Evolv Technologies Holdings (EVLV) AI Stock Analysis

• Market Cap: $521.49M
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: 17.67%
• EPS Growth: 86.99%
• Country: US
• Employees: 293
• Sector: Industrials
• Sector Strength: 69
• Industry: Security & Protection Services
• EPS (TTM): -0.13
• Shares Outstanding: 157,550,030
• 10 Day Avg. Volume: 1,557,233
• 30 Day Avg. Volume: 1,220,169
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.42
• Price to Cash Flow (P/CF): -5.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.75
• Price Target Upside: 43.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Evolv Technologies Holdings faces substantial financial and operational challenges, reflected in its weak financial performance and valuation. The stock shows some positive technical momentum, but the negative corporate events, such as financial restatements and leadership changes, underscore significant risks. These factors collectively contribute to a low overall stock score.

Positive Factors

Customer Growth

Key metrics showed positive momentum with 84 new customers, marking the highest customer addition since 4Q22.

Product Innovation

Evolv launched a new bag screening product that detects concealed weapons in baggage, enhancing security measures for various venues.

Negative Factors

Revenue Forecast

With the launch of the new bag screening product not expected until Q4, no forecast contribution to revenue or ARR is anticipated in 2024.

Evolv Technologies Holdings Business Overview & Revenue Model

Company Description

Evolv Technologies Holdings (EVLV) is a company that specializes in advanced security technology for public safety. The company focuses on providing innovative solutions that enhance security measures through the use of artificial intelligence and machine learning. Its flagship product, Evolv Express, is a touchless security screening solution that is designed to detect weapons and other potential threats in real-time, without causing delays or congestion. Evolv Technologies operates in the security and safety sector, serving a variety of venues including airports, schools, entertainment venues, and other public spaces.

How the Company Makes Money

Evolv Technologies generates revenue primarily through the sale and deployment of its security screening solutions, particularly the Evolv Express system. The company operates on a business model that includes both direct sales and subscription-based services, allowing clients to purchase the equipment outright or opt for a recurring revenue model through service agreements. Additionally, Evolv Technologies may enter into strategic partnerships with organizations to expand its market reach and enhance its technology offerings. Key revenue streams include hardware sales, software subscriptions, and maintenance or service contracts. The company also benefits from strategic collaborations that enhance product development and distribution capabilities.

Evolv Technologies Holdings Financial Statement Overview

Summary

Evolv Technologies Holdings shows significant revenue growth, but continues to face profitability and cash flow challenges. The decrease in equity and persistent negative cash flow indicate financial instability, despite improvements in gross profit margin. The reduction in debt improves financial leverage, but overall financial performance remains weak.

Income Statement

Evolv Technologies Holdings has shown significant revenue growth from $5.5 million in 2019 to $80.4 million in 2023; however, the company is still operating at a loss with a negative net income of $106.3 million in 2023. The gross profit margin improved to 42.05% in 2023, but the net profit margin remains negative, indicating continued financial challenges. EBIT and EBITDA margins are also negative, suggesting ongoing operational difficulties.

Balance Sheet

The balance sheet reveals a decrease in stockholders' equity from $290.8 million in 2021 to $146.3 million in 2023, indicating financial strain. However, the company has significantly reduced its debt, resulting in a low debt-to-equity ratio. The equity ratio decreased to 49.00% in 2023, reflecting reduced stability. Despite these challenges, the company maintains a strong cash position relative to its debt.

Cash Flow

Cash flow analysis shows negative free cash flow, which improved slightly from -$98.9 million in 2022 to -$82.5 million in 2023, but remains a concern. The operating cash flow to net income ratio is negative, highlighting cash flow issues. While capital expenditures have increased, reflecting investment in growth, the company needs to improve cash generation to support operations sustainably.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
89.22M	80.42M	55.20M	23.69M	4.79M	5.85M
	Gross Profit
47.90M	33.83M	1.73M	6.64M	1.29M	552.00K
	EBIT
-86.75M	-88.26M	-101.17M	-52.19M	-26.90M	-18.40M
	EBITDA
-5.74M	-95.62M	-68.94M	-1.93M	-25.90M	-17.86M
	Net Income Common Stockholders
-19.07M	-106.25M	-42.98M	-23.98M	-27.82M	-20.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.70M	118.82M	229.78M	307.49M	4.70M	17.34M
	Total Assets
21.36M	298.72M	348.34M	363.06M	21.36M	24.40M
	Total Debt
16.66M	1.39M	31.69M	9.95M	16.66M	3.65M
	Net Debt
11.96M	-65.77M	-198.09M	-297.55M	11.96M	-13.70M
	Total Liabilities
106.04M	152.40M	121.13M	72.23M	106.04M	82.91M
	Stockholders Equity
-84.69M	146.32M	227.21M	290.84M	-84.69M	-58.51M
Cash Flow		Free Cash Flow
-101.65M	-82.47M	-98.92M	-74.37M	-29.86M	-15.91M
	Operating Cash Flow
-39.25M	-9.80M	-74.73M	-69.28M	-23.25M	-15.18M
	Investing Cash Flow
-82.55M	-123.11M	-23.88M	-5.08M	-6.61M	-731.00K
	Financing Cash Flow
960.00K	-29.66M	20.51M	377.83M	17.23M	27.79M

