Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 229

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 229
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,576)(1,002)(64)Total other income (expense), net6,800 (11,291)18,091 160 Net loss$(1,796)$(30,443)$28,647 94 %

8

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 62 new customers during the three months ended September 30, 2025, and (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. 

Product Revenue

Three Months EndedSeptember 30,20252024$ Change% ChangeProduct revenue$9,242 $1,344 $7,898 588 %Cost of product revenue$7,960 $2,616 $5,344 204 %Gross profit (loss) - Product revenue$1,282 $(1,272)$2,554 201 %Gross profit margin - Product revenue14 %(95)%N/A109 %

The increases in product revenue and cost of product revenue for the three months ended September 30, 2025 compared to the prior year period are primarily due to an increased utilization of our purchase subscription model, in which customers purchase Evolv Express and Evolv eXpedite systems directly from us instead of through our distributor licensing model. The increase in product gross profit margin was due to an expense related to our inventory reserve of $1.5 million recognized in the three months ended September 30, 2024, which related primarily to the transition of our manufacturing operations to the next generation of Evolv Express systems and the determination that certain components within our legacy systems will not be used in the next generation systems, partially offset by the initial deployments of our Evolv eXpedite systems, which as a new product offering reflect a higher initial cost to produce that we expect to gradually decline in the future. 

Subscription Revenue

Three Months EndedSeptember 30,20252024$ Change% ChangeSubscription revenue$22,685 $17,909 $4,776 27 %Cost of subscription revenue$10,923 $7,