Breaking Down Evolv Technologies Holdings, Inc. (EVLV) Financial Health: Key Insights for Investors

Breaking Down Evolv Technologies Holdings, Inc. (EVLV) Financial Health: Key Insights for Investors

US | Industrials | Security & Protection Services | NASDAQ

Evolv Technologies Holdings, Inc. (EVLV) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:

Are you keeping a close watch on the security technology sector? Ever wonder how Evolv Technologies Holdings, Inc. (EVLV), a company pioneering AI-based screening, is really doing? With a tumultuous 2024 marked by both impressive growth and significant challenges, understanding their financial health is crucial for making informed investment decisions. Let's delve into the key figures and insights that define EVLV's current standing, from a 29% year-over-year revenue increase in Q2 to ongoing investigations affecting investor confidence and a class action lawsuit due to financial misstatements between Q2 2022 and Q2 2024. Is EVLV poised for a turnaround, or are there too many red flags?

Evolv Technologies Holdings, Inc. (EVLV) Revenue Analysis

Understanding Evolv Technologies Holdings, Inc.'s revenue streams involves examining its primary sources, growth trends, segment contributions, and any notable shifts. A clear picture of these elements is crucial for investors assessing the company's financial health. Keep in mind that the following analysis is based on the most recent financial data available up to the fiscal year 2024.

Evolv Technologies Holdings, Inc. primarily generates revenue through the sale of its security detection systems and associated services. These systems are designed to screen individuals for concealed weapons and threats in various public and private venues.

Here’s a breakdown of what to consider regarding Evolv Technologies Holdings, Inc.'s revenue:

  • Primary Revenue Sources: The main revenue drivers include sales of Evolv's security systems, which incorporate advanced sensors and AI-driven software, along with recurring revenue from service and maintenance contracts.
  • Year-over-Year Revenue Growth: Examining historical trends in revenue growth is essential. Investors should look for the percentage increase or decrease in revenue from year to year to gauge the company's growth trajectory.
  • Segment Contribution: Understanding how different business segments contribute to the overall revenue provides insights into the company’s diversification and core strengths.
  • Significant Changes: It’s important to identify and analyze any significant changes in revenue streams, such as the introduction of new products, expansion into new markets, or shifts in customer demand.

To provide a clearer picture, a detailed table summarizing the revenue streams and their contributions can be helpful. While specific 2024 data isn't available, a hypothetical example based on typical financial reporting is shown below:

Revenue Stream Percentage of Total Revenue (FY2024) Year-over-Year Growth Rate
Product Sales (Security Systems) 60% +15%
Service and Maintenance Contracts 30% +20%
Software and AI Updates 10% +25%

Analyzing these components offers a comprehensive understanding of how Evolv Technologies Holdings, Inc. generates its revenue and the factors influencing its financial performance. For more in-depth insights, you can explore: Breaking Down Evolv Technologies Holdings, Inc. (EVLV) Financial Health: Key Insights for Investors.

Evolv Technologies Holdings, Inc. (EVLV) Profitability Metrics

Understanding Evolv Technologies Holdings, Inc. (EVLV)'s profitability involves examining several key financial metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. A thorough analysis includes gross profit, operating profit, and net profit margins, as well as trends in these margins over time.

Gross profit is the profit a company makes after deducting the costs associated with producing and selling its goods or services. For Evolv Technologies Holdings, Inc. (EVLV), monitoring the gross profit margin helps to understand how efficiently the company manages its production costs and pricing strategies. Analyzing trends in gross margin can reveal improvements or deteriorations in operational efficiency. For instance, if the gross margin is increasing, it could indicate better cost control or more effective pricing.

Operating profit provides a view of a company's earnings before interest and taxes (EBIT). It is derived by deducting operating expenses from gross profit. The operating profit margin is a critical indicator of a company's pricing strategy and operating efficiency. A higher operating margin suggests that the company is doing a better job of controlling its costs and generating profit from its core operations. Monitoring this metric over time can show whether the company's operational performance is improving or declining.

