Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 390

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 390
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(Restated)Service revenue$6,686 $5,566 $1,120 20 %Cost of service revenue$1,710 $1,147 $563 49 %Gross profit - Service revenue$4,976 $4,419 $557 13 %Gross profit margin - Service revenue74 %79 %N/A(5)%

The increases in service revenue, cost of service revenue, and service 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 June 30, 2025 compared to the prior year period. The decrease in gross profit margin is primarily due to a $0.2 million expense related to certain accrued service fees and a $0.2 million increase in amortization of capitalized software costs during the three months ended June 30, 2025 due to the release of Evolv eXpedite and our second generation of Evolv Express systems.

License fee and other revenue

Three Months EndedJune 30,20252024$ Change% Change(Restated)License fee and other revenue$3,130 $2,049 $1,081 53 %Cost of license fee and other revenue$371 $172 $199 116 %Gross profit - License fee and other revenue$2,759 $1,877 $882 47 %Gross profit margin - License fee and other revenue88 %92 %N/A(3)%

The increases in license fee and other revenue and gross profit are primarily driven by $2.3 million of license fee revenue earned during the three months ended June 30, 2025 compared to $1.7 million earned during the prior year period under the Distribution and License Agreement with Columbia Tech. Although the unit sales through our distributor licensing model declined, the license fee and other revenue increased due to an increase in per-unit license fees for our second generation of Evolv Express systems. Product gross profit margin decreased for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 due to an increase in personnel and overhead costs of $0.3 million.

Research and Development Expenses

Three Months Ended June 30,20252024$ Change% Change(Restated)Personnel related