Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 396

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 396
---
 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-generating units purchased by customers directly from Columbia Tech under our distributor licensing model, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease in gross profit margin is primarily due to a $0.2 million expense related to certain accrued service fees and increased amortization of capitalized software costs during the six months ended June 30, 2025 of $0.4 million due to the release of Evolv eXpedite and our second generation of Evolv Express systems.

License fee and other revenue 

Six Months EndedJune 30,20252024$ Change% ChangeLicense fee and other revenue$6,848 $3,268 $3,580 110 %Cost of license fee and other revenue$443 $301 $142 47 %Gross profit - License fee and other revenue$6,405 $2,967 $3,438 116 %Gross profit margin - License fee and other revenue94 %91 %N/A3 %

The increase in license fee and other revenue and gross profit was primarily driven by $5.5 million of license fees earned during the six months ended June 30, 2025 compared to $2.4 million earned during the six months ended June 30, 2024 under the Distribution and License Agreement which was executed in March 2023. In addition to the increase in the unit sales