Evolv Technologies NASDAQ: EVLV executives used an appearance at TD Cowen’s TMT conference to outline the company’s growth strategy, recent financial performance and product positioning in weapons-detection screening.
CEO John Kedzierski said Evolv was created to address a gap between traditional airport-style screening and the needs of schools, workplaces, hospitals, stadiums and other public venues. He described the company’s core mission as enabling weapons screening “at scale” in a way that is less disruptive than legacy metal detectors and X-ray checkpoints.
The company’s main walk-through product, Evolv Express, is deployed in many professional sports venues across North America, Kedzierski said. Evolv also offers eXpedite, a bag-screening product aimed at environments such as schools and workplaces, where visitors often carry laptops, tablets and other items that can complicate screening.
Kedzierski said Evolv has more than 8,000 units deployed and was approaching 9,000 at the end of the first quarter. He also said the company has screened more than 4 billion people, with more than 4 million people on average passing through its devices each day.
Executives Highlight Education, Healthcare and Stadium Demand
Kedzierski said Evolv’s largest verticals include education, healthcare, sports and stadiums. He noted that security demand is often event-driven, with school shootings and workplace violence prompting institutions to seek new solutions.
In education, Kedzierski pointed to Gwinnett County Public Schools as Evolv’s largest contract to date. He said the deployment included both Express and eXpedite at every entryway into the district’s high schools and middle schools.
Healthcare has also been a strong market, particularly emergency rooms, which Kedzierski described as dangerous workplaces due to violence against employees. In stadiums, he said Evolv’s technology has helped venues move large crowds through entrances more quickly while reducing the need for manual screening.
Q1 Revenue Rose 45% as Guidance Was Raised
CFO Chris Kutsor said Evolv reported just over $46 million in first-quarter revenue, up 45% year over year. He attributed the increase to strong customer demand, pricing strength and a one-time positive comparison related to a change in purchasing methods from the prior year.
Kutsor said the company raised its full-year 2026 revenue outlook to $175 million to $180 million, up from a prior range of $172 million to $176 million. He said management felt good about the start to the year and expected that momentum to flow through the rest of the year.
Management also discussed Evolv’s mix of purchase-subscription and subscription-only arrangements. Under the purchase-subscription model, customers buy the hardware and receive a four-year software and services agreement. The subscription-only model is recognized more ratably over four years because Evolv retains ownership of the hardware.
Kutsor said Evolv saw a higher mix of purchase-subscription activity in the first quarter and now expects about 55% of revenue mix to come from purchase-subscription arrangements for the year, compared with an earlier assumption of roughly 50/50.
Cash Flow and Manufacturing Plans
Kutsor said Evolv ended the first quarter with cash down about $8 million from the prior quarter, primarily due to prior-year incentive payments. He said the company expects to be cash flow positive in the second half of the year.
On the balance sheet, Kutsor said Evolv has roughly $60 million, depending on the quarter, consisting of about $30 million of debt and $30 million of cash. He added that the company has capacity for another $45 million if needed.
The executives also discussed Evolv’s contract manufacturing relationship with Plexus. Kutsor said Evolv does not operate its own manufacturing plants and has used contract manufacturers since inception. He said Plexus is being onboarded through the first half of the year, with the majority of units expected to come from Plexus in the second half of 2026. He said that plan is included in guidance for modest EBITDA expansion and gross margin improvement to the mid-50% range in the back half of the year.
eXpedite and AI Strategy
Kedzierski said eXpedite differs from traditional X-ray systems because it does not require a trained X-ray operator. He said Evolv built its own proprietary data set and designed the machine from the ground up to support autonomous operation.
He said eXpedite can run faster than traditional X-ray systems because a human does not need to review each image. Kedzierski said 6% of Evolv’s customer base has eXpedite after just over a year in market. In the first quarter, nine new customers bought eXpedite, and eight of those also bought Express.
Kedzierski also said customers tag about 500 real firearms detected by Evolv systems each day. He said that figure is based on customer verification after a search.
On artificial intelligence, Kedzierski said Evolv views generative AI and large language models as an operational tailwind. He said the company designs its own hardware, software, data sets and proprietary models, which he believes creates a substantial moat. He said Evolv is using AI internally to improve efficiency, customer service and engineering productivity.
Long-Term Market Opportunity
Kedzierski said Evolv is still early in the adoption curve for weapons-screening technology. He cited a total addressable market of more than 700,000 entryways and said the company is about 1% penetrated into that opportunity.
He said Evolv is most often replacing “nothing at all” outside of stadium settings, meaning the company is creating a new category rather than displacing an existing solution. Kedzierski said competition has emerged as the market opportunity has become more visible, but he described Evolv as the incumbent in the category it helped create.
Internationally, Kedzierski said Evolv’s business remains nascent, with systems deployed in several countries, totaling hundreds of units rather than the thousands installed in North America. He said the company sees additional product-market fit outside the United States but indicated that management would provide more detail on long-term plans at its June 9 investor day.
About Evolv Technologies NASDAQ: EVLV
Evolv Technologies, Inc is a publicly traded American security technology company that develops and markets AI-driven weapons detection and screening solutions. The company’s proprietary platform combines advanced sensors, computer vision software and machine learning algorithms to identify potential threats—such as firearms and knives—while minimizing false positives and preserving high throughput. Evolv’s systems are designed to replace or supplement traditional metal detectors and manual bag checks in high-traffic venues.
The company’s flagship product, Evolv Express, integrates seamlessly into existing security checkpoints, allowing guests to pass through without stopping or emptying their pockets.
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