Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 216

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 216
---
 liability1,653 527 1,126 214 Change in fair value of public warrant liability1,721 2,151 (430)(20)Total other income, net12,763 10,634 2,129 20 Loss before income taxes$(1,626)$(11,272)$9,646 86 %Provision for income taxes$(63)$— $(63)*Net loss$(1,689)$(11,272)$9,583 85 %

7

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 54 new customers during the three months ended March 31, 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 geographies or vertical markets. 

Product Revenue

Three Months EndedMarch 31,20252024$ Change% Change(Restated)Product revenue$2,322 $1,491 $831 56 %Cost of product revenue$3,184 $3,114 $70 2 %Gross profit - Product revenue$(862)$(1,623)$761 47 %Gross profit margin - Product revenue(37)%(109)%N/A72 %

The increases in product revenue and gross profit are primarily due to an increase in product sales of Evolv Express and Evolv eXpedite units for the three months ended  March 31, 2025 compared to the prior year period. In addition, the change in cost of product revenue and improved product gross profit margin was impacted by a $0.7 million of expense related to an increase to our inventory reserve and $1.2 million of expense associated with adverse non-cancellable inventory purchase commitments during the three months ended March 31, 2024, both of which related primarily to the transition of our manufacturing operations to the next generation of Evolv Express systems. Product gross profit for the three months ended March 31, 2025 included the initial deployments of our Evolv