Evolv Technologies 2025 Q1 Earnings Beats Expectations as Net Income Improves 85%
Daily EarningsWednesday, May 21, 2025 3:30 am ET
42min readEvolv Technologies Holdings Inc (EVLV) reported strong Q1 2025 financial results, surpassing analyst expectations with revenue of $32.01 million, marking a 44% increase year-over-year, alongside a significant reduction in net loss to $1.69 million from $11.27 million in Q1 2024. The company raised its guidance, projecting 2025 revenue between $125 million and $130 million, reflecting 20%-25% growth, while aiming for positive full-year Adjusted EBITDA.
Revenue
Evolv Technologies experienced notable growth across its revenue segments for Q1 2025. Subscription revenue emerged as a key driver, reaching $19.24 million, while service revenue contributed $6.73 million. The product segment generated $2.32 million, and license fee and other revenue amounted to $3.72 million. Overall, total revenue climbed to $32.01 million, representing a 44.3% year-over-year increase from Q1 2024.
Earnings/Net Income
Evolv Technologies significantly improved its earnings performance in Q1 2025, narrowing its net loss to $1.69 million, translating to $0.01 per share, compared to a loss of $0.07 per share in the previous year. This represents a substantial 85.7% improvement in EPS, indicating a positive trajectory.
Price Action
The stock price of Evolv Technologies experienced a decline of 4.32% during the latest trading day. However, over the most recent full trading week, it surged by 25.06%, and month-to-date, the stock has seen a remarkable increase of 67.37%.
Post-Earnings Price Action Review
The investment strategy of acquiring Evolv Technologies shares on a revenue miss and holding for 30 days yielded an 11.11% return, falling short of the benchmark return of 25.81%. This approach demonstrated a Sharpe ratio of 0.03, indicating a relatively low risk-adjusted return. The strategy faced a maximum drawdown of -78.21%, highlighting the potential for significant losses during downturns. Additionally, the volatility associated with this strategy was measured at 89.56%, signifying considerable fluctuations in stock value. Despite these challenges, the compound annual growth rate (CAGR) was recorded at 3.00%, showcasing a modest long-term return. Overall, while the strategy offers potential returns, it is accompanied by notable risks and volatility, necessitating careful consideration by investors.
CEO Commentary
John Kedzierski, CEO, expressed optimism about Evolv Technologies' current business performance, highlighting a solid start to 2025 with revenue of $32 million, reflecting a 44% year-over-year increase. He noted that the growth was driven by new customer acquisitions and expansion within the existing customer base, emphasizing the potential for significant market opportunity in weapons detection technology. Kedzierski outlined strategic priorities focused on subscription growth and customer retention, stating, "We expect new subscriber growth in 2025 to be at least in line with what we delivered in 2024 and potentially greater." He acknowledged the challenges faced but underscored a commitment to integrity and transparency in navigating these transitions.
Guidance
Evolv Technologies projects total revenue growth of 20% to 25% in 2025, targeting between $125 million and $130 million. The company anticipates achieving positive adjusted EBITDA for the full year, with margins in the low to mid-single digits. CapEx is expected to be in the range of $20 million to $25 million. The CEO stated, "We expect to be cash flow positive by the end of the year," reflecting confidence in the company’s operational efficiency and revenue visibility.
Additional News
In recent developments, Evolv Technologies has appointed Chris Kutsor as the new Chief Financial Officer, effective shortly after the filing of its annual report for fiscal year 2024. Kutsor, who previously served as CFO at Kin + Carta Plc, brings a wealth of experience in driving financial strategy for high-growth technology companies. Additionally, the company has announced its participation in the Cowen Technology Conference on May 29, 2025, where CEO John Kedzierski and CFO Chris Kutsor will represent Evolv. This event underscores Evolv's commitment to engaging with investors and industry partners. Moreover, Evolv has expanded its partnership with the San Francisco Giants, upgrading their security systems to the latest Gen2 units for the 2025 season, demonstrating Evolv's ongoing innovation and influence within the sports industry.
Revenue
Evolv Technologies experienced notable growth across its revenue segments for Q1 2025. Subscription revenue emerged as a key driver, reaching $19.24 million, while service revenue contributed $6.73 million. The product segment generated $2.32 million, and license fee and other revenue amounted to $3.72 million. Overall, total revenue climbed to $32.01 million, representing a 44.3% year-over-year increase from Q1 2024.
Earnings/Net Income
Evolv Technologies significantly improved its earnings performance in Q1 2025, narrowing its net loss to $1.69 million, translating to $0.01 per share, compared to a loss of $0.07 per share in the previous year. This represents a substantial 85.7% improvement in EPS, indicating a positive trajectory.
Price Action
The stock price of Evolv Technologies experienced a decline of 4.32% during the latest trading day. However, over the most recent full trading week, it surged by 25.06%, and month-to-date, the stock has seen a remarkable increase of 67.37%.
Post-Earnings Price Action Review
The investment strategy of acquiring Evolv Technologies shares on a revenue miss and holding for 30 days yielded an 11.11% return, falling short of the benchmark return of 25.81%. This approach demonstrated a Sharpe ratio of 0.03, indicating a relatively low risk-adjusted return. The strategy faced a maximum drawdown of -78.21%, highlighting the potential for significant losses during downturns. Additionally, the volatility associated with this strategy was measured at 89.56%, signifying considerable fluctuations in stock value. Despite these challenges, the compound annual growth rate (CAGR) was recorded at 3.00%, showcasing a modest long-term return. Overall, while the strategy offers potential returns, it is accompanied by notable risks and volatility, necessitating careful consideration by investors.
CEO Commentary
John Kedzierski, CEO, expressed optimism about Evolv Technologies' current business performance, highlighting a solid start to 2025 with revenue of $32 million, reflecting a 44% year-over-year increase. He noted that the growth was driven by new customer acquisitions and expansion within the existing customer base, emphasizing the potential for significant market opportunity in weapons detection technology. Kedzierski outlined strategic priorities focused on subscription growth and customer retention, stating, "We expect new subscriber growth in 2025 to be at least in line with what we delivered in 2024 and potentially greater." He acknowledged the challenges faced but underscored a commitment to integrity and transparency in navigating these transitions.
Guidance
Evolv Technologies projects total revenue growth of 20% to 25% in 2025, targeting between $125 million and $130 million. The company anticipates achieving positive adjusted EBITDA for the full year, with margins in the low to mid-single digits. CapEx is expected to be in the range of $20 million to $25 million. The CEO stated, "We expect to be cash flow positive by the end of the year," reflecting confidence in the company’s operational efficiency and revenue visibility.
Additional News
In recent developments, Evolv Technologies has appointed Chris Kutsor as the new Chief Financial Officer, effective shortly after the filing of its annual report for fiscal year 2024. Kutsor, who previously served as CFO at Kin + Carta Plc, brings a wealth of experience in driving financial strategy for high-growth technology companies. Additionally, the company has announced its participation in the Cowen Technology Conference on May 29, 2025, where CEO John Kedzierski and CFO Chris Kutsor will represent Evolv. This event underscores Evolv's commitment to engaging with investors and industry partners. Moreover, Evolv has expanded its partnership with the San Francisco Giants, upgrading their security systems to the latest Gen2 units for the 2025 season, demonstrating Evolv's ongoing innovation and influence within the sports industry.
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