Evolv Technologies Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVLV, the sentiment is Neutral. The current price of 3.31 is above the 20-day moving average (MA) of 3.15, below the 50-day MA of 3.36, and below the 200-day MA of 3.49, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 79.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVLV.

Evolv Technologies Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXON	78 Outperform	$42.87B	117.09	19.10%	―	33.32%	111.64%
OSIS	75 Outperform	$3.18B	24.97	16.85%	―	20.69%	17.89%
NSSC	68 Neutral	$789.55M	16.56	29.13%	1.62%	5.14%	12.03%
Sector *	63 Neutral	$4.29B	11.05	5.73%	232.30%	4.75%	-5.69%
EVLV	49 Neutral	$521.49M	―	-72.62%	―	17.67%	86.99%
SENS	43 Neutral	$388.67M	―	-166.29%	―	0.37%	-20.49%
WKHS	38 Underperform	$6.71M	―	-159.80%	―	-49.47%	54.99%

Evolv Technologies Holdings Corporate Events

Evolv Technologies Announces Leadership Changes for Growth

On January 21, 2025, Evolv Technologies Holdings announced a leadership change, with Jay Muelhoefer stepping down as Chief Commercial Officer, effective February 7, 2025. Robert Marshall, who previously held executive roles at Motorola Solutions and Mobile Communications America, will join as the new Chief Revenue Officer on February 3, 2025. This strategic move aims to accelerate revenue growth and strengthen Evolv’s industry positioning by leveraging Mr. Marshall’s extensive experience in sales and security industries.

Evolv Technologies Announces Layoffs and Resolves FTC Inquiry

On January 21, 2025, Evolv Technology announced a reduction in its workforce, affecting 40 employees, as part of a strategy to increase cash savings and pursue growth opportunities. This action, expected to be completed by March 31, 2025, aims to save approximately $9 million annually. Additionally, the company resolved an FTC inquiry about its marketing claims, offering contract cancellations to some educational customers, none of whom have opted for cancellation as of January 23, 2025.

Evolv Technologies Appoints John Kedzierski as New CEO

Evolv Technologies has appointed John Kedzierski as its new CEO, President, and Board member, effective December 16, 2024, succeeding interim CEO Michael Ellenbogen. Kedzierski, previously with Motorola Solutions, brings extensive experience in security technology and business growth. His leadership is expected to drive Evolv’s strategic vision, enhancing security solutions for schools, hospitals, and public venues through AI-powered analytics.

Evolv Technologies Faces Nasdaq Delisting Notice and Compliance Plan

Evolv Technologies Holdings, Inc. received a delinquency notification from Nasdaq due to the late filing of its quarterly report, stemming from an internal investigation into sales practices affecting revenue metrics. While this delay does not immediately impact the company’s Nasdaq listing, Evolv must present a compliance plan by January 20, 2025, to regain compliance. The company is actively working to submit the necessary documentation promptly.

Evolv Technologies Faces Leadership Changes Amid Financial Probe

Evolv Technologies Holdings, Inc. is undergoing significant leadership changes following an internal investigation that revealed inaccuracies in revenue recognition related to sales practices. The company’s CFO, Mark Donohue, has resigned with no severance, and Dave Rawden from AlixPartners has been appointed as Interim CFO to assist with financial restatements and filings. The board plans to enhance risk management, strengthen internal controls, and improve corporate governance. The investigation found premature revenue recognition amounting to $4-$6 million, but the company’s cash position remains unaffected.