EVOLV TECHNOLOGIES HOLDINGS (NASDAQ:EVLV) Delivers Strong Q3 Beat and Raises Full-Year Guidance

Evolv Technology Delivers Strong Q3 Beat, Raises Full-Year Guidance

EVOLV TECHNOLOGIES HOLDINGS (NASDAQ:EVLV) reported financial results for the third quarter of 2025 that significantly exceeded analyst expectations, driven by robust revenue growth and a notable improvement in profitability metrics. The security technology company's performance has been met with positive momentum in after-hours trading, reflecting investor approval of the results and an upwardly revised outlook for the remainder of the year.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter results showcased a substantial top-line beat and a smaller-than-anticipated loss. The performance highlights a period of accelerated growth and operational efficiency.

• Revenue: Evolv reported Q3 revenue of $42.9 million, a 57% increase compared to the same quarter last year. This figure comfortably surpassed the analyst consensus estimate of approximately $34.4 million.
• Earnings Per Share (EPS): The company posted a net loss of $(0.01) per share. This result was significantly better than the analyst forecast for a loss of $(0.034) per share.

The strong revenue growth was attributed to a combination of new customer additions and expanded deployments with existing clients. The company also noted that approximately $7.5 million of the quarterly revenue came from notable, though non-recurring, items, including its largest-ever customer order and certain license fees.

Market Reaction and Price Action

The market's initial reaction to the earnings report has been positive. Following the release, EVLV shares experienced an after-market increase of approximately 2.6%. This upward move suggests that investors are rewarding the company for its significant revenue beat, improved path to profitability, and strengthened full-year guidance. The positive after-hours performance stands in contrast to the stock's recent trends, which have seen declines over the past month.

Updated 2025 Outlook and Analyst Comparison

Adding to the positive sentiment, Evolv provided an upgraded business outlook for the full year 2025. The new guidance not only exceeds the company's previous forecast but also positions it well ahead of current analyst sales expectations.

• Revenue Guidance: Evolv now expects full-year 2025 revenue to be between $142 million and $145 million, up sharply from its prior outlook of $132-$135 million issued in August. This new range represents growth of 37% to 40% year-over-year and is notably higher than the analyst consensus sales estimate of $136.2 million for the year.
• Profitability Outlook: The company also raised its forecast for Adjusted EBITDA margin, now expecting to achieve a high single-digit percentage margin for the full year, improved from its previous expectation of mid-single digits. Furthermore, management expects to be cash flow positive in the fourth quarter.

Key Takeaways from the Press Release

Beyond the earnings and guidance beats, several other key points from the press release underscore the company's operational progress:

• Annual Recurring Revenue (ARR): ARR grew to $117.2 million, a 25% increase year-over-year, indicating a healthy and growing subscription base.
• Path to Profitability: The company dramatically improved its bottom line, reporting a net loss of $(1.8) million in Q3 compared to a $(30.4) million loss in the prior year. On an Adjusted EBITDA basis, the company generated a positive $5.1 million for the quarter, a substantial improvement from a $(3.0) million loss in Q3 2024.
• Cash Position: Evolv ended the quarter with $56.2 million in cash, cash equivalents, and marketable securities.
• Operating Cash Flow: For the first nine months of 2025, the company generated positive net cash from operating activities of $3.1 million, a significant turnaround from the $(34.1) million used in the same period last year.

The company's performance indicates successful execution on its strategy of balancing high growth with improving profitability and cash generation. For a more detailed look at Evolv's earnings history and future estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in EVLV. All investments involve risk, and readers should conduct their own research before making any investment decisions.