Evolv Technologies Holdings, Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending September 30, 2025. The company generated total revenue of $42.9 million, a 57% increase from $27.4 million in the same period last year. This growth was driven by substantial increases in product revenue, which surged by 588% to $9.2 million, and subscription revenue, which rose by 27% to $22.7 million. Despite these gains, Evolv recorded a net loss of $1.8 million, a notable reduction from a loss of $30.4 million in the prior year, indicating a 94% improvement in net loss.
The company also experienced operational changes, including the addition of 62 new customers during the quarter, contributing to a total of 179 new customers for the nine months ended September 30, 2025. Evolv's annual recurring revenue (ARR) stood at $117.2 million, exceeding the minimum required ARR of $106 million under its new $75 million credit agreement with MidCap Financial Trust. This agreement, finalized in July 2025, includes a $30 million term loan and a $15 million revolving credit facility, which the company plans to utilize for general corporate purposes and to support its subscription sales model.
Evolv's operational metrics reflect a strategic shift towards a purchase subscription model, which allows customers to buy hardware directly, moving away from a distributor licensing model. This transition is expected to enhance product revenue and gross profit margins over time. The company also reported a decrease in total operating expenses, which fell by 14% to $29.9 million, primarily due to reductions in sales and marketing expenses following a workforce reduction in January 2025.
Looking ahead, Evolv Technologies anticipates continued investment in research and development, sales, and marketing to drive growth. However, the company remains cautious about potential fluctuations in revenue due to market conditions, competition, and the ongoing integration of new manufacturing partners. The management emphasized the importance of maintaining effective internal controls and compliance with regulatory requirements, particularly in light of recent investigations into its sales practices. The company is committed to addressing these challenges while pursuing its growth objectives in the evolving security technology market.
About Evolv Technologies Holdings, Inc.
Evolv Technologies Holdings, Inc. develops AI-powered security screening solutions for high-volume venues such as sports arenas, entertainment venues, schools, hospitals, and industrial sites. Its flagship products, Evolv Express and Evolv eXpedite, detect concealed weapons and threats efficiently while enhancing visitor experience. The company offers cloud-connected hardware and software, primarily through subscription models, providing predictive analytics and integrated security insights to improve safety and operational efficiency.
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