Evolv Technologies Holdings (EVLV) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: 36.53%
• EPS Growth: 52.99%
• Country: US
• Employees: 287
• Sector: Industrials
• Sector Strength: 84
• Industry: Security & Protection Services
• EPS (TTM): -0.02
• Shares Outstanding: 163,996,260
• 10 Day Avg. Volume: 2,860,536
• 30 Day Avg. Volume: 2,535,583
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 8.18
• Enterprise Value/Ebitda: -15.95
• 1Y Price Target: $7.25
• Price Target Upside: 1.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: $7.00 ▼(-2.10% Downside)

The overall stock score reflects a balance between strong technical momentum and significant financial challenges. The appointment of a new CFO is a strategic positive, but profitability issues and negative cash flows remain major concerns. Technical strength provides short-term optimism, but long-term sustainability depends on resolving financial weaknesses.

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 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 Holdings generates revenue through the sale and leasing of its security screening systems and related services. The company offers a combination of direct sales and subscription-based models, where clients can pay for the hardware upfront or opt for a subscription service that includes equipment, software updates, and maintenance. In addition to hardware sales, Evolv also monetizes its technology through licensing agreements and partnerships with security service providers. These partnerships often involve integrating Evolv's technology into broader security solutions offered by partners. The company's earnings are bolstered by its focus on innovation and the increasing demand for efficient, non-invasive security measures in various public and private sectors.

Evolv Technologies Holdings Financial Statement Overview

Summary

Evolv Technologies has demonstrated strong revenue growth, but persistent profitability challenges, negative cash flows, and operational losses pose significant financial hurdles. The balance sheet is solid with low leverage, yet operational improvements are vital for long-term stability.

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.

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.

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.

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
EBITDA	-36.64M	-95.62M	-68.94M	-1.93M	-25.90M
Net Income	-54.02M	-106.25M	-42.98M	-23.98M	-27.82M
Balance Sheet
Total Assets	268.06M	298.72M	348.34M	363.06M	21.36M
Cash, Cash Equivalents and Short-Term Investments	51.94M	118.82M	229.78M	307.49M	4.70M
Total Debt	14.53M	1.39M	31.69M	9.95M	16.66M
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

• Technical Analysis Sentiment: Positive
• Last Price: 7.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 7.15 is above the 20-day moving average (MA) of 6.31, above the 50-day MA of 5.92, and above the 200-day MA of 4.17, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 71.32 is Negative, neither overbought nor oversold. The STOCH value of 85.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVLV.

Evolv Technologies Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	79 Outperform	$1.09B	24.80	27.48%	1.69%	-1.05%	-2.78%
SNT	79 Outperform	$99.60M	65.29	-3.47%	―	―	―
ARLO	73 Outperform	$1.66B	―	-21.34%	―	0.27%	-18.75%
EVLV	60 Neutral	$1.17B	―	-33.80%	―	36.53%	52.99%
Sector *	58 Neutral	HK$13.20B	4.34	-2.94%	5.79%	3.03%	-49.30%
KSCP	55 Neutral	$50.20M	―	-243.06%	―	-5.64%	35.09%
UUU	54 Neutral	$7.69M	15.34	9.89%	―	5.57%	-449.87%

Evolv Technologies Holdings Corporate Events

Evolv Technologies Updates Shelf Registration Statement

On July 1, 2025, Evolv Technologies Holdings, Inc. filed a post-effective amendment with the Securities and Exchange Commission to update its existing shelf registration statement. This procedural move was necessary due to a recent restatement that rendered the previous registration on Form S-3 ineffective, prompting a change to Form S-1 without registering additional securities.

The most recent analyst rating on (EVLV) stock is a Buy with a $5.75 price target. To see the full list of analyst forecasts on Evolv Technologies Holdings stock, see the EVLV Stock Forecast page.

Evolv Technologies Holds Annual Stockholders Meeting

On June 20, 2025, Evolv Technologies Holdings, Inc. held its annual meeting of stockholders, where 72.41% of the company’s Class A common stock was represented. During the meeting, Kevin Charlton, John Kedzierski, Kimberly Sheehy, and Bilal Zuberi were elected as Class I directors, and the compensation of the company’s named executive officers was approved. Additionally, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (EVLV) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Evolv Technologies Holdings stock, see the EVLV Stock Forecast page.