WALTHAM, Mass.–(BUSINESS WIRE)–Evolv Applied sciences Holdings, Inc (NASDAQ: EVLV), a number one safety expertise firm pioneering AI-based options designed to assist create safer experiences, in the present day introduced monetary outcomes for the quarter ended September 30, 2025.
“We made significant progress throughout many key measures of the enterprise within the third quarter—together with subscribers, income, and annual recurring income, in addition to vital indicators of profitability and liquidity,” mentioned John Kedzierski, President and Chief Government Officer of Evolv Know-how. “By sturdy new buyer acquisition and increasing deployments with present prospects, we proceed to ship real-world affect at scale—screening tens of millions of holiday makers every single day throughout over 1,000 prospects. Wanting forward, we’re inspired by the rising demand for our options and are assured in our potential to shut the 12 months with momentum as we advance on our aim of constructing a high-growth, worthwhile, and cash-generative enterprise.”
Outcomes for the Third Quarter of 2025
Whole income for the third quarter of 2025 was $42.9 million, a rise of 57% in comparison with $27.4 million for the third quarter of 2024. Income for the third quarter of 2025 was primarily pushed by sturdy new buyer additions and continued enlargement of deployments throughout the present buyer base. Income for the interval additionally mirrored sure notable gadgets that contributed roughly $7.5 million from the next: (i) roughly $3.0 million of income (primarily product income) related to the biggest buyer order within the Firm’s historical past; (ii) roughly $3.0 million attributable to IP license charges and different income related to the Firm’s distribution success mannequin which is being phased out; and (iii) roughly $1.5 million from short-term rental agreements that concluded within the interval. Annual Recurring Income (“ARR”)1 was $117.2 million on the finish of third quarter of 2025, a rise of 25% in comparison with $93.7 million on the finish of the third quarter of 2024. Web loss for the third quarter of 2025 was $(1.8) million, or $(0.01) per primary and diluted share, in comparison with $(30.4) million, or $(0.19) per primary and diluted share, within the third quarter of 2024. Adjusted earnings (loss)2 for the third quarter of 2025 was $(3.4) million, or $(0.02) per diluted share, in comparison with adjusted earnings (loss)2 of $(6.9) million, or $(0.04) per diluted share (as restated), for the third quarter of 2024. Adjusted EBITDA2 for the third quarter of 2025 was $5.1 million in comparison with $(3.0) million within the third quarter of 2024. As of September 30, 2025, the Firm had money, money equivalents and marketable securities of $56.2 million.
Outcomes for the First 9 Months of 2025
Whole income for the 9 months ended September 30, 2025 was $107.4 million, a rise of 44% in comparison with $74.8 million for the 9 months ended September 30, 2024. Web loss for the 9 months ended September 30, 2025 was $(44.0) million, or $(0.26) per primary and diluted share, in comparison with $(38.3) million, or $(0.25) per primary and diluted share, within the 9 months ended September 30, 2024. Adjusted earnings (loss)2 for the 9 months ended September 30, 2025 was $(11.5) million, or $(0.07) per diluted share, in comparison with adjusted earnings (loss)2 of $(30.8) million, or $(0.20) per diluted share, for the 9 months ended September 30, 2024. Adjusted EBITDA2 for the 9 months ended September 30, 2025 was $9.3 million in comparison with $(21.3) million within the 9 months ended September 30, 2024.
The next desk summarizes the breakdown of recurring and non-recurring income3 for every interval offered:
The next desk summarizes working money flows for every interval offered:
Firm Feedback on Outlook for 2025
The Firm in the present day commented on its enterprise outlook for 2025. The Firm’s outlook relies on the present indications for its enterprise, which can change at any time. The Firm expects complete revenues in 2025 to be between $142 to $145 million, reflecting progress of 37% to 40% in comparison with 2024. The Firm believes that this income progress, coupled with a deal with operational effectivity, will drive improved profitability and money stream. The Firm expects to ship optimistic full 12 months Adjusted EBITDA1 in 2025 with Adjusted EBITDA1 margins within the excessive single digits. The Firm expects to be money stream optimistic within the fourth quarter of 2025.
