Evolv Technologies Holdings (NASDAQ:EVLV) Q2 2025 Earnings: Revenue Beat Overshadowed by Widening Loss

Evolv Technologies Holdings (NASDAQ:EVLV) Reports Q2 2025 Earnings: Revenue Beats, Loss Widens

Evolv Technologies Holdings, a developer of AI-based security screening solutions, reported mixed financial results for the second quarter of 2025. While revenue exceeded analyst expectations, the company’s net loss widened significantly compared to the prior-year period.

Key Financial Highlights

• Revenue: $32.5 million, up 29% year-over-year (YoY) and surpassing the consensus estimate of $31.6 million.
• Earnings Per Share (EPS): A net loss of $0.25 per share, missing the estimated loss of $0.036 per share.
• Annual Recurring Revenue (ARR): Increased 27% YoY to $110.5 million.
• Adjusted EBITDA: Turned positive at $2.0 million, compared to a loss of $8.0 million in Q2 2024.
• Cash Position: $36.9 million in cash and marketable securities with no debt.

Market Reaction

Following the earnings release, EVLV shares saw an after-hours gain of 1.09%, suggesting cautious optimism despite the wider-than-expected loss. Over the past month, the stock has risen 33.3%, indicating broader investor confidence in the company’s growth trajectory.

Performance vs. Estimates

The revenue beat reflects strong demand for Evolv’s AI-driven security solutions, particularly in recurring revenue streams, which grew 27% YoY. However, the larger-than-anticipated loss was driven by higher operating expenses, including R&D and sales & marketing investments.

Outlook vs. Analyst Expectations

Evolv raised its full-year 2025 revenue guidance to $132–$135 million, representing 27–30% growth YoY, up from its previous forecast of $125–$130 million. This aligns closely with the analyst consensus of $131.4 million. The company also expects positive adjusted EBITDA for the full year, with margins in the mid-single digits.

Key Takeaways from the Press Release

• Customer Growth: The company has now served over 1,000 customers and screened more than 3 billion visitors to date.
• Operational Efficiency: Improved adjusted EBITDA suggests progress toward profitability.
• Recurring Revenue Strength: Subscription and service revenue accounted for 82% of total revenue, reinforcing the stability of Evolv’s business model.

Looking Ahead

Evolv anticipates becoming cash flow positive in Q4 2025, which could further bolster investor sentiment. The company’s focus on AI-based security solutions positions it well in a growing market, though profitability remains a key challenge.

For more detailed earnings estimates and historical performance, visit Evolv Technologies’ earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.