Evolv Technologies Holdings (EVLV) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: N/A
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.10
• Revenue Growth: 41.61%
• EPS Growth: -1.76%
• Country: US
• Employees: 287
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.02
• Shares Outstanding: 174,617,580
• 10 Day Avg. Volume: 2,080,868
• 30 Day Avg. Volume: 2,554,238
• PEG Ratio: 0.22
• Price to Book (P/B): 5.26
• Price to Sales (P/S): 5.95
• P/FCF Ratio: -9.07
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 9.46
• Enterprise Value/Gross Profit: 17.58
• Enterprise Value/Ebitda: -36.19
• 1Y Price Target: $9.83
• Price Target Upside: 57.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.05
• Revenue Forecast (FY): $164.70M

• Rating: 48 Neutral
• Price Target: $6.00 ▼(-3.85% Downside)

Evolv Technologies Holdings' overall stock score is primarily influenced by its financial performance challenges, including profitability and cash flow issues. While the earnings call provided positive insights into revenue growth and strategic partnerships, technical analysis indicates a bearish trend, and valuation metrics reflect ongoing financial difficulties.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion and stability.

Strategic Partnerships

The partnership with Plexus enhances production capacity and global reach, strengthening operational resilience and market competitiveness.

Recurring Revenue Model

A strong ARR growth supports a stable and predictable revenue stream, crucial for long-term financial health and investment in innovation.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment and growth, necessitating operational improvements to achieve sustainable financial performance.

Adjusted Gross Margin Decline

Declining margins may indicate cost pressures or inefficiencies, impacting long-term profitability unless addressed through strategic cost management.

One-Time Revenue Contributions

Reliance on one-time revenue sources can create volatility in financial performance, underscoring the need for consistent revenue streams.

Evolv Technologies Holdings Business Overview & Revenue Model

Company Description

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based touchless security screening systems. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives as visitors walk through at a normal pace; Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics; and Evolv Edge to detect non-metallic explosive devices, explosive devices, firearms, and tactical knives without requiring visitors to divest or empty their pockets. The company is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Evolv Technologies generates revenue primarily through the sale and subscription of its security screening technology, particularly the Evolv Express system. The company offers its solutions on a subscription basis, which provides recurring revenue over time as clients pay for the software and hardware integration. Additionally, Evolv may earn revenue from service agreements, maintenance, and upgrades for its installed systems. Significant partnerships with large venues and organizations further enhance its revenue potential, as these collaborations often involve multi-year contracts and the scaling of its technology across various locations, increasing the overall market presence and income stream.

Evolv Technologies Holdings Financial Statement Overview

Summary

Evolv Technologies Holdings is experiencing strong revenue growth, but profitability and cash flow remain significant challenges. The company maintains a low leverage position, which is a positive aspect of its financial health. However, the ongoing net losses and cash flow issues highlight the need for improved operational efficiency and cost management to achieve sustainable profitability.

Income Statement

Evolv Technologies Holdings has shown a positive revenue growth rate of 12.8% in the TTM, indicating a strong top-line growth trajectory. However, the company is struggling with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin is relatively healthy at 53.78%, but the consistent net losses highlight ongoing challenges in achieving operational efficiency.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.14, suggesting a conservative leverage position. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is not explicitly calculated, but the overall financial stability is moderate given the low leverage.

Cash Flow

Evolv Technologies Holdings has a negative free cash flow, although it has improved by 25.93% in the TTM. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is negative, further emphasizing cash flow difficulties despite some improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.50M	103.86M	80.42M	52.72M	23.39M	4.79M
Gross Profit	73.42M	59.29M	33.83M	1.40M	4.03M	1.29M
EBITDA	-35.66M	-36.64M	-95.62M	-80.64M	-1.93M	-25.90M
Net Income	-59.74M	-54.02M	-106.25M	-86.80M	-10.89M	-27.39M
Balance Sheet
Total Assets	304.29M	268.06M	298.72M	348.12M	362.86M	21.36M
Cash, Cash Equivalents and Short-Term Investments	56.23M	51.94M	118.82M	230.12M	307.70M	4.70M
Total Debt	42.40M	25.64M	1.39M	31.69M	9.95M	16.79M
Total Liabilities	202.05M	150.41M	152.40M	121.13M	72.58M	30.16M
Stockholders Equity	102.24M	117.65M	146.32M	226.99M	290.27M	-8.81M
Cash Flow
Free Cash Flow	-34.02M	-68.17M	-82.47M	-98.92M	-74.37M	-29.86M
Operating Cash Flow	6.30M	-30.85M	-9.80M	-74.74M	-56.78M	-23.25M
Investing Cash Flow	-56.48M	-1.40M	-123.11M	-23.87M	-17.59M	-6.61M
Financing Cash Flow	35.38M	1.81M	-29.66M	20.51M	377.83M	17.23M

Evolv Technologies Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVLV, the sentiment is Negative. The current price of 6.24 is below the 20-day moving average (MA) of 6.92, below the 50-day MA of 6.69, and below the 200-day MA of 6.41, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 37.67 is Neutral, neither overbought nor oversold. The STOCH value of 7.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVLV.

Evolv Technologies Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	80 Outperform	$1.41B	32.18	25.03%	1.29%	-2.28%	-9.94%
SNT	67 Neutral	$100.77M	―	―	―	―	―
MG	66 Neutral	$451.77M	25.34	8.42%	―	-3.20%	60.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARLO	59 Neutral	$1.48B	400.28	3.80%	―	-2.83%	―
EVLV	48 Neutral	$1.11B	-17.09	-51.67%	―	41.61%	-1.76%
KSCP	41 Neutral	$51.21M	-0.65	-164.48%	―	5.50%	51.32%