Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 226

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 1
Chunk 226
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 licensing model during the preceding twelve months. The decrease in product gross profit margin for the three months ended September 30, 2024 compared to the prior year period is primarily due to a large decrease in product revenue explained above as well as decreases in cost of revenue and third party costs of revenue.

Subscription Revenue

Three Months EndedSeptember 30,20242023$ Change% Change(Restated)Subscription revenue$17,909 $9,858 $8,051 82 %Cost of subscription revenue$7,348 $4,157 $3,191 77 %Gross profit - Subscription revenue$10,561 $5,701 $4,860 85 %Gross profit margin - Subscription revenue59 %58 %N/A1 %

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 September 30, 2024 compared to the prior year, which was due to a 

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transition to our pure subscription model and a higher number of active Evolv Express units deployed under our pure subscription model.

Service Revenue

Three Months EndedSeptember 30,20242023$ Change% Change(Restated)Service revenue$6,085 $4,345 $1,740 40 %Cost of service revenue$1,404 $1,219 $185 15 %Gross profit - Service revenue$4,681 $3,126 $1,555 50 %Gross profit margin - Service revenue77 %72 %N/A5 %

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 three months ended September 30, 2024 compared to the prior year period.

License fee and other revenue

Three Months EndedSeptember 30,20242023$ Change% Change(Restated)License fee and other revenue$2,022 $2,302 $(280)(12)%Cost of license fee and other revenue$183 $198 $(15)(8)%Gross profit - License fee and other revenue$1,839 $2,104 $(265)(13)%Gross profit margin - License fee and other revenue91 %91 %N