Evolv Technologies Holdings Inc - Class A

Evolv Technologies posted a standout third quarter, with revenue of $42.85 million climbing 56.6% year-over-year and clearing the consensus estimate by 27.22%, while an adjusted loss of $0.02 per share beat the $0.03 consensus by nearly 40%. The headline figures were meaningfully lifted by roughly $7.50 million in non-recurring items, including the company's largest-ever customer order, IP license fees tied to a distribution model being phased out, and short-term rental agreements that concluded in the period, all of which inflated results above the underlying run rate. Still, the core business showed genuine momentum, with annual recurring revenue reaching $117.20 million, up 25% year-over-year, and adjusted EBITDA turning positive at $5.13 million compared to a loss of $3.02 million a year ago. Gross margin compressed to 49.7% from 57.8%, reflecting a heavier product revenue mix. Despite a sharp pullback in the stock following the report, management raised full-year 2025 revenue guidance to $142.00 million–$145.00 million and now expects high-single-digit adjusted EBITDA margins, with cash flow positive results anticipated in the fourth quarter.