Evolv Technologies (EVLV) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $46.3 million, up 45% year-over-year, driven by strong demand, new customer wins, and adoption of subscription models.

• Annual recurring revenue (ARR) was $127.3 million, growing 20% year-over-year.

• Adjusted EBITDA improved to $3.9 million, with margin expanding to 8.5% in Q1.

• Net loss widened to $5.0 million, with a net profit margin of -10.8%, reflecting higher operating expenses and investments in growth.

• Customer base grew globally, with nearly 50 new customers added in Q1 and nearly 250 new customers in 2025.

Financial highlights

• Q1 adjusted gross margin was 52%, down from 61% last year, with gross profit at $23.6 million and adjusted gross profit at $24.1 million.

• Product revenue surged 478% to $13.4 million; subscription revenue rose 20% to $23.1 million; recurring revenue was $31.2 million, up 21% year-over-year.

• Adjusted operating expenses were $26.9 million, and total operating expenses were $32.1 million, down 4% from Q1 2025.

• Cash, equivalents, and marketable securities totaled $61.1 million as of March 31, 2026, with outstanding debt of $30.0 million and $45.0 million in undrawn credit facilities.

• Operating cash flow for Q1 2026 was negative $3.2 million.

Outlook and guidance

• 2026 revenue guidance raised to $175–$180 million, representing 20–23% year-over-year growth.

• Ending ARR for 2026 projected at $145–$150 million, up 20–25% year-over-year.

• Full-year adjusted EBITDA margin expected in the high single digits, up from 7.6% in 2025.

• Management expects continued net losses as investments in growth persist, but projects sufficient liquidity for at least the next twelve months.

• Approximately 45% of new unit deployments in 2026 expected under pure subscription model.