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]

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]