Evolv Technology Reports Third Quarter Financial Results
- Q3’26 Revenue of $47.3 million, up 10% year-over-year
- Q3’26 Ending ARR1 of $140.5 million, up 20% year-over-year
- Q3’26 Net Loss of $(15.6) million, with Net Profit Margin of (32.9)%
- Q3’26 Adjusted EBITDA2 of $4.7 million, with Adjusted EBITDA Margin2 of 10.0%
- Q3’26 Ending Cash, Cash Equivalents, Marketable Securities, and Restricted Cash of $66.9 million, up $3.5 million sequentially
- Q3’26 Remaining Performance Obligation of $325.8 million, up $13.2 million sequentially
WALTHAM, Mass.–(BUSINESS WIRE)–
Evolv Technologies Holdings, Inc. (NASDAQ: EVLV), a leading security technology company pioneering AI-powered screening solutions designed to help create safer experiences, today announced financial results for the quarter ended September 30, 2026.
“Our third-quarter results reflect the significant progress we have made building a stronger, more scalable and increasingly predictable business,” said John Kedzierski, President and Chief Executive Officer of Evolv Technology. “We delivered double-digit revenue growth, with ARR growing faster than revenue, against a challenging prior-year comparison, as last year’s results included the largest contract in our history. We expanded our recurring revenue base and strengthened our renewal and expansion motion highlighted by strong net revenue retention in the quarter. That progress, combined with the investments we are making in sales capacity and product innovation, gives us increasing confidence in the path ahead for 2027 and in the long-term model we outlined at Investor Day, with revenue growth expected to ramp toward an approximately 25% CAGR through 2031.”
Results for the Third Quarter of 2026
Total revenue for the third quarter of 2026 was $47.3 million, an increase of 10% compared to $42.9 million for the third quarter of 2025. Annual Recurring Revenue (“ARR”)1 was $140.5 million at the end of the third quarter of 2026, an increase of 20% compared to $117.2 million at the end of the third quarter of 2025. Net loss for the third quarter of 2026 was $(15.6) million, or $(0.09) per basic and diluted share, compared to net loss of $(1.8) million, or $(0.01) per basic and diluted share, in the third quarter of 2025. Adjusted loss2 for the third quarter of 2026 was $(2.9) million, or $(0.02) per diluted share, compared to adjusted loss2 of $(3.4) million, or $(0.02) per diluted share, for the third quarter of 2025. Adjusted EBITDA2 for the third quarter of 2026 was $4.7 million compared to $5.1 million in the third quarter of 2025. As of September 30, 2026, the Company had cash, cash equivalents, and marketable securities of $66.9 million.
Results for the First Nine Months of 2026
Total revenue for the nine months ended September 30, 2026 was $137.4 million, an increase of 28% compared to $107.4 million for the nine months ended September 30, 2025. Net loss for the nine months ended September 30, 2026 was $(29.9) million, or $(0.17) per basic and diluted share, compared to $(44.0) million, or $(0.26) per basic and diluted share, in the nine months ended September 30, 2025. Adjusted loss2 for the nine months ended September 30, 2026 was $(9.3) million, or $(0.05) per diluted share, compared to adjusted loss2 of $(11.5) million, or $(0.07) per diluted share, for the nine months ended September 30, 2025. Adjusted EBITDA2 for the nine months ended September 30, 2026 was $13.1 million compared to $9.3 million in the nine months ended September 30, 2025.
Outlook for 2026
The Company today commented on its business outlook for 2026. The Company’s outlook is based on the current indications for its business, which may change at any time. The Company expects 2026 revenue of $182 million to $185 million, representing approximately 25% to 27% year-over-year growth, with the range dependent on the mix of new unit deployments between purchase subscription and pure subscription models. The Company expects ending ARR at December 31, 2026 to increase to approximately $148 to $150 million, reflecting growth of approximately 23% to 25% year-over-year. The Company expects Adjusted EBITDA2 in 2026 to be between $15.5 and $16.5 million with Adjusted EBITDA2 margins in the high single digits.
|
Estimate |
|
Issued August 11, 2026 |
|
Issued November 10, 2026 |
|
Total Revenue (Millions) |
|
$180-$185 |
|
$182-$185 |
|
Ending ARR1 at 12/31/26 (Millions) |
|
$148-$150 |
|
$148-$150 |
|
Adjusted EBITDA2(Millions) |
|
$15-$16 |
|
$15.5-$16.5 |
|
Adjusted EBITDA Margin2 |
|
High Single Digits |
|
High Single Digits |
Company to Host Live Conference Call and Webcast
The Company’s management team plans to host a live conference call and webcast at 4:30 p.m. Eastern Time today to discuss the financial results as well as management’s outlook for the business. The conference call will be webcast live at http://ir.evolvtechnology.com.
