Evolv Technologies Reports Strong Q2 2025 Results, Driven by AI-Powered Security Solutions

Beyond The Numbers: 4 Analysts Discuss Evolv Technologies Stock - Evolv Technologies (NASDAQ:EVLV)

Throughout the last three months, 4 analysts have evaluated Evolv Technologies EVLV, offering a diverse set of opinions from bullish to bearish. The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months. Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $8.0, along with a high estimate of $10.00 and a low estimate of $5.50. Marking an increase of 45.45%, the current average surpasses the previous average price target of $5.50. Decoding Analyst Ratings: A Detailed Look A comprehensive examination of how financial experts perceive Evolv Technologies is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets. Key Insights: Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Evolv Technologies. This offers insight into analysts' perspectives on the current state of the company. Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Evolv Technologies compared to the broader market. Price Targets: Gaining insights, analysts provide estimates for the future value of Evolv Technologies's stock. This comparison reveals trends in analysts' expectations over time. To gain a panoramic view of Evolv Technologies's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table. Stay up to date on Evolv Technologies analyst ratings. If you are interested in following small-cap stock news and performance you can start by tracking it here. Get to Know Evolv Technologies Better Evolv Technologies Holdings Inc offers an AI-based touchless security screening. Its touchless security screening systems use artificial intelligence software, cloud services, and sensors to reliably detect dangerous weapons while ignoring harmless items like cell phones, laptops, and keys. It offers products for purchase under a multi-year security-as-a-service subscription pricing model that delivers ongoing value to customers, generates predictable revenue, and creates expansion and upsell opportunities. The firm operates in a single segment that develops, manufactures, markets, and sells security screening products and specific services. Its products are used in different industries such as casinos, industrial workplaces, schools, and ticketed venues. Evolv Technologies: A Financial Overview Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale. Revenue Growth: Evolv Technologies displayed positive results in 3M. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 44.3%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector. Net Margin: Evolv Technologies's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -5.28%, the company may face hurdles in effective cost management. Return on Equity (ROE): Evolv Technologies's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -1.42%, the company may face hurdles in achieving optimal financial returns. Return on Assets (ROA): Evolv Technologies's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.64%, the company may face hurdles in achieving optimal financial performance. Debt Management: Evolv Technologies's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.12. Analyst Ratings: Simplified Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter. Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts. Breaking: Wall Street's Next Big Mover Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details. This article was generated by Benzinga's automated content engine and reviewed by an editor. EVLVEvolv Technologies Holdings Inc$8.4314.3%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum96.44GrowthN/AQualityN/AValue39.17Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Evolv Technologies Tops Q2 Estimates | The Motley Fool

