EVLV

GRRR surged 13% Wednesday to reverse Tuesday's 11% earnings selloff, with management's 2027 revenue guide of $450 to $500M sitting 29% above Wall Street consensus. PLTR and BBAI are not joining GRRR's rally, and DTCR fell 0.6%, confirming the move is entirely stock-specific rather than a sector-wide bid. Gorilla's adjusted EBITDA swung to a $14.6M first-half loss, and its 2027 target depends on completing construction across three countries on schedule. Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor) Gorilla Technology Group (NASDAQ:GRRR) stock is up 14% to $15.97 Wednesday afternoon, reversing the 11% earnings-day drop the stock took Tuesday on its H1 2026 filing. The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) shares are down 0.6% to $28.39, so today's move is Gorilla-specific rather than a data-center-wide bid. Evolv Technologies (NASDAQ:EVLV) stock is down 1% to $5.23, easing after its own recent print. Gorilla stock was up 29% year to date through Tuesday's close, so today's snapback lands on a stock that already had a positive trend behind it. No fresh company news has crossed the wire from Gorilla today. For GRRR, this is day two of a two-day round trip, a repricing of sentiment on the same disclosure traders sold Tuesday. Gorilla's 6-K, filed August 24, showed H1 2026 revenue of $78.36 million, up from $39.33 million a year earlier, with Q2 revenue of $50.1 million, up 138% year over year. Management lifted the full-year 2026 revenue floor to at least $200 million and set a 2027 target of $450 million to $500 million. That 2027 range sits 16% to 29% above Wall Street consensus of $386.7 million, per prior 24/7 Wall St. coverage. Gorilla CEO Jay Chandan called the quarter "the clearest evidence yet that Gorilla has entered a different phase of scale." Wednesday's bid on Gorilla stock suggests part of the market is finally willing to take that guide at face value. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Nothing in Gorilla's fundamentals changed overnight. The company's adjusted loss per share was $0.58 for the first half against a $0.32 profit a year earlier, and its adjusted EBITDA swung to a first-half loss of $14.6 million from positive $6.2 million. Gorilla's stock-based compensation of roughly $25 million was the largest non-cash contributor to that loss line. Its committed capex of $228 million and the Indonesia and Batam facility planned at roughly 200 megawatts, with first services expected mid-2027, mean the 2027 number depends on finishing construction on schedule across three countries. CFO Bruce Bower said guidance for Gorilla includes only contracted revenue, describing the forecast as containing "existing contracts or contracts that we've won and not yet announced." Chandan added that finalizing additional NeutraDC deployments would trigger a revision: "Once that is done, we will absolutely revise the targets for next year." The data center fund read confirms this is Gorilla-specific. DTCR ETF shares sit lower on the day, and Evolv stock is lower as well. Tuesday the pattern ran in reverse: Gorilla stock fell alone while the peers held up. Palantir Technologies (NASDAQ:PLTR) and BigBear.ai (NYSE:BBAI) are the AI infrastructure and defense AI reference names Gorilla is most often compared to, and neither Palantir stock nor BigBear.ai stock is doing the work for GRRR today. A stock that swings sharply down and back up in two sessions on no new information is telling you something about its float and its shareholder base, and that is worth saying plainly. A stock capable of a double-digit percentage swing in either direction within two sessions on no fresh news is a sizing problem before it's a direction problem. If your thesis is the 2027 guide and the Southeast Asia buildout, your position size has to survive another round trip like this without forcing you out on the next volatility spike. Investors can watch for whether the bid on Gorilla stock holds into the close and whether volume confirms the move. Traders could look for signs that Palantir stock, BigBear.ai stock, or the Global X Data Center & Digital Infrastructure ETF pick up a bid later this week to validate the AI infrastructure read. The disciplined play into a spike this violent is to trim exposure and keep dry powder. Sizing well below a full position keeps this trade alive if the tape whipsaws again on the next NeutraDC update or on the dilution overhang from the post-period $125 million convertible notes. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Contact [email protected] for any questions or corrections.

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 4:30 p.m. ET Senior Vice President of Finance and Investor Relations - Brian Norris President and Chief Officer - John Kedzierski Chief Financial Officer - Chris Kutsor Operator: Good afternoon, and welcome to the Evolve Technology Second Quarter Earnings Results Conference Call. All participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference call is being recorded. I would now like to introduce your host for today's call, Brian Norris, senior vice president of finance and investor relations for Evolve Technology. Please go ahead, sir. Brian Norris: Thank you, and good afternoon, everyone. Welcome to today's call. I am joined today by John Kedzierski, our president and chief officer, and Chris Kutsor, our chief financial officer. Earlier today, we issued a press release detailing our second quarter results and our updated 2026 outlook. This release is available on the Investor Relations section of our website and has been filed with the Securities and Exchange Commission. During today's call, we will make forward looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 2000. These statements reflect our current expectations regarding our business, strategy, growth opportunities, customer activity, strategic partnerships, product demand, and financial outlook. All forward looking statements are subject to material risks, uncertainties, and assumptions, some of which are beyond our control. Actual events or financial results may differ due to a number of factors, including those described under the caption Risk Factors in our annual report on Form 10-K and the year ended 12/31/2025 filed with the SEC on 03/10/2026, and our quarterly report on Form 10-Q for the quarter ended 06/30/2026, which we filed with the SEC earlier today. The forward looking statements made today represent our views as of 08/11/2026. Although we believe that the expectations reflected in these statements are reasonable, we cannot guarantee that future results, performance, or the events and circumstances reflected herein will be achieved or will occur. Except as maybe a required by applicable law, we disclaim any obligation to update them to reflect future events or circumstances. Our commentary today will include non GAAP financial measures that we believe provide additional insights for investors. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Non GAAP measures discussed today include adjusted gross profit and margin, adjusted operating expenses and operating income, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings and adjusted earnings per diluted share. Reconciliations to the most directly comparable GAAP measures are included in today's press release and our definitions may differ from similarly titled measures used by other companies. In addition, we will discuss annual recurring revenue or ARR. Remaining performance obligation or RPO, and net revenue retention or NRR, which we believe provide useful insights into the business. We define ARR as the sum of subscription revenue in the recurring service revenue related to purchase subscriptions for the final month of the quarter all multiplied by 12. RPO represents estimated revenues expected to be recognized in the future which are related to performance obligations that are either unsatisfied or partially satisfied as of the end of the reporting period. We define NRR as recurring revenue in the last month of the quarter divided by recurring revenue from the year ago month for the same customer base inclusive of churn and expansions. Before I turn things over to John, I would like to briefly highlight some of the investor outreach plans for the second half of 26. We plan to be at 4 institutional investor conferences, including the Lake Investor Conference in September, the Craig Hallum Alpha Select Conference in November, the UBS Global Technology Conference in December, and the Northland Capital Conference later in December. As always, we welcome the opportunity to engage with both existing and shareholders. If you would like additional information, please feel free to contact me at [email protected]. With that, I would like to turn the call over to John. John Kedzierski: Good afternoon, and thank you for joining us. Before we discuss our second quarter results, I would like to briefly revisit a few themes from our Investor Day in June. At Investor Day, we shared our perspective on the long term growth potential we see in front of the company. We discussed our belief in the large and underpenetrated markets we serve, our differentiated technology, and the opportunity we see to expand adoption across a broad range of end markets. We estimate there are more than 700 thousand serviceable doorways across the markets that we serve today. About 9.2 thousand units deployed, our current penetration remains well below 5%. Highlighting the substantial runway for future growth. Against that backdrop, we outlined a path to growing revenue to more than $500 million by 2031. Representing a compound annual growth rate of approximately 25% over the next 5 years. While we expect growth to vary from year to year based on factors as deployment timing, product mix, and customer buying behavior, we remain confident in the long term opportunity ahead. We also discussed a path to achieving adjusted EBITDA margins of at least 25%. Taken together, we believe this represents a path to becoming a Rule of 50 business. A combination of top line growth and bottom line profitability that we believe reflects the strength of our business model and the scale of the opportunity ahead. Importantly, we believe the foundation for that framework is already in place today. Through our growing base of contracted recurring revenue and more than $300 million of remaining performance obligation or RPO which carries attractive long term gross margins. At its core, Evolve is a hardware enabled subscription business that generates high margin, long term recurring revenue. We are built around physical security, not digital workflows. We are a leader in what we believe is 1 of the largest and least penetrated of the public safety market. AI powered weapons detection. Our platform combines proprietary hardware, software, AI models, data, and services into a single integrated solution delivered through multiyear subscription agreements, typically 4 years in duration. These long term contracts create a growing base of contracted future revenue and visibility that differs meaningfully from many software businesses. While advances in AI and AgenTek technologies may reshape portions of the software industry, they do not replace the proprietary hardware, real world data, operational expertise, and long term customer relationships that underpin our business. We use AI to help protect people and places. Not screens and code. We view the second quarter of 26 as another step toward achieving these Rule of 50 objectives. New customer acquisition remained healthy. Renewal trends continued to strengthen. And customers increasingly adopted additional platform capabilities such as expedite. While significant opportunity remains ahead of us, we are encouraged by our progress and remain confident in our long term outlook. With that in context, let me briefly summarize our second quarter results. Revenue in the second quarter was up 34% year-over-year. Reflecting strong new customer wins and continued expansion within our existing customers. We ended the quarter with annual recurring revenue up 20 percent year-over-year, reflecting the compounding impact of the growth in our deployed unit base. Adjusted EBITDA margin expanded to 10.1% in Q2, compared to 6.5% in the second quarter of last year. Of note, total adjusted EBITDA in the first half of 26 doubled compared to the first half of 25. We added 70 new customers during the quarter, marking our strongest quarter in 2 years for new customer additions. What makes this result particularly encouraging is that approximately 80% of unit bookings during the quarter came from existing customers. Together, these results highlight both our ability to deepen relationships with existing customers and continue to add new logos at a healthy pace. We are pleased to report that we now have customers in all 50 US states and across North America, including Canada and Mexico. This milestone reflects both the versatility of our platform and the growing global demand for solutions that enhance safety without creating friction for visitors. As we outlined at investor day, we expect an increasing portion of our growth over the next 5 years to come from markets outside The United States. With early progress expected later in the year. Today, our solutions screen nearly 5 million people each day reflecting the growing scale and global reach of the Evolve platform. Our net revenue retention remained comfortably above 100% for the second quarter, reflecting continued success renewing and expanding existing customer relationships. Finally, remaining performance obligation was up 4.5% sequentially to $312.6 million. Reflecting strong end market demand, continued multiproduct adoption, and strong renewal upgrades to our Gen2 Express platform. Our RPO provides visibility into future revenues and reinforces 1 of the key strengths of our model, a large and expanding base of contracted revenue expected to be recognized over the coming years. RRPO now exceeds 1.7x our full year revenue outlook. Underscoring the visibility, and durability embedded in our model. In the second quarter of 26, we saw strong demand across our core education market. We added 20-3 new education customers across 13 states. These wins span K-12 schools, higher education institutions, and state education