Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 245

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 245
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 increase in deferred revenue due to a higher volume of sales; 

•$11.1 million decrease in inventory primarily due to an increased focus on efficient inventory management, partially offset by a decrease in products expected to be leased to customers; and

•$1.8 million increase in accounts payable (excluding the non-cash portion related to capital expenditures incurred but not yet paid from December 31, 2024 to September 30, 2025) due primarily to the timing of vendor payments; partially offset by

•$20.6 million increase in accounts receivable primarily due to higher sales and the timing of billings to customers; 

•$17.3 million increase in prepaid expenses and other current assets primarily due to estimated outstanding insurance recoveries and capitalization of costs associated with Delayed Draw Term Loan and Revolving Credit Facility, partially offset by decrease in vendor deposits; 

•$1.8 million decrease in accounts payable (excluding the non-cash portion related to capital expenditures incurred but not yet paid from December 31, 2024 to September 30, 2025) due primarily to the timing of vendor payments; and

•$0.7 million increase in commission assets due to a higher volume of sales.

Changes in operating assets and liabilities for the nine months ended September 30, 2024 are primarily related to the following:

•$13.7 million increase in accounts receivable primarily due to higher sales and the timing of customer billings;

•$8.3 million increase in inventory primarily due to increased purchases to satisfy future expected demand for the first generation of Evolv Express systems and for the ongoing transition to the next generation of Evolv Express systems;

•$4.1 million increase in prepaid expenses and other current assets primarily due to prepaid deposits related to orders placed for Evolv Express systems; partially offset by

•$13.6 million increase in deferred revenue due to a higher volume of sales;

•$1.7 million increase in accrued expenses due to the timing of certain payments; and

•$1.0 million decrease in contract assets related to the timing of revenue recognition.

Investing Activities

During the nine months ended September 30, 2025, cash used in investing activities was $43.2 million, consisting of $29.1 million for the purchase of property and equipment, primarily related to the purchase of Evolv Express systems to be leased to customers and $4.3 million for the development of internal-use software and software embedded in products to be