Evolv Technology Delivers Strong Q4 2025 Results
Evolv Technologies Holdings, Inc. (NASDAQ: EVLV), a leader in AI-based security screening solutions, reported robust financial performance for the fourth quarter and full year ended December 31, 2025. The company posted total revenue of $38.5 million in Q4, marking a 32% increase year-over-year from $29.1 million. This growth stemmed from new customer acquisitions and expanded deployments across its platform.
Recurring revenue reached $29.5 million, up 25% from the prior year, while non-recurring revenue climbed 65% to $9.0 million. Annual Recurring Revenue (ARR) ended the quarter at $120.5 million, reflecting 21% growth compared to $99.4 million a year earlier.
Profitability Milestones Achieved
The quarter featured net income of $10.9 million, or $0.06 per basic and diluted share, a stark turnaround from a $15.7 million net loss, or $0.10 per share, in Q4 2024. Adjusted EBITDA turned positive at $1.8 million, achieving a 5% margin, up from $0.4 million previously. The company maintained a solid cash position of $69.0 million in cash, cash equivalents, and marketable securities.
Full-Year 2025 Highlights
For the entire year, total revenue surged 40% to $145.9 million from $103.9 million in 2024. Recurring revenue grew 28% to $112.1 million, and non-recurring revenue more than doubled to $33.8 million. Despite a net loss of $33.1 million, or $0.20 per share, adjusted EBITDA reached $11.1 million, reversing a $21.0 million loss from the prior year. Operating cash flow provided $18.7 million, compared to $30.9 million used in 2024.
Accelerated 2026 Guidance
Looking ahead, Evolv raised its 2026 outlook significantly. Total revenue now projects at $172 million to $178 million, implying 18% to 22% growth over 2025, surpassing the previous $160 million to $165 million range. Ending ARR expects $145 million to $150 million, signaling 20% to 25% expansion. Adjusted EBITDA anticipates positive results with high single-digit margins.
The company plans roughly 50% of new units under pure subscription models and 50% under purchase-subscription hybrids, boosting recurring revenue streams.
CEO Commentary
“We are pleased to be reporting solid fourth quarter results, which capped a year of significant improvement across the Company,” stated John Kedzierski, President and Chief Executive Officer. “We continue to deliver advanced weapons screening capabilities at scale for more than 1,200 customers worldwide through a tightly integrated platform. Looking ahead, we believe AI-based weapons screening will continue to become increasingly prevalent, and we look forward to capitalizing on this still-nascent market opportunity to help make the world a safer place.”
Evolv serves over 1,200 customers globally, with its systems screening more than four billion people since 2019. The technology holds DHS SAFETY Act designation and recent awards from SIA and SBJ.