About Evolv Technology
Evolv (NASDAQ: EVLV) is designed to transform human security by helping organizations detect potential threats, mitigate risk, and enhance safety using AI-powered security solutions with robust insights. Our technology has helped to create efficient and positive security screening experiences for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces. Evolv’s mission is to create a safer world to live, work, learn, and play. Evolv’s advanced systems have scanned more than 5 billion people since 2019. Evolv Express® and Evolv eXpedite™ have been awarded the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT). Evolv and its products have been awarded numerous awards which can be viewed on our Certifications and Awards web page. Evolv®, Evolv Express®, Evolv Insights®, and Evolv eXpedite™ are registered trademarks or trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visit evolv.com.
1We define Annual Recurring Revenue, or ARR, as the sum of subscription revenue and the recurring service revenue related to purchase subscriptions for the final month of the quarter all multiplied by twelve. The amount of revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly due to differences in our recurring and non-recurring revenue streams. To the extent that we are negotiating a renewal or upgrade with a customer after the expiration of the subscription and we are continuing to provide service to that customer, we may continue to include that associated revenue in ARR. If a customer notifies us that it is not renewing its subscription, we will continue to include associated revenue in ARR through the natural expiration of the subscription term. ARR should be viewed independently of, and not as a substitute for or forecast of, revenue or deferred revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.
2Non-GAAP Financial Measures In this press release, the Company’s adjusted operating expenses, adjusted gross profit (loss), adjusted gross margin, adjusted operating income (loss), adjusted EBITDA, adjusted EBITDA margin, adjusted earnings (loss), adjusted earnings (loss) per diluted share, and free cash flow are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. Adjusted operating expenses is defined as operating expenses less stock-based compensation expense, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of on-going operating expense levels. Other non-recurring legal and regulatory costs include non-recurring legal, accounting and professional fees related to the internal investigation, subsequent restatement, certain non-recurring regulatory, litigation and legal matters, as well as fees related to the Securities and Exchange Commission investigation, net of estimated insurance recoveries. Adjusted gross profit and adjusted gross margin exclude stock-based compensation expense, amortization of capitalized stock-based compensation, and non-recurring employee restructuring and other separation costs, which management believes provides a more meaningful representation of contribution margin. Adjusted operating income (loss) is defined as loss from operations, excluding stock-based compensation expense, amortization of capitalized stock-based compensation, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Adjusted EBITDA and Adjusted EBITDA margin is defined as net income (loss) plus depreciation and amortization, stock-based compensation, interest expense (income), (benefit) provision for income taxes, change in fair value of contingent earn-out liability, change in fair value of contingently issuable/returnable common stock liability/asset, loss on remeasurement of common stock receivable, change in fair value of public warrant liability, loss on disposal of leased equipment, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Adjusted earnings (loss) and Adjusted earnings (loss) per diluted share are defined as net income (loss) plus stock-based compensation, amortization of capitalized stock-based compensation, change in fair value of contingent earn-out liability, change in fair value of contingently issuable/returnable common stock liability/asset, loss on remeasurement of common stock receivable, change in fair value of public warrant liability, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. We define free cash flow as net cash provided by operating activities less purchases of property and equipment and capitalized internal-use software costs. The amounts for each three-month period presented are derived from the difference between the current and preceding quarter year-to-date Statements of Cash Flows for each respective fiscal year. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the Company’s performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company’s financial and operating performance. However, non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures included in this press release. The Company is unable to provide a reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA margin to net profit margin, each measure’s most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort, because items that impact these GAAP financial measures are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, predicting forward-looking share-based compensation, changes in the fair value of contingent earn out liabilities, changes in the fair value of contingently issuable/returnable common stock liabilities/assets, and changes in fair value of public warrant liabilities. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results.
