Evolv Technologies (US:EVLV)2025-11-13 21:07Financial 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]