Evolv Technologies Holdings (EVLV) AI Stock Analysis

• Market Cap: $953.41M
• Dividend Yield: N/A
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• 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: 2,894,316
• 30 Day Avg. Volume: 2,503,377
• 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: 0.91
• Enterprise Value/Revenue: 6.35
• Enterprise Value/Gross Profit: 11.80
• Enterprise Value/Ebitda: -24.30
• 1Y Price Target: $9.83
• Price Target Upside: 100.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $5.50 ▲(12.24% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

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

Robust revenue growth and guidance

Sustained high revenue growth (57% YoY in the quarter) and forward guidance for mid-to-high double digit top-line expansion signal scalable demand and execution. Over 2-6 months this supports capacity planning, partnerships, and reinvestment to drive further market penetration and adoption.

Recurring revenue and sizable RPO backlog

A growing ARR base ($117.2M) and near-$300M remaining performance obligation provide durable revenue visibility and cash flow predictability. This recurring model supports customer retention, upsell opportunities, and multi-year contract economics that strengthen long-term revenue stability.

Conservative capital structure

Very low leverage gives the company financial flexibility to invest in product development, expand production agreements, and weather operating losses without heavy interest burden. A conservative balance sheet reduces refinancing risk and supports strategic choices over the medium term.

Negative Factors

Negative profitability and cash flow

Despite top-line gains, persistent net losses and negative free cash flow constrain the firm's ability to self-fund growth and invest in operations. Over months this increases the likelihood of external capital raises, which can dilute shareholders and divert management focus from execution.

Material gross margin deterioration

A large decline in adjusted gross margin (64% to 51%) driven by distribution shifts and new product costs weakens unit economics. If structural, margin erosion reduces operating leverage, slows progress to sustained profitability, and requires corrective pricing, cost or supply-chain actions.

Revenue quality concerns (one-time items; ARR lag)

Meaningful one-time revenue items and ARR growth trailing overall revenue indicate some sales are not recurring. This reduces revenue predictability and suggests that headline growth may overstate sustainable demand, complicating forecasting and the path to durable margin expansion.

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 shows positive revenue growth but struggles with profitability, as indicated by negative net profit margins and cash flow challenges. The low debt-to-equity ratio is a positive aspect, but negative returns on equity highlight the need for improved operational efficiency.

Income Statement

Evolv Technologies Holdings has shown a positive revenue growth rate of 12.8% in the TTM, indicating an upward trajectory in sales. However, the company struggles with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin is relatively strong at 53.78%, but the company needs to address its operational inefficiencies to improve overall profitability.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.14, suggesting limited leverage and a conservative capital structure. However, the return on equity is negative, reflecting ongoing losses and challenges in generating shareholder value. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Evolv Technologies Holdings has improved its free cash flow growth by 38.6% in the TTM, yet it remains negative, indicating cash flow challenges. The operating cash flow to net income ratio is low, suggesting limited cash generation from operations. The company needs to enhance its cash flow management to support sustainable growth.

Breakdown	TTM	Mar 2025	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: 4.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 4.9 is below the 20-day moving average (MA) of 5.73, below the 50-day MA of 6.39, and below the 200-day MA of 6.68, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 27.64 is Positive, neither overbought nor oversold. The STOCH value of 12.42 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	78 Outperform	$1.55B	32.96	26.42%	1.29%	-2.28%	-9.94%
SNT	67 Neutral	$93.31M	―	―	―	―	―
MG	66 Neutral	$458.71M	26.01	8.42%	―	-3.20%	60.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARLO	59 Neutral	$1.22B	330.11	3.80%	―	-2.83%	―
EVLV	48 Neutral	$953.41M	-14.87	-51.67%	―	41.61%	-1.76%
KSCP	41 Neutral	$46.04M	-0.60	-164.48%	―	5.50%	51.32%