3Recurring revenue includes the recurring portion of revenue associated with pure subscription contracts and hardware purchase subscription contracts. Non-recurring revenue includes revenue that is non-recurring in nature, such as product revenue, shipping revenue, revenue from installation, training, and professional services, and short-term rental revenue.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical facts are forward-looking statements, including without limitation statements regarding our strategy, goals, business model, demand for our products, market opportunities, strategic partnerships, and future financial and operational results. Words such as “believe,” “may,” “will,” “expect,” “should,” “could,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “potential,” “continue,” “project,” “target,” “forecast,” “is/are likely to,” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the amount of insurance reimbursements expected to be received for defense costs for counsel and consultants in connection with the securities litigation and related Securities and Exchange Commission (the “SEC”) and Department of Justice matters, and the following: our history of losses and ability to reach profitability; our reliance on reseller partners; expectations regarding the Company’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures; our ability to renew customer contracts, our ability to renew customer contracts at terms favorable to the Company, the Company’s reliance on third party contract manufacturing and distribution, and a global supply chain; the Company recognizes a substantial portion of its revenue ratably over the term of its agreements, and, as a result, downturns or upturns in sales may not be immediately reflected in its operating results; the rate of innovation required to maintain competitiveness in the markets in which the Company competes; the competitiveness of the market in which the Company competes; the failure of our products to detect threats could result in injury or loss of life, which could harm our brand, reputation, and results of operations; the loss of designation of our Evolv Express® system as a Qualified Anti-Terrorism Technology under the Homeland Security SAFETY Act; risks related to our business model, which is predicated, in part, on building a customer base that will generate a recurring stream of revenues through the sale of our subscription contracts; the ability for the Company to obtain, maintain, protect and enforce the Company’s intellectual property rights and use of “open source” software; the concentration of the Company’s revenues on a single solution; the Company’s ability to timely design, produce and launch its solutions, the Company’s ability to invest in growth initiatives and pursue acquisition opportunities; the limited liquidity and trading of the Company’s securities; risks related to existing and changing tax laws; geopolitical risk and changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; operational risk; risks related to material weaknesses in our internal control over financial reporting and our remediation plans and efforts, including related costs; risks related to increasing attention to and evolving expectations for sustainability initiatives; the impact of fluctuating general economic and market conditions and reductions in spending; the need for additional capital to support business growth, which might not be available on acceptable terms, if at all; and litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on resources. These and other important factors discussed in our most recent report on Form 10-Q or 10-K filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. The forward-looking statements in this press release are based upon information available to us as of the date hereof, and while we believe such information forms a reasonable basis for such statements, it may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
You should review this press release and the documents that we reference in this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements contained in this press release whether as a result of any new information, future events or otherwise.
