Evolv Technologies NASDAQ: EVLV reported second-quarter revenue growth of 34% year over year and raised its 2026 outlook, citing demand from new and existing customers, expanding deployments and improving renewal activity.
Revenue for the second quarter was $43.8 million, while annual recurring revenue, or ARR, reached $132.7 million, up 20% from a year earlier. The company said revenue growth also benefited from its completed transition to a direct fulfillment model, which increased the portion of product revenue recognized upfront compared with prior periods. Chief Financial Officer Chris Kutsor said year-over-year comparisons are expected to normalize beginning in the third quarter after the company anniversaried its July 2025 fulfillment and pricing changes.
Adjusted EBITDA was $4.4 million, compared with $2.1 million in the prior-year quarter, producing an adjusted EBITDA margin of 10.1%, up from 6.5%. Adjusted gross margin was 51%, unchanged from the first quarter. The company’s adjusted operating expenses increased 16% to $25 million as Evolv continued to invest in product development, commercial capacity, information-technology systems and personnel.
Customer Growth and Contracted Revenue
President and Chief Executive Officer John Kedzierski said Evolv added 70 customers during the quarter, its strongest period for new-customer additions in two years. About 60% of unit bookings came from existing customers, he said, reflecting both expansion activity within the installed base and new-logo acquisition.
Evolv ended the quarter with roughly 9,200 units deployed and expects to finish 2026 with comfortably more than 10,000 units, representing approximately 30% year-over-year net deployed-unit growth. The company said it now has customers in all 50 U.S. states as well as Canada and Mexico, and its systems screen nearly 5 million people daily.
Remaining performance obligation, or RPO, rose 4.5% sequentially to $312.6 million. Kedzierski said the figure, which represents future revenue tied to unsatisfied or partially satisfied contractual obligations, exceeds 1.7 times Evolv’s full-year revenue outlook. Kutsor said the company estimates its RPO carries an approximately 66% gross-margin profile, above its current reported gross margin because hardware costs are largely recognized upfront while software and service revenue is recognized over time.
Net revenue retention remained above 100% in the quarter, supported by renewals and customer expansions. The company said customers have continued upgrading from its Gen1 systems to the Gen2 Evolv Express platform under new four-year contracts. Kutsor said about 60% of renewing customers had upgraded to Gen2 as of the second-quarter call.
Demand Across Markets and Product Expansion
In education, Evolv added 23 customers across 13 states, including K-12 schools, higher-education institutions and state education agencies. The company said it serves about 1,800 schools, including 24 of the 100 largest U.S. school districts.
The company added eight healthcare customers, including Alberta Health Services in Canada, and said it now supports roughly 800 hospitals. It also cited new sports and live-entertainment customers, including the Pro Football Hall of Fame, and said it supported the 2026 FIFA World Cup through a short-term subscription deployment across match venues, fan festivals and transportation hubs. Evolv said it screened more than 3.5 million fans during the nearly 40-day tournament.
Separately, Evolv said Northwestern University selected its technology for the new Ryan Field. The company also added two Fortune 500 customers during the quarter and said it now serves more than 30 Fortune 500 companies. Kedzierski said corporate demand includes headquarters as well as distribution centers and warehouses, where customers have workplace-security concerns.
Adoption of Evolv eXpedite, the company’s autonomous bag-screening product, also increased. Evolv said it has more than 100 eXpedite customers, representing approximately 8% of its customer base, up from 2% a year earlier. About 70% of new eXpedite customers in the second quarter also purchased Evolv Express, while eXpedite has been cross-sold to more than 40 existing Express customers.
Updated 2026 Outlook and Manufacturing Transition
Evolv raised its full-year revenue forecast to $180 million to $185 million, from prior guidance of $175 million to $180 million. The updated range represents annual growth of approximately 23% to 27%. The company increased its year-end ARR outlook to approximately $148 million to $150 million, implying growth of 23% to 25%.
The company continues to expect full-year adjusted EBITDA of $15 million to $16 million, with an adjusted EBITDA margin in the high single digits, compared with 7.6% in 2025. It expects second-half deployments to exceed first-half deployments and said gross margins should remain consistent with first-half levels through the remainder of the year.
Kutsor said a higher mix of purchase subscriptions, stronger-than-expected Gen2 upgrades and moderately higher component costs are expected to pressure near-term gross margin. Evolv now expects purchase subscriptions to account for 60% of newly deployed units in 2026, compared with its prior 55% assumption. The company expects pricing increases, manufacturing efficiencies and scale benefits to support margin expansion over time.
Cash equivalents, marketable securities and restricted cash rose about $2 million sequentially to $63 million. Evolv said it generated positive cash flow in the second quarter and expects to remain cash-flow positive for the rest of 2026, though it may opportunistically invest $2 million to $4 million in inventory safety stock.
The company also said it has begun shipping products through facilities operated by new global contract manufacturing partner Plexus. Kedzierski said the majority of orders are now being fulfilled from Plexus-built units, while Evolv continues to manage semiconductor and electronics supply-chain constraints.
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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