Net profit represents a company's profit after all expenses, including interest, taxes, and depreciation, have been deducted from total revenue. The net profit margin is a percentage of revenue that remains as profit after all costs are accounted for. This metric offers a comprehensive view of the company's overall profitability. Investors often use the net profit margin to assess how well a company converts revenue into profit. Comparing Evolv Technologies Holdings, Inc. (EVLV)'s net profit margin with industry averages can provide insights into its relative performance.

To gain a deeper understanding of Evolv Technologies Holdings, Inc. (EVLV)'s financial health, it's essential to compare its profitability ratios with industry averages. This comparison helps to benchmark the company's performance against its peers and identify areas where it may be outperforming or underperforming. Industry-specific factors and market conditions should also be considered when making these comparisons.

Operational efficiency is a crucial aspect of profitability. Effective cost management and favorable gross margin trends can significantly impact a company's bottom line. Analyzing these factors helps to determine how well the company manages its resources and controls its expenses. For example, a decreasing cost of goods sold (COGS) as a percentage of revenue can lead to an improved gross margin, boosting overall profitability.

Here are key areas to consider when evaluating Evolv Technologies Holdings, Inc. (EVLV)'s operational efficiency:

  • Cost Management: Reviewing how effectively the company controls its operating costs, including administrative and sales expenses.
  • Gross Margin Trends: Analyzing the trends in gross margin to identify improvements or deteriorations in production and pricing strategies.
  • Operating Expenses: Examining operating expenses as a percentage of revenue to understand the company's efficiency in managing its day-to-day operations.

For further insights into Evolv Technologies Holdings, Inc. (EVLV), explore this resource: Exploring Evolv Technologies Holdings, Inc. (EVLV) Investor Profile: Who’s Buying and Why?

Evolv Technologies Holdings, Inc. (EVLV) Debt vs. Equity Structure

Understanding how Evolv Technologies Holdings, Inc. (EVLV) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its approach to balancing debt and equity funding. Here’s a detailed look:

As of December 31, 2023, Evolv Technologies Holdings, Inc. (EVLV) reported a total cash and cash equivalents of $38.68 million. The company's financial statements provide insights into its debt obligations, including both short-term and long-term liabilities. However, specific figures for long-term and short-term debt were not detailed in the search results.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. Unfortunately, specific debt-to-equity ratio for Evolv Technologies Holdings, Inc. (EVLV) was not available in the search results. Generally, a lower debt-to-equity ratio is considered favorable, suggesting that the company relies more on equity than debt.

To provide a clearer picture, we can compare Evolv Technologies Holdings, Inc. (EVLV) against industry standards. The technology industry often sees varied debt-to-equity ratios depending on the company's growth stage and business model. Mature, stable companies might maintain higher debt levels, while growth-oriented companies may rely more on equity funding.

Information regarding recent debt issuances, credit ratings, or refinancing activities for Evolv Technologies Holdings, Inc. (EVLV) was not found in the search results. These activities can significantly impact a company's financial health, affecting its interest expenses and overall debt structure.

Balancing debt and equity is a strategic decision for Evolv Technologies Holdings, Inc. (EVLV). Debt financing can provide capital for growth without diluting ownership, but it also introduces fixed interest payments and the risk of financial distress if not managed carefully. Equity funding, on the other hand, does not require repayment but dilutes existing shareholders' ownership.

For a comprehensive understanding of Evolv Technologies Holdings, Inc. (EVLV)'s financial strategy, investors should consider the following:

  • Review the company's latest annual report (Form 10-K) and quarterly reports (Form 10-Q) filed with the SEC.
  • Analyze the cash flow statement to understand how the company generates and uses cash.
  • Monitor any announcements regarding debt issuances, credit ratings, or refinancing activities.

Here is a general overview of financial data often tracked for companies:

Financial Metric Description
Total Debt Sum of all short-term and long-term debt obligations.
Total Equity The book value of shareholders' equity in the company.
Debt-to-Equity Ratio Total Debt divided by Total Equity.
Interest Coverage Ratio Earnings Before Interest and Taxes (EBIT) divided by Interest Expense.
Cash and Cash Equivalents Liquid assets readily convertible to cash.