|
EVOLV TECHNOLOGY |
|||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
|||||||||||||||
|
(In thousands, except share and per share data) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
Product revenue |
$ |
12,332 |
|
|
$ |
9,242 |
|
|
$ |
34,861 |
|
|
$ |
14,092 |
|
|
Subscription revenue |
|
24,488 |
|
|
|
22,685 |
|
|
|
72,421 |
|
|
|
62,122 |
|
|
Service revenue |
|
9,509 |
|
|
|
7,808 |
|
|
|
27,060 |
|
|
|
21,224 |
|
|
License fee and other revenue |
|
1,016 |
|
|
|
3,115 |
|
|
|
3,084 |
|
|
|
9,963 |
|
|
Total revenue |
|
47,345 |
|
|
|
42,850 |
|
|
|
137,426 |
|
|
|
107,401 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
|
Cost of product revenue |
|
11,253 |
|
|
|
7,960 |
|
|
|
33,206 |
|
|
|
16,495 |
|
|
Cost of subscription revenue |
|
9,841 |
|
|
|
10,923 |
|
|
|
27,208 |
|
|
|
27,713 |
|
|
Cost of service revenue |
|
2,605 |
|
|
|
2,338 |
|
|
|
7,323 |
|
|
|
5,753 |
|
|
Cost of license fee and other revenue |
|
97 |
|
|
|
323 |
|
|
|
589 |
|
|
|
766 |
|
|
Total cost of revenue |
|
23,796 |
|
|
|
21,544 |
|
|
|
68,326 |
|
|
|
50,727 |
|
|
Gross profit |
|
23,549 |
|
|
|
21,306 |
|
|
|
69,100 |
|
|
|
56,674 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Research and development |
|
6,126 |
|
|
|
5,608 |
|
|
|
17,792 |
|
|
|
15,207 |
|
|
Sales and marketing |
|
13,168 |
|
|
|
11,715 |
|
|
|
38,534 |
|
|
|
34,494 |
|
|
General and administrative |
|
18,657 |
|
|
|
12,579 |
|
|
|
46,199 |
|
|
|
44,789 |
|
|
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,662 |
|
|
Total operating expenses |
|
37,951 |
|
|
|
29,902 |
|
|
|
102,525 |
|
|
|
97,152 |
|
|
Loss from operations |
|
(14,402 |
) |
|
|
(8,596 |
) |
|
|
(33,425 |
) |
|
|
(40,478 |
) |
|
Other (expense) income, net |
|
|
|
|
|
|
|
||||||||
|
Interest expense |
|
(982 |
) |
|
|
(713 |
) |
|
|
(2,909 |
) |
|
|
(714 |
) |
|
Interest income |
|
540 |
|
|
|
436 |
|
|
|
1,543 |
|
|
|
1,049 |
|
|
Other income (expense), net |
|
(18 |
) |
|
|
(44 |
) |
|
|
(72 |
) |
|
|
117 |
|
|
Change in fair value of contingent earn-out liability |
|
— |
|
|
|
7,521 |
|
|
|
374 |
|
|
|
2,297 |
|
|
Change in fair value of contingently issuable/returnable common stock liability/asset |
|
(255 |
) |
|
|
2,178 |
|
|
|
1,249 |
|
|
|
(69 |
) |
|
Loss on remeasurement of common stock receivable |
|
(530 |
) |
|
|
— |
|
|
|
(530 |
) |
|
|
— |
|
|
Change in fair value of public warrant liability |
|
83 |
|
|
|
(2,578 |
) |
|
|
3,862 |
|
|
|
(6,160 |
) |
|
Total other (expense) income, net |
|
(1,162 |
) |
|
|
6,800 |
|
|
|
3,517 |
|
|
|
(3,480 |
) |
|
Loss before income taxes |
|
(15,564 |
) |
|
|
(1,796 |
) |
|
|
(29,908 |
) |
|
|
(43,958 |
) |
|
(Benefit from) provision for income taxes |
|
— |
|
|
|
— |
|
|
$ |
(37 |
) |
|
$ |
62 |
|
|
Net loss |
$ |
(15,564 |
) |
|
$ |
(1,796 |
) |
|
$ |
(29,871 |
) |
|
$ |
(44,020 |
) |
|
Net loss attributable to common stockholders – basic and diluted |
$ |
(15,564 |
) |
|
$ |
(1,796 |
) |
|
$ |
(29,871 |
) |
|
$ |
(44,020 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding – basic and diluted |
|
181,158,098 |
|
|
|
172,790,098 |
|
|
|
179,454,691 |
|
|
|
166,327,570 |
|
|
Net loss per share – basic and diluted |
$ |
(0.09 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) |
$ |
(15,564 |
) |
|
$ |
(1,796 |
) |
|
$ |
(29,871 |
) |
|
$ |
(44,020 |
) |
|
Other comprehensive (loss) income |
|
|
|
|
|
|
|
||||||||
|
Cumulative translation adjustment |
|
(1 |
) |
|
|
26 |
|
|
|
27 |
|
|
|
(105 |
) |
|
Total other comprehensive (loss) income |
|
(1 |
) |
|
|
26 |
|
|
|
27 |
|
|
|
(105 |
) |
|
Total comprehensive loss |
$ |
(15,565 |
) |
|
$ |
(1,770 |
) |
|
$ |
(29,844 |
) |
|
$ |
(44,125 |
) |
|
EVOLV TECHNOLOGY |
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
(In thousands, except share and per share data) |
|||||||
|
(Unaudited) |
|||||||
|
|
September 30, |
|
December 31, |
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
61,910 |
|
|
$ |
49,150 |
|
|
Marketable securities |
|
4,951 |
|
|
|
19,885 |
|
|
Accounts receivable, net |
|
50,412 |
|
|
|
30,841 |
|
|
Inventory |
|
5,793 |
|
|
|
9,317 |
|
|
Current portion of contract assets |
|
1,561 |
|
|
|
878 |
|
|
Current portion of commission asset |
|
5,726 |
