Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 310

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 310
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enerating 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 through our distributor licensing model, per-unit license fees also increased for our second generation of Evolv Express systems. License fee revenue earned under the agreement has no associated cost of revenue. 

Research and Development Expenses

Six Months Ended June 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$7,394 $8,249 $(855)(10)%Materials and prototypes240 1,343 (1,103)(82)%Professional fees1,330 1,846 (516)(28)%Other635 808 (173)(21)%$9,599 $12,246 $(2,647)(22)%

The decrease in personnel related expenses is primarily due to the January 2025 reductions in force, which resulted in a decrease in payroll costs of $0.8 million, partially offset by a $0.2 million increase in stock-based compensation. The decrease in materials and prototypes expense is primarily due to a decrease of $0.5 million in design and