Evolv Technologies (EVLV) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $42.9 million, up 57% year-over-year, driven by new customer wins, expanded deployments, and the largest contract in company history.

• Annual recurring revenue (ARR) at quarter-end was $117.2 million, up 25% year-over-year.

• Net loss for the nine months ended September 30, 2025, was $44.0 million, compared to $38.3 million in the prior year, reflecting higher operating and legal costs, partially offset by increased gross profit.

• The company completed a transition to a direct distribution model, capturing 100% of ARPU and increasing recurring revenue.

• Over 60 new customers were added in Q3, with strong adoption of the Gen2 Express platform and the Expedite bag screening solution.

Financial highlights

• Nine-month 2025 revenue was $107.4 million, up 44% from $74.8 million in the prior year period.

• Adjusted EBITDA was positive for the fourth consecutive quarter, reaching $5.1 million in Q3 2025, and $9.3 million for the nine months, with a 12% Q3 margin.

• Q3 2025 gross margin was 49.7%, down from 57.8% in Q3 2024; adjusted gross margin was 52.8%.

• Cash, cash equivalents, and marketable securities totaled $56.2 million as of September 30, 2025, up $19 million sequentially, aided by a new credit facility and improved collections.

• Operating cash flow for the first nine months of 2025 was $3.1 million, compared to a use of $34.1 million in 2024.

Outlook and guidance

• 2025 revenue guidance raised to $142–$145 million (37–40% growth), including one-time items; normalized growth estimated at 30%.

• 2025 adjusted gross margin expected at 52–54%, with full-year adjusted EBITDA margins in the high single digits.

• 2026 revenue projected at $160–$165 million, with ARR growth of at least 20%, outpacing total revenue growth.

• Expectation to add more units in 2026 than 2025, with stable ARPU and a higher mix of full subscription units.

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