Evolv Lifts 2026 Revenue Floor After Third-Quarter Slowdown

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $47.3 million, up 10% from a year earlier, after 34% growth in the second quarter.

Evolv Technologies Holdings (EVLV), a security technology company selling AI-powered screening systems, reported third-quarter revenue of $47.3 million, up 10% from $42.9 million a year earlier, after 34% growth in the second quarter and 45% in the first.

The slowdown was the quarter’s defining turn. Annual recurring revenue still grew 20% year over year, matching the pace recorded in both the first and second quarters, and ended at $140.5 million. President and Chief Executive Officer John Kedzierski said the company delivered double-digit revenue growth with ARR growing faster than revenue against a challenging prior-year comparison, because last year’s results included the largest contract in the company’s history. He also pointed to a stronger recurring base and net revenue retention.

New customers added in the quarter fell to 51 from 70 in the second quarter. Recurring revenue was $32.5 million, or 69% of the total, versus $32.1 million, or 73% of revenue, in the second quarter. Non-recurring revenue was $14.8 million, or 31% of the total.

GAAP gross margin held at 49.7%, matching the year-ago quarter. Adjusted gross margin was 50.8%. Adjusted EBITDA was $4.7 million, with a 10.0% margin, versus $4.4 million and a 10.1% margin in the second quarter. Free cash flow was $3.2 million, compared with an $11.5 million outflow in the year-ago quarter.

Net loss widened to $15.6 million, or $0.09 a share, with a net profit margin of (32.9)%, versus a $9.3 million loss in the second quarter and $5.0 million in the first. GAAP operating expenses were $38.0 million, versus $32.5 million in the second quarter. Adjusted operating expenses were $26.5 million. Cash, cash equivalents, marketable securities, and restricted cash rose to $66.9 million, up $3.5 million sequentially. Remaining performance obligation increased to $325.8 million, up $13.2 million from $312.6 million at June 30.

The company raised its 2026 revenue outlook to $182 million to $185 million, representing approximately 25% to 27% year-over-year growth, from the $180 million to $185 million range issued on August 11. It said the range depends on the mix of new unit deployments between purchase-subscription and pure-subscription models. Ending ARR at December 31, 2026 remains expected at approximately $148 million to $150 million, unchanged from the August estimate. Adjusted EBITDA guidance for 2026 moved to $15.5 million to $16.5 million from $15 million to $16 million, with margins still in the high single digits.

Kedzierski said investments in sales capacity and product innovation give the company increasing confidence in the path ahead for 2027 and in the long-term model outlined at Investor Day, with revenue growth expected to ramp toward an approximately 25% CAGR through 2031.