|
|
|
6,062 |
|
|
Prepaid expenses and other current assets |
|
19,685 |
|
|
|
35,169 |
|
|
Total current assets |
|
150,038 |
|
|
|
151,302 |
|
|
Contract assets, noncurrent |
|
13 |
|
|
|
15 |
|
|
Commission asset, noncurrent |
|
8,141 |
|
|
|
7,867 |
|
|
Property and equipment, net |
|
132,818 |
|
|
|
127,522 |
|
|
Operating lease right-of-use assets |
|
10,974 |
|
|
|
12,303 |
|
|
Other assets |
|
1,077 |
|
|
|
5,400 |
|
|
Total assets |
$ |
303,061 |
|
|
$ |
304,409 |
|
|
|
|
|
|
||||
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
10,733 |
|
|
$ |
9,770 |
|
|
Accrued expenses and other current liabilities |
|
36,581 |
|
|
|
35,293 |
|
|
Current portion of deferred revenue |
|
87,385 |
|
|
|
74,924 |
|
|
Current portion of operating lease liabilities |
|
3,116 |
|
|
|
2,989 |
|
|
Total current liabilities |
|
137,815 |
|
|
|
122,976 |
|
|
Deferred revenue, noncurrent |
|
19,419 |
|
|
|
16,716 |
|
|
Long-term debt |
|
28,811 |
|
|
|
28,596 |
|
|
Operating lease liabilities, noncurrent |
|
9,230 |
|
|
|
10,654 |
|
|
Contingent earn-out liability, noncurrent |
|
— |
|
|
|
374 |
|
|
Contingently issuable common stock liability, noncurrent |
|
— |
|
|
|
1,809 |
|
|
Public warrant liability, noncurrent |
|
— |
|
|
|
3,862 |
|
|
Total liabilities |
|
195,275 |
|
|
|
184,987 |
|
|
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Preferred stock, $0.0001 par value; 100,000,000 authorized at September 30, 2026 and December 31, 2025; no shares issued and outstanding at September 30, 2026 and December 31, 2025 |
|
— |
|
|
|
— |
|
|
Common stock, $0.0001 par value; 1,100,000,000 shares authorized at September 30, 2026 and December 31, 2025; 181,233,753 and 175,399,488 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively |
|
18 |
|
|
|
18 |
|
|
Additional paid-in capital |
|
525,555 |
|
|
|
507,347 |
|
|
Accumulated other comprehensive loss |
|
(114 |
) |
|
|
(141 |
) |
|
Accumulated deficit |
|
(417,673 |
) |
|
|
(387,802 |
) |
|
Stockholders’ equity |
|
107,786 |
|
|
|
119,422 |
|
|
Total liabilities and stockholders’ equity |
$ |
303,061 |
|
|
$ |
304,409 |
|
|
EVOLV TECHNOLOGY |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(In thousands) |
|||||||
|
(Unaudited) |
|||||||
|
|
Nine Months Ended |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Cash flows from operating activities: |
|
|
|
||||
|
Net loss |
$ |
(29,871 |
) |
|
$ |
(44,020 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
21,415 |
|
|
|
17,859 |
|
|
Write-off of inventory and change in inventory reserve |
|
60 |
|
|
|
2,016 |
|
|
Loss on disposal of property and equipment |
|
333 |
|
|
|
3,503 |
|
|
Stock-based compensation |
|
19,369 |
|
|
|
15,816 |
|
|
Amortization of debt issuance costs |
|
862 |
|
|
|
195 |
|
|
Amortization of premium on marketable securities, net of change in accrued interest |
|
241 |
|
|
|
10 |
|
|
Non-cash lease expense |
|
1,329 |
|
|
|
1,263 |
|
|
Change in allowance for expected credit losses |
|
150 |
|
|
|
66 |
|
|
Change in fair value of earn-out liability |
|
(374 |
) |
|
|
(2,297 |
) |
|
Change in fair value of contingently issuable/returnable common stock liability/asset |
|
(1,249 |
) |
|
|
69 |
|
|
Loss on remeasurement of common stock receivable |
|
530 |
|
|
|
— |
|
|
Change in fair value of public warrant liability |
|
(3,862 |
) |
|
|
6,160 |
|
|
Changes in operating assets and liabilities |
|
|
|
||||
|
Accounts receivable |
|
(19,721 |
) |
|
|
(20,557 |
) |
|
Inventory |
|
6,472 |
|
|
|
11,079 |
|
|
Commission assets |
|
62 |
|
|
|
(719 |
) |
|
Contract assets |
|
(681 |
) |
|
|
(137 |
) |
|
Other assets |
|
165 |
|
|
|
437 |
|
|
Prepaid expenses and other current assets |
|
8,266 |
|
|
|
(17,331 |
) |
|
Accounts payable |
|
7,244 |
|
|
|
1,845 |
|
|
Deferred revenue |
|
15,164 |
|
|
|
11,596 |
|
|
Accrued expenses and other current liabilities |
|
2,078 |
|
|
|
16,902 |
|
|
Operating lease liability |
|
(1,297 |
) |
|
|
(657 |
) |
|
Net cash provided by operating activities |
|
26,685 |
|
|
|
3,098 |
|
|
Cash flows from investing activities: |
|
|
|
||||
|
Development of internal-use software |
|
(4,081 |
) |
|
|
(4,311 |
) |
|
Purchases of property and equipment |
|
(25,411 |
) |
|
|
(29,109 |
) |
|
