Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 198

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 198
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 $14,092 $4,789 Subscription revenue22,685 17,909 62,122 47,783 Service revenue7,808 6,085 21,224 16,903 License fees2,280 1,606 7,774 4,047 Professional services and other revenue835 416 2,189 1,243 Total revenue$42,850 $27,360 $107,401 $74,765 Partner Rebate ProgramAs discussed in Note 2, Summary of Significant Accounting Policies, the Company implemented a new Rebate Program for eligible resellers. As of September 30, 2025, the Company has accrued $1.1 million related to the Rebate Program, which is included in accrued expenses and other current liabilities in our condensed consolidated balance sheets. As a substantial amount of the Company's revenue with eligible resellers is recognized over-time, the Company recognized $0.2 million and $0.6 million of current portion of contract asset and contract asset, noncurrent in our condensed consolidated balance sheets, respectively, as of September 30, 2025 and recognized $0.2 million and $0.4 million as reduction of revenue for the three and nine months ended September 30, 2025, respectively.

F-17

Table of ContentsEVOLV TECHNOLOGIES HOLDINGS, INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

CommissionsThe Company incurs and pays commissions on sales of its products and services. The Company applies the practical expedient for contracts less than one year in duration to expense the commission costs in the period in which they were incurred. Commissions on product sales and professional services are expensed in the period in which the related revenue is recognized. Commissions on subscription arrangements are expensed ratably over the life of the contract. The Company had a deferred asset related to commissions of $13.0 million as of both September 30, 2025 and December 31, 2024. During the three months ended September 30, 2025 and 2024, the Company recognized commission expense of $2.1 million and $1.4 million, respectively. During the nine months ended September 30, 2025 and 2024, the Company recognized commission expense of $5.4 million and $4.3 million,