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Evolv Technologies Holdings (EVLV)
NASDAQ:EVLV
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Evolv Technologies Holdings
(NASDAQ:EVLV)
48Neutral
Positive Factors
Customer Growth
Key metrics showed positive momentum with 84 new customers, marking the highest customer addition since 4Q22.
Product Innovation
Evolv launched a new bag screening product that detects concealed weapons in baggage, enhancing security measures for various venues.
Negative Factors
Revenue Forecast
With the launch of the new bag screening product not expected until Q4, no forecast contribution to revenue or ARR is anticipated in 2024.
Evolv Technologies Holdings (EVLV) vs. S&P 500 (SPY)
Market Cap
$938.32M
Dividend YieldN/A
Average Volume (3M)2.80M
Price to Earnings (P/E)―
Beta (1Y)2.35
Revenue Growth28.91%
EPS Growth51.68%
CountryUS
Employees287
SectorIndustrials
Sector Strength91
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding163,470,320
10 Day Avg. Volume4,562,116
30 Day Avg. Volume2,803,597
Financial Highlights & Ratios
PEG Ratio-4.51
Price to Book (P/B)5.95
Price to Sales (P/S)0.00
P/FCF Ratio-11.70
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue1.89
Enterprise Value/Gross Profit11.96
Enterprise Value/Ebitda-4.78
Forecast
1Y Price Target
$4.00Price Target Upside-30.31% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 generates revenue primarily through the sale and leasing of its security screening systems, as well as through associated software and maintenance services. The company offers its Evolv Express platform on a subscription basis, allowing clients to pay for the service over time, which provides a recurring revenue model. Additionally, Evolv may engage in strategic partnerships with other technology and security firms to expand its market reach and enhance its product offerings. Key revenue streams include equipment sales, recurring subscription fees, and service contracts for ongoing support and software updates.
Evolv Technologies Holdings Financial Statement Overview
Summary
Evolv Technologies shows promising revenue growth within the Security & Protection Services industry. However, 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 | EBIT |
| -82.31M | -88.26M | -101.17M | -52.19M | -26.90M | EBITDA |
| -36.64M | -95.62M | -68.94M | -1.93M | -25.90M | Net Income Common Stockholders |
| -54.02M | -106.25M | -42.98M | -23.98M | -27.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 51.94M | 118.82M | 229.78M | 307.49M | 4.70M | Total Assets |
| 268.06M | 298.72M | 348.34M | 363.06M | 21.36M | Total Debt |
| 14.53M | 1.39M | 31.69M | 9.95M | 16.66M | Net Debt |
| -22.49M | -65.77M | -198.09M | -297.55M | 11.96M | 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
Positive
5.74
Price Trends
3.57
Positive
3.63
Positive
3.60
Positive
Market Momentum
0.43
Negative
78.23
Negative
74.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVLV, the sentiment is Positive. The current price of 5.74 is above the 20-day moving average (MA) of 4.23, above the 50-day MA of 3.57, and above the 200-day MA of 3.60, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 78.23 is Negative, neither overbought nor oversold. The STOCH value of 74.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $992.32M | 22.66 | 27.48% | 1.71% | -1.05% | -2.78% | |
75 Outperform | $1.41B | ― | -21.34% | ― | 0.27% | -18.75% | |
70 Neutral | $92.02M | 65.29 | -3.47% | ― | ― | ― | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% | |
54 Neutral | $4.90M | ― | -26.63% | ― | 5.57% | -449.87% | |
48 Neutral | $938.32M | ― | -41.17% | ― | 28.91% | 51.68% | |
21 Underperform | $44.03M | ― | -243.06% | ― | -9.30% | 49.84% |
* Industrials Sector Average
Performance Comparison
EVLV
Evolv Technologies Holdings
5.74
2.98
107.97%
SNT
Senstar Technologies
3.94
2.48
169.86%
NSSC
Napco Security Technologies
27.95
-18.38
-39.67%
UUU
Universal Security Instruments
2.14
0.66
44.59%
ARLO
Arlo Technologies
13.63
1.45
11.90%
KSCP
Knightscope Inc Class A
5.84
-12.78
-68.64%
Evolv Technologies Holdings Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q2-2024)
| % Change Since: 37.98%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive outlook with record revenue growth, substantial improvements in ARR and gross margin, and expansion in the customer base, alongside strategic partnerships and innovation. However, challenges remain with continued negative EBITDA, regulatory issues impacting sales cycles, and a declining cash position.Q2-2024 Updates
Positive Updates
Record Revenue Growth
Revenue in Q2 2024 reached a record $25.5 million, up 29% year-over-year and 18% sequentially.