agencies. Demonstrating the broad applicability of our solutions across a diverse range of educational environments. Today, we are proud to support approximately 1.8 thousand schools across the country. Including 20-4 of the top 100 largest school districts in The United States. We continue to see strong adoption of our Gen2 Express platform, with customers signing new 4-year contracts to upgrade from Gen1. Deployments. We also continue to see a supportive policy and funding environment for school safety investments. Alongside federal grant programs, we are monitoring school safety funding and legislative initiatives across nearly a dozen states. Creating potential opportunities to expand access to modern security solutions. Importantly, these efforts are being driven by demand from policymakers, educators, and local communities underscoring the long term importance of school safety nationwide. In health care, we added 8 new customers ranging from community hospitals to regional health systems, including Alberta Health Services, Canada's largest integrated health care system. Further strengthening our position in the Canadian market while demonstrating the scalability of our platform across a diverse range of health care environments. As workplace violence remains a significant challenge across the health care sector, providers are increasingly prioritizing technologies that enhance security while preserving the open access efficient visitor flow that are fundamental to care delivery. Today, we support approximately 800 hospitals. Reflecting the growing recognition that health care organizations can improve safety without compromising the patient, visitor, and staff experience. In sports and live entertainment, we added more new customers across professional hockey, basketball, and football. Including the Pro Football Hall of Fame in Canton, Ohio. These organizations are investing in security solutions that enhance both safety and the fan experience by enabling faster, more efficient venue entry, without compromising threat detection. We also supported the 26 FIFA World Cup, through a short term subscription deployment spanning Q2 and Q3 with installations at match venues, fan festivals, and transportation hubs including New York Penn Station. During the nearly 40-day tournament, Evolve screened more than 3.5 million fans demonstrating the scalability of our platform and further strengthening global awareness of the Evolv brand. We are also pleased to announce the recent selection of Evolv by Northwestern University's new Ryan Field. 1 of the most anticipated venue openings in college sports. Following a rigorous evaluation process, Ryan Sports Development selected Evolve to help deliver the fan-frival experience at what is the believed to be the most expensive college football stadium ever built. Representing an investment of approximately $870 million. We believe this win reflects a broader trend across college athletics. Where leading institutions are increasingly investing in the same fan experience, operational capabilities, and security infrastructure traditionally associated with professional sports venues. We are proud to support a growing roster of leading universities including the University of North Carolina, BYU, Boston College, the University of Nebraska, the University of Texas, and now Northwestern's new Ryan Field. As schools continue to modernize their facilities and elevate the game day experience, we believe security is becoming an increasingly important component of the overall fan journey. And that Evolve is well positioned to support that evolution. We also continue to see momentum in the workplace. Across corporate headquarters, distribution centers, and critical infrastructure. During the quarter, we added 2 additional Fortune 500 companies, including a leading grocery retailer with 1 of the largest distribution networks in The United States, and 1 of the country's largest off price retail chains. These wins further expand our footprint within large enterprise environments where organizations are seeking to enhance security while maintaining efficient operations and positive employee and visitor experiences. Today, we are proud to serve as the trusted weapon screening partner for over 30 Fortune 500 companies. Momentum we are seeing across these markets reinforces our belief that customers increasingly view Evolve as a security platform rather than a point solution. Expedite, our autonomous AI powered bag screening solution, continues to gain traction in environments where customers want to screen bags without slowing entry. Increasingly, customers are looking to conduct bag screening as part of a single integrated security workflow. And expedite is purpose built for that model. We now have over 100 Expedite customers, representing approximately 8 percent of our total customer base, up from 2 percent a year ago. In the second quarter, approximately 70 percent of new customers who purchased Expedite also bought Evolve Express. We have now also cross sold Expedite into more than 40 existing Evolve customers. Customers have now screened more than 20 million bags with Evolve Expedite and now averaging approximately 90 thousand bags each day. We believe expedite represents a compelling expansion opportunity. Allowing us to effectively stack ARPUs while creating additional leverage on our customer acquisition investments. Importantly, as our installed base continues to expand, we are accumulating a growing body of security and screening data that can be used to help improve product performance, strengthen our AI models, and create opportunities for additional software driven capabilities. We believe this data advantage enhances outcomes for customers, supports future software innovation, and reinforces our long term competitive position. During the first half of the year, we delivered significant enhancements to the expedite platform through software innovation. These enhancements help customers optimize security operations, improve the visitor experience, and make more informed decisions about staffing and screening workflows. As customers increasingly see the value of managing both walk through and bag screening, through a single cloud connected platform. We believe there remains a meaningful opportunity for account expansion deeper platform adoption, and stronger subscription retention over time. Turning to operations. I am pleased to report that we have onboarded Plexus, our new global contract manufacturing partner, and have now begun shipping product through their facilities. This represents an important milestone in our manufacturing strategy and positions us to scale production capacity, extend our global reach, enhance operational resiliency, and over time, reduce bill of material costs through greater procurement leverage and manufacturing efficiencies. Respect to the broader supply chain environment, we continue to actively manage through the well documented semiconductor supply constraints and remain confident. In our ability to execute against our full year deployment plans. Before I turn things over to Chris, I wanna share some context around our outlook. We continue to see strong momentum across the business. Our pipeline remains healthy. Execution is tracking well. and for those reasons, we are raising our outlook for 2026. We expect to end 2026 with comfortably over 10 thousand deployed, which would reflect net deployed unit growth of about 30 percent year-over-year. We are raising full year revenue guidance to 23% to 27% year-over-year compared to our previous forecast of 20% to 23%. While we continue to invest in innovation and operations, we continue to expect to deliver expanded adjusted EBITDA margins in 2026 compared to 2025. As we look to the balance of 2026, we expect continued growth in deployed units, ARR, revenue, adjusted EBITDA, and RPO. Importantly, the combination of strong new customer additions, growing multiproduct adoption, and continued operating leverage gives us confidence in both our updated 2026 outlook and a long term framework we outlined at investor day. With that, I will turn it over to Chris. To walk through our second quarter financial results and updated outlook in greater detail. George Chris Kutsor: Thanks, John, and good afternoon, everyone. I am going to cover our second quarter results in more detail and then share our updated outlook for 2026. Revenue in Q2 was $43.8 million, an increase of 34% year over year. This primarily reflected strong underlying demand for our solutions, and the now fully completed transition to the direct fulfillment model, which created a temporary year over year tailwind to product revenue as a larger portion of revenue was recognized upfront relative to prior periods. While the step up in dollars is permanent, the year over year comps will normalize beginning here in Q3 as we have now anniversaried both the fulfillment and the pricing changes which we implemented on July 1st, 2025. As a result, we expect future year over year comparisons to provide a cleaner view as to the underlying operating performance of the business. To be clear, we expect revenue growth to more closely align with deployed unit growth subject to normal fluctuations driven by deployment timing, pricing, product mix, and the timing of short term rental agreements. ARR, or annual recurring revenue, at June 30th, 2026, was $132.7 million reflecting growth of 20 percent year-over-year. Growth in ARR was driven by strong new customer acquisition, expanding deployments within the installed base, and continued strength in renewal activity, which drove net revenue retention comfortably above 100 percent. Adjusted gross margin was 51% in Q2, consistent with Q1. Moving down the P&L, adjusted operating expenses which exclude stock based compensation, loss on impairment of equipment, and certain other 1-time expenses, were $25 million compared to $21.6 million in the second quarter of last year reflecting growth of 16 percent year-over-year. The increase reflects continued investment in product innovation and go to market capacity, higher commission expense associated with our revenue growth, and targeted investments in IT systems and personnel to support scale and efficiency in the business. Q2 adjusted EBITDA, which excludes stock based compensation and other 1-time items, was $4.4 million compared to $2.1 million the second quarter of last year. This resulted in adjusted EBITDA margin of 10.1% compared to 6.5% in the second quarter of last year. Importantly, adjusted EBITDA margins expanded 160 basis points sequentially. 360 basis points year-over-year despite continued investment in product development, commercial resources, and operational infrastructure demonstrating the operating leverage inherent in our model. Remaining performance obligation or RPO was $312.6 million at the end of the second quarter reflecting growth of 4.5% sequentially. We continue to see strong demand for Gen2 Express, with customers increasingly choosing to upgrade their existing deployments. This, combined with solid end market demand, contributed to continued RPO growth during the quarter. We continue to expect RPO growth to accelerate over time, supported by increasing end market demand, favorable renewal activity, expansion within the install base, and the higher level of contracted revenue associated with our current fulfillment model. Continue to believe the gross margin profile of our remaining performance obligation is an important indicator of future earnings potential. As we discussed at our investor day, the contracted revenue reflected in our RPO carries an estimated gross margin profile of approximately 60-6 percent. Well above our current reported gross margin. This difference reflects the economics of the purchase subscription model, where the majority of the hardware costs are recognized immediately and upfront while a significant portion of the associated software and services revenue remains contracted and will be recognized over future periods. As a result, we believe our RPO represents a substantial pool of future contracted revenue, with attractive margin characteristics that supports our confidence in the long term profitability, and earnings leverage of the business. Turning to the balance sheet. Cash, cash equivalents, marketable securities, and restricted cash increased about $2 million sequentially to $63 million The positive cash flow in Q2 is a quarter ahead of our expectations, driven by improved profitability and strong cash collections in the quarter. We expect to remain cash flow positive through the balance of the year. However, we may selectively choose to invest an additional $2 million to $4 million into inventory safety stock to enhance supply chain readiness and support anticipated customer demand. We would expect that any such investment would be largely opportunistic and timing related in nature. Turning to 2026. As John highlighted, the fundamentals of our business remain strong, with robust customer demand and the foundational changes we made to our business are taking hold. We are raising our full year 2026 outlook for revenue to $180 million to $185 million, compared to our prior guidance of $175 million to $180 million. This represents year over year growth of 23% to 27%. Our upwardly revised revenue outlook reflects both continued strength and customer demand pricing, and ARPU trends, as well as a higher mix of purchase subscriptions, which increases the year-1 revenue recognition. We are raising our estimate for year end annual recurring revenue to be approximately $148 million to $150 million representing 23% to 25% year-over-year growth. Our updated forecast reflects stronger than anticipated renewal performance, which is driving higher net revenue retention helping to offset the impact to ARR that is driven by the higher mix of purchase subscriptions relative to pure subscriptions in the second half of the year. At the midpoint of our outlook, we expect second half revenue to be modestly higher than H1, and up year over year with ARR growth outpacing revenue growth in the second half. Remember these prior period growth comparisons reflect the changes to our pricing and the fulfillment model that were implemented in mid-2025 as discussed on prior earnings calls. These changes have now lapped a