Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 304

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 304
---
 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 (including stock-based compensation)$3,544 $4,071 $(527)(13)%Materials and prototypes173 504 (331)(66)%Professional fees658 929 (271)(29)%Other362 346 16 5 %$4,737 $5,850 $(1,113)(19)%

The decrease in personnel related expenses is due to the January 2025 reductions in force, which resulted in a decrease in payroll costs of $0.6 million, partially offset by a lower amount of payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $0.2 million. The decrease in materials and prototypes expense is due to a decrease of $0.2 million in design and engineering costs related to the development of the 

10

next generation of our Evolv Express system and new product offerings in the prior year. The decrease in professional fees primarily relates to a decrease in consulting costs incurred for product development and engineering of $0.3