Here are 1-3 brief analogies for Evolv Technologies (EVLV):

• It's like the CLEAR system for physical threat detection, allowing people to walk through security checkpoints without stopping or emptying pockets, thanks to AI.
• Think of it as the Tesla of security checkpoints, modernizing traditional metal detectors with AI and a seamless user experience for venues and public spaces.

• Evolv Express®: An AI-powered, touchless security screening system designed to quickly and accurately detect weapons at high-volume entrances.
• Evolv Reveal™: A tablet-based secondary screening software that uses AI to identify specific threats within bags or belongings for targeted inspections.
• Evolv Insights™: A cloud-based analytics platform providing operational data and performance metrics to optimize security operations.
• Subscription Services: Comprehensive software subscriptions and support packages that include system updates, maintenance, and technical assistance for Evolv's security solutions.

Evolv Technologies (EVLV) Major Customers

Evolv Technologies (EVLV) primarily sells its AI-powered security screening systems, such as Evolv Express, to other companies and organizations (B2B model) rather than directly to individuals. Their solutions are designed to enhance safety and security in various public and private environments.

Their major customers fall into several key categories, with specific public company examples highlighted where available:

• Sports & Entertainment Venues: This is a very significant customer segment for Evolv. Their systems are widely adopted by professional sports stadiums, arenas, concert halls, and other large-scale entertainment complexes to enhance security and streamline entry for large crowds.
  • Examples of publicly known customers or venues using Evolv systems often include properties associated with public companies:
    • Six Flags Entertainment Corporation (SIX): A major theme park operator utilizing Evolv systems across many of its parks.
    • Madison Square Garden Entertainment Corp. (MSGE) and Sphere Entertainment Co. (SPHR): Companies that own or operate iconic venues like Madison Square Garden and The Sphere, which have been reported to use Evolv's technology.
    • Many venues operated by or affiliated with companies like Live Nation Entertainment, Inc. (LYV) also utilize Evolv systems, although the direct customer contract might be with the venue's specific ownership or management.
    • Numerous NFL, NBA, NHL, and MLB stadiums and arenas across the U.S. (e.g., SoFi Stadium, Gillette Stadium, MetLife Stadium, Dodger Stadium, Bridgestone Arena, etc.) are customers. While many of these teams/stadiums are privately owned, their collective adoption represents a significant market segment.
• Schools & Educational Institutions: Evolv's systems are increasingly deployed in K-12 schools, school districts, and universities to enhance campus safety and create safer environments for students and staff.
• Hospitals & Healthcare Facilities: Medical centers and hospitals use Evolv's technology to secure their premises, protect patients and staff, and manage visitor access.
• Manufacturing & Enterprise Campuses: Large corporate campuses, distribution centers, and manufacturing facilities utilize Evolv Express for employee and visitor screening, improving security at entry points without impeding operational flow.
• Theme Parks & Attractions: Beyond Six Flags, other amusement parks, zoos, and cultural attractions are also customers, focusing on enhancing guest experience and safety.
• Casinos & Resorts: Gaming and hospitality venues employ Evolv's technology for sophisticated security screening at their entrances.
• Places of Worship & Public Buildings: Churches, synagogues, mosques, and various governmental/municipal buildings are adopting Evolv's systems to provide enhanced security for congregants and the public.

While Evolv has a broad customer base across these categories, Six Flags Entertainment Corporation and venues associated with Madison Square Garden Entertainment Corp., Sphere Entertainment Co., and Live Nation Entertainment, Inc. represent some of the most visible public company customer relationships within their largest market segment.

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John Kedzierski, Chief Executive Officer, President, and Director

John Kedzierski has served as President and CEO of Evolv Technology since December 2024. He brings extensive experience leading high-growth security and technology businesses. Previously, he spent over 23 years at Motorola Solutions, Inc., where he was Senior Vice President of Global Enterprise Sales. At Motorola Solutions, he also held responsibility for leading product management, research and development, sales, and marketing for the company's Video Security and Access Control business, contributing to Motorola Solutions becoming a global leader in physical security. His career at Motorola Solutions also involved developing and extending technology ecosystems, building high-performing teams, and effectively acquiring and integrating new businesses.

