Tue, May 20, 8:31 PM (49 days ago)
### Summary of Evolv Technologies Holdings, Inc. (EVLV) Q1 2025 Financial Performance **Revenue and Profit Margins:** - **Total Revenue:** $32.0 million, up 44% from $22.2 million in Q1 2024. - **Product Revenue:** $2.3 million, up 56%. - **Subscription Revenue:** $19.2 million, up 35%. - **Service Revenue:** $6.7 million, up 28%. - **License Fee and Other Revenue:** $3.7 million, up 205%. - **Gross Profit:** $19.2 million, up 58% from $12.2 million in Q1 2024. - **Gross Margin:** 59.5%, up from 54.8% in Q1 2024. **Operating Expenses:** - **Total Operating Expenses:** $33.5 million, down 2% from $34.1 million in Q1 2024. - **Research and Development:** $4.9 million, down 24%. - **Sales and Marketing:** $11.0 million, down 30%. - **General and Administrative:** $15.0 million, up 27%. - **Restructuring Costs:** $2.7 million, new in Q1 2025. **Net Loss:** - **Net Loss:** $1.7 million, down 85% from $11.3 million in Q1 2024. **Cash Flow:** - **Net Cash Used in Operating Activities:** $2.5 million, down from $16.2 million in Q1 2024. - **Net Cash Used in Investing Activities:** $9.4 million, down from $6.7 million in Q1 2024. - **Net Cash Provided by Financing Activities:** $20,000, up from $302,000 in Q1 2024. **Liquidity and Capital Resources:** - **Cash, Cash Equivalents, and Marketable Securities:** $35.0 million as of March 31, 2025. - **Future Minimum Lease Payments:** $19.1 million as of March 31, 2025. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased product sales and subscription revenue, with a significant increase in license fee revenue. - **Operating Expenses:** Decrease in sales and marketing expenses due to cost-cutting measures, offset by increased general and administrative expenses due to legal and consulting fees related to the investigation. - **Cash Flow:** Improvement in operating cash flow due to better inventory management and higher sales. - **Future Outlook:** Expects to continue generating losses but believes current liquidity will fund operations for at least the next 12 months. **Trends and Uncertainties:** - **Market Conditions:** Expects fluctuations in revenue and cost of revenue due to economic conditions, supply chain issues, and public health emergencies. - **Sales Mix:** Shift towards a full subscription model, which reduces upfront revenue recognition but builds a more predictable recurring revenue base. - **Legal and Regulatory Risks:** Ongoing investigations and legal proceedings could result in additional costs and reputational damage. **Future Operations Impact:** - **Investment Strategy:** Plans to continue investing in research and development, sales and marketing, and general administration to support growth. - **Capital Requirements:** May require additional capital to support growth in demand for equipment and technological advancements. **Conclusion:** Evolv Technologies Holdings, Inc. showed significant revenue growth and improved profitability in Q1 2025, driven by increased product sales and subscription revenue. However, the company continues to face challenges related to legal and regulatory risks, which could impact future operations and financial performance. The company expects to continue generating losses but believes current liquidity will support operations for at least the next 12 months.