Evolv Applied sciences Holdings, Inc. (EVLV) delivered sturdy fourth-quarter 2025 outcomes, prompting an upward revision to its 2026 income steerage amid accelerating annual recurring income (ARR) development.
This autumn 2025 Monetary Outcomes
The corporate generated $38.5 million in income throughout This autumn 2025, marking a 32% improve from $29.1 million within the prior-year interval. Ending ARR reached $120.5 million, up 21% year-over-year from $99.4 million. Web earnings stood at $10.9 million, reaching a 28% revenue margin, whereas adjusted EBITDA got here in at $1.8 million with a 5% margin. Money, money equivalents, and marketable securities totaled $69.0 million at quarter-end, rising $12.8 million from Q3 2025.
Recurring income contributed $29.5 million, a 25% YoY achieve, and non-recurring income hit $9.0 million, surging 65% YoY. Evolv added 64 new clients within the quarter.
Full-12 months 2025 Achievements
For the total yr, income climbed 40% to $145.9 million from $103.9 million in 2024. Recurring income grew 28% to $112.1 million, and non-recurring income greater than doubled to $33.8 million. Adjusted EBITDA turned optimistic at $11.1 million, in comparison with a $21.0 million loss in 2024. Web loss narrowed to $33.1 million, or $0.20 per share, from $54.0 million, or $0.34 per share, the earlier yr.
2026 Steerage
Administration initiatives 2026 income between $172 million and $178 million, implying 18% to 22% development over 2025. Ending ARR is forecasted at $145 million to $150 million, reflecting 20% to 25% growth. Adjusted EBITDA margins are anticipated within the excessive single digits and optimistic for the yr. New unit deployments will cut up roughly 50/50 between pure subscription and purchase-subscription fashions, with ARR development outpacing complete income as a consequence of mannequin shifts and pricing changes.
Management Perspective
“We’re happy to be reporting strong fourth quarter outcomes, which capped a yr of great enchancment throughout the Firm,” acknowledged John Kedzierski, President and Chief Govt Officer. He highlighted the corporate’s platform, which integrates {hardware}, customer information, and AI software program by way of long-term subscriptions serving over 1,200 world clients. “Trying forward, we consider AI-based weapons screening will proceed to turn into more and more prevalent, and we sit up for capitalizing on this still-nascent market alternative to assist make the world a safer place to stay, work, be taught, and play.”
