Evolv Technologies Holdings (EVLV) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 3.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: 35.63%
• EPS Growth: -335.37%
• Country: US
• Employees: 287
• Sector: Industrials
• Sector Strength: 78
• Industry: Security & Protection Services
• EPS (TTM): -0.02
• Shares Outstanding: 171,891,460
• 10 Day Avg. Volume: 4,698,148
• 30 Day Avg. Volume: 3,385,146
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 9.73
• Enterprise Value/Gross Profit: 17.15
• Enterprise Value/Ebitda: -33.43
• 1Y Price Target: $9.38
• Price Target Upside: 11.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $8.50 ▲(1.43% Upside)

Evolv Technologies' overall stock score is driven by strong technical momentum and positive earnings call sentiment, highlighting revenue growth and improved EBITDA. However, financial performance is hindered by profitability challenges and negative cash flows, while valuation remains unattractive due to ongoing losses.

Positive Factors

Financial and Revenue Growth

The company reported healthy 2Q results and raised FY25 revenue outlook to $132M-$135M or 27%-30% y/y growth from a prior 20%-25%.

New Deals and Partnerships

The company confirmed several large new deals across verticals, including a landmark $15M deal with the largest school system in Georgia for more than 100 Express and eXpedite units.

Regulatory and Management Updates

The ongoing DOJ investigation has also been closed, allowing EVLV to fully move past prior regulatory concerns.

Negative Factors

Evolv Technologies Holdings Business Overview & Revenue Model

Company Description

Evolv Technologies Holdings (EVLV) is a technology company specializing in advanced security solutions, particularly in the field of physical security and threat detection. The company primarily focuses on developing and deploying artificial intelligence-driven weapons detection systems that enhance safety in public spaces. Evolv's core products include touchless security screening systems designed to detect weapons and other potential threats quickly and accurately, thereby improving the safety and efficiency of security operations in venues such as stadiums, schools, and workplaces.

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 shows promising revenue growth, but persistent profitability issues, negative cash flows, and ongoing operational losses highlight significant financial challenges. The balance sheet remains strong with low leverage, but operational improvements are necessary for long-term viability and investor confidence.

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: 8.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 8.38 is above the 20-day moving average (MA) of 7.66, above the 50-day MA of 6.73, and above the 200-day MA of 4.57, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 71.39 is Negative, neither overbought nor oversold. The STOCH value of 66.52 is Neutral, 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	$1.33B	31.45	24.98%	1.34%	-3.81%	-11.48%
SNT	73 Outperform	$104.04M	65.29	-3.47%	―	―	―
ARLO	65 Neutral	$1.80B	―	-6.45%	―	-1.75%	68.19%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
EVLV	61 Neutral	$1.43B	―	-71.94%	―	35.63%	-335.37%
UUU	54 Neutral	$7.66M	2.86	47.90%	―	28.01%	―
KSCP	43 Neutral	$59.67M	―	-236.56%	―	-6.61%	40.20%

Evolv Technologies Holdings Corporate Events

Evolv Technologies Announces Resignation of Chief Innovation Officer

On August 13, 2025, Evolv Technologies announced that its Chief Innovation Officer, Michael Ellenbogen, will resign from his position effective September 5, 2025, due to new time commitments, although he will remain on the Board of Directors. The company reported strong financial results for the second quarter of 2025, with a 29% increase in revenue year-over-year, reaching $32.5 million. Despite a net loss of $40.5 million, Evolv achieved an adjusted EBITDA of $2.0 million, signaling improved operational efficiency. The company has raised its revenue growth outlook for 2025 to 27%-30%, reflecting confidence in its market positioning and future profitability.

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.

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.