NASDAQ:EVLV Stock Report
Market Cap $1.15B
$6.41
-4.75%
-$0.32 today
Market Cap
$1.15B
P/E Ratio
N/A
Sector: 42.70
EPS
-$0.03
Volume
2.3M
Year High
$8.91
Year Low
$4.87
50-Day MA
Above$6.38
200-Day MA
Below$6.75
Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based touchless security screening systems. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives as visitors walk through at a normal pace; Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics; and Evolv Edge to detect non-metallic explosive devices, explosive devices, firearms, and tactical knives without requiring visitors to divest or empty their pockets. The company is headquartered in Waltham, Massachusetts.
Evolv Technologies Holdings, Inc. (EVLV) is currently positioned as a growth-oriented security technology company with strong momentum demonstrated by its Q1 2026 results. The company reported a 45% year-over-year revenue increase to $46.3 million and a 20% rise in annual recurring revenue to $127.3 million, reflecting robust demand for its AI-driven weapons-detection screening solutions. This performance has led management to raise full-year 2026 revenue guidance to a range of $175 million to $180 million, alongside expectations for positive adjusted EBITDA with high single-digit margins. The stock trades at approximately $6.73 with a consensus analyst price target of $10.00, implying nearly 49% upside, supported by six buy ratings and one hold rating. Recent developments include a strategic focus on expanding AI screening technology, which has been well received by the market and analysts alike. The company’s products, such as Evolv Express and Evolv eXpedite, have earned U.S. Department of Homeland Security SAFETY Act designations, reinforcing their competitive advantage and market credibility. Evolv’s customer base has grown to about 1,300 globally, with plans to deploy over 10,000 units by the end of 2026. The shift toward subscription-based recurring revenue models enhances revenue visibility and customer retention, with approximately 45% of new deployments expected under pure subscription agreements. Balancing these positives are risks including the company’s historical losses and the challenge of sustaining profitability amid scaling operations. Dependence on a limited product portfolio and reseller partners, along with potential operational and regulatory risks, present headwinds. Industry competition from larger technology firms and macroeconomic factors such as inflation and geopolitical uncertainties also pose challenges. However, Evolv’s improving adjusted profitability, stable cash position, and strategic growth initiatives provide a solid foundation for future performance. Looking forward, the upcoming Investor Day on June 9, 2026, will offer investors deeper insights into Evolv’s strategic vision and growth plans. Continued execution on AI technology expansion, customer acquisition, and margin improvement will be critical to realizing the significant upside potential reflected in analyst price targets. Overall, Evolv is well positioned to capitalize on growing security needs at public venues and the broader trend toward AI-enabled safety solutions.
Price Target
7 analysts$10.00
Range: $10.00
→
$10.00
Upside Potential
+56.0%
From current price
Consensus Rating
Rating Distribution
Buy
Hold
Evolv Technologies is benefiting from strong near-term growth momentum, as evidenced by its 45% year-over-year revenue increase in Q1 2026 and a 20% rise in annual recurring revenue to $127.3 million. The company’s strategic pivot toward AI-powered weapons-detection screening solutions has resonated well with customers, driving expanded deployments and a growing global customer base of approximately 1,300 clients. Management’s raised full-year 2026 revenue guidance to $175-$180 million, coupled with expectations for positive adjusted EBITDA margins in the high single digits, underscores confidence in sustained operational improvement and profitability. The company’s competitive advantages are bolstered by U.S. Department of Homeland Security SAFETY Act designations for its Evolv Express and Evolv eXpedite products, enhancing market credibility and differentiation. Additionally, the shift toward subscription-based recurring revenue models, with nearly half of new deployments under pure subscription agreements, improves revenue visibility and customer stickiness. Industry tailwinds, including heightened security concerns at large venues such as stadiums and hospitals, support multi-year growth potential. Analyst sentiment remains bullish, with a consensus Buy rating and a price target implying nearly 49% upside, reflecting optimism about Evolv’s growth trajectory and market positioning.
Despite positive momentum, Evolv faces several risks that could impact its growth and profitability. The company has a history of losses and must successfully manage scaling operations to achieve sustained profitability. Dependence on a limited product portfolio and reseller partners introduces concentration risk, while operational challenges such as managing higher costs and potential internal control weaknesses could affect financial performance. Regulatory and litigation risks, including securities enforcement matters, may divert management focus and increase expenses. The security technology sector is highly competitive, with rapid technological changes and pressure from larger, established firms that could erode Evolv’s market share. Macro risks such as geopolitical uncertainties, inflationary pressures, and foreign currency volatility may also negatively influence demand and financial results. Additionally, the company’s need for further capital to fund growth presents potential constraints if favorable financing is not available. Market expectations are elevated, and failure to meet growth targets could result in stock price volatility and downside risk.
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