Evolv Technologies Holdings, Inc. reported fourth‑quarter 2025 revenue of $38.5 million, a 32% year‑over‑year increase that surpassed consensus estimates of roughly $37.2 million. The revenue beat was driven by a 40% rise in recurring subscription sales, reflecting strong demand for the company’s AI‑driven weapons‑screening platform across more than 1,200 customers worldwide.
On an adjusted basis, the company posted a loss of $0.03 per share, missing the consensus estimate of a $0.02 loss. While the adjusted EPS fell short of some analysts’ expectations, it beat other estimates that were as low as $0.05 or $0.07 per share, underscoring the volatility in consensus forecasts for the business.
Evolv’s adjusted gross margin contracted to 49.5% in Q4 2025 from 62% in Q4 2024, a compression largely attributable to the shift from distributor licensing to direct‑sales fulfillment. The company’s CFO noted that the transition to direct fulfillment of subscription orders created near‑term gross‑margin headwinds, even as the company’s overall revenue base expanded.
Management guided for 2026 total revenue of $172–$178 million and ending annual recurring revenue of $145–$150 million, while projecting positive adjusted EBITDA and high‑single‑digit margins for the full year. The guidance signals confidence that the company’s subscription model will generate predictable, durable cash flow as it scales its platform.
Comparing to the prior quarter, Q4 2024 revenue was $29.1 million and the company recorded a net loss of $15.7 million. The jump to $38.5 million in Q4 2025 represents a 32% increase, while the loss per share narrowed, indicating improving profitability despite the margin compression.
"We are pleased to be reporting solid fourth quarter results, which capped a year of significant improvement across the Company," said President and CEO John Kedzierski. "We continue to deliver advanced weapons screening capabilities at scale for more than 1,200 customers worldwide through a tightly integrated platform that combines proprietary hardware, real‑world visitor data sets, and AI‑driven software, delivered via long‑term subscriptions that foster durable customer relationships and high‑quality recurring revenue." He added, "We expect this rate of growth to accelerate in 2026 as growth in our recurring revenue base begins to outpace growth in total revenue."
In extended trading, the stock slipped slightly, but in aftermarket trading it rose 2.31%. The market reaction was driven by the revenue beat and optimistic 2026 guidance, while the adjusted EPS miss and ongoing gross‑margin compression tempered enthusiasm.
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