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Dec 31, 2025
Evolv Q4 2025 Earnings Report
Evolv Technologies reported a 32% year-over-year revenue increase and achieved positive net income for the fourth quarter of 2025.
Key Takeaways
Evolv delivered a strong fourth quarter to cap off fiscal 2025, marked by a move to profitability with $10.9 million in net income. The company saw robust growth in Annual Recurring Revenue (ARR) and total revenue, driven by new customer additions and expansion within the existing base. Management raised its outlook for 2026, expecting continued growth as they shift further toward a recurring subscription model.
Q4 revenue grew 32% year-over-year to $38.5 million.
Ending Annual Recurring Revenue (ARR) reached $120.5 million, up 21% compared to the prior year.
Achieved positive Q4 Net Income of $10.9 million and positive Adjusted EBITDA of $1.8 million.
Management raised 2026 revenue guidance to a range of $172 million to $178 million.
Revenue by Segment
Forward Guidance
Evolv raised its 2026 outlook, expecting total revenue growth of 18% to 22% and positive full-year Adjusted EBITDA.
Positive Outlook
- Raised 2026 revenue guidance to $172-$178 million.
- Ending ARR for 2026 projected to reach $145-$150 million.
- Expected full-year positive Adjusted EBITDA for 2026.
- Adjusted EBITDA margins expected to be in the high single digits.
- ARR growth is expected to exceed total revenue growth.
Challenges Ahead
- Selling model changes are reshaping revenue recognition toward ratable recurring revenue.
- One-time (non-recurring) revenue mix is expected to reduce.
- Revenue growth rate (18-22%) is a deceleration from the 40% growth seen in FY 2025.
- Pricing and selling model changes continue to cause fluctuations in contract types.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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