Evolv Technologies Holdings Inc (NASDAQ: EVLV) just wrapped up a turbulent chapter, restated its past results, and brought its financials into compliance. It’s now back in good standing with the SEC and Nasdaq. This course correction matters because it rebuilds investor trust and removes a cloud that’s been hanging over the business.
The company identified $3.1 million in revenue that had been prematurely or incorrectly recorded between Q2 2022 and Q2 2024. With that fixed, it refiled financials and is now current on all reports.
#Fourth Quarter Beat Shows Business Is Stabilizing
Evolv’s fourth quarter numbers point to a business gaining stability. Revenue climbed 41% year over year to $29.1 million. Annual recurring revenue rose to $99.4 million, up 39% from the prior year. The company also hit a milestone with its first positive adjusted EBITDA of $0.4 million. While it still posted a net loss of $15.7 million, that’s an improvement from the $17.2 million loss the year before. It ended the quarter with $51.9 million in cash and no debt. Remaining performance obligations totaled $266.7 million, showing how much future revenue is already locked in through customer contracts.
#Improved Trends Across 2024
Evolv saw stronger fundamentals in 2024, with full-year revenue rising 31% to $103.9 million. Its adjusted EBITDA loss narrowed significantly to $21 million from $51.8 million, and net loss was cut in half to $54 million. Recurring revenue surged 72% to $87.4 million, while non-recurring revenue dropped 43%, showing a clear pivot toward a subscription-focused model. Operating cash burn increased to $30.9 million for the year, up from $9.8 million in 2023, highlighting ongoing investment despite improved efficiency.
#Why This Is Important for Retail Investors
Regulatory compliance restored: Evolv is now back in line with SEC and Nasdaq rules, removing delisting risk and restoring credibility.
Recurring revenue momentum: With ARR up, the business is becoming more predictable and less reliant on one-time deals.
Profitability milestone hit early: Positive adjusted EBITDA in Q4 shows early progress toward sustainable operations, six months ahead of schedule.
Improved cash discipline: Operating losses and cash burn narrowed significantly, pointing to tighter cost controls and better execution.
Valuation reset opportunity: The combination of cleaned-up financials and a growing subscription base could reposition the stock for re-rating as confidence returns.
#About the Company
Evolv Technologies develops AI-powered security screening systems designed to detect weapons and threats at scale without slowing foot traffic. Its platform is built for high-volume venues like stadiums, schools, hospitals, and public buildings. The company’s flagship product, Evolv Express, enables touchless, real-time screening using sensors and software that distinguish threats from everyday objects. With over 6,000 units deployed and more than 2 billion people screened since 2019, Evolv is focused on expanding its recurring revenue base through subscription-based contracts while improving safety and efficiency in public spaces.
#Competitive Landscape
Evolv operates in the physical security technology sector, competing with companies like Patriot One Technologies and Liberty Defense. Unlike traditional walk-through metal detectors, Evolv uses machine learning and sensor fusion to automate threat detection. Its advantage lies in throughput and real-time threat identification, but the market is competitive and includes incumbents with hardware-focused solutions and newer firms experimenting with AI-driven screening. Evolv’s challenge is to maintain its technical lead while reducing deployment costs and expanding into new verticals.
#Near-Term Catalysts and Risks
The company’s return to compliance with SEC and Nasdaq requirements clears a major overhang. It also just achieved positive adjusted EBITDA for the first time, six months ahead of its goal. With ARR up 39% year-over-year, there is momentum in its shift to a recurring revenue model. But Evolv is still burning cash, using over $30 million in 2024 and ending the year with $51.9 million in liquidity. Without a sharp improvement in cash flow, it may need to raise capital. Any slowdown in public or private infrastructure spending could delay deployments and impact revenue visibility.
#Trading EVLV Stock
This is a turnaround story in motion. Evolv cleaned up its accounting, met a key profitability goal early, and is growing its subscription base. If you’re bullish on AI-backed physical security, Evolv could offer upside—especially if it can keep improving margins and reduce cash burn. But this is still a high-risk bet. Watch for ARR growth, gross margin stability, and signs of a funding raise. Treat this like a growth stock with potential, but not one to chase without clear stop-loss plans in place. Are you comfortable holding through volatility for a long-term payoff?