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]

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]

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]

Group 1 - Builder.ai, once a prominent AI unicorn with a valuation of $1.3 billion and over $450 million in funding, has recently filed for bankruptcy across multiple countries [1][2][10]. - The company, originally founded as Engineer.ai in 2016, aimed to revolutionize app development using AI, but ultimately failed to deliver on its promises [4][5][6]. - Internal audits revealed that Builder.ai's actual revenue was only $55 million, significantly lower than the projected $220 million, leading to investigations into fraudulent financial practices [13][14]. Group 2 - The company's AI project manager, Natasha, was marketed as a sophisticated AI solution but was revealed to rely on manual labor from outsourced engineers [15][17]. - Following financial troubles, the founder, Sachin Dev Duggal, stepped down as CEO, and the company entered a phase of crisis management under new leadership [18][19]. - By May 2025, Builder.ai faced severe financial distress, leading to the freezing of $37 million in accounts and the initiation of bankruptcy proceedings in multiple jurisdictions [20][21]. Group 3 - Builder.ai's collapse is indicative of a broader trend in the tech industry, where many companies are found to be fabricating AI capabilities and relying on manual processes while presenting themselves as AI-driven [25][42]. - Other companies, such as Nate and Joonko, have also been implicated in similar fraudulent practices, highlighting a pattern of "AI washing" in the industry [26][30][40]. - The situation raises concerns about the integrity of AI narratives and the need for stricter regulations and transparency in the AI sector [58][60].