Evolv (EVLV) investor relations material

Executive summary

• Q2 2025 revenue grew 29% year-over-year to $32.5M, driven by new customer growth and expanded deployments, with ARR at $110.5M, up 27% year-over-year.

• Net loss for Q2 2025 was $40.5M, reflecting higher operating expenses, legal costs, and non-cash charges, with a net profit margin of (125)%.

• Adjusted EBITDA was $2M (6% margin), marking the third consecutive positive quarter and a significant improvement from a loss of $8M a year ago.

• Over 60 new customers added, surpassing 1,000 globally and 7,000 active subscriptions, with more than 3 billion visitors screened to date.

• DOJ investigation closed and class action lawsuit settled in principle, reducing legal overhang, though ongoing SEC and FTC investigations and a $15M settlement continue to impact risk profile.

Financial highlights

• Q2 2025 total revenue: $32.5M, up 29% year-over-year; six-month revenue: $64.6M, up 36%.

• Adjusted gross margin for Q2 2025 was 54.8% (or 55–60% excluding inventory reserve), while reported gross margin was 49.8–50%.

• Adjusted operating expenses for Q2 2025 were $21.6M, down 19% year-over-year.

• Cash, cash equivalents, and marketable securities totaled $36.9M as of June 30, 2025, with a sequential increase and no debt.

• Cash flow from operations was $2.1M in Q2 2025, a significant improvement from a $21.6M outflow last year.

Outlook and guidance

• Full-year 2025 revenue growth guidance raised to 27–30%, now expected to be $132–$135M.

• Positive full-year adjusted EBITDA expected, with margins in the mid-single digits.

• Company expects to be cash flow positive in Q4 2025.

• Gross margins are expected to be 54–56% for the remainder of 2025, but may decrease in the near term due to sales mix.

• General and administrative expenses are expected to decrease in the second half of 2025 as legal and restatement-related costs subside.