Evolv Technologies Reports 44% Revenue Growth to $32M in Q1 2025

Evolv Technologies Holdings, Inc. reported a total revenue of $32.0 million for the first quarter of 2025, marking a significant increase of 44% compared to $22.2 million in the same period of 2024. The growth was driven by increases across all revenue streams, with product revenue rising to $2.3 million from $1.5 million, subscription revenue increasing to $19.2 million from $14.2 million, and service revenue growing to $6.7 million from $5.3 million. Despite this revenue growth, the company reported a net loss of $1.7 million, a notable improvement from a net loss of $11.3 million in the prior year.

In terms of operational metrics, Evolv's total assets decreased to $256.0 million as of March 31, 2025, down from $268.1 million at the end of 2024. The company’s cash and cash equivalents also saw a decline, totaling $25.1 million compared to $37.0 million at the end of the previous fiscal year. The decrease in cash was attributed to cash outflows from operating activities, which were reduced to $2.5 million from $16.2 million year-over-year, indicating improved cash management despite ongoing losses.

Strategically, Evolv launched a new product, Evolv eXpedite™, an AI-based weapons detection system for bags, which complements its existing offerings like Evolv Express®. This product is part of the company's broader strategy to enhance its security technology solutions for various sectors, including schools and public venues. The company also reported a restructuring initiative that included the resignation of its Chief Financial Officer and the termination of several employees as part of a response to an internal investigation into sales practices that led to a restatement of prior financial results.

Evolv's customer base and engagement metrics reflect a positive trend, with the company reporting a significant increase in subscription revenue, which is expected to continue as it expands its market presence. The company anticipates that its cash reserves, combined with expected revenue growth, will be sufficient to fund operations for at least the next twelve months. However, it also acknowledged the potential need for additional capital to support growth initiatives and respond to market demands, particularly in light of ongoing economic uncertainties and competitive pressures.

Looking ahead, Evolv Technologies remains focused on leveraging its innovative product offerings and expanding its market share in the security technology sector. The company is committed to investing strategically in its operations to drive future growth, while also preparing for potential challenges related to market conditions and operational demands.