Evolv Technologies Holdings, Inc.

Q2 revenue was $43.8 million, up 34% year over year. Adjusted gross margin was 51%, consistent with Q1. Adjusted EBITDA was $4.4 million versus $2.1 million a year ago, and adjusted EBITDA margin expanded to 10.1% from 6.5%. ARR at June 30, 2026 was $132.7 million, up 20% year over year, and RPO was $312.6 million, up 4.5% sequentially. For 2026, management raised revenue guidance to $180 million-$185 million, up 23% to 27% year over year, and expects year-end ARR of about $148 million-$150 million, up 23% to 25%. Full-year adjusted EBITDA is expected to be $15 million-$16 million with margins in the high single digits, and management said gross margins in the second half should stay consistent with first-half levels.

John Kedzierski framed the quarter as another step toward the company’s Investor Day goals of more than $500 million in revenue by 2031 and at least 25% adjusted EBITDA margins. He emphasized the long runway in a market he described as large and underpenetrated, with growth coming from education, healthcare, sports, entertainment, and workplace security. His tone was confident and expansionary, highlighting stronger renewals, more Gen2 upgrades, rising Expedite adoption, and the company’s growing recurring revenue base.

Chris Kutsor focused on the mechanics behind the quarter and the updated outlook. He said Q2 revenue growth reflected strong demand and the completed transition to direct fulfillment, noted ARR of $132.7 million, adjusted gross margin of 51%, adjusted EBITDA of $4.4 million, and cash, cash equivalents, marketable securities, and restricted cash of $63 million, up about $2 million sequentially. He also said the company expects to remain cash flow positive through year-end, though it may invest an additional $2 million to $4 million in inventory safety stock. On guidance, he cited a higher mix of purchase subscriptions, stronger Gen2 upgrade activity, and modestly higher component costs as near-term gross margin headwinds, offset partly by manufacturing efficiencies and price increases.

Analysts focused on the gap between unit growth and ARR growth, and management explained that the divergence is expected because Gen2 upgrades and Expedite carry lower ARPU than the legacy mix, although price increases should narrow that gap over time. Questions also centered on legislative tailwinds in school safety, where management said California and Georgia are proof points that the technology can become standardized and that the company intends to be more assertive in policy discussions. Other Q&A covered Plexus manufacturing, where management said the transition is on schedule and the majority of orders are now being fulfilled there, plus supply-chain and inventory timing, which management said may lead to a selective $2 million-$4 million safety-stock investment.