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Evolv Technologies Holdings (EVLV)
NASDAQ:EVLV
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Evolv Technologies Holdings
(NASDAQ:EVLV)
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Rating:61Neutral
Price Target:
$8.50
▲(13.33% Upside)
Evolv Technologies' overall stock score is driven by strong technical momentum and positive earnings call sentiment, highlighting revenue growth and improved EBITDA. However, financial performance is hindered by profitability challenges and negative cash flows, while valuation remains unattractive due to ongoing losses.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.
Customer Growth
Expanding customer base demonstrates increasing market penetration and broadening adoption of Evolv's solutions, supporting future revenue streams.
Raised Revenue Guidance
Increased revenue guidance reflects management's confidence in strategic initiatives and market positioning, indicating potential for sustained growth.
Negative Factors
Profitability Challenges
Continued profitability challenges can hinder long-term financial health, affecting the company's ability to reinvest and grow sustainably.
Negative Cash Flow
Ongoing negative cash flow indicates cash management issues, potentially limiting operational flexibility and investment capacity.
Leadership Change
Leadership changes can disrupt strategic continuity, affecting innovation and long-term strategic execution, especially in a tech-driven company.
Evolv Technologies Holdings (EVLV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.29B
Dividend YieldN/A
Average Volume (3M)3.93M
Price to Earnings (P/E)―
Beta (1Y)2.23
Revenue Growth35.63%
EPS Growth-335.37%
CountryUS
Employees287
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding171,891,460
10 Day Avg. Volume3,601,869
30 Day Avg. Volume3,932,997
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue9.73
Enterprise Value/Gross Profit17.15
Enterprise Value/Ebitda-33.43
Forecast
1Y Price Target
$9.38Price Target Upside25.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Evolv Technologies Holdings Business Overview & Revenue Model
Company DescriptionEvolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based touchless security screening systems. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives as visitors walk through at a normal pace; Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics; and Evolv Edge to detect non-metallic explosive devices, explosive devices, firearms, and tactical knives without requiring visitors to divest or empty their pockets. The company is headquartered in Waltham, Massachusetts.
How the Company Makes MoneyEvolv Technologies Holdings generates revenue through the sale and leasing of its security screening systems and related services. The company offers a combination of direct sales and subscription-based models, where clients can pay for the hardware upfront or opt for a subscription service that includes equipment, software updates, and maintenance. In addition to hardware sales, Evolv also monetizes its technology through licensing agreements and partnerships with security service providers. These partnerships often involve integrating Evolv's technology into broader security solutions offered by partners. The company's earnings are bolstered by its focus on innovation and the increasing demand for efficient, non-invasive security measures in various public and private sectors.
Evolv Technologies Holdings Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong performance across key financial metrics such as revenue growth, ARR increase, and positive adjusted EBITDA. Significant customer acquisition and resolution of legal issues also contributed positively. However, there was a slight decline in gross margin due to strategic shifts in sales model and inventory reserves. Overall, the positives significantly outweigh the negatives, leading to a positive outlook for the company.Q2-2025 Updates
Positive Updates
Revenue Growth
Revenue was $32.5 million, up 2% sequentially and 29% year-over-year, driven by strong new customer growth and expanding deployments.
Annual Recurring Revenue (ARR)
ARR at June 30, 2025, was $110.5 million, reflecting growth of 27% year-over-year.
Positive Adjusted EBITDA
Reported third consecutive quarter of positive adjusted EBITDA with a margin of 6% in Q2 '25.
Increased Liquidity
Total cash, cash equivalents, and marketable securities increased $2 million sequentially in Q2 '25 to $37 million.
Customer Growth
Welcomed over 60 new customers in the second quarter, now serving over 1,000 customers globally.
Settlement of Legal Issues
The DOJ informed Evolv that the company is no longer the subject of an investigation, and a settlement in principle was reached regarding a securities class action lawsuit.
Significant Wins in Key Markets
Secured a $15 million contract with Gwinnett County Public Schools and several new healthcare and sports facilities.
Raised Full-Year Guidance
Raised revenue growth expectations to 27% to 30% for 2025 from prior guidance of 20% to 25% growth.
Negative Updates
Adjusted Gross Margin Decline
Adjusted gross margin was 55% in Q2 compared to 59% in the same period last year, affected by a noncash $1.8 million inventory reserve related to Express Gen1 parts.
Higher Near-Term Gross Margin Headwind
Shift to more in-house purchase fulfillment and initial higher order volumes of eXpedite leading to a gross margin of 54% to 56% for the remainder of the year.