year, so future variances will be more comparable. This updated outlook and H2 strong demand underpins the 20-3 to 20-7 percent annual growth that we expect for 2026 and the same fundamentals underlying our long term growth expectations of approximately 20-5 percent revenue growth which we outlined in June at our investor day. We continue to expect strong unit growth with second half deployment exceeding first half deployments and growing approximately 30 percent year-over-year over year. We expect gross margins in the second half to remain consistent with first half levels throughout the remainder of 2026. Our 2026 outlook reflects the impact of 3 factors on gross margin. First, we are seeing a higher mix of purchase subscriptions which is a little more of a point to gross margin headwind I just mentioned. We are now forecasting 60 percent of new full year deployed units to be via purchase subscription versus 55% that we assumed in our last guidance issued in May. As a reminder, with purchase subscription transaction, we recognize all of the hardware costs immediately while deferring software and services revenue into future RPO. Second, we are seeing stronger-than-anticipated demand for Gen2 upgrades. Which drive new 4-year contracts and higher RPO. While these upgrades enhance long term value, they also create a temporary margin headwind as returned Gen 1 units incur freight, refurbishment, and depreciation costs during the period between upgrade and redeployment. These higher Gen2 upgrades and associated Gen1 costs are just under 1 point of gross margin headwind. We expect these costs to convert to significant revenue and cash as these Gen1s are redeployed in the future. Finally, we are seeing modestly higher component and supply chain costs than we originally anticipated. As seen across the tech industry which is approximately a half a point of gross margin headwind. I would also remind investors that Evolve Expedite is still progressing along its cost reduction curve and has not yet fully benefited from the bill of optimization and supply chain efficiencies that we expect to achieve as adoption continues to grow. While these factors are combining to create near term pressure on gross margin, we are also expecting some tailwinds to gross margin to emerge. We continue to realize manufacturing efficiencies and scale benefits through our new contract manufacturing partner, and we have recently implemented pricing increases across our product lines of Xpress and Expedite. As those higher price points are reflected in new deployments and renewals, we expect them to support gross margin expansion over time as those higher prices become increasingly reflected in our revenue. Overall, our 2026 outlook reflects a business that is capturing more of the economic value that it creates, generating stronger renewal outcomes, increasing visibility through ARR and RPO, and delivering a more durable and predictable financial profile over time. We are continuing to invest thoughtfully in the capabilities needed to support the long term vision that we outlined at our Investor Day. This includes targeted investments, in selling and marketing to expand our market presence, R&D to accelerate innovation and reduce false alarms, and the systems and processes needed to operate at greater scale. Importantly, even as we increase investment in these areas, we expect full year adjusted EBITDA to be in the range of $15 million to $16 million with margins in the high single digits for 2026, up from 7.6% in 2025. In summary, we believe Q2 marked another quarter of strong growth customer and revenue retention, profitability, and operating leverage. The drivers underlying the long term framework that we outlined at investor day continue to perform in line with our expectations. And while we are not providing guidance beyond 2026, we remain confident in the opportunity ahead and in our ability to deliver against the long term financial framework and Rule of 50 objectives that we shared in June. With that, I will turn things back over to Brian for Q&A. Brian Norris: Thank you, Chris. Operator, at this time, we would like to open the call up for Q&A. We are going to ask participants to limit themselves to 1 question and 1 follow-up. Operator: We will now begin the Q&A. For today's session, we will be utilizing the raise hand feature. If you would like to ask a question, simply click on the raise hand button at the bottom of your screen. Once you have been called on, please unmute yourself and begin to ask your question. Please limit to 1 question and 1 follow-up before jumping back in the queue. Thank you. We will now pause for a moment to assemble the queue. Our first question will come from Jeremy Hamblin with Craig Hallum. Please unmute your line and ask your question. Jeremy Hamblin: Thanks, and congratulations on strong results in momentum in the business. I thought I would just start with some of the commentary around ARR growth and then the commentary around the unit growth that you are seeing where you discussed comfortably over 10 thousand units deployed at the end of the year. But can you just discuss those 2 things, kind of the ARR growth rate that you are seeing and whether or not, you know, ARR growth as a percentage, you expect as you now lap, you know, the change in fulfillment and the pricing change from 2025, if that should also pick up in growth. But just kind of the comparison between the unit growth and the ARR growth. George Chris Kutsor: Hi, Jeremy. Yeah. Thanks. Thanks for the question. This is Chris. A couple things to unpack there. We do expect ARR growth to continue to accelerate from here as we have talked about compared to the past with some of the changes we have made to the business, pricing included from the from the prior year. When you talk about the unit growth percentage, and we talked about that at about approximately 30 percent for the quarter and the year. Compared to ARR growth of approximately 20-5 percent, 23% to 25% for the year or 20 percent for the quarter. Those are diverging, I think, is part of your question. 1 of the things to consider is the fact that those are different is as we would have expected. And the reason we expect it is we have a broader portfolio today than we did in the year ago period in which we are comparing the growth rates. We have now added our Gen 1 units that are increasingly coming back from customers that are upgrading to a Gen2. So as customers upgrade to Gen2, they sign a new 4-year contract that is very good, good for the business, good for RPO, and everything else that goes with it, but they give us back gen ones. And that is been happening at an ever greater pace than we were expecting. that is the good news. The flip side to that is as those Gen1s come back, we store them We bring them back, and we will redeploy those. To customers at a lower ARPU. We have been doing that in the first half, and we will continue to do that in the second half and beyond. Well, those Gen 1 units, of course, have a lower ARPU than the compared Gen twos in the prior period. Me also talk about expedite. Expedite was launched at a lower price point. We have seen it had significant demand as we have talked about every quarter since it is been out. That has a slightly lower price than does Express. So when you compare expedite ARPU to Express ARPU, those are also different However, as we mentioned in our prepared remarks, we have also implemented a price increase across the board, And with a little bit more of that to expedite, such that expedite and express going forward will be more closely aligned than they are today. So I just wanted to recap all of that. The difference between ARR and unit growth is as we would have expected because we are selling Gen1 units at a lower ARPU and expedite has been lower, that will be converging with Express. So I am glad you asked it. That was something we talked about in prepared remarks because we thought that could be could be a question Hopefully, I answered it. John, I do not know if you got anything to add. Otherwise, Jeremy, we can take it back to your if you have a follow-up. Jeremy Hamblin: Well, great. Unless John is adding something, just wanted to ask about the legislative environment. So, you know, you have, HB 1.02 thousand in Georgia. You have legislation in the health care side, and I believe the you know, the legislation in George has been tabled until their you know, state senate returns in January. But just wanted to get a sense of whether or not there other things we should be paying attention to on the legislative side here in 2026. And then how is this potentially making progress in some other states like let's say, Florida and Texas, where you may have a little bit less penetration today than you do in some other geographies in the Southeast, let's say, like, the Carolinas or Georgia. John Kedzierski: Jeremy, we think that what happened in California organically and what is in progress in Georgia, because as you know, that bill has not been voted on yet in the Georgia senate and the latest information that I have is an encouraging sign that a technology like ours can become standardized and even regulated in the places that it makes a big impact. And there are plenty of examples we can see from our lives where a new safety and security technology becomes not only commonplace but expected over time. And I look at what is happening in California and Georgia. As a proof point of that. Just like airbags are expected inside vehicles, and sprinkler systems in certain buildings, and I could keep going on, or the presence of body cams on police officers. We were not involved in either of those situations in California and Georgia. But as we mentioned at Investor Day, we think we are in a position now to make our voice heard on what the potential positive impact of our technology is, and you are gonna see us be more assertive in those areas. Jeremy Hamblin: Great. And then just, the question on the progress in Florida and Texas. John Kedzierski: I do not have any specific update on Florida and Texas. Got it. Jeremy Hamblin: I will hop out of the queue. Congrats, and thanks for taking the questions. Brian Norris: Thank you, Jeremy. Operator: Our next question our next question will come from Eric Martinuzzi with Lake Street Capital. Please unmute your line and ask your question. Eric Martinuzzi: Yeah. My congrats as well on the quarter in the guide. Looks like the business is in pretty good shape here. I wanted to talk about the, Plexus relationship here. As far as your thoughts about, you know, there may be a potential buy, how are we doing components wise If you could give a layer deeper on both availability as well as cost. John Kedzierski: We are on track with the schedule that we have communicated regarding the move to Plexus. When we announced the deal late, last year, we had said that we will be transitioning throughout the first half of 26 and in the second half, of 26, the majority of our units would be shipping from plexus facilities. And I am pleased that we are on that schedule, and that is what is happening today with the majority of our orders being fulfilled from units that are built at Plexus. As we commented in the prepared remarks, we are not immune to the challenges that are well publicized around supply chains, particularly around electronics. But I am proud of the efforts made in collaboration with Plexus and the line of sight that we have to hit the revenue guidance that we provided. We continue to work through it every day and making sure we are in our best position to fulfill the demand that we are capturing. Eric Martinuzzi: Just a follow-up there, Chris, you commented that there it seemed like a pretty specific dollar amount Is this something that is already in the works as far as the inventory investment kind of you know, an advanced commit in order to lock up supply at a certain price? That 2 to 4 million range. John Kedzierski: No, there is nothing imminent That comes with scanning the market and participating over the last 6 months and learning what an opportunity might look like. So it is a it is a probability at this point. Eric Martinuzzi: Got it. Thanks for taking my questions. Brian Norris: Yep. Operator: Our next question will come from Michael Latimore with Northland Capital Markets. Please unmute your line and ask your question. Michael Latimore: Yep. Thank you. Great results there. I guess just 2 on the financials. How many Gen1 customers do you expect to upgrade this year? And then on the price change, what, you know, what is the magnitude to the change you are seeing? You know, is it across the board or all products, all verticals? Sorry. Operator: Eric, can you repeat the can you repeat the last part of your question? George Chris Kutsor: I missed the last part. Michael Latimore: Yeah. On the price change, what is the rough magnitude of the price change? And is that across the board, you know, like all products, all verticals? George Chris Kutsor: Yep. Yeah. John Kedzierski: So ahead. Go ahead, John. I will I will take this 1. So regarding your question on the Gen1 to Gen2 upgrade, activity, what we have provided publicly in prior calls is that, to date, and that was as of the Q2 call. About 60% of our existing customers that we are renewing had upgraded to Gen1. They like the form factor of that product, the performance of that product. You know, inside that environment. So that is a bunch of information as we provided that renewals transacted to date was approximately 60%. You know, went to Gen2. In terms of the price increase, it was across the board. We have implemented a more diligent, process to have regular price reviews to make sure pricing appropriately for value as well as what we are seeing around the horizon in terms of costs. I would call out expedite separately. Again, price increase was across the board. On Xpress and Expedite-associated piece parts on expedite, but we introduced that product. About a year and a half ago and made it generally available. I would say that we introduced it at an introductory type price. It was a new solution developed specifically to address the unique circumstances around verticals such as schools, and workplaces and some health care environments people are entering with bags that contain large amounts of what we