Purchases of marketable securities |
|
(14,833 |
) |
|
|
(34,481 |
) |
|
Proceeds from maturities of marketable securities |
|
29,526 |
|
|
|
24,675 |
|
|
Net cash used in investing activities |
|
(14,799 |
) |
|
|
(43,226 |
) |
|
Cash flows from financing activities: |
|
|
|
||||
|
Proceeds from exercise of stock options |
|
847 |
|
|
|
8,406 |
|
|
Proceeds from long-term debt |
|
— |
|
|
|
26,316 |
|
|
Net cash provided by financing activities |
|
847 |
|
|
|
34,722 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
27 |
|
|
|
(105 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
12,760 |
|
|
|
(5,511 |
) |
|
Cash and cash equivalents |
|
|
|
||||
|
Cash and cash equivalents at beginning of period |
|
49,150 |
|
|
|
37,015 |
|
|
Cash and cash equivalents at end of period |
$ |
61,910 |
|
|
$ |
31,504 |
|
The following table summarizes operating cash flows for each period presented:
|
|
Nine Months Ended |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Net loss |
$ |
(29,871 |
) |
|
$ |
(44,020 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities |
|
38,804 |
|
|
|
44,660 |
|
|
Changes in operating assets and liabilities |
|
17,752 |
|
|
|
2,458 |
|
|
Net cash provided by operating activities |
$ |
26,685 |
|
|
$ |
3,098 |
|
The following table is the reconciliation of GAAP net cash provided by operating activities to non-GAAP free cash flow:
|
|
Three Months Ended |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Net cash provided by operating activities |
$ |
17,962 |
|
|
$ |
3,524 |
|
|
Purchases of property and equipment |
|
(13,274 |
) |
|
|
(13,810 |
) |
|
Capitalized internal-use software |
|
(1,441 |
) |
|
|
(1,199 |
) |
|
Free cash flow |
$ |
3,247 |
|
|
$ |
(11,485 |
) |
|
EVOLV TECHNOLOGY |
||||||||||||||||||||||||||||
|
SUMMARY OF KEY OPERATING STATISTICS |
||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended or as of, |
|||||||||||||||||||||||||||
|
($ in thousands) |
|
March 31, |
|
June 30, |
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
||||||||||||||
|
New customers |
|
|
54 |
|
|
|
63 |
|
|
|
62 |
|
|
|
64 |
|
|
|
48 |
|
|
|
70 |
|
|
|
51 |
|
|
Annual recurring revenue |
|
$ |
105,990 |
|
|
$ |
110,516 |
|
|
$ |
117,200 |
|
|
$ |
120,467 |
|
|
$ |
127,300 |
|
|
$ |
132,680 |
|
|
$ |
140,510 |
|
|
Recurring revenue3 |
|
$ |
25,753 |
|
|
$ |
26,379 |
|
|
$ |
28,684 |
|
|
$ |
29,547 |
|
|
$ |
31,176 |
|
|
$ |
32,087 |
|
|
$ |
32,548 |
|
|
% of total revenue |
|
|
80 |
% |
|
|
81 |
% |
|
|
67 |
% |
|
|
77 |
% |
|
|
67 |
% |
|
|
73 |
% |
|
|
69 |
% |
|
Non-recurring revenue3 |
|
$ |
6,254 |
|
|
$ |
6,165 |
|
|
$ |
14,166 |
|
|
$ |
8,957 |
|
|
$ |
15,152 |
|
|
$ |
11,666 |
|
|
$ |
14,797 |
|
|
% of total revenue |
|
|
20 |
% |
|
|
19 |
% |
|
|
33 |
% |
|
|
23 |
% |
|
|
33 |
% |
|
|
27 |
% |
|
|
31 |
% |
|
EVOLV TECHNOLOGY |
||||||||||||||||||||||||||||
|
RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES |
||||||||||||||||||||||||||||
|
(In thousands) |
||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended, |
|||||||||||||||||||||||||||
|
|
|
March 31, |
|
June 30, |
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
||||||||||||||
|
Operating expenses, GAAP |
|
$ |
33,539 |
|
|
$ |
33,711 |
|
|
$ |
29,902 |
|
|
$ |
26,613 |
|
|
$ |
32,071 |
|
|
$ |
32,503 |
|
|
$ |
37,951 |
|
|
Stock-based compensation |
|
|
(4,660 |
) |
|
|
(5,265 |
) |
|
|
(5,121 |
) |
|
|
(5,006 |
) |
|
|
(5,272 |
) |
|
|
(6,602 |
) |
|
|
(6,627 |
) |
|
Non-recurring employee restructuring and other separation costs |
|
|
(2,137 |
) |
|
|
(827 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Other non-recurring legal and regulatory costs |
|
|
(3,561 |
) |
|
|
(5,979 |
) |
|
|
36 |
|
|
|
2,225 |
|
|
|
99 |
|
|
|
(903 |
) |
|
|
(4,778 |
) |
|
Adjusted operating expenses |
|
$ |
23,181 |
|
|
$ |
21,640 |
|
|
$ |
24,811 |
|
|
$ |
23,832 |
|
|
$ |
26,898 |
|
|
$ |
24,998 |
|
|
$ |
26,546 |
|
|
EVOLV TECHNOLOGY |
|||||||||||||||
|
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT, GAAP GROSS MARGIN TO ADJUSTED GROSS MARGIN AND GAAP INCOME (LOSS) FROM OPERATIONS TO ADJUSTED OPERATING INCOME (LOSS) |
|||||||||||||||
|
(In thousands) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenue |
$ |
47,345 |
