Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 309

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 309
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 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 during the six months ended June 30, 2025. Gross profit margin decreased primarily due to a $1.3 million of loss on disposals of certain first generation Evolv Express systems, partially offset by our ability to leverage our fixed costs over a higher revenue base and lower costs related to our second generation of Evolv Express systems.

14

Service Revenue

Six Months EndedJune 30,20252024$ Change% ChangeService revenue$13,416 $10,818 $2,598 24 %Cost of service revenue$3,415 $2,345 $1,070 46 %Gross profit - Service revenue$10,001 $8,473 $1,528 18 %Gross profit margin - Service revenue75 %78 %N/A(4)%

The increases in service revenue, cost of service revenue, and gross profit are primarily due to an increased number of active revenue-generating purchase subscription units, as well as active revenue-g