The key surprise was a raised full-year outlook. Evolv lifted 2026 revenue guidance from $175–$180 million to $180–$185 million and narrowed the ARR target upward from $145–$150 million to $148–$150 million; it also introduced a $15–$16 million Adjusted EBITDA target. That is a clear improvement versus the company’s own standing expectations before the quarter, even though no separate published quarterly consensus was provided. (Business outlook; Outlook comparison table)
| Metric | Q2 2026 | Q2 2025 | Six months 2026 | Six months 2025 |
|---|---|---|---|---|
| Total revenue | $43.8M | $32.5M | $90.1M | $64.6M |
| ARR | $132.7M | $110.5M | — | — |
| Adjusted EBITDA | $4.4M | $2.1M | $8.4M | $4.2M |
| Adjusted EBITDA margin | 10.1% | 6.5% | 9.3% | 6.5% |
| Operating cash flow | — | — | $8.7M | $(0.4)M |
| Cash, equivalents, securities and restricted cash | $63.4M | — | — | — |
The quarter supplied the operating evidence behind the upgrade. Revenue rose 34% year over year to $43.8 million, ARR increased 20% to $132.7 million, and new customers reached 70 versus 48 in the first quarter. Adjusted EBITDA more than doubled year over year to $4.4 million, while operating cash flow turned positive at $8.7 million for the first half. (Financial Highlights; Customer and ARR metrics; Adjusted EBITDA reconciliation; Cash Flow statement)
Growth quality is improving, but the mix is becoming less recurring in the near term. Recurring revenue was 73% of quarterly revenue, below 81% a year earlier, while non-recurring revenue rose to 27%. Management now expects 60% of 2026 new unit deployments through its purchase-subscription model, above the prior 55% assumption. That mix brings revenue forward but causes hardware costs to be recognized sooner, creating a modest near-term gross-margin headwind. (Customer and ARR metrics; Business outlook)
Profitability improved materially, though GAAP losses remain substantial. Second-quarter GAAP net loss narrowed to $9.3 million from $40.5 million, and adjusted loss per share improved to $(0.02) from $(0.03). However, the company still recorded a $10.6 million operating loss, and stock-based compensation was $6.9 million in the quarter. The profitability improvement is therefore meaningful, but the new full-year EBITDA target still depends heavily on non-GAAP adjustments. (Income Statement; Adjusted loss reconciliation; Adjusted EBITDA reconciliation)
Net read: a genuine positive revision, not merely a strong quarter presented favorably. The most market-relevant change is that management raised revenue and ARR expectations while adding a sizable EBITDA target, supported by better customer additions, ARR growth, operating leverage and positive cash generation. The main offset is the lower recurring-revenue mix and purchase-subscription shift, which temper gross-margin quality but do not outweigh the upward revision versus the prior outlook.
Read the original 8-K on SEC EDGAR ↗