|
|
$ |
42,850 |
|
|
$ |
137,426 |
|
|
$ |
107,401 |
|
|
Cost of revenue |
|
23,796 |
|
|
|
21,544 |
|
|
|
68,326 |
|
|
|
50,727 |
|
|
Gross profit, GAAP |
|
23,549 |
|
|
|
21,306 |
|
|
|
69,100 |
|
|
|
56,674 |
|
|
Stock-based compensation |
|
302 |
|
|
|
269 |
|
|
|
868 |
|
|
|
770 |
|
|
Amortization of capitalized stock-based compensation |
|
217 |
|
|
|
114 |
|
|
|
572 |
|
|
|
324 |
|
|
Non-recurring employee restructuring and other separation costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
Adjusted gross profit |
$ |
24,068 |
|
|
$ |
21,689 |
|
|
$ |
70,540 |
|
|
$ |
57,774 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin % |
|
49.7 |
% |
|
|
49.7 |
% |
|
|
50.3 |
% |
|
|
52.8 |
% |
|
Impact of adjustments from Gross profit, GAAP to Adjusted gross profit |
|
1.1 |
% |
|
|
0.9 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
Adjusted gross margin % |
|
50.8 |
% |
|
|
50.6 |
% |
|
|
51.3 |
% |
|
|
53.8 |
% |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Loss from operations, GAAP |
$ |
(14,402 |
) |
|
$ |
(8,596 |
) |
|
$ |
(33,425 |
) |
|
$ |
(40,478 |
) |
|
Stock-based compensation |
|
6,929 |
|
|
|
5,390 |
|
|
|
19,369 |
|
|
|
15,816 |
|
|
Amortization of capitalized stock-based compensation |
|
217 |
|
|
|
114 |
|
|
|
572 |
|
|
|
324 |
|
|
Non-recurring employee restructuring and other separation costs |
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
2,976 |
|
|
Other non-recurring legal and regulatory costs |
|
4,778 |
|
|
|
(36 |
) |
|
|
5,582 |
|
|
|
9,504 |
|
|
Adjusted loss from operations |
$ |
(2,478 |
) |
|
$ |
(3,122 |
) |
|
$ |
(7,902 |
) |
|
$ |
(11,858 |
) |
|
EVOLV TECHNOLOGY |
|||||||||||||||
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA AND NET PROFIT MARGIN TO ADJUSTED EBITDA MARGIN |
|||||||||||||||
|
(In thousands) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Net loss |
$ |
(15,564 |
) |
|
$ |
(1,796 |
) |
|
$ |
(29,871 |
) |
|
$ |
(44,020 |
) |
|
Depreciation and amortization |
|
7,477 |
|
|
|
6,541 |
|
|
|
21,415 |
|
|
|
17,859 |
|
|
Stock-based compensation |
|
6,929 |
|
|
|
5,390 |
|
|
|
19,369 |
|
|
|
15,816 |
|
|
Interest expense (income) |
|
442 |
|
|
|
277 |
|
|
|
1,366 |
|
|
|
(335 |
) |
|
(Benefit) provision for income taxes |
|
— |
|
|
|
— |
|
|
|
(37 |
) |
|
|
62 |
|
|
Change in fair value of contingent earn-out liability |
|
— |
|
|
|
(7,521 |
) |
|
|
(374 |
) |
|
|
(2,297 |
) |
|
Change in fair value of contingently issuable/returnable common stock liability/asset |
|
255 |
|
|
|
(2,178 |
) |
|
|
(1,249 |
) |
|
|
69 |
|
|
Loss on remeasurement of common stock receivable |
|
530 |
|
|
|
— |
|
|
|
530 |
|
|
|
— |
|
|
Change in fair value of public warrant liability |
|
(83 |
) |
|
|
2,578 |
|
|
|
(3,862 |
) |
|
|
6,160 |
|
|
Loss on disposal of leased equipment |
|
(15 |
) |
|
|
1,870 |
|
|
|
255 |
|
|
|
3,503 |
|
|
Non-recurring employee restructuring and other separation costs |
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
2,976 |
|
|
Other non-recurring legal and regulatory costs |
|
4,778 |
|
|
|
(36 |
) |
|
|
5,582 |
|
|
|
9,504 |
|
|
Adjusted EBITDA |
$ |
4,749 |
|
|
$ |
5,131 |
|
|
$ |
13,124 |
|
|
$ |
9,297 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net profit margin % |
|
(32.9 |
)% |
|
|
(4.2 |
)% |
|
|
(21.7 |
)% |
|
|
(41.0 |
)% |
|
Impact of adjustments from Net loss to Adjusted EBITDA |
|
42.9 |
% |
|
|
16.2 |
% |
|
|
31.2 |
% |
|
|
49.7 |
% |
|
Adjusted EBITDA margin % |
|
10.0 |
% |
|
|
12.0 |
% |
|
|
9.5 |
% |
|
|
8.7 |
% |
|
EVOLV TECHNOLOGY |
|||||||||||||||
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EARNINGS (LOSS) |
|||||||||||||||
|
(In thousands, except share and per share data) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Net loss |
$ |
(15,564 |
) |
|
$ |
(1,796 |
) |
|
$ |
(29,871 |
) |
|
$ |
(44,020 |
) |
|
Stock-based compensation |
|
6,929 |
|
|
|
5,390 |
|
|
|
19,369 |
|
|
|
15,816 |
|
|
Amortization of capitalized stock-based compensation |
|
217 |
|
|
|
114 |
|
|
|
572 |
|
|
|
324 |
|
|
Change in fair value of contingent earn-out liability |
|
— |
|
|
|
(7,521 |
) |
|
|
(374 |
) |
|
|
(2,297 |
) |
|
Change in fair value of contingently issuable/returnable common stock liability/asset |