call clutter, various electronics, like laptops, AirPods, tablets, and chargers that can contribute to a higher false positive rate. A year and a half later, we are really pleased. With the traction that we have seen in the expedite product, not only in terms of customer adoption, as we shared in our prepared remarks, but also in the impact on customers' entry. We have shared some statistics on the clearance rate that customers are seeing, clearance rate meaning the amount of people that walk through without ever being stopped for either their bag or for something on their person. And we think it is the right time to adjust the price of Expedite to be more in line than it already was with Express. To reflect the value that product provides. Operator: Once again, if you would like to ask a question, simply click on the raise hand button at the bottom of your screen, or if you would like to reenter the queue. Our next question will come from Shaul Eyal with TD Cowen. Please unmute your line and ask your question. Shaul Eyal: Good afternoon. Congrats on results and guidance John, with the World Cup having concluded last month, Evolve Express was widely deployed across I think, 6 stadiums. Penn Station, I think you have mentioned, and some additional fan zones. Now that the tournament is over, can you share whether you have seen increased interest from similar event organizers Maybe also how far in advance of kickoff back in June, did the selection process begin? John Kedzierski: We are very proud to be able to support an international event of that scale and show the capabilities that organization has, not only in our core weapon screen, technologies, but also the services and support that back what we do, we see more opportunities and see continued demand for short term events of that nature. And our Gen 1 fleet is well purposed for many of those events, and we have been using it for events you know, of that scale. We will continue to do that. Obviously, not every event is the size of a World Cup that occurs every 4 years. But there are many events that occur on a regular basis where somebody needs units for a temporary period, and we both have an epoch of partners that specialize in short events as well as now our own fleet that we can make available either to them or for us to provide customers. Hopefully, that answered the first part of your question, but there was a second part that I want to make sure I get to as well. Could you repeat that? Shaul Eyal: Sure. Sure. So just kind of thinking out loud, any views you can share with us How far ahead of the tournament, you know, the kickoff did the negotiations start with, you know, the various stadiums you guys have been providing the Evolv Express with. John Kedzierski: I will not provide specifics around any particular customer but I would say that we did support the FIFA Club World Cup in the prior year. Understood. Shaul Eyal: Got it. And maybe just any views you can offer us regarding the competitive landscape? It would appear you are gaining share, but curious to hear your views about this topic. Thank you. John Kedzierski: Yep. To be concise, let's say overall, we have not seen a change in the competitive environment. We are continuing to focus on providing the best solution that we can, which we believe is both a combination of the technology and constantly innovating to increase throughput lower friction by lowering false positive rates, the services that we provide with the product, and the software experience that provides our customers what we believe are unique capabilities to make our devices, a part of the overall security workflow. That we have. So have not seen a change in the competitive environment. We like the position. That we have. And we are focused on maintaining what we think is the leadership. Position in terms of the overall solution that we provide. Shaul Eyal: Thank you so much. Good luck. Brian Norris: Thank you. George Chris Kutsor: Operator, are there any other questions in queue? Operator: Yes. We have 1 question from Andrew McIntosh from HUI. Please unmute your line and ask your question. Can you hear me okay? Yes. George Chris Kutsor: 1 more time. Operator: Andrew, could you please unmute your line and ask your question? Can you hear me now? Yes. We can hear you. Analyst: Okay. I am sorry. With the Northwestern deal, have you talked to any other big 10 schools or any other large universities about and I know you cannot name names or anything like that, but about getting your products into their venues as well. I happen to be down I happen to be at the University of Florida in senior products in other venues, not in the football stadium, but around campus and so forth. And I was just wondering, what kind of opportunities you have in that area. John Kedzierski: We are really excited about the opportunity in NCAA outside of Northwestern's Ryan Field, which field privileged to be part of that revolutionary new deployment, we cited several other NCAA wins. In, in recent months. You asked about the big 10 specifically. We had a press release a few months ago about the University of Washington and being their fan screening partner for the Huskies. I believe as NCAA looks to continue to differentiate their experience, they will look to what is happening in professional sports. I think the new Ryan Field is a great example. Of that, and we feel good about our ability to offer a differentiated experience for these locations as they wanna make fan entry, is the first thing that a fan does experience when they are coming into a statement into a stadium. Be as good as it can be. So, we like the position that we have, but we think the opportunity still largely ahead of us there. Analyst: Perfect. Thank you for that call. Brian Norris: I think we have time for 1 more question here. Operator: Yes. Have Michael Latimore with Northland Capital. Please unmute your line and ask your question. Michael Latimore: Yeah. Thanks. Yeah. Just wanted to circle back to the Fortune 500 wins. Did are you getting placed in both the corporate headquarters and the retail locations of those 2 wins? John Kedzierski: I will just speak about Fortune 500 in general. And then what we see because we did not share specifics on the wins mentioned. We see both. There is an increased focus on corporate headquarters, specifically after the murder of the UnitedHealthcare CEO a couple years ago. We definitely saw an uptick of interest and engagement with security teams that continues to this day, following that. But, also, these locations and these businesses are interested in protecting their other facilities. I would say most notably what we see is this centers at warehouses busy locations, that they have, and concerns around workplace violence there. Michael Latimore: Yeah. Makes sense. Then on the, slight increase or shift towards purchase subscription, any factors there? Is it just kind of vertical strength or more, I do not know, expedite or something? George Chris Kutsor: I think it is just the customer mix as it happens to be landing. It depends, you know, different customers have different reasons for wanting to treat it as CapEx versus OpEx. But we still think long term, 50% to each is probably the right thing for long term planning, but we certainly see that heading to 60% purchase subscription in this year. Michael Latimore: Alright. Got it. Thank you. Brian Norris: Thanks, Michael. Operator: That was your last question. I would now like to turn the call over to John for closing remarks. John Kedzierski: Thank you again for joining us today. And for your continued interest in Evolve. We are encouraged by the momentum we are seeing across the business and believe our second quarter results reflect continued progress against the long term framework we outlined at Investor Day. We remain focused on expanding our leadership position in AI powered weapons detection, 1 of the largest and least penetrated segments of the public safety market. Just as importantly, we believe our differentiation goes well beyond software. Combining proprietary hardware, AI machine learning, data, services, and long term customer relationships into a platform designed to deliver valuable security outcomes. Supported by growing recurring revenue, a substantial base of contracted future revenue, and strong customer demand across our end markets, we remain confident in the opportunity ahead. Thank you for your support, and we look forward to updating you on our progress next quarter. Operator: Thank you for joining. This concludes today's call. May now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Evolv Technologies. The Motley Fool has a disclosure policy. Evolv (EVLV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $43.8 million in Q2 2026, up 34% year over year. Annual Recurring Revenue (ARR): $132.7 million at June 30, 2026, up 20% year over year. Adjusted Gross Margin: 51% in Q2, consistent with Q1. Adjusted Operating Expenses: $25 million in Q2, up 16% year over year. Adjusted EBITDA: $4.4 million in Q2, compared to $2.1 million in the prior year quarter. Adjusted EBITDA Margin: 10.1% in Q2, compared to 6.5% in Q2 2025. Remaining Performance Obligation (RPO): $312.6 million at quarter end, up 4.5% sequentially. Cash Position: Cash equivalents, marketable securities, and restricted cash increased about $2 million sequentially to $63 million. New Customers: Added 70 new customers during the quarter, the strongest quarter in two years. Deployed Units: Approximately 9,200 units deployed, with expectations to end 2026 with comfortably over 10,000 units. Full Year 2026 Revenue Guidance: Raised to $180 million to $185 million, representing 23% to 27% year-over-year growth. Full Year 2026 ARR Guidance: Approximately $148 million to $150 million, representing 23% to 25% year-over-year growth. Full Year 2026 Adjusted EBITDA Guidance: $15 million to $16 million, with margins in the high single-digits. Warning! GuruFocus has detected 6 Warning Signs with CDXS. Is EVLV fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue in Q2 2026 increased 34% year-over-year, driven by strong demand and the full transition to the direct fulfillment model. Added 70 new customers in Q2, the strongest quarter for new customer additions in two years, with approximately 60% of unit bookings from existing customers. Adjusted EBITDA margin expanded to 10.1% in Q2, up from 6.5% year-over-year, and total adjusted EBITDA for H1 2026 doubled compared to H1 2025. RPO grew 4.5% sequentially to $312.6 million, now exceeding 1.7 times the full-year revenue outlook, providing strong revenue visibility. Raised full-year 2026 revenue guidance to $180-$185 million (23%-27% growth) and ARR guidance to $148-$150 million (23%-25% growth), reflecting strong momentum. Expedite, the AI-powered bag screening solution, now has over 100 customers (8% of total customer base, up from 2% a year ago), with 70% of new Expedite customers also purchasing Evolve Express. Onboarded Plexus as a new contract manufacturer, which is expected to enhance production capacity, global reach, and reduce bill of material costs over time. Gross margin in Q2 was 51%, with near-term headwinds from a higher mix of purchase subscriptions (60% of new units vs. 55% previously), which recognize hardware costs upfront. Gen 2 upgrades create a temporary gross margin headwind of just under one point due to freight, refurbishment, and depreciation costs on returned Gen 1 units. Component and supply chain costs are modestly higher than anticipated, adding approximately half a point of gross margin headwind. ARR growth (20% year-over-year) is lower than unit growth (approximately 30% year-over-year) due to a mix of lower-ARPU Gen 1 redeployments and Expedite units, though pricing increases are expected to help over time. The company may invest an additional $2-$4 million in inventory safety stock to mitigate supply chain risks, which could impact cash flow. Revenue growth comparisons will normalize in Q3 as the company laps the fulfillment and pricing changes from mid-2025, potentially leading to more moderate growth rates. Q: Can you discuss the divergence between unit growth (~30%) and ARR growth (~20-25%), and whether ARR growth should accelerate as you lap the fulfillment and pricing changes from 2025? A: Chris Kutsor, CFO, explained that the divergence is expected due to a broader product portfolio. The company is seeing a higher volume of Gen 1 units returned from customers upgrading to Gen 2, which are redeployed at a lower ARPU. Additionally, Expedite, which launched at a lower price point, has a lower ARPU than Express. However, the company has implemented price increases across the board, with a larger increase on Expedite, which should bring its ARPU more in line with Express. This should help ARR growth converge with unit growth over time. Q: What is the magnitude of the recent price increase, and is it across all products and verticals? A: John Kedzierski, President and CEO, stated that the price increase was implemented across the board for both Express and Expedite. He noted that Expedite was introduced at an introductory price roughly a year and a half ago to address specific verticals like schools and workplaces. Given the strong traction and value the product has demonstrated, the company felt it was the right time to adjust Expedite's price to be more in line with Express. Q: How many Gen 1 customers do you expect to upgrade to Gen 2 this year? A: John Kedzierski, President and CEO, noted that as of the Q2 call, approximately 60% of existing customers renewing their contracts have chosen to upgrade to the Gen 2 platform, citing its form factor and performance. This upgrade activity is a key driver of new four-year contracts and RPO growth, though it creates a temporary gross margin headwind due to costs associated with returned Gen 1 units. Q: Can you provide more detail on the Plexus manufacturing transition and the potential $2-4 million inventory investment? A: John Kedzierski, President and CEO, confirmed the company is on schedule with the Plexus transition, with the majority of orders now being fulfilled from Plexus facilities. While navigating industry-wide semiconductor supply constraints, the company has line of sight to hit its revenue guidance. CFO Chris Kutsor clarified that the potential $2-4 million inventory investment is a possibility, not a probability, and would be opportunistic to enhance supply chain readiness. Q: With the FIFA World Cup concluded, have you seen increased interest from similar event organizers, and how far in advance did the selection process begin? A: John Kedzierski, President and CEO, expressed pride in supporting an event of that scale and noted continued demand for short-term event deployments. The company's Gen 1 fleet is well-suited for these temporary events, and they have partners that specialize in short-term rentals. He declined to provide specifics on the negotiation timeline but noted the company supported the FIFA Club World Cup in the prior year, indicating an ongoing relationship with FIFA. Q: Can you share your views on the competitive landscape? A: John Kedzierski, President and CEO, stated that the company has not seen a change in the competitive environment. Evolv remains focused on providing the best solution through continuous innovation in throughput, lowering false positive rates, and offering a unique software experience that integrates devices into the overall security workflow. He believes the company maintains a leadership position in the overall solution it provides. Q: With the Northwestern University win, are you seeing opportunities with other large universities or Big 10 schools? A: John Kedzierski, President and CEO, expressed excitement about the NCAA opportunity, citing recent wins like the University of Washington. He believes that as NCAA institutions look to differentiate the fan experience, they will increasingly look to professional sports standards. The new Ryan Field is a prime example, and Evolve is well-positioned to offer a differentiated entry experience, though the opportunity is still largely ahead. Q: Are the new Fortune 500 wins being placed in both corporate headquarters and retail or distribution locations? A: John Kedzierski, President and CEO, noted that the company sees demand in both areas. There has been an increased focus on corporate headquarters security following the UnitedHealthcare CEO incident. However, these businesses are also interested in protecting other facilities, most notably distribution centers and warehouses, where workplace violence is a concern. Q: What factors are driving the shift towards a higher mix of purchase subscriptions (now 60% vs. 55% previously)? A: Chris Kutsor, CFO, attributed the shift to customer mix and individual customer preferences for treating the purchase as CapEx versus OpEx. While the company sees a 50/50 split as the right long-term planning assumption, it currently expects 60% of new full-year deployed units to be via purchase subscription in 2026. Q: Can you elaborate on the legislative environment and its potential impact on the business? A: John Kedzierski, President and CEO, viewed the organic developments in California and the pending legislation in Georgia as encouraging signs that AI-powered weapons detection technology can become standardized and even regulated. He drew parallels to other safety technologies like airbags and body cams that became expected over time. The company plans to be more assertive in making its voice heard on the positive impact of its technology in these legislative discussions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 34% revenue growth to strong new customer acquisition and the successful completion of the transition to a direct fulfillment model. The company reached a milestone with customers in all 50 U.S. states, signaling the platform's versatility across diverse regulatory and regional environments. Strategic focus on the 'Rule of 50' framework is supported by a hardware-enabled subscription model that generates high-margin, long-term recurring revenue rather than just digital workflows. The education sector remains a primary growth engine, with management noting that 24 of the top 100 largest U.S. school districts have now adopted the platform. Operational resiliency was bolstered by onboarding Plexus as a global contract manufacturing partner, which is expected to scale production and eventually reduce bill of material costs. Management highlighted a significant data advantage, where accumulated screening data from over 20 million bags is being used to refine AI models and reduce false alarms. The 'Expedite' bag screening solution is evolving from a point solution to a platform expansion tool, with 70% of new Expedite customers also purchasing the core Express product. Full-year 2026 revenue guidance was raised to 23%-27% growth, assuming a higher mix of purchase subscriptions which accelerates year-one revenue recognition. Management expects to end 2026 with over 10,000 units deployed, representing approximately 30% year-over-year growth in the installed base. The company anticipates remaining cash flow positive through the balance of the year, though it may opportunistically invest $2 million to $4 million in inventory safety stock to mitigate semiconductor supply constraints. Gross margins are expected to remain consistent with first-half levels, as pricing increases and manufacturing efficiencies are currently offset by the costs of Gen2 upgrades and higher component costs. Strategic expansion into international markets outside the United States is expected to begin showing early progress later in the year, building on recent customer additions in Canada. The transition to Gen2 Express creates a temporary margin headwind due to freight and refurbishment costs for returned Gen1 units, though these units represent future revenue when redeployed. A shift in customer preference toward purchase subscriptions (now 60% of mix vs. 55% previously) creates a near-term gross margin headwind as hardware costs are recognized immediately. Management acknowledged ongoing semiconductor supply constraints but expressed confidence in their ability to meet full-year deployment plans through active supply chain management. The company implemented across-the-board price increases for Xpress and Expedite to better reflect product value and offset rising component costs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that unit growth (30%) is outpacing ARR growth (23%-25%) because Gen1 units are being redeployed at a lower ARPU than Gen2 units. Expedite was initially launched at an introductory price point, though recent price increases aim to align its ARPU more closely with the Express product over time. Management views pending legislation in states like Georgia as a sign that weapons detection technology is becoming standardized and expected, similar to airbags or body cams. The company intends to be more assertive in policy discussions to highlight the positive impact of their technology on public safety. Interest in corporate headquarters has increased following high-profile incidents of workplace violence, but demand is also strong for distribution centers and warehouses. The company now serves over 30 Fortune 500 companies, focusing on high-traffic employee entry points where friction reduction is critical.

— Company Adds 70 New Customers —— Company Raises Growth Estimates for 2026 — Q2'26 Revenue of $43.8 million, up 34% year-over-year Q2'26 Ending ARR1 of $132.7 million, up 20% year-over-year Q2'26 Net Loss of $(9.3) million, with Net Profit Margin of (21.3)% Q2'26 Adjusted EBITDA2 of $4.4 million, with Adjusted EBITDA Margin2 of 10.1% Q2'26 Ending Cash, Cash Equivalents, Marketable Securities, and Restricted Cash of $63.4 million, up $2.3 million sequentially Q2'26 Remaining Performance Obligation of $312.6 million, up $13.6 million sequentially WALTHAM, Mass., August 11, 2026--(BUSINESS WIRE)--Evolv Technologies Holdings, Inc. (NASDAQ: EVLV), a leading security technology company pioneering AI-powered screening solutions designed to help create safer experiences, today announced financial results for the quarter ended June 30, 2026. "Our strong second quarter results were highlighted by the addition of 70 new customers, accelerating adoption of Evolv eXpedite, and further strengthening of our renewal trends," said John Kedzierski, President and Chief Executive Officer of Evolv Technology. "Demand for our AI-powered weapons screening solutions continues to grow as organizations increasingly prioritize public safety while seeking security solutions that reduce friction and improve the visitor experience. We believe we remain in the early stages of a significant growth opportunity and are encouraged by the range of customers, markets and geographies adopting our technology." Results for the Second Quarter of 2026 Total revenue for the second quarter of 2026 was $43.8 million, an increase of 34% compared to $32.5 million for the second quarter of 2025. Annual Recurring Revenue ("ARR")1 was $132.7 million at the end of second quarter of 2026, an increase of 20% compared to $110.5 million at the end of the second quarter of 2025. Net loss for the second quarter of 2026 was $(9.3) million, or $(0.05) per basic and diluted share, compared to net loss of $(40.5) million, or $(0.25) per basic and diluted share, in the second quarter of 2025. Adjusted loss2 for the second quarter of 2026 was $(3.1) million, or $(0.02) per diluted share, compared to adjusted loss2 of $(4.7) million, or $(0.03) per diluted share, for the second quarter of 2025. Adjusted EBITDA2 for the second quarter of 2026 was $4.4 million compared to $2.1 million in the second quarter of 2025. As of June 30, 2026, the Company had cash, cash equivalents, marketable securities, and restricted cash of $63.4 million. Results for the First Six Months of 2026 Total revenue for the six months ended June 30, 2026 was $90.1 million, an increase of 40% compared to $64.6 million for the six months ended June 30, 2025. Net loss for the six months ended June 30, 2026 was $(14.3) million, or $(0.08) per basic and diluted share, compared to $(42.2) million, or $(0.26) per basic and diluted share, in the six months ended June 30, 2025. Adjusted earnings (loss)2 for the six months ended June 30, 2026 was $(6.4) million, or $(0.04) per diluted share, compared to adjusted earnings (loss)2 of $(8.0) million, or $(0.05) per diluted share, for the six months ended June 30, 2025. Adjusted EBITDA2 for the six months ended June 30, 2026 was $8.4 million compared to $4.2 million in the six months ended June 30, 2025. Company Raises Outlook for 2026 The Company today commented on its business outlook for 2026. The Company's outlook is based on the current indications for its business, which may change at any time. The Company expects total revenues in 2026 to be between $180 to $185 million, reflecting growth of approximately 23% to 27% year-over-year. The Company expects ending ARR at December 31, 2026 to increase to approximately $148 to $150 million, reflecting growth of approximately 23% to 25% year-over-year. The Company expects Adjusted EBITDA2 in 2026 to be between $15 to $16 million with Adjusted EBITDA2 margins in the high single digits. The Company now expects approximately 60% of new unit deployments in 2026 to be delivered under its purchase subscription model (compared to its prior expectation of approximately 55%), with the remaining 40% deployed through its pure subscription model. As expected under the purchase subscription model, a higher purchase subscription mix increases revenue recognition in the early years of a typical four year customer contract and creates a modest near-term headwind to reported gross margin percentage as associated hardware costs are recognized upfront. "Our second quarter performance and upwardly revised outlook for 2026 reflect continued progress against the long-term framework we outlined at our recent Investor Day," said Chris Kutsor, Chief Financial Officer of Evolv Technology. "We remain focused on building a durable growth business capable of delivering revenue CAGR of approximately 25% through 2031 while expanding Adjusted EBITDA margins annually. We believe consistent execution against these objectives positions us to achieve Rule of 50 performance over time." Company to Host Live Conference Call and Webcast The Company’s management team plans to host a live conference call and webcast at 4:30 p.m. Eastern Time today to discuss the financial results as well as management’s outlook for the business. The conference call will be webcast live at http://ir.evolvtechnology.com. About Evolv Technology Evolv (NASDAQ: EVLV) is designed to transform human security by helping organizations detect potential threats, mitigate risk, and enhance safety using AI-powered security solutions with robust insights. Our technology has helped to create efficient and positive security screening experiences for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces. Evolv’s mission is to create a safer world to live, work, learn, and play. Evolv’s advanced systems have scanned more than 4.5 billion people since 2019. Evolv Express® and Evolv eXpedite™ have been awarded the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT). Evolv and its products have been awarded numerous awards which can be viewed on our Certifications and Awards web page. Evolv®, Evolv Express®, Evolv Insights®, Evolv Visual Gun Detection™, Evolv eXpedite™, and Evolv Eva™ are registered trademarks or trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visit evolv.com. 1 We define Annual Recurring Revenue, or ARR, as the sum of subscription revenue and the recurring service revenue related to purchase subscriptions for the final month of the quarter all multiplied by twelve. The amount of revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly due to differences in our recurring and non-recurring revenue streams. To the extent that we are negotiating a renewal or upgrade with a customer after the expiration of the subscription and we are continuing to provide service to that customer, we may continue to include that associated revenue in ARR. If a customer notifies us that it is not renewing its subscription, we will continue to include associated revenue in ARR through the natural expiration of the subscription term. ARR should be viewed independently of, and not as a substitute for or forecast of, revenue or deferred revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies. 2 Non-GAAP Financial Measures In this press release, the Company’s