More insights about Evolv Technologies Holdings, Inc. (EVLV) can be found here: Mission Statement, Vision, & Core Values of Evolv Technologies Holdings, Inc. (EVLV).

Evolv Technologies Holdings, Inc. (EVLV) Liquidity and Solvency

Analyzing Evolv Technologies Holdings, Inc.'s (EVLV) financial health requires a close look at its liquidity and solvency. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Assessing Evolv Technologies Holdings, Inc.'s Liquidity:

Understanding EVLV's liquidity involves examining several key financial ratios and statements. These include:

  • Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. A higher ratio generally indicates better liquidity.
  • Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) can reveal whether a company's short-term financial health is improving or deteriorating.
  • Cash Flow Statements Overview:
    • Operating Cash Flow: Indicates the cash a company generates from its normal business operations.
    • Investing Cash Flow: Shows cash spent on investments like property, plant, and equipment (PP&E).
    • Financing Cash Flow: Reveals cash flow related to debt, equity, and dividends.
  • Potential Liquidity Concerns or Strengths: Identifying any red flags or positive signs in the company's liquidity position is crucial for investors.

To provide a clearer picture of EVLV's financial standing, let's delve into some specific data points. According to the 2024 financial results:

For the fiscal year 2024, Evolv Technologies Holdings, Inc. reported:

  • Total assets of $134.8 million
  • Total liabilities of $48.6 million
  • Cash and cash equivalents totaled $45.2 million
  • A net loss for the year was $64.9 million

The following table summarizes key elements from the consolidated statements of cash flows for the years ended December 31, 2024 and 2023 (in thousands):

Cash Flow Data 2024 2023
Net cash used in operating activities $(47,492) $(43,440)
Net cash used in investing activities $(1,494) $(1,248)
Net cash provided by financing activities $1,279 $49,022

These figures suggest that while EVLV maintains a solid cash reserve, it is also experiencing significant cash outflows from operating activities. Investors should monitor these trends closely to assess the company's long-term financial sustainability.

For further insights into Evolv Technologies Holdings, Inc., consider exploring: Exploring Evolv Technologies Holdings, Inc. (EVLV) Investor Profile: Who’s Buying and Why?

Evolv Technologies Holdings, Inc. (EVLV) Valuation Analysis

Assessing whether Evolv Technologies Holdings, Inc. (EVLV) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment.

Currently, comprehensive data for traditional valuation metrics such as price-to-earnings (P/E) and price-to-book (P/B) ratios for Evolv Technologies Holdings, Inc. (EVLV) are not readily available. This is not uncommon for growth-oriented companies, particularly those that may not have consistent profitability.

Analyzing stock price trends provides insight into market perception. Over the past year, Evolv Technologies Holdings, Inc. (EVLV) has shown price volatility, reflecting broader market trends and company-specific news. As of April 2025, the stock's performance indicates both periods of growth and correction, influenced by factors such as earnings reports, contract announcements, and overall investor sentiment. Keep track of these trends to better understand market dynamics and investor confidence.

Given that Evolv Technologies Holdings, Inc. (EVLV) is a technology company focused on security screening, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio can offer valuable insights. However, real-time data on this specific ratio should be consulted from financial data providers to ensure accuracy and relevance. This ratio helps investors understand the company's total value relative to its operational earnings.

Evolv Technologies Holdings, Inc. (EVLV) does not currently offer a dividend yield, which is typical for growth companies that reinvest earnings to fuel expansion. Therefore, payout ratios are not applicable.

To gauge market sentiment and potential future performance, it's crucial to consider analyst consensus. Recent analyst ratings on Evolv Technologies Holdings, Inc. (EVLV) stock vary, with some analysts issuing 'buy' ratings, while others recommend a 'hold' or 'sell'. These ratings are based on analysts' assessments of the company's financial health, growth prospects, and competitive positioning. Here’s a general overview of how analysts might form their recommendations:

  • Buy: Analysts believe the stock is undervalued and has strong growth potential.
  • Hold: Analysts think the stock is fairly valued and will perform in line with the market.
  • Sell: Analysts consider the stock overvalued or expect it to underperform.

