Evolv Technologies Holdings Inc - Class A

Evolv Technologies delivered a mixed fourth quarter, falling short of Wall Street expectations on both the top and bottom lines as a revenue mix shift weighed on results. Revenue of $38.50 million grew 20.3% year-over-year but came in 11.90% below the $43.70 million consensus, while an adjusted loss of $0.03 per share missed the $0.02 estimate by 50.00%. The primary culprit was a surge in lower-margin product revenue, which jumped to $7.54 million from $1.68 million a year ago, compressing GAAP gross margin to 48.4% from 57.5% and skewing the revenue mix away from the company's higher-margin recurring streams. Notably, the company disclosed a material weakness in internal controls over financial reporting, adding an overhang beyond the headline numbers. Still, adjusted EBITDA turned positive at $1.82 million, and full-year operating cash flow swung to positive $18.67 million from negative $30.85 million. Management raised its 2026 revenue outlook to $172 million to $178 million, reflecting 18-22% growth, and introduced ARR guidance of $145 million to $150 million, signaling confidence in its ongoing shift toward a subscription-weighted model.