adjusted operating expenses, adjusted gross profit (loss), adjusted gross margin, adjusted operating income (loss), adjusted EBITDA, adjusted EBITDA margin, adjusted earnings (loss), and adjusted earnings (loss) per diluted share are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. Adjusted operating expenses is defined as operating expenses less stock-based compensation expense, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of on-going operating expense levels. Other non-recurring legal and regulatory costs include non-recurring legal, accounting and professional fees related to the internal investigation, subsequent restatement, certain non-recurring regulatory, litigation and legal matters, as well as fees related to the resolution of the Securities and Exchange Commission investigation, net of estimated insurance recoveries. Adjusted gross profit and adjusted gross margin exclude stock-based compensation expense and amortization of capitalized stock-based compensation, which management believes provides a more meaningful representation of contribution margin. Adjusted operating income (loss) is defined as loss from operations, excluding stock-based compensation expense, amortization of capitalized stock-based compensation, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Adjusted EBITDA and Adjusted EBITDA margin is defined as net income (loss) plus depreciation and amortization, stock-based compensation, interest expense (income), (benefit) provision for income taxes, change in fair value of contingent earn-out liability, change in fair value of contingently issuable/returnable common stock liability/asset, change in fair value of public warrant liability, loss on disposal of leased equipment, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Adjusted earnings (loss) and Adjusted earnings (loss) per diluted share are defined as net income (loss) plus stock-based compensation, amortization of capitalized stock-based compensation, change in fair value of contingent earn-out liability, change in fair value of contingently issuable/returnable common stock liability/asset, change in fair value of public warrant liability, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operating performance. However, non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures included in this press release. The Company is unable to provide a reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA margin to net profit margin, each measure's most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort, because items that impact these GAAP financial measures are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, predicting forward-looking share-based compensation, changes in the fair value of contingent earn out liabilities, changes in the fair value of contingently issuable/returnable common stock liabilities/assets, and changes in fair value of public warrant liabilities. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results. 3 Recurring revenue includes the recurring portion of revenue associated with pure subscription contracts and hardware purchase subscription contracts. Non-recurring revenue includes revenue that is non-recurring in nature, such as product revenue, shipping revenue, revenue from installation, training, professional services, and rental revenue. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical facts are forward-looking statements, including without limitation statements regarding our strategy, goals, business model, demand for our products, market opportunities, strategic partnerships, and future financial and operational results. Words such as "believe," "may," "will," "expect," "should," "could," "anticipate," "aim," "estimate," "intend," "plan," "potential," "continue," "project," "target," "forecast," "is/are likely to," or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the amount of insurance reimbursements expected to be received for defense costs for counsel and consultants in connection with the securities litigation and related Securities and Exchange Commission (the "SEC") and Department of Justice matters, and the following: our history of losses and ability to reach profitability; our reliance on reseller partners; expectations regarding the Company’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures; our ability to renew customer contracts, our ability to renew customer contracts at terms favorable to the Company, the Company’s reliance on third party contract manufacturing and distribution, and a global supply chain; the Company recognizes a substantial portion of its revenue ratably over the term of its agreements, and, as a result, downturns or upturns in sales may not be immediately reflected in its operating results; the rate of innovation required to maintain competitiveness in the markets in which the Company competes; the competitiveness of the market in which the Company competes; the failure of our products to detect threats could result in injury or loss of life, which could harm our brand, reputation, and results of operations; the loss of designation of our Evolv Express® system as a Qualified Anti-Terrorism Technology under the Homeland Security SAFETY Act; risks related to our business model, which is predicated, in part, on building a customer base that will generate a recurring stream of revenues through the sale of our subscription contracts; the ability for the Company to obtain, maintain, protect and enforce the Company’s intellectual property rights and use of "open source" software; the concentration of the Company’s revenues on a single solution; the Company’s ability to timely design, produce and launch its solutions, the Company’s ability to invest in growth initiatives and pursue acquisition opportunities; the limited liquidity and trading of the Company’s securities; risks related to existing and changing tax laws; geopolitical risk and changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; operational risk; risks related to material weaknesses in our internal control over financial reporting and our remediation plans and efforts, including related costs; risks related to increasing attention to and evolving expectations for sustainability initiatives; the impact of fluctuating general economic and market conditions and reductions in spending; the need for additional capital to support business growth, which might not be available on acceptable terms, if at all; and litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on resources. These and other important factors discussed in our most recent report on Form 10-Q or 10-K filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. The forward-looking statements in this press release are based upon information available to us as of the date hereof, and while we believe such information forms a reasonable basis for such statements, it may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should review this press release and the documents that we reference in this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements contained in this press release whether as a result of any new information, future events or otherwise. The following table summarizes operating cash flows for each period presented: View source version on businesswire.com: https://www.businesswire.com/news/home/20260811047354/en/ Contacts Investor Relations: Brian NorrisSenior Vice President of Finance and Investor [email protected]

Interested in Evolv Technologies Holdings, Inc.? Here are five stocks we like better. Evolv Technologies reported strong second-quarter results, with revenue up 34% year over year to $43.8 million, ARR reaching $132.7 million, and adjusted EBITDA more than doubling to $4.4 million. Customer momentum continued, with 70 new customers added, approximately 9,200 units deployed, net revenue retention above 100%, and growing adoption of Gen2 Evolv Express and eXpedite products across education, healthcare, corporate and entertainment markets. Evolv raised its 2026 outlook to $180 million-$185 million in revenue and $148 million-$150 million in ARR, while maintaining adjusted EBITDA guidance of $15 million-$16 million; near-term margins may face pressure from higher purchase-subscription mix and component costs. 3 Obscure Sectors Where Institutions Are Quietly Loading Up on Shares Evolv Technologies (NASDAQ:EVLV) reported second-quarter revenue growth of 34% year over year and raised its 2026 outlook, citing demand from new and existing customers, expanding deployments and improving renewal activity. Revenue for the second quarter was $43.8 million, while annual recurring revenue, or ARR, reached $132.7 million, up 20% from a year earlier. The company said revenue growth also benefited from its completed transition to a direct fulfillment model, which increased the portion of product revenue recognized upfront compared with prior periods. Chief Financial Officer Chris Kutsor said year-over-year comparisons are expected to normalize beginning in the third quarter after the company anniversaried its July 2025 fulfillment and pricing changes. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat MarketBeat Week in Review – 03/09 - 03/13 Adjusted EBITDA was $4.4 million, compared with $2.1 million in the prior-year quarter, producing an adjusted EBITDA margin of 10.1%, up from 6.5%. Adjusted gross margin was 51%, unchanged from the first quarter. The company’s adjusted operating expenses increased 16% to $25 million as Evolv continued to invest in product development, commercial capacity, information-technology systems and personnel. President and Chief Executive Officer John Kedzierski said Evolv added 70 customers during the quarter, its strongest period for new-customer additions in two years. About 60% of unit bookings came from existing customers, he said, reflecting both expansion activity within the installed base and new-logo acquisition. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Evolv Technologies Just Sent a Strong Signal on AI Security Demand Evolv ended the quarter with roughly 9,200 units deployed and expects to finish 2026 with comfortably more than 10,000 units, representing approximately 30% year-over-year net deployed-unit growth. The company said it now has customers in all 50 U.S. states as well as Canada and Mexico, and its systems screen nearly 5 million people daily. Remaining performance obligation, or RPO, rose 4.5% sequentially to $312.6 million. Kedzierski said the figure, which represents future revenue tied to unsatisfied or partially satisfied contractual obligations, exceeds 1.7 times Evolv’s full-year revenue outlook. Kutsor said the company estimates its RPO carries an approximately 66% gross-margin profile, above its current reported gross margin because hardware costs are largely recognized upfront while software and service revenue is recognized over time. → Is Wingstop's Growth Story Losing Steam? Net revenue retention remained above 100% in the quarter, supported by renewals and customer expansions. The company said customers have continued upgrading from its Gen1 systems to the Gen2 Evolv Express platform under new four-year contracts. Kutsor said about 60% of renewing customers had upgraded to Gen2 as of the second-quarter call. In education, Evolv added 23 customers across 13 states, including K-12 schools, higher-education institutions and state education agencies. The company said it serves about 1,800 schools, including 24 of the 100 largest U.S. school districts. The company added eight healthcare customers, including Alberta Health Services in Canada, and said it now supports roughly 800 hospitals. It also cited new sports and live-entertainment customers, including the Pro Football Hall of Fame, and said it supported the 2026 FIFA World Cup through a short-term subscription deployment across match venues, fan festivals and transportation hubs. Evolv said it screened more than 3.5 million fans during the nearly 40-day tournament. Separately, Evolv said Northwestern University selected its technology for the new Ryan Field. The company also added two Fortune 500 customers during the quarter and said it now serves more than 30 Fortune 500 companies. Kedzierski said corporate demand includes headquarters as well as distribution centers and warehouses, where customers have workplace-security concerns. Adoption of Evolv eXpedite, the company’s autonomous bag-screening product, also increased. Evolv said it has more than 100 eXpedite customers, representing approximately 8% of its customer base, up from 2% a year earlier. About 70% of new eXpedite customers in the second quarter also purchased Evolv Express, while eXpedite has been cross-sold to more than 40 existing Express customers. Evolv raised its full-year revenue forecast to $180 million to $185 million, from prior guidance of $175 million to $180 million. The updated range represents annual growth of approximately 23% to 27%. The company increased its year-end ARR outlook to approximately $148 million to $150 million, implying growth of 23% to 25%. The company continues to expect full-year adjusted EBITDA of $15 million to $16 million, with an adjusted EBITDA margin in the high single digits, compared with 7.6% in 2025. It expects second-half deployments to exceed first-half deployments and said gross margins should remain consistent with first-half levels through the remainder of the year. Kutsor said a higher mix of purchase subscriptions, stronger-than-expected Gen2 upgrades and moderately higher component costs are expected to pressure near-term gross margin. Evolv now expects purchase subscriptions to account for 60% of newly deployed units in 2026, compared with its prior 55% assumption. The company expects pricing increases, manufacturing efficiencies and scale benefits to support margin expansion over time. Cash equivalents, marketable securities and restricted cash rose about $2 million sequentially to $63 million. Evolv said it generated positive cash flow in the second quarter and expects to remain cash-flow positive for the rest of 2026, though it may opportunistically invest $2 million to $4 million in inventory safety stock. The company also said it has begun shipping products through facilities operated by new global contract manufacturing partner Plexus. Kedzierski said the majority of orders are now being fulfilled from Plexus-built units, while Evolv continues to manage semiconductor and electronics supply-chain constraints. Evolv Technologies, Inc is a publicly traded American security technology company that develops and markets AI-driven weapons detection and screening solutions. The company’s proprietary platform combines advanced sensors, computer vision software and machine learning algorithms to identify potential threats—such as firearms and knives—while minimizing false positives and preserving high throughput. Evolv’s systems are designed to replace or supplement traditional metal detectors and manual bag checks in high-traffic venues. The company’s flagship product, Evolv Express, integrates seamlessly into existing security checkpoints, allowing guests to pass through without stopping or emptying their pockets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Evolv Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

