Key Highlights

  • Revenue of USD 47.34 million beat the USD 45.61 million estimate, a record, up 10% year over year.
  • Recurring Revenue was a record USD 32.5 million, about 69% of total, and net revenue retention was 108%.
  • Adjusted EBITDA Margin was 10%, free Cash Flow was USD 3.2 million, and GAAP net loss was USD 15.6 million.
  • The filing states a securities class action was dismissed with prejudice after a USD 15.0 million settlement.

Evolv Technologies (NASDAQ:EVLV), a security screening company, reported record third quarter 2026 revenue of USD 47.34 million, above the USD 45.61 million estimate and up 10% year over year. Loss per share of USD 0.02 matched the estimate, while the filing reports a GAAP net loss of USD 15.6 million against USD 1.8 million a year earlier. Nine-month revenue was USD 137.4 million against USD 107.4 million.

Management said growth came on top of 57% growth in the third quarter of 2025, which included the largest contract in company history. Annual Recurring Revenue rose 20%, and remaining performance obligation rose 4% sequentially and 12% year over year to USD 326 million.

Customers, Margins and Cash

Management said it screens more than 5 million people every day. Healthcare represented 23% of units booked, up from 18% over the prior 12 months, and about 88% of new customers purchasing eXpedite also purchased Evolv Express. It guided 2026 revenue to a midpoint of USD 183 million and said it expects modest expansion in adjusted EBITDA margin in 2026.

For 2027, management said pricing changes would be a headwind of about 3 to 4 percentage points to reported revenue growth, while building a better long-term mix. Nine-month net loss was USD 29.9 million against USD 44.0 million. The company had USD 66.9 million in cash, cash equivalents and marketable securities, USD 30.0 million of outstanding Debt and up to USD 45.0 million of additional available debt. Interest expense for nine months was USD 2.9 million against USD 0.7 million.

Manufacturing Transition

The filing states Volume production has transferred to Plexus under a non-exclusive contract Manufacturing agreement, with remaining transition and optimization continuing into the first quarter of 2027. No license fee revenue was earned in the quarter against USD 2.3 million a year earlier.

Legal Disclosure and Items to Follow

The filing describes putative securities class action lawsuits filed against the company in the United States District Court for the District of Massachusetts in 2024 and later consolidated. The plaintiffs alleged false or misleading statements about product effectiveness and revenue recognition. The filing states a USD 15.0 million settlement, of which USD 14.3 million was funded by insurance, received final court approval on September 24, 2026, and the action was dismissed with prejudice.

The filing also describes Shareholder derivative lawsuits based on the same allegations, with a settlement agreement preliminarily approved in August 2026 that includes governance reforms and a USD 1.3 million fee paid through insurance carriers. It states the company has been cooperating with SEC investigations and recorded a USD 3.5 million accrual for a proposed settlement in the nine months. These matters are reported as stated in the filing and are flagged for human legal review.