Evolv Technologies Holdings (EVLV) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: N/A
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.16
• Revenue Growth: 35.63%
• EPS Growth: -335.37%
• Country: US
• Employees: 287
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.02
• Shares Outstanding: 171,891,460
• 10 Day Avg. Volume: 2,160,756
• 30 Day Avg. Volume: 3,483,186
• PEG Ratio: 0.22
• Price to Book (P/B): 5.26
• Price to Sales (P/S): 5.95
• P/FCF Ratio: -9.97
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 8.33
• Enterprise Value/Gross Profit: 14.85
• Enterprise Value/Ebitda: -16.73
• 1Y Price Target: $9.38
• Price Target Upside: 22.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: $7.50 ▼(-2.09% Downside)

Evolv Technologies Holdings' overall stock score is driven by strong earnings call performance, indicating positive revenue growth and improved EBITDA. However, financial performance challenges, particularly in profitability and cash flow, along with valuation concerns, weigh down the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Recurring Revenue Model

The increase in annual recurring revenue suggests a stable and predictable income stream, improving financial resilience and planning.

Customer Base Expansion

Expanding customer base demonstrates strong product adoption and market penetration, supporting future growth and competitive positioning.

Negative Factors

Profitability Challenges

Persistent profitability issues may hinder reinvestment capabilities and long-term financial health, requiring strategic adjustments.

Cash Flow Issues

Negative cash flow ratios indicate inefficiencies in converting earnings to cash, potentially limiting operational flexibility and growth.

Gross Margin Decline

Declining gross margins can pressure profitability and indicate rising costs, necessitating cost management and operational efficiency improvements.

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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.01M	103.86M	80.42M	55.20M	23.69M	4.79M
Gross Profit	67.92M	59.29M	33.83M	1.73M	6.64M	1.29M
EBITDA	-60.27M	-36.64M	-95.62M	-68.94M	-1.93M	-25.90M
Net Income	-88.39M	-54.02M	-106.25M	-42.98M	-23.98M	-27.82M
Balance Sheet
Total Assets	280.42M	268.06M	298.72M	348.34M	363.06M	21.36M
Cash, Cash Equivalents and Short-Term Investments	36.94M	51.94M	118.82M	229.78M	307.49M	4.70M
Total Debt	14.27M	14.53M	1.39M	31.69M	9.95M	16.66M
Total Liabilities	187.77M	150.41M	152.40M	121.13M	72.23M	106.04M
Stockholders Equity	92.65M	117.65M	146.32M	227.21M	290.84M	-84.69M
Cash Flow
Free Cash Flow	-18.42M	-62.04M	-82.47M	-98.92M	-74.37M	-29.86M
Operating Cash Flow	6.68M	-30.85M	-9.80M	-74.73M	-69.28M	-23.25M
Investing Cash Flow	-10.86M	-1.40M	-123.11M	-23.88M	-5.08M	-6.61M
Financing Cash Flow	5.27M	1.81M	-29.66M	20.51M	377.83M	17.23M

Evolv Technologies Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.66 is below the 20-day moving average (MA) of 7.94, below the 50-day MA of 8.05, and above the 200-day MA of 5.55, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 18.29 is Positive, 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	―	$1.56B	36.80	24.98%	1.21%	-3.81%	-11.48%
MG	―	$306.55M	26.88	5.63%	―	-4.51%	―
ARLO	―	$1.98B	―	-6.45%	―	-1.75%	68.19%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SNT	―	$113.37M	―	―	―	―	―
EVLV	―	$1.32B	―	-71.94%	―	35.63%	-335.37%
KSCP	―	$51.63M	―	-236.56%	―	-6.61%	40.20%

Evolv Technologies Holdings Corporate Events

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.

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.

The most recent analyst rating on (EVLV) stock is a Buy with a $7.50 price target. To see the full list of analyst forecasts on Evolv Technologies Holdings stock, see the EVLV Stock Forecast page.