Evolv Technology announced robust fourth-quarter 2025 results, highlighting accelerated growth in annual recurring revenue (ARR) and an upward revision to its 2026 revenue guidance.
Q4 2025 Key Financial Results
Total revenue reached $38.5 million, marking a 32% increase year-over-year from $29.1 million. Recurring revenue grew 25% to $29.5 million, while non-recurring revenue surged 65% to $9.0 million. ARR ended the quarter at $120.5 million, up 21% from $99.4 million the prior year.
The company posted net income of $10.9 million, or $0.06 per basic and diluted share, reversing a net loss of $15.7 million, or $(0.10) per share, from Q4 2024. Adjusted EBITDA stood at $1.8 million, achieving a 5% margin, compared to $0.4 million previously. Cash, cash equivalents, and marketable securities totaled $69.0 million, up $12.8 million sequentially.
Full-Year 2025 Achievements
For the full year, revenue climbed 40% to $145.9 million from $103.9 million in 2024. Recurring revenue increased 28% to $112.1 million, and non-recurring revenue more than doubled, up 106% to $33.8 million.
Net loss narrowed to $33.1 million, or $(0.20) per share, from $54.0 million, or $(0.34) per share. Adjusted EBITDA turned positive at $11.1 million, versus a $21.0 million loss in 2024.
2026 Guidance Raised
Evolv Technology now projects 2026 total revenue between $172 million and $178 million, implying 18% to 22% growth over 2025. Ending ARR is expected to range from $145 million to $150 million, reflecting 20% to 25% expansion. Adjusted EBITDA will remain positive with high single-digit margins.
The deployment mix shifts to approximately 50% pure subscription and 50% purchase-subscription models. This outlook surpasses prior estimates of $160 million to $165 million in revenue.
Executive Perspective
“We are pleased to be reporting solid fourth quarter results, which capped a year of significant improvement across the Company,” stated John Kedzierski, President and Chief Executive Officer. “We continue to deliver advanced weapons screening capabilities at scale for more than 1,200 customers worldwide through a tightly integrated platform that combines proprietary hardware, real-world visitor data sets, and AI-driven software, delivered via long-term subscriptions that foster durable customer relationships and high-quality recurring revenue. Looking ahead, we believe AI-based weapons screening will continue to become increasingly prevalent, and we look forward to capitalizing on this still-nascent market opportunity to help make the world a safer place to live, work, learn, and play.”
Strong customer additions and deployment expansions fueled the quarter’s performance, positioning Evolv Technology for sustained momentum in AI-powered security solutions.
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