Evolv Technologies Soars 12.26% on Restated Earnings

On April 29, 2025, Evolv Technologies surged 12.26% in pre-market trading, marking a significant rise in its stock price.

Evolv Technologies recently completed the restatement of its previously issued financial statements, addressing inaccuracies in accounting for certain sales transactions that led to premature or incorrect revenue recognition. This move is part of the company's efforts to regain compliance with SEC reporting and Nasdaq listing requirements, aiming to rebuild stakeholder confidence.

The company reported its financial results for the fourth quarter and full year of 2024, highlighting significant revenue growth and achieving positive adjusted EBITDA. In Q4 2024, Evolv Technologies reported a revenue of $29.1 million, surpassing analyst estimates and reflecting a 41% increase from the previous year. The company's annual recurring revenue (ARR) reached $99.4 million, up 39% year-over-year. Despite these achievements, the company faced a net loss of $(15.7) million, or $(0.10) per share, which was an improvement from the $(17.2) million loss in the same quarter of 2023.

Evolv Technologies' positive adjusted EBITDA of $0.4 million in Q4 2024 is a significant achievement, indicating the company's progress towards profitability. This is particularly important in the business services industry, where consistent revenue growth and profitability are key indicators of financial health and operational efficiency.

For the full year 2024, Evolv Technologies reported a total revenue of $103.9 million, exceeding the estimated revenue of $101.69 million, a 31% increase from $79.6 million in 2023. The net loss for the year was $(54.0) million, or $(0.34) per share, compared to $(108.0) million, or $(0.72) per share, in 2023. The company's adjusted earnings for the year were $(35.3) million, or $(0.23) per share, showing improvement from $(56.0) million, or $(0.38) per share, in the previous year.