Chris Kutsor, Chief Financial Officer

Chris Kutsor has been Evolv's Chief Financial Officer since April 2025. From 2019 through May 2024, he served as Chief Financial Officer of Kin + Carta, a publicly listed software engineering digital consultancy, and was also appointed Chief Operating Officer in 2022. During his tenure at Kin + Carta, Mr. Kutsor led the sale of the company to a private equity firm in 2024. Prior to joining Kin + Carta, he spent nearly 25 years at Motorola Solutions in various senior finance roles, including leading investor relations, financial management of a global business unit, and managing venture capital investments.

Michael Ellenbogen, Founder and Chief Innovation Officer

Michael Ellenbogen co-founded Evolv with Anil Chitkara in July 2013. He previously served as Evolv's Chief Executive Officer from August 2013 to January 2020, and as Interim President and CEO until December 2024. Before co-founding Evolv, Mr. Ellenbogen was the Founder, President, and CEO of Reveal Imaging Technologies, an X-ray imaging systems company focused on automated explosives detection, from 2002 to 2010. He was also instrumental in the transition following Vivid Technologies' acquisition by PerkinElmer. Mr. Ellenbogen is an inventor with 19 awarded patents in the field of X-ray inspection and automated detection technology.

Anil R. Chitkara, Founder and Chief Growth Officer

Anil Chitkara co-founded Evolv with Michael Ellenbogen in July 2013. Prior to co-founding Evolv, he was the Senior Vice President of Market Development for Oco, Inc., a business analytics software provider that was subsequently acquired by Deloitte. Mr. Chitkara also served as a Vice President of Parametric Technology Corporation (PTC). He served as an Executive-in-Residence for General Catalyst, where he developed market entry and revenue growth strategies before founding Evolv Technology.

Rachel Roy, General Counsel, Chief Compliance Officer

Rachel Roy serves as General Counsel and Chief Compliance Officer for Evolv Technologies. She has extensive experience in-house, building and leading global legal teams. This includes her role at VMware, Inc., where she led an international team responsible for advising on employment, diversity, equity, and inclusion (DEI), and cultural matters for over 35,000 employees across more than 65 countries.

The key risks to Evolv Technologies (EVLV) are:

1. Financial Reporting and Internal Control Weaknesses, including Sales Misconduct and Restatements: Evolv Technologies has faced significant issues with its financial reporting and internal controls. The company's financial statements from the second quarter of 2022 through the second quarter of 2024 have been deemed unreliable due to material misstatements concerning revenue recognition and sales misconduct. An internal investigation by independent directors found that certain sales, including those to a major channel partner, involved extra-contractual terms and conditions not disclosed to accounting personnel, leading to premature or incorrect revenue recognition. These issues have resulted in the identification of material weaknesses in internal control over financial reporting, a delay in filing annual reports (10-K), and exposure to class-action lawsuits and potential regulatory actions from the SEC. The company also reported these issues to the U.S. Securities and Exchange Commission.
2. Product Efficacy and Regulatory Scrutiny: Evolv Technologies has faced legal and regulatory challenges regarding the efficacy of its AI-powered security screening systems. The Federal Trade Commission (FTC) has taken action against Evolv for allegedly making deceptive claims about its Evolv Express system's ability to detect all weapons and ignore harmless personal items. The FTC's complaint cited instances where the scanners reportedly failed to detect weapons in schools while flagging innocent items. As a result of a proposed FTC settlement order, Evolv is banned from making unsupported claims about its products' weapon detection capabilities and must offer certain K-12 school customers the option to cancel their contracts. Investors have also filed a class-action lawsuit, accusing company executives of overstating the devices' capabilities and claiming that "Evolv does not reliably detect knives or guns."
3. Intense Competition and Market Adoption Challenges: Evolv Technologies operates in a new and evolving AI-based weapons detection market, facing significant competition. Competitors include companies like CEIA with its OPENGATE scanners, as well as other players in the computer hardware and security software industries. The security industry can be slow to adopt new technologies, requiring Evolv to not only demonstrate its technology's effectiveness but also overcome market inertia. The company's future success depends on expanding its customer base and increasing deployment with existing customers, which may require increasingly sophisticated and costly sales efforts. Additionally, there are potential margin pressures associated with the transition to direct sales models.