Firm to Host Stay Convention Name and Webcast
The Firm’s administration workforce plans to host a dwell convention name and webcast at 4:30 p.m. Japanese Time in the present day to debate the monetary outcomes in addition to administration’s outlook for the enterprise for each 2025 and 2026. The convention name might be webcast dwell at http://ir.evolvtechnology.com.
About Evolv Know-how
Evolv Applied sciences Holdings, Inc (NASDAQ: EVLV) is designed to rework human safety to make a safer, sooner, and higher expertise for the world’s most iconic venues and corporations in addition to colleges, hospitals, and public areas, utilizing business main synthetic intelligence (AI)-powered screening and analytics. Its mission is to rework safety to create a safer world to dwell, work, be taught, and play. Evolv has digitally remodeled the gateways in lots of locations the place individuals collect by enabling seamless integration mixed with highly effective analytics and insights. Evolv’s superior methods have scanned greater than three billion individuals since 2019. Evolv has been awarded the U.S. Division of Homeland Safety (DHS) SAFETY Act Designation as a Certified Anti-Terrorism Know-how (QATT) in addition to the Safety Business Affiliation (SIA) 2024 New Merchandise and Options (NPS) Award within the Regulation Enforcement/Public Security/Guarding Techniques class, in addition to Sport Enterprise Journal’s (SBJ) 2024 awards for “Greatest In Fan Expertise Know-how” and “Greatest In Sports activities Know-how”. Evolv®, Evolv Specific®, Evolv Insights®, Evolv Visible Gun Detection™, Evolv eXpedite™, and Evolv Eva™ are registered logos or logos of Evolv Applied sciences, Inc. in the USA and different jurisdictions. For extra data, go to evolv.com.
1 We outline Annual Recurring Income, or ARR, as subscription income and the recurring service income associated to buy subscriptions for the ultimate month of the quarter normalized to a one-year interval. Our calculation of ARR shouldn’t be adjusted for the affect of any identified or projected future occasions (similar to buyer cancellations, upgrades or downgrades, or value will increase or decreases) which will trigger any such contract to not be renewed on its present phrases. As well as, the quantity of precise income that we acknowledge over any 12-month interval is more likely to differ from ARR initially of that interval, generally considerably. This may occasionally happen as a result of new bookings, cancellations, upgrades, downgrades or different adjustments in pending renewals, in addition to the consequences {of professional} providers income and acquisitions or divestitures. Consequently, ARR must be considered independently of, and never as an alternative to or forecast of, income and deferred income. Our calculation of ARR might differ from equally titled metrics offered by different corporations.
2 Non-GAAP Monetary Measures On this press launch, the Firm’s adjusted gross revenue (loss), adjusted gross margin, adjusted working bills, adjusted working earnings (loss), adjusted EBITDA, adjusted EBITDA margin, adjusted earnings (loss), and adjusted earnings per diluted share will not be offered in accordance with typically accepted accounting ideas (GAAP) and will not be meant for use in lieu of GAAP displays of outcomes of operations. Adjusted gross revenue and adjusted gross margin exclude stock-based compensation expense, amortization of capitalized stock-based compensation, non-recurring worker restructuring and different separation prices, and non-recurring stock costs, which administration believes supplies a extra significant illustration of contribution margin. Adjusted working bills is outlined as working bills much less stock-based compensation expense, loss on impairment of lease tools, non-recurring worker restructuring and different separation prices, and different non-recurring authorized and regulatory prices, which administration believes supplies a extra significant illustration of on-going working expense ranges. Different non-recurring authorized and regulatory prices embody non-recurring authorized, accounting {and professional} charges associated to the inner investigation, subsequent restatement, sure