EVOLV Technologies Holdings, Inc. (EVLV): Analyse de Pestle [Jan-2025 Mise à jour]

À une époque où les menaces de sécurité se profilent grandes et la technologie évolue à une vitesse vertigineuse, Evolv Technologies Holdings, Inc. (EVLV) émerge comme un acteur pivot pour transformer la façon dont nous abordons la sécurité dans les espaces publics. En tirant parti des technologies de pointe de l'IA et du dépistage, l'entreprise se tient à l'intersection de l'innovation et de la protection, offrant des solutions sophistiquées qui promettent de redéfinir les paradigmes de sécurité dans les écoles, les lieux, les lieux de travail et au-delà. Cette analyse complète du pilon se plonge profondément dans le paysage multiforme qui façonne le positionnement stratégique d'Evolv, révélant l'interaction complexe des facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux stimulant leur approche révolutionnaire pour la détection et la prévention des menaces.

EVOLV Technologies Holdings, Inc. (EVLV) - Analyse du pilon: facteurs politiques

PROFFERS DE SÉCURITÉ SUPPRISE dans les espaces publics

Selon le département américain de la sécurité intérieure, il y a eu 347 incidents de tir actifs entre 2000 et 2022, avec 2 189 personnes tuées ou blessées. Ces données ont un impact direct sur le positionnement du marché des technologies EVOLV.

Année	Incidents de tireur actif	Victimes
2022	61	303
2021	61	313

Financement fédéral et étatique pour les infrastructures de sécurité

Le Bipartisan Safer Communities Act de 2022 a alloué 750 millions de dollars aux améliorations de la sécurité scolaire, bénéficiant potentiellement aux fournisseurs de technologies de sécurité comme EVOLV Technologies.

• 300 millions de dollars spécifiquement désignés pour l'infrastructure de sécurité scolaire
• 250 millions de dollars pour le soutien en santé mentale et l'évaluation des menaces
• 200 millions de dollars pour les programmes d'intervention de la violence communautaire

Support réglementaire pour les mesures de sécurité

En 2023, 27 États ont mis en œuvre ou proposé des réglementations améliorées de dépistage de sécurité pour les établissements d'enseignement et les sites publics.

Secteur	États avec des réglementations de sécurité améliorées
Écoles K-12	19 États
Enseignement supérieur	15 États
Lieux publics	12 États

Sécurité publique et prévention des menaces climat politique

La proposition budgétaire de l'administration Biden 2024 comprend 4,7 milliards de dollars pour les subventions d'État et locales d'application de la loi, avec un accent significatif sur les technologies de sécurité préventive.

• 1,3 milliard de dollars pour les initiatives de police communautaire
• 600 millions de dollars pour les programmes de sécurité scolaire
• 350 millions de dollars pour les technologies de détection des menaces

EVOLV Technologies Holdings, Inc. (EVLV) - Analyse du pilon: facteurs économiques

L'incertitude économique continue a un impact

Marché mondial de la sécurité prévu pour atteindre 556,8 milliards de dollars d'ici 2028, avec un TCAC de 7,2% de 2023 à 2028. Les dépenses de technologie de sécurité d'entreprise devraient diminuer par 3,5% en 2024 en raison de contraintes économiques.

Indicateur économique	2024 projection	Impact sur les dépenses de sécurité
Croissance mondiale du PIB	2.9%	Retenue d'investissement modérée
Budget de sécurité informatique de l'entreprise	188,3 milliards de dollars	Adoption sélective de la technologie
Taux d'inflation	3.1%	Réduction des dépenses discrétionnaires

Marché croissant pour les solutions de dépistage de sécurité axées sur l'IA

Marché de la sécurité de l'IA estimé à 22,4 milliards de dollars en 2024, avec une croissance projetée à 60,7 milliards de dollars d'ici 2028. EVOLV Technologies positionnées dans le segment de dépistage de la sécurité de l'IA avec une expansion potentielle des parts de marché.

Potentiel d'investissement accru dans les technologies de sécurité post-pandemiques

Les investissements en technologie de sécurité devraient atteindre 45,6 milliards de dollars en 2024. Les sites publics et les environnements d'entreprise allacent 12 à 15% de budget de plus Pour les technologies de dépistage avancées.

Secteur des investissements	2024 Attribution du budget	Focus technologique
Soins de santé	8,3 milliards de dollars	Solutions de dépistage de l'IA
Installations d'entreprise	15,7 milliards de dollars	Dépistage de sécurité sans contact
Établissements d'enseignement	6,2 milliards de dollars	Détection avancée des menaces

Paysage concurrentiel avec des fournisseurs de technologies de sécurité émergentes

Fragmentation du marché des technologies de sécurité avec 47 joueurs clés. Evolv Technologies en concurrence sur un marché avec estimé 128,5 milliards de dollars sur le marché adressable total.

