Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 395

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 395
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Six Months EndedJune 30,20252024$ Change% ChangeProduct revenue$4,850 $3,445 $1,405 41 %Cost of product revenue$8,535 $5,953 $2,582 43 %Gross loss - Product revenue$(3,685)$(2,508)$(1,177)(47)%Gross profit margin - Product revenue(76)%(73)%N/A(3)%

The increases in product revenue and cost of product revenue are primarily due to an increased utilization of our purchase subscription model, in which the customers purchase Evolv Express and Evolv eXpedite systems directly from us, for the six months ended June 30, 2025 compared to the prior year period. The decrease in product gross profit margin for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is primarily due to a $0.8 million increase in inventory reserves during the six months ended June 30, 2025, partially offset by a $1.1 million expense associated with adverse non-cancellable inventory purchase commitments recognized during the six months ended June 30, 2024, and a net $0.6 million decrease in manufacturing expense during the six months ended June 30, 2025, primarily related to the deployments of second generation of Evolv Express systems, which provide improved gross margins as compared to the first generation products, partially offset by the initial deployments of Evolv eXpedite systems, which, as a new product offering, reflect a higher initial cost to produce that we expect to gradually decline in the future. 

Subscription Revenue

Six Months EndedJune 30,20252024$ Change% ChangeSubscription revenue$39,437 $29,874 $9,563 32 %Cost of subscription revenue$16,790 $11,894 $4,896 41 %Gross profit - Subscription revenue$22,647 $17,980 $4,667 26 %Gross profit margin - Subscription revenue57 %60 %N/A(3)%

The increases in subscription revenue, cost of subscription revenue, and subscription gross profit are primarily due to continued growth in our customer base as of June 30, 2025 compared to the prior year, with a higher number of active Evolv Express systems deployed under our pure subscription model and an increase in short term rental subscription revenue