: EVLV) has experienced a significant increase in stock price since the last analysis, indicating strong market interest and potential growth opportunities [1] Company Overview - The company was previously rated as a hold due to its premium trading relative to its sector, suggesting that it may have been overvalued at that time [1] Analyst Background - The analyst has a self-taught background in equity analysis and runs a consultation firm in South Africa, focusing on estimating the value of construction projects [1] - The analyst has been involved in retail investing for the past five years, drawing inspiration from notable investors like Ben Graham and Joel Greenblatt, while also developing data analytics skills [1] Investment Style - The investment approach leans towards value investing, focusing on high-quality, long/short mid and small-cap companies, which may indicate a preference for companies with strong fundamentals and growth potential [1] Research Platform - Seeking Alpha is highlighted as a valuable platform for sharing research and analysis, allowing for interaction with fellow investors and analysts, which can enhance the quality of insights and feedback [1]

Group 1 - Evolv Technologies Holdings Inc. is recognized as a promising small-cap AI stock by hedge funds [1] - The company has renewed and expanded its partnership with Gillette Stadium, which includes an increase in the number of entry points utilizing its AI-based Evolv Express security screening systems [1][2] - The Evolv Express system is designed to detect concealed weapons while allowing visitors to pass through checkpoints at their natural walking pace, thereby minimizing congestion [3] Group 2 - Evolv Technologies provides AI-based weapons detection for security screening both in the US and internationally, with its flagship product being the Evolv Express [4]

Core Insights - Gillette Stadium has renewed its security screening collaboration with Evolv Technologies Holdings, Inc., expanding the use of Evolv Express systems for enhanced safety through AI-based weapons detection [1][2] - Since the partnership began in 2021, over seven million visitors have been screened, and Evolv has been designated as the "Official Fan Screening Provider" for the stadium [2] - Evolv Technologies has experienced a 36.64% revenue growth over the past year, with its technology currently utilized by 13 professional football teams and 12 professional soccer teams in the U.S. [2] Company Overview - Evolv Technologies offers AI-based weapons detection and analytics solutions through products like Evolv Express, Evolv Insights, and Evolv eXpedite, serving various sectors including education, healthcare, sports, and entertainment [3] - The company is recognized as one of the leading robotic stocks in the market [3]

Core Insights - Evolv Technologies Holdings, Inc. has renewed its partnership with Gillette Stadium, enhancing security measures at the venue [1] - The renewed partnership expands the number of entry points utilizing Evolv Express® security screening technology [1] - This partnership extension builds on an initial agreement established in 2021 [1]

Group 1 - Evolv Technology (EVLV) stock price surged by 15.5% in early trading on Friday [1] - The company raised its revenue growth forecast for 2025 to 27%-30% [1] - Evolv Technology continues to advance its direct sales strategy [1]

Company Performance - Evolv Technologies Holdings, Inc. reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, marking an earnings surprise of -177.78% [1] - The company posted revenues of $32.54 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 11.26%, compared to revenues of $25.54 million a year ago [2] - Over the last four quarters, Evolv Technologies has surpassed consensus EPS estimates only once [2] Stock Movement and Outlook - Evolv Technologies shares have increased approximately 89.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 10% [3] - The future price movement of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $31.99 million, and for the current fiscal year, it is -$0.23 on revenues of $126.22 million [7] Industry Context - The Computers - IT Services industry, to which Evolv Technologies belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Evolv Technologies' performance [5][6]