Company Guidance
During the Evolv Technologies Second Quarter Earnings Results Conference Call for fiscal year 2025, the company provided significant guidance on various metrics. Revenue for the second quarter was reported at $32.5 million, marking a 2% sequential increase and a 29% year-over-year growth. The annual recurring revenue (ARR) stood at $110.5 million, reflecting a 27% increase year-over-year. The company reported its third consecutive quarter of positive adjusted EBITDA with a margin of 6%. Total cash, cash equivalents, and marketable securities increased by $2 million sequentially to $37 million. The company also discussed its plans to phase out the disclosure of units shipped as a metric by January 2026, due to complexities arising from short-term subscription contracts and equipment upgrades. Additionally, Evolv Technologies raised its revenue growth expectations for 2025 to between 27% and 30%, up from the previous guidance of 20% to 25%, and expressed confidence in delivering positive full-year adjusted EBITDA and generating positive cash flow in the fourth quarter.Evolv Technologies Holdings Financial Statement Overview
Summary
Evolv Technologies shows promising revenue growth, but persistent profitability issues, negative cash flows, and ongoing operational losses highlight significant financial challenges. The balance sheet remains strong with low leverage, but operational improvements are necessary for long-term viability and investor confidence.Income Statement
Evolv Technologies has shown substantial revenue growth, with a 29.17% increase from 2023 to 2024. However, the company continues to face significant profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin improved to 57.07% in 2024, reflecting operational improvements, yet the overall negative net income remains a concern.45
Neutral
Balance Sheet
The balance sheet displays a solid equity position with a debt-to-equity ratio of 0.05 in 2024, indicating low leverage. However, the company continues to operate at a loss with negative net income, impacting equity growth. The equity ratio of 65.20% suggests a robust asset base funded by equity. Despite these positives, continued operational losses pose a risk to financial stability.50
Neutral
Cash Flow
Cash flow analysis reveals challenges, with negative free cash flow of -$62.04 million in 2024. Operating cash flow remains negative, indicating ongoing operational cash burn. While cash and short-term investments increased significantly, primarily from financing activities, sustainability remains a concern as free cash flow has not improved. The free cash flow to net income ratio is unfavorable, highlighting ongoing cash management issues.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 103.86M | 80.42M | 55.20M | 23.69M | 4.79M |
| Gross Profit | 59.29M | 33.83M | 1.73M | 6.64M | 1.29M |
| EBITDA | -36.64M | -95.62M | -68.94M | -1.93M | -25.90M |
| Net Income | -54.02M | -106.25M | -42.98M | -23.98M | -27.82M |
Balance Sheet | |||||
| Total Assets | 268.06M | 298.72M | 348.34M | 363.06M | 21.36M |
| Cash, Cash Equivalents and Short-Term Investments | 51.94M | 118.82M | 229.78M | 307.49M | 4.70M |
| Total Debt | 14.53M | 1.39M | 31.69M | 9.95M | 16.66M |
| Total Liabilities | 150.41M | 152.40M | 121.13M | 72.23M | 106.04M |
| Stockholders Equity | 117.65M | 146.32M | 227.21M | 290.84M | -84.69M |
Cash Flow | |||||
| Free Cash Flow | -62.04M | -82.47M | -98.92M | -74.37M | -29.86M |
| Operating Cash Flow | -30.85M | -9.80M | -74.73M | -69.28M | -23.25M |
| Investing Cash Flow | -1.40M | -123.11M | -23.88M | -5.08M | -6.61M |
| Financing Cash Flow | 1.81M | -29.66M | 20.51M | 377.83M | 17.23M |
Evolv Technologies Holdings Technical Analysis
Neutral
7.50
Price Trends
7.78
Negative
6.75
Positive
5.16
Positive
Market Momentum
-0.10
Positive
42.83
Neutral
10.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVLV, the sentiment is Neutral. The current price of 7.5 is below the 20-day moving average (MA) of 8.02, below the 50-day MA of 7.78, and above the 200-day MA of 5.16, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 10.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVLV.
Evolv Technologies Holdings Risk Analysis
Evolv Technologies Holdings disclosed 51 risk factors in its most recent earnings report. Evolv Technologies Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Evolv Technologies Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.55B | 35.86 | 24.98% | 1.22% | -3.81% | -11.48% | |
70 Outperform | $108.12M | 65.29 | -3.47% | ― | ― | ― | |
67 Neutral | $308.13M | 27.02 | 5.63% | ― | -4.51% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.29B | ― | -71.94% | ― | 35.63% | -335.37% | |
56 Neutral | $1.79B | ― | -6.45% | ― | -1.75% | 68.19% | |
53 Neutral | $75.36M | ― | -236.56% | ― | -6.61% | 40.20% |
* Industrials Sector Average
EVLV
Evolv Technologies Holdings
7.42
3.41
85.04%
SNT
Senstar Technologies
4.64
3.08
197.44%
MG
Mistras Group
9.76
-1.32
-11.91%
NSSC
Napco Security Technologies
43.10
4.96
13.00%
ARLO
Arlo Technologies
16.89
5.78
52.03%
KSCP
Knightscope Inc Class A
7.40
1.68
29.37%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.