— Company Raises Outlook for 2026 — Q1'26 Revenue of $46.3 million, up 45% year-over-year Q1'26 Ending ARR1 of $127.3 million, up 20% year-over-year Q1'26 Net Loss of $(5.0) million, with Net Profit Margin of (10.8)% Q1'26 Adjusted EBITDA2 of $3.9 million, with Adjusted EBITDA Margin2 of 8.5% WALTHAM, Mass., May 12, 2026--(BUSINESS WIRE)--Evolv Technologies Holdings, Inc (NASDAQ: EVLV), a leading security technology company pioneering AI-based solutions designed to help create safer experiences, today announced financial results for the quarter ended March 31, 2026. "Our first quarter results reflect our progress in building a disciplined and predictable business," said John Kedzierski, President and Chief Executive Officer of Evolv Technology. "Revenue growth during the quarter was driven by new customer acquisition, expanding deployments within our installed base, and growing adoption of our newest product — Evolv eXpedite. Looking ahead, we remain focused on scaling the business and delivering weapon screening in complex, real-world environments across the growing customer base we are serving—helping make the world a better place to live, learn, work, and play." Results for the First Quarter of 2026 Total revenue for the first quarter of 2026 was $46.3 million, an increase of 45% compared to $32.0 million for the first quarter of 2025. Revenue for the first quarter of 2026 was primarily driven by strong new customer additions and continued expansion of deployments across the existing customer base. Annual Recurring Revenue ("ARR")1 was $127.3 million at the end of first quarter of 2026, an increase of 20% compared to $106.0 million at the end of the first quarter of 2025. Net loss for the first quarter of 2026 was $(5.0) million, or $(0.03) per basic and diluted share, compared to net loss of $(1.7) million, or $(0.01) per basic and diluted share, in the first quarter of 2025. Adjusted loss2 for the first quarter of 2026 was $(3.3) million, or $(0.02) per diluted share, compared to adjusted loss2 of $(3.4) million, or $(0.02) per diluted share, for the first quarter of 2025. Adjusted EBITDA2 for the first quarter of 2026 was $3.9 million compared to $2.1 million in the first quarter of 2025. As of March 31, 2026, the Company had cash, cash equivalents and marketable securities of $61.1 million. The following table summarizes the breakdown of recurring and non-recurring revenue3 for each period presented: The following table summarizes operating cash flows for each period presented: Company Comments on Outlook for 2026 The Company today commented on its business outlook for 2026. The Company's outlook is based on the current indications for its business, which may change at any time. The Company expects total revenues in 2026 to be between $175 to $180 million, reflecting growth of approximately 20% to 23% year-over-year. The Company expects ending ARR at December 31, 2026 to increase to approximately $145 to $150 million, reflecting growth of approximately 20% to 25% year-over-year. The Company currently expects approximately 45% of the Company’s new unit deployments in 2026 to be delivered under the Company’s pure subscription model, with the remaining 55% deployed through the Company’s purchase-subscription model. The Company expects to deliver positive full year Adjusted EBITDA1 in 2026 with Adjusted EBITDA1 margins in the high single digits. Company to Host Live Conference Call and Webcast The Company’s management team plans to host a live conference call and webcast at 4:30 p.m. Eastern Time today to discuss the financial results as well as management’s outlook for the business. The conference call will be webcast live at http://ir.evolvtechnology.com. About Evolv Technology Evolv Technologies Holdings, Inc (NASDAQ: EVLV) is designed to transform human security to make a safer, faster, and better experience for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered screening and analytics. Its mission is to transform security to create a safer world to live, work, learn, and play. Evolv has digitally transformed the gateways in many places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced systems have scanned more than four billion people since 2019. Evolv has been awarded the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT) as well as the Security Industry Association (SIA) 2024 New Products and Solutions (NPS) Award in the Law Enforcement/Public Safety/Guarding Systems category, as well as Sport Business Journal’s (SBJ) 2024 awards for "Best In Fan Experience Technology" and "Best In Sports Technology". Evolv®, Evolv Express®, Evolv Insights®, Evolv Visual Gun Detection™, Evolv eXpedite™, and Evolv Eva™ are registered trademarks or trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visit evolv.com. 1 We define Annual Recurring Revenue, or ARR, as the sum of subscription revenue and the recurring service revenue related to purchase subscriptions for the final month of the quarter all multiplied by twelve. The amount of revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly due to differences in our recurring and non-recurring revenue streams. To the extent that we are negotiating a renewal or upgrade with a customer after the expiration of the subscription and we are continuing to provide service to that customer, we may continue to include that associated revenue in ARR. If a customer notifies us that it is not renewing its subscription, we will continue to include associated revenue in ARR through the natural expiration of the subscription term. ARR should be viewed independently of, and not as a substitute for or forecast of, revenue or deferred revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies. 2 Non-GAAP Financial Measures In this press release, the Company’s adjusted operating expenses, adjusted gross profit (loss), adjusted gross margin, adjusted operating income (loss), adjusted EBITDA, adjusted EBITDA margin, adjusted earnings (loss), and adjusted earnings (loss) per diluted share are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. Adjusted operating expenses is defined as operating expenses less stock-based compensation expense, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of on-going operating expense levels. Other non-recurring legal and regulatory costs include non-recurring legal, accounting and professional fees related to the internal investigation, subsequent restatement, certain non-recurring regulatory, litigation and legal matters, as well as fees related to the resolution of the Securities and Exchange Commission investigation, net of estimated insurance recoveries. Adjusted gross profit and adjusted gross margin exclude stock-based compensation expense and amortization of capitalized stock-based compensation, which management believes provides a more meaningful representation of contribution margin. Adjusted operating income (loss) is defined as loss from operations, excluding stock-based compensation expense, amortization of capitalized stock-based compensation, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Adjusted EBITDA and Adjusted EBITDA margin is defined as net income (loss) plus depreciation and amortization, stock-based compensation, interest expense (income), (benefit) provision for income taxes, change in fair value of contingent earn-out liability, change in fair value of contingently issuable/returnable common stock liability/asset, change in fair value of public warrant liability, loss on disposal of leased equipment, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Adjusted earnings (loss) and Adjusted earnings (loss) per diluted share are defined as net income (loss) plus stock-based compensation, amortization of capitalized stock-based compensation, change in fair value of contingent earn-out liability, change in fair value of contingently issuable/returnable common stock liability/asset, change in fair value of public warrant liability, non-recurring employee restructuring and other separation costs, and other non-recurring legal and regulatory costs, which management believes provides a more meaningful representation of operating results. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operating performance. However, non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures included in this press release. The Company is unable to provide a reconciliation of Adjusted EBITDA to Net Income (Loss) and Adjusted EBITDA Margin to Net Profit Margin, each measure's most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort, because items that impact these GAAP financial measures are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, predicting forward-looking share-based compensation, changes in the fair value of contingent earn out liabilities, changes in the fair value of contingently issuable/returnable common stock liabilities/assets, and changes in fair value of public warrant liabilities. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results. 3 Recurring revenue includes the recurring portion of revenue associated with pure subscription contracts and hardware purchase subscription contracts. Non-recurring revenue includes revenue that is non-recurring in nature, such as product revenue, shipping revenue, revenue from installation, training, and professional services, and rental revenue. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release and related presentation materials other than statements of historical facts, including without limitation statements regarding our strategy, goals, business model, demand for our products, market opportunities, strategic partnerships, and future financial and operational results. Words such as "believe," "may," "will," "expect," "should," "could," "anticipate," "aim," "estimate," "intend," "plan," "potential," "continue," "project," "target," "forecast," "is/are likely to," or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. The forward-looking statements in this press release and related presentation materials are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the amount of insurance reimbursements expected to be received for defense costs for counsel and consultants in connection with the securities litigation and related Securities and Exchange Commission (the "SEC") and Department of Justice matters, and the following: our history of losses and ability to reach profitability; our reliance on reseller partners; expectations regarding the Company’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures; our ability to renew customer contracts, our ability to renew customer contracts at terms favorable to the Company, the Company’s reliance on third party contract manufacturing and distribution, and a global supply chain; the Company recognizes a substantial portion of its revenue ratably over the term of its agreements, and, as a result, downturns or upturns in sales may not be immediately reflected in its operating results; the rate of innovation required to maintain competitiveness in the markets in which the Company competes; the competitiveness of the market in which the Company competes; the failure of our products to detect threats could result in injury or loss of life, which could harm our brand, reputation, and results of operations; the loss of designation of our Evolv Express® system as a Qualified Anti-Terrorism Technology under the Homeland Security SAFETY Act; risks related to our business model, which is predicated, in part, on building a customer base that will generate a recurring stream of revenues through the sale of our subscription contracts; the ability for the Company to obtain, maintain, protect and enforce the Company’s intellectual property rights and use of "open source" software; the concentration of the Company’s revenues on a single solution; the Company’s ability to timely design, produce and launch its solutions, the Company’s ability to invest in growth initiatives and pursue acquisition opportunities; the limited liquidity and trading of the Company’s securities; risks related to existing and changing tax laws; geopolitical risk and changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; operational risk; risks related to material weaknesses in our internal control over financial reporting and our remediation plans and efforts, including related costs; risks related to increasing attention to and evolving expectations for sustainability initiatives; the impact of fluctuating general economic and market conditions and reductions in spending; the need for additional capital to support business growth, which might not be available on acceptable terms, if at all; and litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on resources. These and other important factors discussed in our most recent report on Form 10-Q or 10-K filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. The forward-looking statements in this press release and related presentation materials are based upon information available to us as of the date hereof, and while we believe such information forms a reasonable basis for such statements, it may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should review this press release and the documents that we reference in this press release and related presentation materials with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release and related presentation materials, whether as a result of any new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512266569/en/ Contacts Investor Relations: Brian Norris Senior Vice President of Finance and Investor Relations [email protected]