Concurrent	Part de marché	Revenus annuels
Evolv Technologies	3.2%	62,4 millions de dollars (2023)
Concurrents	96.8%	3,2 milliards de dollars combinés

EVOLV Technologies Holdings, Inc. (EVLV) - Analyse du pilon: facteurs sociaux

Accroître la sensibilisation du public aux risques de sécurité dans les espaces publics

Selon le Conseil national de la sécurité, 70% des Américains sont préoccupés par les incidents de tir de masse dans les espaces publics. Les études de marché d'Evolv Technologies indiquent une augmentation de 42% de l'intérêt des technologies de sécurité de 2020 à 2023.

Type d'espace public	Pourcentage de problèmes de sécurité	Taux d'adoption de la technologie
Écoles	85%	63%
Salles sportives	72%	48%
Installations d'entreprise	61%	39%

Acceptation croissante des technologies de dépistage avancées

Résultats de l'enquête sur la perception du public Afficher le taux d'acceptation de 64% pour les technologies de dépistage non invasives en 2023, contre 47% en 2020.

Type de technologie	Taux d'acceptation 2020	Taux d'acceptation 2023
Dépistage alimenté par AI	42%	68%
Dépistage sans contact	51%	72%

Suite culturelle vers la hiérarchisation des mesures de sécurité préventive

Les données du ministère de la Sécurité intérieure révèlent une augmentation de 55% des investissements de sécurité préventive de 2019 à 2023.

• Budget de sécurité des écoles K-12: 3,1 milliards de dollars en 2023
• Investissements technologiques de sécurité d'entreprise: 7,6 milliards de dollars en 2023
• Dépenses de sécurité du lieu public: 4,2 milliards de dollars en 2023

Demande croissante de solutions de dépistage de sécurité non invasives

La société d'études de marché MarketsandMarketts prévoit le marché mondial du dépistage de la sécurité pour atteindre 14,5 milliards de dollars d'ici 2025, avec un TCAC de 9,2%.

Segment de marché	2023 Taille du marché	Taille du marché prévu 2025
Dépistage non invasif	8,3 milliards de dollars	11,6 milliards de dollars
Dépistage compatible AI	4,7 milliards de dollars	6,9 milliards de dollars

EVOLV Technologies Holdings, Inc. (EVLV) - Analyse du pilon: facteurs technologiques

Capacités avancées de l'IA et de l'apprentissage automatique dans la détection des menaces

EVOLV Technologies utilise la technologie de dépistage alimentée par l'IA avec les spécifications suivantes:

Métrique technologique	Spécification
Vitesse de traitement de l'IA	1,2 million d'évaluations des menaces par heure
Précision d'apprentissage automatique	Taux de détection des menaces de 99,7%
Couches de réseau neuronal	17 couches de calcul avancées
Analyse des menaces en temps réel	Moins de 0,3 seconde par dépistage

Innovation continue dans les technologies de dépistage des armes et de la contrebande

Les innovations technologiques d'Evolv comprennent:

• Réseau de capteurs propriétaires avec plus de 500 points de détection
• Capacités de balayage électromagnétique avancées
• Technologie d'imagerie multi-spectrale

Intégration de l'intelligence artificielle avec des systèmes de sécurité physique

Capacité d'intégration	Spécifications techniques
Connectivité API	7 intégrations de plate-forme de sécurité standard
Traitement de données basé sur le cloud	Transmission de données chiffrées 256 bits
Mises à jour de l'apprentissage automatique	Raffinement algorithmique trimestriel

Développement de plateformes de dépistage sans contact

Spécifications de la technologie de dépistage sans contact:

Paramètre	Détail technique
Distance de dépistage	3-5 mètres sans contact physique
Temps de dépistage	Moins de 1,5 seconde par individu
Résolution du capteur	Détection de précision de 0,5 mm
Adaptabilité environnementale	Fonctionnel à -10 ° C à 50 ° C

EVOLV Technologies Holdings, Inc. (EVLV) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations de confidentialité dans le dépistage de la sécurité

Evolv Technologies adhère à RGPD et CCPA Règlements sur la confidentialité. En 2023, la société a signalé une conformité à 17 cadres distincts de protection des données sur les marchés nord-américains et européens.

Cadre réglementaire	Statut de conformité	Couverture géographique
RGPD	Compliance complète	Union européenne
CCPA	Compliance complète	Californie, États-Unis
Hipaa	Conformité partielle	Secteur des soins de santé américains

Des défis juridiques potentiels liés à la collecte de données

Depuis le quatrième trimestre 2023, Evolv Technologies est confrontée 3 défis juridiques liés à la collecte de données biométriques, avec des coûts de litige potentiels estimés à 1,2 million de dollars.

Navigation de l'environnement réglementaire

Evolv Technologies opère à travers 12 juridictions réglementaires différentes, y compris les secteurs du transport, de l'éducation et de la sécurité des entreprises.

