Evolv Technologies (EVLV) TD Cowen's 54th Annual Technology, Media & Telecom Conference summary

Business overview and market positioning

• Provides minimally invasive, AI-driven weapon screening solutions for high-traffic venues, schools, healthcare, and workplaces.

• Over 8,000 units deployed, screening more than 4 million people daily, surpassing TSA daily volume.

• Key verticals include education, healthcare, sports, and entertainment, with significant growth in education and healthcare.

• Created a new security category, often replacing no prior solution, leading to high market potential and limited direct competition.

• International business is nascent but expanding, with hundreds of systems deployed outside North America.

Financial performance and outlook

• Q1 revenue reached $46 million, up 45% year-over-year, driven by strong demand and favorable purchasing mix.

• 2026 revenue guidance raised to $175–$180 million, reflecting confidence in sustained growth.

• Cash flow was down $8 million in Q1 due to incentive payments, but expected to be positive in the second half of the year.

• Current cash position is strong, with $30 million in cash, $30 million in debt, and $45 million in additional capacity.

• Modest EBITDA and gross margin expansion expected, with premium pricing and cost pressures already factored into guidance.

Product innovation and differentiation

• Two main products: Express (walk-through) and eXpedite (AI-powered, operator-free bag screening).

• eXpedite enables faster, autonomous screening without trained X-ray operators, processing up to 2,000 bags/hour.

• Integrated cloud platform provides actionable security data and enhances customer stickiness.

• eXpedite has achieved 6% customer adoption in its first year, with high attach rates to Express.

• AI and proprietary datasets create a significant competitive moat and drive operational efficiency.