Evolv resolution with FTC a net positive, says Cantor Fitzgerald

Cantor Fitzgerald says Evolv’s (EVLV) resolution with the Federal Trade Commission is a net positive for the business. There is no monetary penalty charged to the business, and the customers that have the choice to terminate contracts make up just over 4% of total annual recurring revenue, which is growing 63.5% year-over-year as of Q2, the analyst tells investors in a research note. Cantor recognizes that recent inquisitions into the business from regulatory authorities, accounting errors, and management turnover “have soured this story for a lot of investors.” However, it still believes in the long-term thesis for Evolv. The firm is not rated on the shares.