This article first appeared on GuruFocus. Revenue: $46.3 million in Q1, up 45% year-over-year. Annual Recurring Revenue (ARR): $127.3 million, reflecting 20% year-over-year growth. Adjusted EBITDA Margin: Expanded to 8.5% in Q1 from 6.4% in the same quarter last year. Adjusted Gross Margin: 52% in Q1, compared to 61% in the previous year. Adjusted Operating Expenses: $26.9 million, up 16% from the previous year. Remaining Performance Obligation (RPO): $299 million, up 18% year-over-year. Cash and Cash Equivalents: $61 million, decreased by about $8 million sequentially. Full-Year Revenue Guidance: Raised to $175 million to $180 million, representing 20% to 23% growth year-over-year. Full-Year ARR Guidance: Expected to be $145 million to $150 million, representing 20% to 25% growth year-over-year. Warning! GuruFocus has detected 4 Warning Signs with TELA. Is EVLV fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Evolv Technologies Holdings Inc (NASDAQ:EVLV) reported a 45% year-over-year increase in revenue for Q1 2026, reaching $46.3 million. The company achieved a 20% year-over-year growth in annual recurring revenue (ARR), ending the quarter at $127.3 million. Evolv Technologies Holdings Inc (NASDAQ:EVLV) welcomed nearly 50 new customers in Q1, expanding its global customer base to approximately 1,300. The company is on track to deploy over 10,000 units by the end of 2026, reflecting strong customer demand and scalability. Evolv Technologies Holdings Inc (NASDAQ:EVLV) raised its full-year 2026 revenue guidance to $175 million to $180 million, indicating confidence in continued growth. Adjusted gross margin decreased to 52% in Q1 2026 from 61% in the same period last year, due to a shift in the business model. The company experienced an $8 million sequential decrease in cash, cash equivalents, and marketable securities, primarily due to annual incentive payments. Supply chain challenges, particularly in semiconductor supply, remain a concern, although largely mitigated. The transition to a direct fulfillment model creates an initial gross margin headwind, impacting short-term profitability. Despite raising revenue guidance, the adjusted EBITDA margin guidance remains unchanged, reflecting ongoing cost pressures. Q: Can you provide more details on the mix of purchase deals versus full subscription deals this quarter and expectations for the rest of the year? A: Traditionally, the mix has been around 50-50, but this quarter it was about 60-40 in favor of purchase deals. We expect this trend to continue, with guidance reflecting a shift to about 55% purchase and 45% subscription deals for the year. - John Kedzierski, Independent Director Q: Regarding the pricing change last year, how does it affect the mix of ARR and product revenue in a typical $100,000 deal? A: In a full subscription deal, the higher value is in ARR. For a purchase deal, about 30% to 40% of the revenue is recognized upfront as product revenue, with the balance in recurring revenue. - John Kedzierski, Independent Director Q: Should we expect adjusted gross margins to continue improving in the coming quarters? A: Yes, adjusted gross margin was 52% in Q1, and we expect it to be closer to the mid-50s for the rest of the year, indicating improvement. - George Kutsor, Chief Financial Officer Q: Is the upward revision in revenue guidance primarily driven by purchase deals? A: Yes, the increase in revenue guidance is significantly driven by the mix of purchase deals, which bring more revenue into the period but also come with additional costs. - John Kedzierski, Independent Director Q: How does Evolv use AI internally, and what are the hiring plans for fiscal 2026? A: We use AI to improve efficiency and automate mundane tasks, viewing it as a tailwind for our business. Hiring plans focus on scaling the business with critical talent while balancing growth and profitability. - John Kedzierski, Independent Director Q: Have there been any changes in the sales cycle, and how does selling eXpedite and Express together affect it? A: Sales cycles remain consistent, with some rapid cycles in response to acute events. Selling eXpedite and Express together can potentially shorten sales cycles, especially in environments with significant bag usage. - John Kedzierski, Independent Director Q: Can you elaborate on the Gen2 upgrades and their impact? A: About 60% of customers have upgraded to our Gen2 unit, committing to a new four-year subscription, which maximizes our remaining performance obligation. - John Kedzierski, Independent Director Q: Does selling Express and eXpedite together elongate the sales cycle? A: Selling both together often results in selling two units instead of one, which is attractive in terms of unit economics without necessarily elongating the sales cycle. - George Kutsor, Chief Financial Officer For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Evolv Technologies Holdings, Inc.? Here are five stocks we like better. Evolv Technologies posted strong Q1 results, with revenue rising 45% year over year to $46.3 million and ARR increasing 20% to $127.3 million. Adjusted EBITDA also improved to $3.9 million, and the company raised its full-year 2026 revenue guidance to $175 million to $180 million. Demand broadened across key end markets, including education, healthcare, sports and entertainment, and enterprise workplaces. Evolv added nearly 50 new customers in the quarter and now serves about 1,300 customers globally, including more than 30 Fortune 500 companies. Management highlighted growth in eXpedite and a shift in business mix, with more customers adopting its AI-based bag screening product alongside Express. The company said this shift toward purchase subscriptions is pressuring near-term gross margin but should improve long-term revenue, gross profit, and cash flow, with cash flow positivity still expected in the second half of 2026. 3 Obscure Sectors Where Institutions Are Quietly Loading Up on Shares Evolv Technologies (NASDAQ:EVLV) reported first-quarter revenue growth of 45% year over year and raised its full-year 2026 revenue outlook, citing continued demand across education, healthcare, sports and entertainment, and enterprise workplaces. President and CEO John Kedzierski said the company is continuing to execute against its operating plans while scaling what he described as a “hardware-enabled subscription business.” He said customers are seeking security solutions that are effective, scalable and operationally reliable amid elevated threat levels in schools, healthcare facilities, workplaces and public venues. → MercadoLibre Boldly Invests in Growth: Discount Deepens MarketBeat Week in Review – 03/09 - 03/13 Revenue for the quarter was $46.3 million, up from the prior-year period. Annual recurring revenue, or ARR, was $127.3 million at March 31, 2026, an increase of 20% year over year. Adjusted EBITDA was $3.9 million, compared with $2.1 million in the first quarter of last year, and adjusted EBITDA margin expanded to 8.5% from 6.4%. Evolv raised its full-year 2026 revenue guidance to a range of $175 million to $180 million, up from its prior forecast of $172 million to $178 million. The updated outlook implies year-over-year growth of approximately 20% to 23%. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Evolv Technologies Just Sent a Strong Signal on AI Security Demand Kedzierski said Evolv continues to expect to end 2026 with “comfortably over 10,000 units deployed.” CFO Chris Kutsor said the higher revenue outlook reflects a higher mix of purchase subscriptions, incremental contributions from short-term rental subscriptions and continued strength in pricing and average revenue per unit trends. The company maintained its expectation to exit 2026 with ARR of approximately $145 million to $150 million, representing growth of 20% to 25% year over year. Kutsor said Evolv still expects to be cash flow positive in the second half of 2026. First-quarter revenue: $46.3 million, up 45% year over year. ARR: $127.3 million, up 20% year over year. Remaining performance obligation: $299 million, up 18% year over year. Adjusted EBITDA: $3.9 million, with an 8.5% adjusted EBITDA margin. Full-year revenue guidance: $175 million to $180 million. → MP Materials Is Quietly Building a Rare Earth Powerhouse Kedzierski said Evolv added nearly 50 new customers during the quarter and now serves approximately 1,300 customers globally. He described demand as steady across the company’s core markets. In education, Evolv added more than 12 new customers, including K-12 districts and municipalities across Arkansas, California, Michigan, Mississippi, New Mexico, New York, North Carolina, Pennsylvania, Tennessee and Texas. Kedzierski also cited instances in which Evolv systems flagged firearms and knives during student arrival screening, allowing school staff and law enforcement to intervene before weapons entered school buildings. In healthcare, the company added customers including BronxCare Health System and the West Virginia University Health System. Kedzierski said additional wins with regional systems and community hospitals expanded the company’s footprint in the sector. In sports and live entertainment, Evolv added Subaru Park, a professional soccer stadium, along with what Kedzierski described as one of professional football’s most established franchises and a major multi-use arena in the Western U.S. He said Evolv served as the weapons screening partner for 50% of all playoff teams across professional basketball and hockey as the spring playoffs began. The company also reported momentum in enterprise workplaces, including corporate campuses, headquarters, manufacturing facilities and distribution centers. Kedzierski said Evolv added several large-scale enterprise customers during the quarter, including one of the world’s most valuable technology companies and another Fortune 500 corporation. He said Evolv now serves more than 30 Fortune 500 companies. Evolv highlighted continued adoption of eXpedite, its autonomous AI-based bag screening product. Kedzierski said customers increasingly want bag screening to be part of a single integrated security workflow alongside Evolv Express, the company’s walk-through weapons screening platform. The company now has more than 75 eXpedite customers, representing about 6% of its customer base, up from roughly 1% a year ago. In the first quarter, 19% of new customers purchased eXpedite, “almost always” alongside Express, Kedzierski said. Kedzierski cited one school deployment of Express and eXpedite in which a customer reported an average eXpedite alert rate of less than 2% across more than 300,000 scanned bags over six months. During the question-and-answer portion of the call, Kedzierski said there are other X-ray bag screening products in the market, but he argued Evolv’s product is differentiated by its autonomous AI model, faster conveyor speed, integration with the company’s broader platform and single cloud portal. He said eXpedite was designed for environments with significant bag usage, particularly where bags contain items such as laptops. Kutsor said adjusted gross margin was 52% in the first quarter, down from 61% in the same period last year. He attributed the decline to Evolv’s shift toward directly fulfilling purchase subscriptions, which creates an initial gross margin headwind but is expected to produce better long-term returns, including higher total gross profit, higher revenue and ARR, and better cash flow than the prior distribution approach. In response to analyst questions, Kedzierski said the company expects the 2026 mix to be about 55% purchase subscriptions and 45% full subscriptions. Kutsor said Evolv expects adjusted gross margin to be closer to the mid-50% range for the full year, while noting that gross margin will depend on customer mix. Kutsor said the company expects a sequential revenue decline in the second quarter because a prior-year purchase subscription backlog was largely shipped in the first quarter. He said that dynamic reflects timing and mix, not weaker demand. Evolv expects second-half revenue to be modestly higher than first-half revenue, with ARR growth outpacing revenue growth in the second half. Kedzierski said Evolv remains on track with its strategic partnership with Plexus, its new global contract manufacturing partner, and expects onboarding to be completed by the end of the quarter. He said the partnership should support expanded production capacity, global reach and operational resilience. The company also said it has largely mitigated semiconductor supply constraints and expects to maintain near-term delivery plans. Kedzierski said Evolv had already incorporated assumptions about premium component pricing into its guidance. Kedzierski said Evolv is using generative AI internally to improve efficiency, automate routine tasks and support faster product development, while also implementing governance and guardrails. He emphasized that Evolv controls its hardware, software and AI model stack in-house. Both Kedzierski and Kutsor said the company now sees the potential for greater long-term adjusted EBITDA leverage than the 10% to 15% target discussed at Evolv’s 2023 Investor Day. The company plans to provide more detail on its strategy, product innovation and long-term financial framework at its Investor Day on June 9, 2026. Evolv Technologies, Inc is a publicly traded American security technology company that develops and markets AI-driven weapons detection and screening solutions. The company’s proprietary platform combines advanced sensors, computer vision software and machine learning algorithms to identify potential threats—such as firearms and knives—while minimizing false positives and preserving high throughput. Evolv’s systems are designed to replace or supplement traditional metal detectors and manual bag checks in high-traffic venues. The company’s flagship product, Evolv Express, integrates seamlessly into existing security checkpoints, allowing guests to pass through without stopping or emptying their pockets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Evolv Technologies Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.