Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 217

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 217
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 eXpedite systems, which reflected a higher initial cost to produce than we expect on future production. 

Subscription Revenue

Three Months EndedMarch 31,20252024$ Change% Change(Restated)Subscription revenue$19,237 $14,219 $5,018 35 %Cost of subscription revenue$7,896 $5,585 $2,311 41 %Gross profit - Subscription revenue$11,341 $8,634 $2,707 31 %Gross profit margin - Subscription revenue59 %61 %N/A(2)%

The increases in subscription revenue, cost of subscription revenue, and subscription gross profit are primarily due to continued growth in our customer base as of March 31, 2025 compared to the prior year, which was due to a higher number of active Evolv Express units deployed under our pure subscription model. The decrease in gross profit margin is due to increased amortization of capitalized software costs during the three months ended March 31, 2025 of $0.4 million due to the release of Evolv eXpedite and our second generation of Evolv Express.

8

Service Revenue

Three Months EndedMarch 31,20252024$ Change% Change(Restated)Service revenue$6,730 $5,252 $1,478 28 %Cost of service revenue$1,705 $1,198 $507 42 %Gross profit - Service revenue$5,025 $4,054 $971 24 %Gross profit margin - Service revenue75 %77 %N/A(3)%

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 model, for the three months ended March 31, 2025 compared to the prior year period.

License fee and other revenue

Three Months EndedMarch 31,20252024$ Change% Change(Restated)License fee and other revenue$3,718 $1,219 $2,499 205 %Cost of license fee and other revenue$72 $129 $(57)(44)%Gross profit - License fee and other revenue$3,646 $1,090 $2,556 234 %Gross profit margin -