The addressable market for Evolv Technologies' (EVLV) main products and services is estimated to be between $6 billion and $8 billion. This near-term market opportunity primarily covers their AI-based weapons detection systems for venues such as sports teams, schools, hospitals, and offices. The majority of Evolv Technology's current customers are located in the United States, accounting for over 91% of their customer base, suggesting that this market size primarily pertains to the U.S. region. Public transit opportunities are not currently included in this stated Total Addressable Market (TAM) analysis.

• Expansion of Customer Base and Increased Penetration within Existing Customers: Evolv Technologies consistently highlights new customer additions and expanded deployments within its existing customer base as a primary growth engine. The company surpassed 1,000 global customers and over 7,000 active subscriptions in the second quarter of 2025, with more than half of its booked units and Annual Recurring Revenue (ARR) coming from existing customers. Evolv aims to reach at least 8,000 active subscriptions by the end of 2025.
• Shift to a Direct Purchase Subscription Model and Direct Fulfillment Strategy: Evolv is strategically transitioning towards a direct purchase subscription model and direct fulfillment. Management expects this shift to deliver stronger economics, higher lifetime value, greater cash flow, and a more robust recurring revenue mix over time, despite potential near-term gross margin pressures.
• Growth in Annual Recurring Revenue (ARR) and Subscriptions: The consistent growth of ARR is a significant indicator of future revenue. Evolv reported strong year-over-year ARR growth, reaching $110.5 million at the end of the second quarter of 2025, an increase of 27% compared to the prior year. This focus on recurring revenue provides a more predictable and scalable business model.
• Introduction and Adoption of New Products and Solutions: The launch and growing traction of new products, such as the AI-powered Evolv Expedite bag screening solution, are expected to contribute to revenue growth. Evolv Expedite has shown strong momentum since its Q4 2024 launch, adding new customers and securing significant orders, with the potential to broaden customer adoption and enhance the stickiness of its subscription offerings.
• Expansion into New Markets and Verticals through Strategic Partnerships: Evolv is expanding its footprint across diverse sectors like education, healthcare, professional sports, and event venues. Strategic partnerships, such as those with Stern Grove Festival, the Columbus Crew, and Gillette Stadium, along with a "further tailwind" from California law and a growing international business, are expected to drive new revenue channels and market penetration.

Share Issuance

• Evolv Technologies went public in July 2021 through a merger with the Special Purpose Acquisition Company (SPAC) NewHold Investment Corp., with the combined entity having a pro forma total equity value of approximately $1.7 billion.
• The business combination resulted in approximately $385 million in gross proceeds for the combined company, net of redemptions from NewHold's public shareholders.
• These proceeds were comprised of cash held in trust from NewHold Investment Corp. and an oversubscribed $300 million Private Investment in Public Equity (PIPE) at $10.00 per share.

Inbound Investments

• The $300 million PIPE included investments from strategic partners such as Motorola Solutions, Inc., and institutional investors like Magnetar Capital, Eldridge, Senator Investment Group, and UBS O'Connor.
• High-profile individuals, including former NFL quarterback Peyton Manning and tennis players Andre Agassi and Steffi Graf, also participated as investors in the PIPE.
• Vanguard Group Inc. increased its stake in Evolv Technologies, acquiring an additional 1,031,940 shares on September 30, 2024, bringing its total holdings to 8,686,629 shares valued at $4.05 each.

Capital Expenditures

• Evolv Technologies reported capital expenditures of approximately -$23.88 million in 2022, -$72.40 million in 2023, and -$37.31 million in 2024.
• The company's primary capital requirements are for working capital, inventory management, and general corporate needs to support its business development and growth.
• Projected capital expenditure for 2025 is $86 million, which represents 62% of revenue, with a focus on costs related to the next generation of its Evolv Express system and product development.