Evolv Technologies Exceeds Q2 2025 Revenue Estimates, Reports $32.5M Revenue and $(0.25) EPS Miss

Evolv Technologies reported Q2 2025 revenue of $32.5 million, exceeding estimates, and a net loss of $40.5 million, missing expectations. The company's revenue increased 29% YoY, driven by demand for its AI-based security solutions. Evolv Technologies operates under a security-as-a-service subscription model and projects total revenues between $132 to $135 million for 2025, reflecting a growth rate of 27% to 30%.

Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) announced its second-quarter 2025 financial results, highlighting significant revenue growth and a net loss. The company reported revenue of $32.5 million for the quarter, a 29% increase year-over-year (YoY), exceeding analyst estimates. However, the company also reported a net loss of $40.5 million, which was higher than expected.

The company's Annual Recurring Revenue (ARR) at the end of Q2 2025 was $110.5 million, a 27% increase YoY. This growth was driven by strong demand for the company's AI-based security solutions, which are designed to create safer experiences in various venues and public spaces.

Evolv Technologies operates under a security-as-a-service subscription model, which has contributed to its revenue growth. The company projects total revenues between $132 to $135 million for 2025, reflecting a growth rate of 27% to 30%. This growth is expected to be driven by continued customer acquisition and expansion, as well as improved operational efficiency.

Despite the strong revenue growth, the company's net loss was higher than expected. This can be attributed to increased operating expenses and non-recurring costs. However, the company expects to deliver positive full-year Adjusted EBITDA in 2025, with Adjusted EBITDA margins in the mid-single digits.

Evolv Technologies has been recognized for its innovative AI-based security solutions, having received several awards, including the U.S. Department of Homeland Security (DHS) SAFETY Act Designation and the Security Industry Association (SIA) 2024 New Products and Solutions (NPS) Award. The company's mission is to transform security to create a safer world, and its advanced systems have scanned more than three billion people since 2019.

In conclusion, while Evolv Technologies reported a net loss in Q2 2025, the company's strong revenue growth and projections for 2025 indicate a promising future. The company's focus on operational efficiency and continued customer acquisition is expected to drive improved profitability and cash flow.

References:
[1] https://ir.evolvtechnology.com/news/press-releases/detail/241/evolv-technology-reports-second-quarter-financial-results