Why Evolv Technologies (EVLV) Is Up 6.3% After Raising Full-Year Revenue Guidance Despite Quarterly Loss

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  • Evolv Technologies Holdings, Inc. announced past second quarter 2025 earnings with revenue of US$32.54 million, up from US$25.22 million a year earlier, but reported a net loss of US$40.54 million compared to net income of US$3.42 million in the prior year period.
  • Alongside its earnings report, Evolv Technologies raised its full-year 2025 revenue guidance to between US$132 million and US$135 million, highlighting expectations for continued strong growth and a focus on operational efficiency.
  • With management raising annual revenue expectations, we'll examine how this signals confidence in Evolv's recurring growth strategy and sector demand.

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Evolv Technologies Holdings Investment Narrative Recap

To be a shareholder in Evolv Technologies, you need to believe in the company's ability to capture a growing market for AI-driven weapons detection while executing on direct sales and recurring revenue strategies. The latest earnings news, with raised full-year revenue guidance to US$132–135 million, highlights expected top-line growth, but a widening net loss underlines that achieving consistent profitability remains the central short-term catalyst, and the risk of margin pressure from the transition to direct purchase fulfillment is still a key concern. The increased guidance signals management's confidence in sector demand, but it does not materially alleviate the near-term risk that rising costs could continue to weigh on margins and delay break-even. Among recent company updates, the expanded partnership with the San Francisco Giants to deploy upgraded Gen2 units stands out, showing continued customer adoption of next-gen platforms that support the catalyst of larger, recurring contracts in entertainment and sports venues. This type of client win reinforces the business thesis that successful vertical expansion and technology upgrades are essential for maintaining growth momentum and addressing evolving client needs for security screening. Yet, even as revenue guidance climbs, investors should be aware that persistent pressure on gross margins from direct fulfillment may not abate as quickly as hopes suggest…

Read the full narrative on Evolv Technologies Holdings (it's free!)

Evolv Technologies Holdings is projected to reach $184.7 million in revenue and $16.5 million in earnings by 2028. This outlook assumes a 17.6% annual revenue growth rate and a $60.9 million increase in earnings from the current level of -$44.4 million.

Uncover how Evolv Technologies Holdings' forecasts yield a $9.50 fair value, a 23% upside to its current price.

Exploring Other Perspectives

EVLV Community Fair Values as at Aug 2025

All 10 Simply Wall St Community fair value estimates for Evolv Technologies are tightly clustered at US$9.50 per share. However, with the company continuing to report significant net losses, you may want to consider how opinions in the community line up with the risks around profitability and cash flow before forming your own view.

Explore another fair value estimate on Evolv Technologies Holdings - why the stock might be worth as much as 23% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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