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- **Revenue Surge**: Q3 2025 revenue up 57% YoY to $42.9 million, driven by largest contract in company history and direct fulfillment model shift.
- **ARR Inflection**: ARR hits $117.2 million (+25% YoY), with 2026 ARR growth expected to outpace total revenue.
- **eXpedite Success**: New bag scanner added 12 customers in Q3, achieving 2% alert rate and 11/12 cross-sells with Express.
- **Financial Health**: Positive Q3 EBITDA ($5.1M, 12% margin), with full-year 2025 revenue guidance raised to $142-145 million.
- **2026 Vision**: $160-165 million revenue, >20% ARR growth, and strategic deferral of $5-10 million to build recurring streams.

**CEO Summary Section**
- **Revenue Growth**: Q3 2025 revenue of $42.9 million, up 57% YoY, driven by new customer wins (including the largest contract in company history) and expanded deployments. Excluding one-time benefits, normalized growth is ~30% YoY.
- **ARR Expansion**: Annual Recurring Revenue (ARR) reached $117.2 million, +25% YoY, with 2026 expected to mark an inflection point where ARR growth outpaces total revenue growth.
- **Product Momentum**: eXpedite, the autonomous bag screening solution, added 12 new customers in Q3, primarily in education. Early data shows a 2% alert rate, enhancing security efficiency.
- **Strategic Shifts**: Transition from legacy distribution to direct fulfillment model, capturing 100% of ARPU over 4-year subscriptions. This shift defers ~$5-10 million in 2026 revenue but creates long-term recurring streams.
- **Partnership**: New manufacturing partnership with Plexus to scale production and reduce costs over time.

**CFO Financial Commentary**
- **Financial Performance**: Q3 2025 adjusted EBITDA of $5.1 million (12% margin), up from -$3 million in Q3 2024. Full-year 2025 guidance updated to $142-145 million revenue (+37-40% YoY), with EBITDA margins in high single digits.
- **Gross Margin Dynamics**: Q3 gross margin 51%, down from 64% YoY due to direct fulfillment costs and eXpedite ramp-up. Expect 52-54% 2025 gross margin range.
- **Cash Flow**: Sequential cash increase to $56 million, driven by improved collections and a new credit facility.
- **2026 Outlook**: Revenue $160-165 million, ARR growth >20%, with focus on reducing one-time revenue and expanding recurring streams.

**Q&A Key Highlights**
- **Onetime Revenue Impact**: Largest contract contributed $3 million in Q3, with $5+ million expected for 2025. Legacy IP licenses (~$10 million 2025) will decline post-2025.
- **eXpedite Adoption**: 11/12 new eXpedite customers also purchased Express, with strong traction in education (12 new districts) and sports (Carolina Panthers, Buffalo Sabres).
- **Manufacturing Efficiency**: Plexus partnership to reduce COGS over time; eXpedite gross margin expected to improve in 2026.
- **Pipeline Strength**: >50% of bookings from existing customers, with healthy pipeline supporting 2026 unit growth targets.

Evolv Technologies Holdings, Inc. (EVLV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EVLV

EVLV fundamentals

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