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Evolv Technologies Holdings (EVLV)
NASDAQ:EVLV
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Evolv Technologies Holdings
(NASDAQ:EVLV)
Rating:58Neutral
Price Target:
$5.50
▲(6.38%Upside)
Positive Factors
Customer Growth
Key metrics showed positive momentum with 84 new customers, marking the highest customer addition since 4Q22.
Product Innovation
Evolv launched a new bag screening product that detects concealed weapons in baggage, enhancing security measures for various venues.
Negative Factors
Revenue Forecast
With the launch of the new bag screening product not expected until Q4, no forecast contribution to revenue or ARR is anticipated in 2024.
Evolv Technologies Holdings (EVLV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$847.86M
Dividend YieldN/A
Average Volume (3M)3.93M
Price to Earnings (P/E)―
Beta (1Y)2.25
Revenue Growth36.53%
EPS Growth52.99%
CountryUS
Employees287
SectorIndustrials
Sector Strength85
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding163,996,260
10 Day Avg. Volume2,403,275
30 Day Avg. Volume3,929,707
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)4.81
Price to Sales (P/S)0.00
P/FCF Ratio-8.54
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit10.86
Enterprise Value/Ebitda-4.34
Forecast
1Y Price Target
$7.08Price Target Upside36.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Evolv Technologies Holdings Business Overview & Revenue Model
Company DescriptionEvolv 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 MoneyEvolv Technologies generates revenue primarily through the sale and leasing of its security screening systems, as well as through associated software and maintenance services. The company offers its Evolv Express platform on a subscription basis, allowing clients to pay for the service over time, which provides a recurring revenue model. Additionally, Evolv may engage in strategic partnerships with other technology and security firms to expand its market reach and enhance its product offerings. Key revenue streams include equipment sales, recurring subscription fees, and service contracts for ongoing support and software updates.
Evolv Technologies Holdings Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 24.28%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
Evolv Technology demonstrated strong revenue growth and positive adjusted EBITDA while successfully retaining and expanding its customer base. However, challenges with SEC compliance, cash position decline, and reliance on one-time revenue impacts were noted. The company's strategic initiatives, such as new product launches and market expansions, indicate a positive outlook.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue in the first quarter was $32 million, up 10% sequentially and 44% year-over-year. Annual recurring revenue (ARR) grew 34% year-over-year to $106 million at the end of Q1 2025.
Positive Adjusted EBITDA
Adjusted EBITDA for Q1 2025 increased to $1.7 million, with an adjusted EBITDA margin of 5%.
Successful Customer Retention and Expansion
Following the resolution of the FTC matter, 92% of the eligible education customers retained their service, and 50% of units and ARR booked in Q1 came from existing customers.
Introduction of New Programs and Products
Launched the certified pre-owned (CPO) program and eXpedite, an autonomous bag screening solution, securing 12 new customers for eXpedite.
Significant Impact in Education and Healthcare
Evolv Express is now deployed in 20 of the 100 largest US school districts and 500 hospital buildings, significantly enhancing safety.
Negative Updates
Challenges with SEC Compliance and Restatement
The company resolved an FTC inquiry and completed a restatement that shifted $3.1 million in revenue to future periods.
Cash Position Decline
Ended the quarter with $35 million in cash, down from $52 million at the end of Q4 2024, due to one-time cash disbursements and restructuring costs.
One-Time Revenue Impacts
Approximately $1 million of Q1 revenue came from one-time favorable impacts, including $800,000 from a Q4 2024 product order.
