Evolv Technology — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 total revenue was $47.3 million, a 10% increase year-over-year compared to $42.9 million in Q3 2025.
• Q3 2026 Net loss was $(15.6) million, or $(0.09) per share, compared to $(1.8) million, or $(0.01) per share, in Q3 2025.
• Q3 2026 Adjusted EBITDA was $4.7 million with a margin of 10.0%, compared to $5.1 million and 12.0% margin in Q3 2025.
• Q3 2026 Adjusted loss was $(2.9) million, or $(0.02) per share, compared to $(3.4) million, or $(0.02) per share, in Q3 2025.
• For the nine months ended September 30, 2026, total revenue was $137.4 million, a 28% increase year-over-year compared to $107.4 million.
• For the nine months ended September 30, 2026, Net loss was $(29.9) million, or $(0.17) per share, compared to $(44.0) million, or $(0.26) per share, in the prior year period.
• For the nine months ended September 30, 2026, Adjusted EBITDA was $13.1 million compared to $9.3 million in the prior year period.
• Ending cash, cash equivalents, marketable securities, and restricted cash was $66.9 million as of September 30, 2026, up $3.5 million sequentially.
• Remaining Performance Obligation (RPO) was $325.8 million as of September 30, 2026, up $13.2 million sequentially.
• Annual Recurring Revenue (ARR) was $140.5 million at the end of Q3 2026, up 20% year-over-year from $117.2 million.
• GAAP Gross Margin for Q3 2026 was 49.7%, while Adjusted Gross Margin was 50.8%.
• Net profit margin for Q3 2026 was (32.9)%.

Guidance and Future Outlook:

• The Company expects 2026 total revenue to be between $182 million and $185 million, representing approximately 25% to 27% year-over-year growth.
• The Company expects ending ARR at December 31, 2026, to be between $148 million and $150 million, reflecting 23% to 25% year-over-year growth.
• The Company expects 2026 Adjusted EBITDA to be between $15.5 million and $16.5 million, with margins in the high single digits.
• Management anticipates revenue growth to ramp toward an approximately 25% CAGR through 2031.
• 2026 revenue guidance range is dependent on the mix of new unit deployments between purchase subscription and pure subscription models.

Business Segments and Product Lines:

• Q3 2026 Subscription revenue was $24.5 million, up from $22.7 million in Q3 2025.
• Q3 2026 Product revenue was $12.3 million, up from $9.2 million in Q3 2025.
• Q3 2026 Service revenue was $9.5 million, up from $7.8 million in Q3 2025.
• Q3 2026 License fee and other revenue was $1.0 million, down from $3.1 million in Q3 2025.
• Recurring revenue accounted for 69% of total revenue in Q3 2026, compared to 67% in Q3 2025.
• Non-recurring revenue accounted for 31% of total revenue in Q3 2026, compared to 33% in Q3 2025.
• The Company highlighted strong net revenue retention and a strengthened renewal and expansion motion.
• The Company noted investments in sales capacity and product innovation.

Market and Competitive Landscape:

• Evolv's technology has scanned more than 5 billion people since 2019.
• Evolv Express® and Evolv eXpedite™ have received U.S. Department of Homeland Security (DHS) SAFETY Act Designation as Qualified Anti-Terrorism Technology (QATT).
• The Company serves iconic venues, companies, schools, hospitals, and public spaces.
• Management noted a challenging prior-year comparison due to the inclusion of the largest contract in the company's history in the prior year.

Risks and Challenges:

• The Company faces risks related to its history of losses and ability to reach profitability.
• Risks include reliance on reseller partners and third-party contract manufacturing and distribution.
• The Company recognizes a substantial portion of revenue ratably over agreement terms, meaning sales downturns may not immediately impact operating results.
• Risks include the potential failure of products to detect threats, which could harm brand and reputation.
• Risks include the loss of the SAFETY Act designation for Evolv Express®.
• The Company faces risks related to material weaknesses in internal control over financial reporting and remediation efforts.
• Risks include litigation and regulatory enforcement matters, including SEC and Department of Justice investigations.
• The Company relies on insurance reimbursements for defense costs related to securities litigation, which may vary.

Management Commentary and Tone:

• John Kedzierski, President and CEO, stated that results reflect progress in building a stronger, more scalable, and predictable business.
• Management expressed increasing confidence in the path ahead for 2027 and the long-term model outlined at Investor Day.
• Management highlighted the expansion of the recurring revenue base and strong net revenue retention.
• The tone was confident regarding future growth, citing double-digit revenue growth and ARR growing faster than revenue.

Other Key Points:

• The Company hosted a live conference call and webcast on November 10, 2026, to discuss results and outlook.
• The Company reported 51 new customers in Q3 2026.
• Stock-based compensation for Q3 2026 was $6.9 million.
• Depreciation and amortization for the nine months ended September 30, 2026, was $21.4 million.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $26.7 million.
• Free cash flow for Q3 2026 was $3.2 million.
• Long-term debt was $28.8 million as of September 30, 2026.
• Accounts receivable increased to $50.4 million as of September 30, 2026, from $30.8 million as of December 31, 2025.
• Deferred revenue (current and noncurrent) increased to $106.8 million as of September 30, 2026, from $91.6 million as of December 31, 2025.