Evolv Technologies Holdings, Inc. (EVLV) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Evolv Technologies Holdings, Inc. (EVLV) Industrial Operations Profile

Evolv Technologies Holdings, Inc. delivers AI-powered touchless security screening solutions, providing systems like Evolv Express and Evolv Edge for detecting concealed weapons in high-traffic environments. The company operates within the security and protection services sector, focusing on enhancing safety and efficiency through innovative technology.

What Is the Investment Thesis for EVLV?

The increasing demand for enhanced security measures in public spaces, coupled with Evolv's ability to provide touchless and efficient screening solutions, positions the company for significant growth. Key value drivers include the expansion of its customer base across various sectors and the recurring revenue generated through software and service subscriptions. The company's gross margin of 51.6% indicates strong profitability potential as it scales its operations. Upcoming catalysts include further adoption of Evolv's systems in schools and entertainment venues, driven by heightened security concerns. However, investors should be aware of potential risks such as competition from established security companies and the need for continuous innovation to maintain its technological edge.

Based on FMP financials and quantitative analysis

EVLV Key Highlights

Market capitalization of $894M reflects investor confidence in Evolv's growth potential within the security screening market.

• Gross margin of 51.6% demonstrates the company's ability to maintain profitability as it scales its operations.
• Beta of 1.78 indicates higher volatility compared to the market, reflecting the growth stage of the company.
• AI-based technology provides a competitive edge in the touchless security screening market.
• Evolv Insights software offers recurring revenue opportunities through data analytics and reporting services.

Who Are EVLV's Competitors?

EVLV is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are EVLV's Key Strengths?

Innovative AI-based touchless security screening technology.

• Strong gross margin of 51.6%.
• Recurring revenue potential through software and service subscriptions.
• Established presence in key markets such as schools and stadiums.

What Are EVLV's Weaknesses?

Negative profit margin of -22.7%.

• High beta of 1.78 indicates higher volatility.
• Limited geographic diversification.
• Reliance on a relatively small number of key customers.

What Could Drive EVLV Stock Higher?

Increased adoption of Evolv's systems in schools due to heightened security concerns.

• Potential new contracts with entertainment venues and theme parks.
• Expansion of the Evolv Insights platform and its data analytics capabilities.
• Launch of new product features and enhancements to existing solutions.

What Are the Key Risks for EVLV?

Financial-distress signal — its Altman Z-Score of 1.70 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-4.5%) — the business is not currently generating profit on shareholder capital.
• Insider selling — insiders were net sellers of roughly $1.3M recently.
• Competition from established security companies with greater resources.
• Technological obsolescence due to rapid advancements in AI and security technologies.
• Regulatory changes impacting security screening requirements and standards.
• Economic downturn affecting capital spending on security solutions by customers.

What Are the Growth Opportunities for EVLV?

• Expansion into New Verticals: Evolv has the opportunity to expand its solutions into new verticals such as hospitals, government buildings, and transportation hubs. These markets represent significant growth potential as they require advanced security screening to protect against potential threats. The addressable market for these verticals is estimated to be in the hundreds of millions of dollars, with a timeline of 3-5 years for significant penetration. Evolv's competitive advantage lies in its ability to provide touchless and efficient screening, which is particularly valuable in high-traffic environments.
• International Expansion: Evolv can pursue international expansion to capitalize on the growing demand for advanced security solutions worldwide. Markets in Europe, Asia, and the Middle East offer significant opportunities for growth. The global security screening market is projected to reach $10 billion by 2028, presenting a substantial addressable market for Evolv. The timeline for international expansion is 2-4 years, with a focus on establishing partnerships and distribution channels in key regions. Evolv's AI-driven technology and proven track record in the US market can provide a competitive advantage.
• Product Innovation and Development: Evolv can continue to invest in product innovation and development to enhance its existing solutions and introduce new offerings. This includes improving the accuracy and speed of its AI algorithms, as well as developing new features such as facial recognition and threat detection. The market for advanced security technologies is constantly evolving, requiring continuous innovation to stay ahead of the competition. The timeline for product innovation is ongoing, with a focus on incorporating customer feedback and addressing emerging security threats. Evolv's expertise in AI and security screening provides a strong foundation for product development.
• Strategic Partnerships and Acquisitions: Evolv can pursue strategic partnerships and acquisitions to expand its capabilities and market reach. This includes partnering with security integrators, technology providers, and industry associations. Acquisitions can provide access to new technologies, customer segments, and geographic markets. The timeline for strategic partnerships and acquisitions is 1-3 years, with a focus on identifying complementary businesses and technologies. Evolv's strong financial position and market reputation can facilitate these initiatives.
• Recurring Revenue Growth: Evolv can focus on growing its recurring revenue streams through software subscriptions, service contracts, and data analytics offerings. This provides a more predictable and sustainable revenue base compared to one-time hardware sales. The market for security software and services is growing rapidly, driven by the increasing need for data-driven insights and proactive threat detection. The timeline for recurring revenue growth is ongoing, with a focus on expanding its Evolv Insights platform and offering value-added services to its customers. Evolv's ability to provide comprehensive security solutions, including hardware, software, and services, differentiates it from competitors.

