Evolv Technology shares rise as Q3 revenue soars 57% YoY
Investing.com -- Evolv Technology (NASDAQ:EVLV) shares climbed 1.7% in after-hours trading Thursday after the security technology company reported third-quarter revenue that significantly exceeded analyst expectations and raised its full-year outlook.
The AI-based security screening provider posted third-quarter revenue of $42.9 million, soaring 57% YoY and substantially beating the analyst consensus of $32.29 million. The company reported an adjusted loss of -$0.02 per share, slightly better than analysts’ expectations of -$0.03 per share. Evolv’s quarterly performance was boosted by strong new customer additions and expanded deployments with existing clients.
"We made meaningful progress across many key measures of the business in the third quarter—including subscribers, revenue, and annual recurring revenue, as well as important indicators of profitability and liquidity," said John Kedzierski, President and Chief Executive Officer of Evolv Technology.
The company’s Annual Recurring Revenue (ARR) reached $117.2 million at the end of the third quarter, up 25% compared to the same period last year. Adjusted EBITDA for the quarter was $5.1 million, representing a margin of 12%, a significant improvement from the -$3.0 million reported in the third quarter of 2024.
Following the strong quarterly results, Evolv raised its full-year 2025 revenue guidance to $142-145 million, up from its previous forecast of $132-135 million. The revised outlook represents 37-40% growth YoY, compared to the earlier projection of 27-30%. The company also upgraded its Adjusted EBITDA margin expectations from mid-single digits to high single digits.
The quarter’s revenue included approximately $7.5 million from notable items, including $3.0 million associated with the largest customer order in the company’s history, $3.0 million from IP license fees, and $1.5 million from short-term rental agreements.
Evolv expects to be cash flow positive in the fourth quarter of 2025. As of September 30, the company had $56.2 million in cash, cash equivalents, and marketable securities.
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