Evolv Technologies Holdings (EVLV) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: N/A
• Average Volume (3M): 2.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• 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: 3,825,401
• 30 Day Avg. Volume: 2,805,579
• 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: 1.24
• Enterprise Value/Revenue: 9.46
• Enterprise Value/Gross Profit: 17.58
• Enterprise Value/Ebitda: -36.19
• 1Y Price Target: $9.50
• Price Target Upside: 59.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $6.00 ▲(1.01% Upside)

Evolv Technologies Holdings shows strong revenue growth and strategic advancements, but significant challenges remain in profitability and cash flow. The technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividends. Despite positive guidance and strategic partnerships, the stock's financial and technical weaknesses weigh heavily on its overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Evolv's solutions, enhancing its market position and supporting long-term business expansion.

Strategic Partnerships

The partnership with Plexus is expected to expand production capacity and global reach, supporting operational resiliency and long-term growth.

Recurring Revenue Model

A growing ARR base provides a stable and predictable revenue stream, enhancing financial stability and supporting sustainable business growth.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may limit reinvestment capabilities and impact long-term financial health, necessitating strategic cost management.

Adjusted Gross Margin Decline

Declining gross margins could pressure profitability, indicating potential cost management issues or pricing pressures that need addressing.

One-Time Revenue Contributions

Dependence on one-time revenues can mask underlying performance and may not be sustainable, impacting future revenue consistency.

Evolv Technologies Holdings Business Overview & Revenue Model

Company Description

Evolv Technologies Holdings (EVLV) is a leading provider of advanced security screening solutions that leverage artificial intelligence and machine learning technologies. The company operates primarily in the security and safety sector, focusing on enhancing the efficiency and effectiveness of security processes in various environments, including airports, stadiums, and corporate facilities. Evolv's core products include its Evolv Express system, which allows for touchless security screening without the need for traditional metal detectors, thereby improving the flow of people while maintaining high security standards.

How the Company Makes Money

Evolv Technologies generates revenue through the sale and deployment of its security screening systems, which can be customized for specific client needs. The company offers its solutions on a subscription basis, providing ongoing software updates and support services, which creates a recurring revenue stream. Additional revenue is generated through partnerships with security service providers and system integrators, who can incorporate Evolv's technology into their offerings. Key revenue drivers include sales from large-scale installations at high-traffic venues and ongoing service agreements for maintenance and updates. The company also benefits from strategic alliances with industry stakeholders that enhance its market reach and credibility.

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: Neutral
• Last Price: 5.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVLV, the sentiment is Neutral. The current price of 5.94 is below the 20-day moving average (MA) of 6.81, below the 50-day MA of 7.52, and above the 200-day MA of 5.80, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 38.52 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVLV.

Evolv Technologies Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	77 Outperform	$1.38B	31.40	25.03%	1.30%	-2.28%	-9.94%
MG	67 Neutral	$368.80M	20.49	8.42%	―	-3.20%	60.03%
SNT	65 Neutral	$112.43M	―	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARLO	59 Neutral	$1.44B	385.80	3.80%	―	-2.83%	―
EVLV	45 Neutral	$1.04B	―	-51.67%	―	41.61%	-1.76%
KSCP	41 Neutral	$54.09M	―	-164.48%	―	5.50%	51.32%

Evolv Technologies Holdings Corporate Events

Evolv Technologies Reports Strong Q3 2025 Growth

Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) is a security technology company that specializes in AI-powered screening and analytics solutions for enhancing safety in various public and private venues. The company has recently released its third-quarter financial results for 2025, showcasing significant growth in revenue and improvements in profitability metrics.

Evolv Technologies Q2 Earnings Call Highlights Growth

Evolv Technologies Holdings, Inc. recently held its earnings call, revealing a generally positive sentiment driven by strong performance across key financial metrics. The company reported notable revenue growth, an increase in annual recurring revenue (ARR), and a third consecutive quarter of positive adjusted EBITDA. Despite a slight decline in gross margin due to strategic shifts, the overall outlook remains optimistic, buoyed by significant customer acquisition and resolution of legal issues.

Evolv Technology Reports Strong Revenue Growth Amid Losses

Evolv Technologies Holdings, Inc. is a leading security technology company that specializes in AI-powered screening and analytics solutions, aiming to enhance safety in public spaces and iconic venues. In its latest earnings report, Evolv Technology announced a significant revenue increase for the second quarter of 2025, reaching $32.5 million, marking a 29% growth year-over-year. The company also reported an Annual Recurring Revenue (ARR) of $110.5 million, a 27% increase from the previous year. Despite these gains, Evolv Technology posted a net loss of $40.5 million for the quarter, with a net profit margin of -125%. However, the company achieved a positive Adjusted EBITDA of $2.0 million, reflecting a 6% margin, and improved cash flow from operations, which stood at $2.1 million compared to a negative cash flow in the same quarter last year. The company has raised its revenue growth outlook for 2025 to 27%-30%, signaling confidence in its strategic direction and market opportunities. Evolv Technology’s management remains optimistic about future growth, focusing on operational efficiency and profitability, with expectations of achieving positive cash flow and Adjusted EBITDA margins in the mid-single digits by the end of the year.