non-recurring regulatory, litigation and authorized issues, in addition to charges associated to the decision of the U.S. Federal Commerce Fee investigation, internet of estimated insurance coverage recoveries. Adjusted working earnings (loss), is outlined as loss from operations, excluding stock-based compensation expense, amortization of capitalized stock-based compensation, loss on impairment of leased tools, non-recurring worker restructuring and different separation prices, non-recurring stock costs, and different non-recurring authorized and regulatory prices, which administration believes supplies a extra significant illustration of working outcomes. Adjusted EBITDA and Adjusted EBITDA margin is outlined as internet earnings (loss) plus depreciation and amortization, stock-based compensation, curiosity expense (earnings), provision for earnings taxes, change in truthful worth of contingent earn-out legal responsibility, change in truthful worth of contingently issuable frequent inventory legal responsibility, change in truthful worth of public warrant legal responsibility, loss on impairment of leased tools, loss on disposal of leased tools, non-recurring worker restructuring and different separation prices, non-recurring stock costs, and different non-recurring authorized and regulatory prices. Adjusted earnings (loss) and Adjusted earnings (loss) per diluted share are outlined as internet earnings (loss) plus stock-based compensation, amortization of capitalized stock-based compensation, change in truthful worth of contingent earn-out legal responsibility, change in truthful worth of contingently issuable frequent inventory legal responsibility, change in truthful worth of public warrant legal responsibility, loss on impairment of leased tools, non-recurring worker restructuring and different separation prices, non-recurring stock costs, and different non-recurring authorized and regulatory prices. Administration presents non-GAAP monetary measures as a result of it considers them to be vital supplemental measures of efficiency. Administration makes use of non-GAAP monetary measures for planning functions, together with evaluation of the Firm’s efficiency in opposition to prior durations, the preparation of working budgets and to find out applicable ranges of working and capital investments. Administration additionally believes non-GAAP monetary measures present further perception for analysts and buyers in evaluating the Firm’s monetary and working efficiency. Nonetheless, non-GAAP monetary measures have limitations as an analytical software and will not be meant to be an alternative choice to monetary measures ready in accordance with GAAP. We intend to supply non-GAAP monetary measures as a part of our future earnings discussions and, due to this fact, the inclusion of non-GAAP monetary measures will present consistency in our monetary reporting. Traders are inspired to evaluate the reconciliation of those non-GAAP measures to their most immediately comparable GAAP monetary measures included on this press launch. The Firm is unable to supply a reconciliation of Adjusted EBITDA to Web Revenue (Loss) and Adjusted EBITDA Margin to Web Revenue Margin, every measure’s most immediately comparable GAAP monetary measure, on a forward-looking foundation with out unreasonable effort, as a result of gadgets that affect these GAAP monetary measures will not be inside the Firm’s management and/or can’t be moderately predicted. These things might embody, however will not be restricted to, predicting forward-looking share-based compensation, adjustments within the truthful worth of contingent earn out liabilities, adjustments within the truthful worth of contingently issuable frequent inventory liabilities and adjustments in truthful worth of public warrant liabilities. Such data might have a major, and probably unpredictable, affect on the Firm’s future monetary outcomes.
3 Recurring income contains the recurring portion of income related to pure subscription contracts and {hardware} buy subscription contracts. Non-recurring income contains income that’s non-recurring in nature, similar to product income, delivery income, and income from set up, coaching, {and professional} providers.