Evolv Technologies (EVLV 14.11%), a company specializing in artificial intelligence (AI)-powered security screening systems, reported its second-quarter 2025 earnings on August 14, 2025. The headline news: revenue (GAAP) climbed to $32.5 million, up 29% from a year earlier (GAAP) and ahead of the $30.9 million GAAP Wall Street estimate. Adjusted EBITDA was $2.0 million, compared to last year's $8.0 million adjusted EBITDA loss. However, the company missed expectations for net earnings (GAAP), posting a GAAP loss of $0.25 per share (much larger than the $(0.05) anticipated (GAAP)). Management raised full-year 2025 guidance, projecting revenue of $132 million-$135 million (27%-30% growth) and a positive full-year Adjusted EBITDA margin in the mid-single digits, reflecting upbeat momentum from subscription growth and expanding customer adoption across core markets. Overall, the quarter marked significant operational improvement and market expansion, but profitability under generally accepted accounting principles (GAAP) remains a challenge. Source: Evolv Technologies. Note: Analyst estimates provided by FactSet. Evolv Technologies develops AI-powered weapons detection systems used in security screening at public venues, schools, hospitals, and entertainment sites. The company's systems combine advanced sensors and proprietary software to spot firearms and explosives while minimizing false alarms, aiming to improve both security and visitor experience. Its flagship product family includes Evolv Express, an AI-powered security scanner, and the recently launched Evolv eXpedite, an autonomous bag screening solution introduced in September 2024. In recent years, Evolv has emphasized shifting to a recurring revenue model built on long-term software subscriptions. The majority of customer contracts are now multi-year agreements, usually spanning four years, which helps ensure predictable revenue. The company's growth strategy centers on expanding its installed base in education, healthcare, and sports venues, alongside continuous investment in technology and analytics platforms. Key performance metrics include annual recurring revenue and customer retention rates, both of which underpin the sustainability of the business model over time. During the quarter, Evolv posted a 29% increase in total revenue (GAAP), outpacing analyst forecasts. This performance was largely driven by rapid adoption of its subscription-based offerings. Annual recurring revenue, a key measure of future revenue locked in via ongoing subscriptions, reached $110.5 million at quarter-end, growing 27% year-over-year. Subscription revenue and recurring service income made up 80% of total revenue in the first quarter. Customer growth and sector reach also expanded. The company added 63 new customers, after onboarding 54 in the previous quarter and 84 new customers a year ago. About half of new business came from existing customers expanding their security deployments -- an indicator of satisfaction and value perception. Product installations now span over 1,300 school buildings, 20 of the largest 100 U.S. school districts, and 500 hospital locations. In sports and entertainment, Evolv furthered its presence by deploying systems at new venues and high-profile events. The product lineup grew, too. The core Evolv Express security scanner has screened more than three billion visitors since 2019. Meanwhile, the eXpedite bag screening system secured early contracts with 12 customers in the first few months following its launch in September 2024. Evolv also rolled out a Certified Pre-Owned program, letting customers access refurbished systems at lower price points and recapturing value from older equipment. These initiatives provided new entryways for additional segments and repeated sales cycles. Profitability metrics saw clear progress, as Adjusted EBITDA improved to $1.7 million (5.3% margin) in the first quarter from a loss of $10.4 million a year earlier. Adjusted EBITDA (non-GAAP) was $2.0 million, compared to an $8.0 million adjusted EBITDA loss a year ago. Operating cash flow (GAAP) became positive, reaching $2.1 million, a turnaround from a cash outflow of $21.6 million a year earlier. These shifts reflect the scaling effect of more subscriptions and expense control measures, including a 15% year-over-year drop in adjusted operating expenses in the first quarter. However, gross margin (which measures profit after direct costs but before operating expenses) compressed to 49.8% under GAAP, down from 58.5% a year ago, due to changes in how revenue from new and renewed contracts is recognized as more deals use subscription models rather than up-front payment. Management cited a 200-300 basis point margin headwind for FY2025 as part of the trade-off for greater recurring revenue visibility. On the technology side, the company's focus on proprietary AI and analytics continued to provide differentiation. The Evolv Insights analytics platform enables customers to access data on system performance, visitor flows, and alarm rates. In addition, Evolv's offerings remain certified as Qualified Anti-Terrorism Technologies by the U.S. Department of Homeland Security, reinforcing its status in the security screening space. Not all trends were positive. The company's GAAP net loss widened to $40.5 million, reversing from a GAAP net profit a year earlier. The difference stems from large non-cash items like revaluation of warrants, stock compensation, and one-time legal and regulatory charges. These costs contributed to the discrepancy between GAAP accounting and the adjusted (non-GAAP) figures cited by management. Additionally, restatements and management turnover over the past year are also ongoing watch areas for investors, though leadership reported progress on governance and operational controls. No dividend was declared. Evolv Technologies raised its financial outlook for fiscal 2025. Management now projects full-year revenue between $132 million and $135 million, representing growth of 27% to 30% over 2024 -- an upgrade from earlier expectations. Adjusted EBITDA is forecast to be positive for the full year, with Adjusted EBITDA margins in the mid-single digit percentage range. Cash flow is expected to turn positive in the fourth quarter, and capital expenditures are expected to be in the $20 million to $25 million range, primarily to support the expansion of the subscription business model. No new dividend was announced for the current quarter. EVLV does not currently pay a dividend. The company stated that it will continue to prioritize operational efficiency, customer retention, and further penetration within its core verticals -- particularly education, healthcare, and entertainment venues. Upcoming quarters will see continued emphasis on rolling out next-generation solutions and deepening customer analytics via the Evolv Insights platform.