Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 231

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 231
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 %Gross profit margin - License fee and other revenue90 %91 %N/A(1)%

The increases in license fee and other revenue and gross profit are primarily driven by $2.3 million of license fee revenue earned during the three months ended September 30, 2025 compared to $1.6 million earned during the prior year period under the distributor licensing model, as well as a $0.2 million increase in installation and training service fees. Although the unit sales through our distributor licensing model declined, the license fee and other revenue increased due to an increase in per-unit license fees for our second generation of Evolv Express systems. 

Research and Development Expenses

Three Months Ended September 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$4,239 $4,075 $164 4 %Materials and prototypes233 614 (381)(62)%Professional fees703 713 (10)(1)%Other433 408 25 6 %$5,608 $5,810 $(202)(3)%

The increase in personnel related expenses is primarily due to a decrease in payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $0.2 million. The decrease in materials and prototypes expense is primarily due to a decrease of $0.3 million in design and engineering costs reflecting the timing of certain product releases in the prior year. 

10

Sales and Marketing Expenses

Three Months Ended September 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$9,135 $10,346 $(1,211)(12)%Advertising and direct marketing446 1,316 (870)(66)%Travel and entertainment707 1,305 (598)(46)%Professional fees477 915 (438)(48)%Other950 1,084 (134)(12)%$11,715 $14,966 $(3,251)(22)%

The decrease in personnel related expenses is due to a decrease in payroll costs and stock-based compensation of $1.1 million, which resulted primarily from the reduction in force in January 2025. Stock-based compensation expense included in sales and marketing expenses was $1.5 million for the three months ended September 30, 2025 compared to $2.5 million for the three months ended September 30, 2024. The decrease in