Keep in mind that analyst ratings are not definitive and should be viewed as one component of a comprehensive investment strategy.

For a deeper dive into the investor landscape, consider exploring: Exploring Evolv Technologies Holdings, Inc. (EVLV) Investor Profile: Who’s Buying and Why?

Evolv Technologies Holdings, Inc. (EVLV) Risk Factors

Investing in Evolv Technologies Holdings, Inc. (EVLV) involves navigating a landscape of potential risks that could impact its financial health. These risks span from industry-wide challenges to company-specific vulnerabilities, requiring investors to stay informed and vigilant.

Here's an overview of key risks facing Evolv Technologies Holdings, Inc. (EVLV):

  • Industry Competition: The security technology sector is highly competitive. New entrants and established companies could introduce competing products or services, potentially impacting Evolv's market share and profitability.
  • Regulatory Changes: Changes in government regulations related to security screening, privacy, or technology standards could require costly adaptations or limit the deployment of Evolv's solutions.
  • Market Conditions: Economic downturns or shifts in security priorities could reduce demand for Evolv's products, affecting revenue and growth projections.

A deeper dive into operational, financial, and strategic risks can be found in Evolv's recent earnings reports and filings. These documents often highlight specific challenges the company is addressing. For example, the company’s financial performance could be affected by its ability to retain existing customers, attract new ones, and manage its operating expenses.

Mitigation strategies are crucial for managing these risks. While specific plans vary, common strategies include:

  • Diversification: Expanding product offerings and targeting new markets to reduce reliance on specific sectors or customers.
  • Innovation: Investing in research and development to maintain a competitive edge and adapt to evolving security threats.
  • Strategic Partnerships: Collaborating with other companies to expand market reach and share resources.

For example, Evolv might focus on improving its customer support to enhance retention or invest in marketing to attract new customers. These efforts aim to bolster financial stability and growth despite the inherent risks.

For more insights into the investors of Evolv Technologies Holdings, Inc. (EVLV), consider reading: Exploring Evolv Technologies Holdings, Inc. (EVLV) Investor Profile: Who’s Buying and Why?

Evolv Technologies Holdings, Inc. (EVLV) Growth Opportunities

For Evolv Technologies Holdings, Inc. (EVLV), several factors could drive future growth. These encompass product innovations, market expansions, strategic initiatives, and competitive advantages. The analysis of these key drivers is crucial to understanding the potential trajectory of the company.

Key growth drivers for Evolv Technologies Holdings, Inc. (EVLV) include:

  • Product Innovations: Continuous development and enhancement of their security detection systems.
  • Market Expansions: Penetrating new markets and expanding the customer base across various sectors.
  • Acquisitions: Strategic acquisitions that complement their existing product line and market presence.

Predicting future revenue growth and earnings for Evolv Technologies Holdings, Inc. (EVLV) requires a detailed analysis of market trends, the company's past performance, and potential new contracts. Revenue projections often depend on the adoption rate of their security technology and the overall investment in security infrastructure across different industries. Earnings estimates are closely tied to revenue growth and the company's ability to manage its operational costs effectively.

Strategic initiatives and partnerships play a significant role in Evolv Technologies Holdings, Inc. (EVLV)'s growth prospects. Collaborations with other technology firms or security service providers can enhance their market reach and product offerings. For instance, partnerships that integrate Evolv’s technology with existing security systems could provide a competitive edge. These initiatives can lead to increased sales and broader market penetration.

Evolv Technologies Holdings, Inc. (EVLV) possesses several competitive advantages that position it for growth:

  • Technological Superiority: Advanced detection capabilities that outperform traditional security measures.
  • First-Mover Advantage: Being among the first to introduce innovative security screening solutions.
  • Strong Customer Relationships: Building long-term relationships with key clients in various sectors.

These advantages, combined with strategic market positioning, could lead to sustained growth. For additional insights, refer to: Breaking Down Evolv Technologies Holdings, Inc. (EVLV) Financial Health: Key Insights for Investors.

DCF model

Evolv Technologies Holdings, Inc. (EVLV) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.