What Are EVLV's Competitive Advantages?

• Proprietary AI algorithms for threat detection.
• Touchless screening technology reduces the need for manual searches.
• Evolv Insights provides data-driven insights for security optimization.
• Strong customer relationships and brand reputation.

What Does EVLV Do?

Evolv Technologies Holdings, Inc. was founded with the mission to enhance public safety through advanced technology. The company provides AI-based touchless security screening systems designed to detect concealed weapons without disrupting the flow of people. Its flagship product, Evolv Express, allows individuals to walk through security checkpoints at a normal pace while the system screens for firearms, improvised explosive devices, and tactical knives. Evolv Edge complements this by focusing on the detection of non-metallic explosives and other threats. Evolv's solutions are deployed in a variety of settings, including schools, stadiums, hospitals, and entertainment venues. The company's geographic reach is primarily within the United States, with potential for international expansion. Evolv differentiates itself through its AI-driven technology, which aims to reduce the need for manual searches and improve the overall security experience. The company also offers Evolv Insights, a software platform that provides data analytics and reporting on visitor flow, system performance, and alarm statistics, enabling security personnel to optimize their operations.

What Products and Services Does EVLV Offer?

• Develops AI-based touchless security screening systems.
• Offers Evolv Express for detecting firearms, explosives, and knives.
• Provides Evolv Insights for data analytics and reporting on security operations.
• Creates Evolv Edge to detect non-metallic explosive devices.
• Delivers solutions for schools, stadiums, hospitals, and entertainment venues.
• Enhances security without requiring individuals to stop or remove items.

How Does EVLV Make Money?

• Sells Evolv Express and Evolv Edge security screening systems.
• Generates recurring revenue through Evolv Insights software subscriptions.
• Provides maintenance and support services for its systems.
• Offers data analytics and reporting services to security personnel.

What Industry Does EVLV Operate In?

Evolv Technologies Holdings, Inc. operates within the security and protection services industry, which is experiencing growth due to increasing security threats and the need for efficient screening solutions. The market is characterized by the adoption of advanced technologies such as AI and machine learning to enhance security measures. Evolv competes with traditional security companies and emerging technology providers. The company's focus on touchless screening and AI-driven detection differentiates it within the competitive landscape.

Who Are EVLV's Key Customers?

• Schools and educational institutions
• Stadiums and sports venues
• Hospitals and healthcare facilities
• Entertainment venues and theme parks

Over the past six months, Evolv Technologies Holdings, Inc. insiders filed 30 SEC Form 4 transactions — 12 sales and 18 purchases. On net that is roughly 32K shares acquired (about $1.3M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Evolv Technologies Holdings, Inc.

Revenue for Evolv Technologies Holdings, Inc. came in at $43.8M during Q2 FY2026, a 5.6% contraction versus the preceding quarter. The company recorded a net loss of $9.3M, with diluted EPS of $-0.05. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Industrials. Across the four most recent quarters, EVLV averaged $-0.01 in diluted EPS.

EVLV Valuation & Market Position

With a $894M market cap, Evolv Technologies Holdings, Inc. sits in the small-cap segment of the market. Analyst price targets span from $10.00 to $11.25, with a consensus of $10.63. At the current price of $4.97, that implies approximately 114% upside potential. Relative to its peer group, EVLV's quantitative score of 31/100 is below the peer average of 70/100.

Return on equity for Evolv Technologies Holdings, Inc. stands at -4.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -1.7%, showing how much profit it generates from its asset base. Its free cash flow yield is -0.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.18 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -0.5%, the inverse of the P/E and a quick read on earnings relative to price.

Evolv Technologies Holdings, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.70 places it in the distress zone, a signal of elevated financial risk.

Evolv Technologies Holdings, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 23.1% below estimates on average.

Company Profile

Evolv Technologies Holdings, Inc. operates in the Security & Protection Services industry within the Industrials sector. It is headquartered in Waltham, US. The company is led by CEO John Kedzierski. EVLV has traded publicly since 2020.

EVLV Financials

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EVLV Analyst Consensus

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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