Evolv Technologies (US:EVLV)2025-11-13 21:17Revenue 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].