Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 235

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
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 customers’ initial Evolv Express deployments to other venues and locations as well as expanding their fleet with our Evolv eXpedite offering.

Product Revenue

Nine Months EndedSeptember 30,20252024$ Change% ChangeProduct revenue$14,092 $4,789 $9,303 194 %Cost of product revenue$16,495 $8,569 $7,926 92 %Gross loss - Product revenue$(2,403)$(3,780)$1,377 36 %Gross profit margin - Product revenue(17)%(79)%N/A62 %

The increases in product revenue and cost of product revenue for the nine 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 the customers purchase Evolv Express and Evolv eXpedite systems directly from us. The increase in product gross profit margin for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 is primarily due to expense recognized during the nine months ended September 30, 2024 of a $1.1 million related to non-cancellable inventory purchase commitments, a $0.6 million decrease in charges for inventory reserves during the nine months ended September 30, 2025 as compared to the same period in the prior year, and a $0.7 million decrease in manufacturing expense during the nine months ended September 30, 2025, primarily related to the deployments of second generation of Evolv Express systems, which provide improved gross margins as compared to the first generation products, all partially offset by the initial deployments of 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

Nine Months EndedSeptember 30,20252024$ Change% ChangeSubscription revenue$62,122 $47,783 $14,339 30 %Cost of subscription revenue$27,713 $19,242 $8,471 44 %Gross profit - Subscription revenue$34,409 $28,541 $5,868 21 %Gross profit margin - Subscription revenue55 %60 %N/A(5)%

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