Company Guidance
During the Evolv Technology First Quarter Earnings Result Conference Call for 2025, the company provided guidance reflecting optimism for the year ahead. They expect to achieve revenue growth of 20% to 25% in 2025, equating to $125 million to $130 million, with a significant portion already secured through their annual recurring revenue (ARR) base, which stood at $106 million at the end of Q1 2025, up 34% year-over-year. Additionally, they reported a Q1 revenue of $32 million, marking a 44% increase from the previous year, and an adjusted EBITDA of $1.7 million, with a margin of 5%. The company aims to maintain positive adjusted EBITDA for the full year and anticipates being cash flow positive by the end of 2025. Evolv highlighted a robust subscription model with a total of approximately 8,000 units expected to be deployed by year-end, emphasizing strong customer retention and expansion, particularly within their existing customer base. They also noted a shift towards more pure subscription deals, which, while impacting upfront revenue, enhances long-term visibility and profitability.Evolv Technologies Holdings Financial Statement Overview
Summary
Evolv Technologies shows promising revenue growth but faces significant financial challenges, including persistent profitability issues and negative cash flows. The balance sheet is strong with low leverage, but operational improvements are critical for long-term viability.Income Statement
Evolv Technologies has shown substantial revenue growth, with a 29.17% increase from 2023 to 2024. However, the company continues to face significant profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin improved to 57.07% in 2024, reflecting operational improvements, yet the overall negative net income remains a concern.45
Neutral
Balance Sheet
The balance sheet displays a solid equity position with a debt-to-equity ratio of 0.05 in 2024, indicating low leverage. However, the company continues to operate at a loss with negative net income, impacting equity growth. The equity ratio of 65.20% suggests a robust asset base funded by equity. Despite these positives, continued operational losses pose a risk to financial stability.50
Neutral
Cash Flow
Cash flow analysis reveals challenges, with negative free cash flow of -$62.04 million in 2024. Operating cash flow remains negative, indicating ongoing operational cash burn. While cash and short-term investments increased significantly, primarily from financing activities, sustainability remains a concern as free cash flow has not improved. The free cash flow to net income ratio is unfavorable, highlighting ongoing cash management issues.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 103.86M | 80.42M | 55.20M | 23.69M | 4.79M | Gross Profit |
| 59.29M | 33.83M | 1.73M | 6.64M | 1.29M | EBIT |
| -82.31M | -88.26M | -101.17M | -52.19M | -26.90M | EBITDA |
| -36.64M | -95.62M | -68.94M | -1.93M | -25.90M | Net Income Common Stockholders |
| -54.02M | -106.25M | -42.98M | -23.98M | -27.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 51.94M | 118.82M | 229.78M | 307.49M | 4.70M | Total Assets |
| 268.06M | 298.72M | 348.34M | 363.06M | 21.36M | Total Debt |
| 14.53M | 1.39M | 31.69M | 9.95M | 16.66M | Net Debt |
| -22.49M | -65.77M | -198.09M | -297.55M | 11.96M | Total Liabilities |
| 150.41M | 152.40M | 121.13M | 72.23M | 106.04M | Stockholders Equity |
| 117.65M | 146.32M | 227.21M | 290.84M | -84.69M |
| Cash Flow | Free Cash Flow | |||
| -62.04M | -82.47M | -98.92M | -74.37M | -29.86M | Operating Cash Flow |
| -30.85M | -9.80M | -74.73M | -69.28M | -23.25M | Investing Cash Flow |
| -1.40M | -123.11M | -23.88M | -5.08M | -6.61M | Financing Cash Flow |
| 1.81M | -29.66M | 20.51M | 377.83M | 17.23M |
Evolv Technologies Holdings Technical Analysis
Positive
5.17
Price Trends
4.49
Positive
4.01
Positive
3.81
Positive
Market Momentum
0.18
Positive
51.48
Neutral
14.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVLV, the sentiment is Positive. The current price of 5.17 is below the 20-day moving average (MA) of 5.51, above the 50-day MA of 4.49, and above the 200-day MA of 3.81, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 14.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVLV.
Evolv Technologies Holdings Risk Analysis
Evolv Technologies Holdings disclosed 51 risk factors in its most recent earnings report. Evolv Technologies Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Evolv Technologies Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.02B | 23.21 | 27.48% | 2.03% | -1.05% | -2.78% | |
74 Outperform | $96.11M | 65.29 | -3.47% | ― | ― | ― | |
73 Outperform | $1.78B | ― | -21.34% | ― | 0.27% | -18.75% | |
66 Neutral | $4.50B | 12.26 | 5.40% | 3.65% | 4.17% | -12.02% | |
58 Neutral | $847.86M | ― | -33.80% | ― | 36.53% | 52.99% | |
54 Neutral | $7.05M | ― | -26.63% | ― | 5.57% | -449.87% | |
52 Neutral | $40.23M | ― | -243.06% | ― | -5.64% | 35.09% |
* Industrials Sector Average
Performance Comparison
EVLV
Evolv Technologies Holdings
5.23
2.97
131.42%
SNT
Senstar Technologies
4.10
2.23
119.25%
NSSC
Napco Security Technologies
28.51
-22.99
-44.64%
UUU
Universal Security Instruments
3.05
1.45
90.62%
ARLO
Arlo Technologies
17.23
4.32
33.46%
KSCP
Knightscope Inc Class A
5.38
-7.50
-58.23%
Evolv Technologies Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Evolv Technologies Appoints New Chief Financial Officer
Positive
Apr 23, 2025
On April 23, 2025, Evolv Technologies Holdings announced the appointment of Chris Kutsor as the new Chief Financial Officer, effective after the filing of their 2024 annual report. Kutsor, with extensive experience in financial leadership roles, is expected to drive financial strategy and operational excellence as the company enters a new growth phase.
Delistings and Listing ChangesRegulatory Filings and Compliance
Evolv Technologies Faces Nasdaq Compliance Notification
Negative
Apr 22, 2025
On April 16, 2025, Evolv Technologies Holdings received a notification from Nasdaq regarding non-compliance with listing rules due to delayed filing of its 2024 Annual Report, primarily caused by an internal investigation into sales practices. The company has until May 1, 2025, to update its compliance plan and expects to meet all SEC filing requirements by May 19, 2025. This notification does not immediately affect the company’s Nasdaq-listed securities, and Evolv is working with AlixPartners LLP to resolve the issue.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.