Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 388

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 388
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 Cost of service revenue1,710 1,147 563 49 Cost of license fee and other revenue371 172 199 116 Total cost of revenue16,326 10,467 5,859 56 Gross profit16,218 14,757 1,461 10 Operating expenses:Research and development4,737 5,850 (1,113)(19)Sales and marketing11,736 16,357 (4,621)(28)General and administrative17,238 14,061 3,177 23 Restructuring costs— 860 (860)(100)Total operating expenses33,711 37,128 (3,417)(9)Loss from operations(17,493)(22,371)4,878 22 Other (expense) income, net:Interest income224 681 (457)(67)Other income (expense), net136 (39)175 449 Change in fair value of contingent earn-out liability(14,200)16,514 (30,714)(186)Change in fair value of contingently issuable common stock liability(3,900)3,747 (7,647)(204)Change in fair value of public warrant liability(5,303)4,886 (10,189)(209)Total other (expense) income, net(23,043)25,789 (48,832)(189) (Loss) income before income taxes$(40,536)$3,418 $(43,954)(1286)%Benefit for income taxes$(1)$— $(1)*Net (loss) income$(40,535)$3,418 $(43,953)(1286)%

8

Revenue, Cost of Revenue and Gross Profit

We believe there are several key trends that are continuing to drive increased adoption of our solutions and growth in our sales, including (i) escalating gun violence, which has created stronger demand for security screening solutions for customers and prospects in our key vertical markets, (ii) customer acquisition activities which led to the addition of 63 new customers during the three months ended June 30, 2025, (iii) the expansion of our existing customers' initial Evolv Express deployments to other venues and locations as well as expanding their fleet with our Evolv eXpedite offering, and (iv) growing momentum with our channel partners which helps us extend our reach in certain