|
255 |
|
|
|
(2,178 |
) |
|
|
(1,249 |
) |
|
|
69 |
|
|
Loss on remeasurement of common stock receivable |
|
530 |
|
|
|
— |
|
|
|
530 |
|
|
|
— |
|
|
Change in fair value of public warrant liability |
|
(83 |
) |
|
|
2,578 |
|
|
|
(3,862 |
) |
|
|
6,160 |
|
|
Non-recurring employee restructuring and other separation costs |
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
2,976 |
|
|
Other non-recurring legal and regulatory costs |
|
4,778 |
|
|
|
(36 |
) |
|
|
5,582 |
|
|
|
9,504 |
|
|
Adjusted loss |
$ |
(2,938 |
) |
|
$ |
(3,443 |
) |
|
$ |
(9,303 |
) |
|
$ |
(11,468 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding – diluted |
|
181,158,098 |
|
|
|
172,790,098 |
|
|
|
179,454,691 |
|
|
|
166,327,570 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss per share – diluted |
$ |
(0.09 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.26 |
) |
|
Impact of adjustments from Net loss to Adjusted loss |
|
0.07 |
|
|
|
(0.01 |
) |
|
|
0.12 |
|
|
|
0.19 |
|
|
Adjusted loss per share – diluted |
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
*Stock-based compensation, amortization of capitalized stock-based compensation, and non-recurring restructuring and other employee separation costs were recorded in the condensed consolidated statements of operations and comprehensive loss (income) as follows. Prior period amounts are being shown for comparative purposes:
|
|
Three Months Ended, |
|||||||||||||||||||
|
|
March 31, |
|
June 30, |
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|||||||
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Cost of product revenue |
$ |
8 |
|
$ |
17 |
|
$ |
32 |
|
$ |
39 |
|
$ |
58 |
|
$ |
34 |
|
$ |
24 |
|
Cost of subscription revenue |
|
137 |
|
|
167 |
|
|
146 |
|
|
135 |
|
|
138 |
|
|
120 |
|
|
161 |
|
Cost of service revenue |
|
67 |
|
|
74 |
|
|
72 |
|
|
80 |
|
|
100 |
|
|
94 |
|
|
112 |
|
Cost of license fee and other revenue |
|
7 |
|
|
24 |
|
|
19 |
|
|
20 |
|
|
19 |
|
|
3 |
|
|
5 |
|
Research and development |
|
1,115 |
|
|
1,154 |
|
|
1,227 |
|
|
1,252 |
|
|
1,280 |
|
|
1,343 |
|
|
1,388 |
|
Sales and marketing |
|
1,048 |
|
|
1,710 |
|
|
1,480 |
|
|
1,330 |
|
|
1,566 |
|
|
1,975 |
|
|
2,000 |
|
General and administrative |
|
1,972 |
|
|
2,401 |
|
|
2,414 |
|
|
2,424 |
|
|
2,426 |
|
|
3,284 |
|
|
3,239 |
|
Restructuring costs |
|
525 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total stock-based compensation |
$ |
4,879 |
|
$ |
5,547 |
|
$ |
5,390 |
|
$ |
5,280 |
|
$ |
5,587 |
|
$ |
6,853 |
|
$ |
6,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Amortization of capitalized stock-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Cost of subscription revenue |
$ |
59 |
|
$ |
60 |
|
$ |
63 |
|
$ |
82 |
|
$ |
86 |
|
$ |
104 |
|
$ |
115 |
|
Cost of service revenue |
|
44 |
|
|
47 |
|
|
51 |
|
|
68 |
|
|
75 |
|
|
90 |
|
|
102 |
|
Total amortization of capitalized stock-based compensation |
$ |
103 |
|
$ |
107 |
|
$ |
114 |
|
$ |
150 |
|
$ |
161 |
|
$ |
194 |
|
$ |
217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Non-recurring employee restructuring and other separation costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Cost of service revenue |
$ |
— |
|
$ |
6 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Research and development |
|
— |
|
|
31 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Sales and marketing |
|
— |
|
|
613 |
|
|
6 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
General and administrative |
|
— |
|
|
183 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Restructuring costs |
|
2,137 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total non-recurring employee restructuring and other separation costs |
$ |
2,137 |
|
$ |
833 |
|
$ |
6 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
View source version on businesswire.com: https://www.businesswire.com/news/home/20261110277160/en/
Investor Relations:
Brian Norris
Senior Vice President of Finance and Investor Relations
[email protected]
KEYWORDS: United States North America Massachusetts
INDUSTRY KEYWORDS: Defense Security Technology Other Technology Software Artificial Intelligence Other Defense
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