Evolv Technology Raises 2025 Revenue Growth Outlook to 27%-30%, Advances Direct Fulfillment Strategy.

Evolv Technology has raised its 2025 revenue growth outlook to 27%-30%. The company has also announced that it is no longer under investigation by the DOJ and has reached a settlement in principle for a securities class action lawsuit. This development is seen as a positive step for the company as it focuses on its direct fulfillment strategy.

Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) has announced an upward revision to its 2025 revenue growth outlook, projecting growth of 27% to 30% [1]. The company also reported that it has reached a settlement in principle for a securities class action lawsuit and is no longer under investigation by the Department of Justice (DOJ). These developments are seen as positive steps for the company as it focuses on its direct fulfillment strategy.

In its latest financial results, Evolv reported a 29% year-over-year increase in revenue for the second quarter of 2025, reaching $32.5 million. The company's Annual Recurring Revenue (ARR) at the end of the second quarter was $110.5 million, up 27% compared to the same period last year [1]. Despite these gains, Evolv reported a net loss of $40.5 million for the quarter, reflecting the company's continued investment in growth and expansion.

Evolv's management expressed optimism about the company's prospects, particularly in the AI-based security screening market. The company expects to deliver positive full-year Adjusted EBITDA in 2025 and become cash flow positive in the fourth quarter of the year [1]. The revised revenue growth outlook is based on the company's current business indications, which may change.

The company's resolution of the DOJ investigation and the securities class action lawsuit is seen as a significant milestone. Evolv's direct fulfillment strategy focuses on delivering its advanced security screening solutions directly to customers, bypassing traditional distribution channels. This approach allows the company to maintain greater control over its sales and marketing efforts, potentially leading to improved operational efficiency and profitability.

Evolv's financial results and outlook underscore its commitment to innovation and growth in the security technology sector. As the company continues to invest in its technology and expand its customer base, it remains a key player in the AI-based security screening market.

References:
[1] https://www.stocktitan.net/news/EVLV/evolv-technology-reports-second-quarter-financial-9z2m0gwfrfpe.html