Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 308

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 308
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-out liability(5,224)23,413 (28,637)(122)Change in fair value of contingently issuable common stock liability(2,247)4,274 (6,521)(153)Change in fair value of public warrant liability(3,582)7,037 (10,619)(151)Total other (expense) income, net(10,280)36,423 (46,703)(128)Loss before income taxes$(42,162)$(7,854)$(34,308)(437)%Provision for income taxes$62 $— $62 *Net loss$(42,224)$(7,854)$(34,370)(438)%

13

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 117 new customers during the six months ended June 30, 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

Six Months EndedJune 30,20252024$ Change% ChangeProduct revenue$4,850 $3,445 $1,405 41 %Cost of product revenue$8,535 $5,953 $2,582 43 %Gross loss - Product revenue$(3,685)$(2,508)$(1,177)(47)%Gross profit margin - Product revenue(76)%(73)%N/A(3)%

The increases in product revenue and cost of product revenue are primarily due to an increased utilization of our purchase subscription model, in which the customers purchase Evolv Express and Evolv eXpedite systems directly from us, for the six months ended June 30, 2025 compared to the prior year period. The decrease in product gross profit margin for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is primarily due to a $0.8 million increase in inventory reserves during the six