Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 302

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 302
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 estimated field services cost related to the replacement of certain Express system parts and a $0.2 million increase in amortization of capitalized software costs during the three months ended September 30, 2025 due to the release of Evolv eXpedite and our second generation of Evolv Express systems.

License fee and other revenue

Three Months EndedSeptember 30,20252024$ Change% ChangeLicense fee and other revenue$3,115 $2,022 $1,093 54 %Cost of license fee and other revenue$323 $183 $140 77 %Gross profit - License fee and other revenue$2,792 $1,839 $953 52 %Gross profit margin - License fee and other revenue90 %91 %N/A(1)%

The increases in license fee and other revenue and gross profit are primarily driven by $2.3 million of license fee revenue earned during the three months ended September 30, 2025 compared to $1.6 million earned during the prior year period under the distributor licensing model, as well as a $0.2 million increase in installation and training service fees. Although the unit sales through our distributor licensing model declined, the license fee and other revenue increased due to an increase in per-unit license fees for our second generation of Evolv Express systems. 

Research and Development Expenses

Three Months Ended September 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$4,239 $4,075 $164 4 %Materials and prototypes233 614 (381)(62)%Professional fees703 713 (10)(1)%Other433 408 25 6 %$5,608 $5,810 $(202)(3)%

The increase in personnel related expenses is primarily due to a decrease in payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $0.2 million. The decrease in materials and prototypes expense is primarily due to a decrease of $0.3 million in design and engineering costs reflecting the timing of certain product releases in the prior year. 

10

Sales and Marketing Expenses

Three Months Ended September 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$9,135 $10,346 $(1,211)(12)%Advertising and direct marketing446 1,316 (870)(66)%Travel