Evolv Technology (Nasdaq: EVLV) delivered a solid second quarter of 2025, reporting $32.5 million in revenue, a 2% sequential increase and 29% growth over the prior year. The performance was driven by strong new customer additions and expanded deployments within its installed base. Annual recurring revenue (ARR) reached $110.5 million, up 27% year-over-year, while the company achieved its third consecutive quarter of positive adjusted EBITDA, posting a 6% margin. Total cash, cash equivalents, and marketable securities rose $2 million sequentially to $37 million.

The company added more than 60 new customers during the quarter, surpassing the 1,000-customer milestone globally. Evolv now has over 7,000 active subscriptions and remains on track to reach at least 8,000 by year-end. Notably, 54% of booked units and 56% of booked ARR in the quarter came from existing customers, reflecting continued expansion within the current user base.

Management raised its full-year 2025 revenue growth outlook to 27–30%, up from the prior range of 20–25%, citing renewed business momentum. Evolv also reaffirmed expectations for positive full-year adjusted EBITDA and committed to generating positive cash flow in the fourth quarter.

During the Q&A, executives pointed to several growth drivers, including the company’s strategic shift toward a direct purchase subscription model. While this transition may cause near-term gross margin pressure, management believes it will deliver stronger economics and a higher recurring revenue mix over time. Evolv also announced a $15 million contract with Gwinnett County Public Schools, the largest school district in Georgia, and secured a new $75 million non-dilutive credit facility to enhance financial flexibility.

On the cautious side, the company acknowledged that its recently launched Evolv Flex certified pre-owned program is still in the early stages, with limited traction and economics disclosed. Management also refrained from offering detailed guidance on the expected mix between subscription and direct purchase deals for the remainder of 2025 and into 2026, noting it will depend heavily on the timing of large transactions. In addition, specific renewal rate and net revenue retention metrics were not provided, as current renewal activity remains a small portion of the installed base.

With a growing customer base, an expanding recurring revenue stream, and a strengthened balance sheet, Evolv enters the second half of 2025 positioned for continued growth, strategic execution, and improving profitability.

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