Ahead-Wanting Statements
This press launch incorporates forward-looking statements inside the that means of the Personal Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be lined by the secure harbor provisions for forward-looking statements contained in Part 27A of the Securities Act of 1933, as amended and Part 21E of the Securities Alternate Act of 1934, as amended. All statements contained on this press launch and associated presentation supplies aside from statements of historic information, together with with out limitation statements relating to our technique, targets, demand for our merchandise, market alternatives, and future monetary and operational outcomes. Phrases similar to “imagine” “might,” “will,” “count on,” “ought to,” “might,” “anticipate,” “purpose,” “estimate,” “intend,” “plan,” “imagine,” “potential,” “proceed,” “undertaking,” “plan,” “goal,” “forecast”, “is/are more likely to” or the detrimental of those phrases or different related expressions are meant to determine forward-looking statements, although not all forward-looking statements use these phrases or expressions. The forward-looking statements on this press launch and associated presentation supplies are solely predictions. We’ve got primarily based these forward-looking statements largely on our present expectations and projections about future occasions and monetary tendencies that we imagine might have an effect on our enterprise, monetary situation and outcomes of operations. Ahead-looking statements contain identified and unknown dangers, uncertainties and different vital components which will trigger our precise outcomes, efficiency or achievements to be materially completely different from any future outcomes, efficiency or achievements expressed or implied by the forward-looking statements, together with, however not restricted to, the quantity of insurance coverage reimbursements anticipated to be obtained for protection prices for counsel and consultants in reference to the securities litigation and associated Securities and Alternate Fee (the “SEC”) and Division of Justice issues, and the next: our historical past of losses and skill to achieve profitability; our reliance on reseller companions; expectations relating to the Firm’s methods and future monetary efficiency, together with its future enterprise plans or targets, potential efficiency and alternatives and opponents, revenues, services, pricing, working bills, market tendencies, liquidity, money flows and makes use of of money, capital expenditures; the Firm’s reliance on third get together contract manufacturing and distribution, and a worldwide provide chain; the Firm acknowledges a considerable portion of its income ratably over the time period of its agreements, and, consequently, downturns or upturns in gross sales might not be instantly mirrored in its working outcomes; the speed of innovation required to keep up competitiveness within the markets wherein the Firm competes; the competitiveness of the market wherein the Firm competes; the failure of our merchandise to detect threats might lead to harm or lack of life, which might hurt our model, repute, and outcomes of operations; the lack of designation of our Evolv Specific® system as a Certified Anti-Terrorism Know-how beneath the Homeland Safety SAFETY Act; dangers associated to our enterprise mannequin, which is based, partly, on constructing a buyer base that may generate a recurring stream of revenues via the sale of our subscription contracts; the power for the Firm to acquire, keep, defend and implement the Firm’s mental property rights and use of “open supply” software program; the focus of the Firm’s revenues on a single resolution; the Firm’s potential to well timed design, produce and launch its options, the Firm’s potential to spend money on progress initiatives and pursue acquisition alternatives; the restricted liquidity and buying and selling of the Firm’s securities; dangers associated to present and altering tax legal guidelines; geopolitical danger and adjustments in relevant legal guidelines or laws; the likelihood that the Firm could also be adversely affected by different financial, enterprise, and/or aggressive components; operational danger; dangers associated to materials weaknesses in our inside management over monetary reporting and our remediation plans; dangers associated to growing consideration to and evolving expectations for, environmental, social, and governance initiatives; the affect of fluctuating common financial and market situations and reductions in spending; the necessity for added capital to assist enterprise progress, which could not be obtainable on acceptable phrases, if in any respect; and litigation and regulatory enforcement dangers, together with the diversion of administration time and a spotlight and the extra prices and calls for on sources. These and different vital components mentioned in our most up-to-date report on From 10-Q or 10-Ok filed with the SEC might trigger precise outcomes to vary materially from these indicated by the forward-looking statements made on this press launch. The forward-looking statements on this press launch and associated presentation supplies are primarily based upon data obtainable to us as of the date hereof, and whereas we imagine such data types an affordable foundation for such statements, it could be restricted or incomplete, and our statements shouldn’t be learn to point that we have now carried out an exhaustive inquiry into, or evaluate of, all probably obtainable related data. These statements are inherently unsure and buyers are cautioned to not unduly rely on these statements.
It’s best to evaluate this press launch and the paperwork that we reference on this press launch and associated presentation supplies with the understanding that our precise future outcomes, ranges of exercise, efficiency and achievements could also be materially completely different from what we count on. We qualify all of our forward-looking statements by these cautionary statements. Besides as required by relevant legislation, we don’t plan to publicly replace or revise any forward-looking statements contained on this press launch and associated presentation supplies, whether or not because of any new data, future occasions or in any other case.
