Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 230

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 230
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348 $3,575 49 %Gross profit - Subscription revenue$11,762 $10,561 $1,201 11 %Gross profit margin - Subscription revenue52 %59 %N/A(7)%

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, 2025 compared to the prior year, with a higher number of active Evolv Express systems deployed under our pure subscription model and an increase in short term rental subscription revenue during the three months ended September 30, 2025. The decrease in subscription gross profit margin was due to a $1.9 million loss on disposal of leased equipment and a $0.6 million estimated field services cost related to the replacement of certain Express system parts.

9

Service Revenue

Three Months EndedSeptember 30,20252024$ Change% ChangeService revenue$7,808 $6,085 $1,723 28 %Cost of service revenue$2,338 $1,404 $934 67 %Gross profit - Service revenue$5,470 $4,681 $789 17 %Gross profit margin - Service revenue70 %77 %N/A(7)%

The increases in service revenue, cost of service revenue, and service gross profit are primarily due to increased maintenance revenue associated with growth in 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, 2025 compared to the prior year period. The decrease in gross profit margin is primarily due to a $0.5 million estimated field services cost related to the replacement of certain Express system parts and a $0.2 million increase in amortization of capitalized software costs during the three months ended September 30, 2025 due to the release of Evolv eXpedite and our second generation of Evolv Express systems.

License fee and other revenue

Three Months EndedSeptember 30,20252024$ Change% ChangeLicense fee and other revenue$3,115 $2,022 $1,093 54 %Cost of license fee and other revenue$323 $183 $140 77 %Gross profit - License fee and other revenue$2,792 $1,839 $953 52