Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 351

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 351
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 three months ended March 31, 2025 of $0.4 million due to the release of Evolv eXpedite and our second generation of Evolv Express.

8

Service Revenue

Three Months EndedMarch 31,20252024$ Change% Change(Restated)Service revenue$6,730 $5,252 $1,478 28 %Cost of service revenue$1,705 $1,198 $507 42 %Gross profit - Service revenue$5,025 $4,054 $971 24 %Gross profit margin - Service revenue75 %77 %N/A(3)%

The increases in service revenue, cost of service revenue, and 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 model, for the three months ended March 31, 2025 compared to the prior year period.

License fee and other revenue

Three Months EndedMarch 31,20252024$ Change% Change(Restated)License fee and other revenue$3,718 $1,219 $2,499 205 %Cost of license fee and other revenue$72 $129 $(57)(44)%Gross profit - License fee and other revenue$3,646 $1,090 $2,556 234 %Gross profit margin - License fee and other revenue98 %89 %N/A9 %

The increases in license fee and other revenue and gross profit are primarily driven by $3.2 million of license fee revenue earned during the three months ended March 31, 2025 compared to $0.7 million earned during the prior year period under the Distribution and License Agreement with Columbia Tech. License fee revenue earned under the agreement have no associated cost of revenue.

Research and Development Expenses

Three Months Ended March 31,20252024$ Change% Change(Restated)Personnel related (including stock-based compensation)$3,850 $4,178 $(328)(8)%Materials and prototypes67 839 (772)(92)%Professional fees672 917 (245)(27)%Other273 462 (189)(41)%$4,862 $6,396 $(1,534)(24)%

The decrease in personnel related expenses is due to a decrease in payroll costs of $0