Evolv Technologies 2025 Q3 Earnings 94.1% Net Loss Reduction Beats Expectations

Evolv Technologies (EVLV) delivered a standout quarter, with revenue soaring 56.6% to $42.85 million and guidance raised for 2025. The company narrowed its net loss by 94.1% to $1.80 million, while raising full-year revenue expectations to $142–145 million.

Revenue

Driven by strong new customer acquisition and expanded deployments, Evolv’s total revenue surged to $42.85 million in Q3 2025. Product revenue accounted for $9.24 million, while subscription revenue led with $22.68 million. Service revenue contributed $7.81 million, and license fees and other revenue rounded out the total at $3.12 million. The company’s largest customer contract and shift to recurring ARR models bolstered these results.

Earnings/Net Income

Evolv reduced its net loss to $1.80 million in Q3 2025, a 94.1% improvement from $30.44 million in 2024. Earnings per share (EPS) narrowed to a loss of $0.01, up from $0.19, reflecting disciplined cost management and operational efficiency. Despite ongoing losses over five years, the company’s progress highlights a positive trajectory.

Post-Earnings Price Action Review

Evolv’s shares edged down 1.05% in the latest trading day, with a 4.22% weekly decline and a 20.72% month-to-date drop. Post-earnings, the stock gained 15.50% in after-hours trading, buoyed by revenue beating estimates by $9.17 million and EPS exceeding expectations. However, sustained losses and short-term margin pressures from the direct fulfillment model may weigh on investor sentiment.

CEO Commentary

CEO John Kedzierski emphasized a 57% YoY revenue growth, driven by the company’s largest customer contract and a direct distribution model capturing 100% of ARPU. He highlighted 2026 as an inflection point for ARR growth and underscored strategic partnerships like Plexus to enhance production capacity and operational resiliency.

Guidance

Evolv raised 2025 revenue guidance to $142–145 million (37–40% growth) and expects $160–165 million in 2026. Adjusted EBITDA margins are projected in the high single digits for 2025, with cash flow turning positive in Q4 2025.

Additional News

1. Strategic Partnership: Evolv partnered with Plexus to expand production capacity and global reach, enhancing operational resiliency.

2. Product Innovation: Launched Evolv Express 9.0 and Expedite 1.2, featuring AI-driven enhancements for security operations.

3. Distribution Shift: Transitioned to a direct fulfillment model, capturing 100% of ARPU and shifting revenue to recurring ARR, with 2026 as a key growth year.

Evolv’s strategic shift to direct fulfillment and AI-driven product innovations position it for long-term growth, despite near-term margin challenges. The company’s focus on operational efficiency and recurring revenue models aligns with industry trends, while partnerships like Plexus could accelerate scalability. Investors will watch 2026’s ARR growth and cash flow milestones closely.