Significant ARR and Gross Margin Improvement
Annual Recurring Revenue (ARR) grew to $89 million, up 64% year-over-year, and adjusted gross margin expanded to 58% from 38% in the prior year.
Expansion in Customer Base
Added 84 new customers, the highest since Q4 2022, and now serve over 800 customers across 10 key vertical markets.
Strong Partnership with Motorola
Unit bookings with Motorola were up 196% year-over-year, contributing significantly to overall sales.
Innovative Product Updates
Released a major software update enhancing Evolv Express integration, with new features for increased security infrastructure connectivity.
Negative Updates
Continued Negative EBITDA
Adjusted EBITDA was negative $7.9 million, though improved from negative $13.8 million a year ago.
Regulatory Overhang Impact
Ongoing FTC investigation and regulatory issues have been weaponized by competitors, affecting sales cycles.
Cash Position Decline
Cash and equivalents fell to $57 million from $81 million in Q1 2024, due to cash used in operations and supporting the subscription model.
Company Guidance
During the Q2 2024 earnings call for EVLV, the executives provided guidance on several key financial metrics and strategic initiatives. The company reported a record revenue of $25.5 million, reflecting a 29% year-over-year increase, with annual recurring revenue (ARR) reaching $89 million, marking a 64% year-over-year growth. Adjusted gross margin improved significantly to 58%, up from 38% in the previous year, driven by the increased adoption of a distribution subscription model, which accounted for 40% of bookings this quarter. The company also highlighted progress in expanding its customer base, adding 84 new customers, and achieving strong renewal rates with only three out of 12 systems not renewing. Remaining performance obligation (RPO) stood at $263 million. The executives reaffirmed their guidance for 2024, projecting total revenue of $100 million, ARR of $100 million by year-end, and positive adjusted EBITDA by Q2 2025. Key focus areas include building installation backlog, improving sales execution, and driving adoption of the distribution model, with the aim of achieving 25% revenue growth and advancing on the Rule of 40.Evolv Technologies Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Evolv Technologies Appoints New Chief Financial Officer
Positive
Apr 23, 2025
On April 23, 2025, Evolv Technologies Holdings announced the appointment of Chris Kutsor as the new Chief Financial Officer, effective after the filing of their 2024 annual report. Kutsor, with extensive experience in financial leadership roles, is expected to drive financial strategy and operational excellence as the company enters a new growth phase.
Spark’s Take on EVLV Stock
According to Spark, TipRanks’ AI Analyst, EVLV is a Neutral.
Evolv Technologies Holdings faces substantial financial and operational challenges, reflected in its weak financial performance and valuation. The stock shows some positive technical momentum, but the negative corporate events, such as financial restatements and leadership changes, underscore significant risks. These factors collectively contribute to a low overall stock score.
To see Spark’s full report on EVLV stock, click here.
Delistings and Listing ChangesRegulatory Filings and Compliance
Evolv Technologies Faces Nasdaq Compliance Notification
Negative
Apr 22, 2025
On April 16, 2025, Evolv Technologies Holdings received a notification from Nasdaq regarding non-compliance with listing rules due to delayed filing of its 2024 Annual Report, primarily caused by an internal investigation into sales practices. The company has until May 1, 2025, to update its compliance plan and expects to meet all SEC filing requirements by May 19, 2025. This notification does not immediately affect the company’s Nasdaq-listed securities, and Evolv is working with AlixPartners LLP to resolve the issue.
Spark’s Take on EVLV Stock
According to Spark, TipRanks’ AI Analyst, EVLV is a Neutral.
Evolv Technologies Holdings faces substantial financial and operational challenges, reflected in its weak financial performance and valuation. The stock shows some positive technical momentum, but the negative corporate events, such as financial restatements and leadership changes, underscore significant risks. These factors collectively contribute to a low overall stock score.
To see Spark’s full report on EVLV stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.