Evolv's ARR Grew 20% to $140.5M, but Net Loss Widened to $15.6M

Evolv Technologies (NASDAQ: EVLV) grew annual recurring revenue 20% to $140.5 million in the third quarter, while its net loss widened to $15.6 million from $1.8 million a year earlier. ARR (annual recurring revenue, the final month of subscription plus recurring service revenue from purchase subscriptions, multiplied by 12) expanded twice as fast as total revenue, which rose 10% to $47.3 million for the quarter ended Sept. 30, up from $42.9 million.

The numbers come from the earnings press release furnished as Exhibit 99.1 with the Form 8-K dated Nov. 10, 2026.

What drove the quarter?

President and CEO John Kedzierski said growth came against a tough prior-year comparison: last year's Q3 included the largest contract in the company's history.

The revenue mix shifted toward recurring streams:

• Recurring revenue: $32.5 million, or 69% of total, up from $28.7 million and 67%.
• Non-recurring revenue (product, shipping, installation, training): $14.8 million, against $14.2 million.
• Product revenue: $12.3 million, up from $9.2 million.
• Subscription revenue: $24.5 million, up from $22.7 million.
• Remaining performance obligation (contracted revenue not yet recognized): $325.8 million, up $13.2 million from the prior quarter.

Nine-month results ran hotter than the quarter. Total revenue grew 28% to $137.4 million from $107.4 million. Product revenue reached $34.9 million against $14.1 million. Net loss narrowed to $29.9 million from $44.0 million, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose to $13.1 million from $9.3 million.

Why did the loss widen while cash improved?

The quarterly net loss of $15.6 million, or $0.09 per share, compares with $1.8 million, or $0.01 per share, a year ago — a net margin of negative 32.9%. Three items explain most of the gap:

• Loss from operations widened to $14.4 million from $8.6 million.
• The reconciliation lists $4.8 million of other non-recurring legal and regulatory costs.
• Total other income swung to a $1.2 million net expense from $6.8 million in net income a year earlier.

Adjusted EBITDA slipped to $4.7 million from $5.1 million, with margin at 10.0% against 12.0%. Cash flow told a better story: free cash flow (a non-GAAP measure of operating cash minus capital spending) came in at $3.2 million versus negative $11.5 million a year earlier. Cash, cash equivalents, marketable securities and restricted cash ended at $66.9 million, up $3.5 million sequentially.

The takeaway: the P&L got uglier, but the balance sheet and cash generation moved the right way.

What does guidance say?

Evolv guided 2026 revenue to $182 million to $185 million, roughly 25% to 27% growth, narrowing and lifting the low end from the $180 million to $185 million range issued Aug. 11. The range depends on the mix of new unit deployments between purchase-subscription and pure-subscription models.

Other targets:

• Year-end ARR held at approximately $148 million to $150 million, implying 23% to 25% growth — faster than Q3's pace.
• Adjusted EBITDA outlook raised to $15.5 million to $16.5 million from $15 million to $16 million, with margins in the high single digits.

Management hosted its call and webcast at 4:30 p.m. Eastern on Nov. 10. Kedzierski also pointed to the long-term model from Investor Day, which targets revenue growth ramping toward an approximately 25% compound annual rate through 2031.

Is the subscription thesis intact?

Analyst coverage from OptimistFi frames Evolv as a high-upside but still-unproven bet: the case rests on AI-enabled, subscription-based weapons screening becoming a defensible category rather than a better hardware rollout. This report supports the subscription half — ARR added $23.3 million in 12 months and the recurring share of revenue edged up — but leaves the proof incomplete, since product revenue remains a large and fast-growing slice of the top line and the adjusted EBITDA margin slipped.

The filing itself carries caveats. Kedzierski flagged the tough prior-year comparison, and the company notes ARR should be viewed independently of revenue and isn't a forecast of it.

The next report, covering results through Dec. 31, is the test: ending ARR inside the guided range backs the subscription case, while a shortfall weakens it.