Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 397

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 397
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 months ended September 30, 2025 by $0.7 million due to the release of Evolv eXpedite and our second generation of Evolv Express systems.

License fee and other revenue 

Nine Months EndedSeptember 30,20252024$ Change% ChangeLicense fee and other revenue$9,963 $5,290 $4,673 88 %Cost of license fee and other revenue$766 $484 $282 58 %Gross profit - License fee and other revenue$9,197 $4,806 $4,391 91 %Gross profit margin - License fee and other revenue92 %91 %N/A1 %

The increase in license fee and other revenue and gross profit was primarily driven by $7.8 million of license fees earned during the nine months ended September 30, 2025 compared to $4.0 million earned during the nine months ended September 30, 2024 under the distributor licensing model, as well as a $0.4 million increase in installation and training service fees. In addition to the increase in the unit sales through our distributor licensing model, per-unit license fees also increased for our second generation of Evolv Express systems. 

Research and Development Expenses

Nine Months Ended September 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$11,633 $12,324 $(691)(6)%Materials and prototypes473 1,957 (1,484)(76)%Professional fees2,033 2,559 (526)(21)%Other1,068 1,216 (148)(12)%$15,207 $18,056 $(2,849)(16)%

The decrease in personnel related expenses is primarily due to the January 2025 reduction in force, which resulted in a decrease in payroll costs of $0.9 million, partially offset by a $0.1 million increase in stock-based compensation and a decrease in payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $0.1 million. The decrease in materials and prototypes expense is primarily due to a decrease of $1.0 million in design and engineering costs and $0.4 million inventory reserve on unused components recognized in the prior year, both of which relate primarily to the development of the next generation of our Evolv Express system and new product offerings. The decrease in professional fees primarily relates