Evolv Technologies (EVLV) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $32.5 million, up 29% year-over-year, driven by new customer growth and expanded deployments.

• Annual recurring revenue (ARR) grew 27% year-over-year to $110.5 million, with the customer base surpassing 1,000 globally.

• Net loss for Q2 2025 was $40.5 million, reflecting higher operating expenses, legal costs, and non-cash charges.

• Adjusted EBITDA was $2 million (6% margin), marking the third consecutive positive quarter and a significant improvement from a loss of $8 million a year ago.

• Major legal and regulatory issues were resolved, including the end of a DOJ investigation and a $15 million class action settlement, though other legal and regulatory matters remain ongoing.

Financial highlights

• Q2 2025 revenue was $32.5 million, up 29% year-over-year; six-month revenue was $64.6 million, up 36%.

• Gross margin for Q2 2025 was 49.8–55% (adjusted), with a reported gross profit of $16.2 million.

• Adjusted operating expenses declined 19% year-over-year to $21.6 million.

• Cash, cash equivalents, and marketable securities totaled $36.9–$37 million at quarter-end, with positive operating cash flow of $2.1 million in Q2 2025.

• Net loss per share for Q2 2025 was $(0.25), compared to $0.02 per share in Q2 2024 (restated).

Outlook and guidance

• Full-year 2025 revenue guidance raised to $132–$135 million, representing 27–30% growth.

• Adjusted gross margin expected in the 54–56% range for the remainder of 2025.

• Positive full-year adjusted EBITDA expected, with margins in the mid-single digits.

• Company expects to be cash flow positive in Q4 2025.

• Management anticipates continued operating losses as investments in growth and R&D persist.