Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 300

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 300
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,902 34,961 (5,059)(14)Loss from operations(8,596)(19,152)10,556 55 Other income (expense), net:Interest expense(713)— (713)*Interest income436 628 (192)(31)Other (expense) income, net(44)34 (78)(229)Change in fair value of contingent earn-out liability7,521 (8,321)15,842 190 Change in fair value of contingently issuable/returnable common stock liability/asset2,178 (2,056)4,234 206 Change in fair value of public warrant liability(2,578)(1,576)(1,002)(64)Total other income (expense), net6,800 (11,291)18,091 160 Net loss$(1,796)$(30,443)$28,647 94 %

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 62 new customers during the three months ended September 30, 2025, and (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. 

Product Revenue

Three Months EndedSeptember 30,20252024$ Change% ChangeProduct revenue$9,242 $1,344 $7,898 588 %Cost of product revenue$7,960 $2,616 $5,344 204 %Gross profit (loss) - Product revenue$1,282 $(1,272)$2,554 201 %Gross profit margin - Product revenue14 %(95)%N/A109 %

The increases in product revenue and cost of product revenue for the three months ended September 30, 2025 compared to the prior year period are primarily due to an increased utilization of our purchase subscription model, in which customers purchase Evolv Express and Evolv eXpedite systems directly from us instead of through our distributor licensing model. The increase in product gross profit margin was due to an expense related to our inventory reserve of $