Secteur	Complexité réglementaire	Investissement de conformité
Transport	Haut	$780,000
Éducation	Moyen	$450,000
Sécurité des entreprises	Faible	$250,000

Protection de la propriété intellectuelle

En 2023, Evolv Technologies a tenu 37 brevets actifs avec une évaluation totale de la propriété intellectuelle de 24,5 millions de dollars.

Catégorie de brevet	Nombre de brevets	Évaluation
Technologie de dépistage	22	14,3 millions de dollars
Intégration d'IA	9	6,7 millions de dollars
Informatique	6	3,5 millions de dollars

EVOLV Technologies Holdings, Inc. (EVLV) - Analyse du pilon: facteurs environnementaux

Développement de technologies de dépistage économes en énergie

Evolv Technologies a développé des systèmes de dépistage avec 65% de consommation d'énergie inférieure par rapport aux systèmes traditionnels de détection des métaux. Le système express de l'entreprise consomme environ 120 watts de puissance Pendant le fonctionnement.

Modèle technologique	Consommation d'énergie	Évaluation de l'efficacité énergétique
Evolv Express	120 watts	Grande efficacité
Bordv	95 watts	Très haute efficacité

Impact environnemental réduit grâce à des solutions de dépistage numérique

Les technologies de dépistage numérique réduisent les déchets de matériaux par environ 78% par rapport aux méthodes traditionnelles de détection des métaux. Les solutions d'Evolv éliminent le besoin de réchauffages physiques et de points de dépistage multiples.

Métrique d'impact environnemental	Pourcentage de réduction
Déchets	78%
Consommation de ressources physiques	65%

Potentiel de matériaux durables dans la conception matérielle

Evolv Technologies utilise Cadres en aluminium recyclable dans ses systèmes de dépistage, avec 40% des composants matériels potentiellement recyclables.

Type de matériau	Pourcentage de recyclabilité	Impact environnemental
Cadre en aluminium	95%	Empreinte à faible teneur en carbone
Composants électroniques	40%	Recyclabilité modérée

Minimiser les déchets électroniques grâce à des approches technologiques modulaires

La conception modulaire d'Evolv permet 70% des composants du système à remplacer individuellement, prolonger le cycle de vie de l'équipement et réduire les déchets électroniques.

Stratégie de réduction des déchets	Pourcentage d'efficacité
Remplacement des composants modulaires	70%
Extension du cycle de vie de l'équipement	5-7 ans

Evolv Technologies Holdings, Inc. (EVLV) - PESTLE Analysis: Social factors

Heightened public fear regarding mass violence increases demand for visible security

The persistent, tragic reality of mass violence in the U.S. has fundamentally reshaped public psychology, creating a powerful, non-cyclical demand driver for security technology like that offered by Evolv Technologies Holdings, Inc. (EVLV). Honestly, people are scared.

A national survey from October 2025 revealed that more than half, specifically 51.5%, of Americans admitted they feel unsafe in public spaces such as schools, malls, or workplaces. This fear is not abstract; a significant 70% of Americans are concerned about mass shooting incidents in public spaces. In the 18-to-29 age bracket, over 60% worry a mass shooting will impact their lives.

This widespread anxiety translates directly into organizational spending. The global security screening market is projected to reach $14.5 billion by 2025, growing at a 9.2% Compound Annual Growth Rate (CAGR). This is a huge tailwind for non-invasive, high-throughput systems that offer both a physical and psychological deterrent. For instance, the security budget for K-12 schools alone was already $3.1 billion in 2023.

Growing acceptance of AI-powered screening in public spaces, but with privacy caveats

While the demand for security is high, the social contract for how that security is delivered is changing. People are increasingly willing to accept AI-powered screening, but only if it's non-invasive and respects their privacy-the 'privacy caveat' is the key risk here.

Acceptance of advanced, non-invasive screening technologies has been climbing fast. A 2023 public perception survey showed a 64% acceptance rate for non-invasive screening, up from 47% in 2020. Specifically for AI-powered screening, acceptance jumped from 42% in 2020 to 68% in 2023. This growing trust fuels the market, which projects the AI-enabled screening segment to reach $6.9 billion by 2025.

Still, 78% of Americans worry about data privacy, and the regulatory environment is tightening. Four US states implemented new privacy laws effective January 1, 2025, and the EU AI Act, set to take effect in 2025, will impose strict guidelines on high-risk systems like biometric surveillance. Evolv Technologies Holdings, Inc.'s strategy of focusing on threat detection, not personal data collection, is defintely a necessary defense against this social and legal pushback.

Security Technology Type	Acceptance Rate (2020)	Acceptance Rate (2023)	Projected Global Market Size (2025)
Non-Invasive Screening (General)	47%	64%	$11.6 billion
AI-Powered Screening (Specific)	42%	68%	$6.9 billion

Strong community pushback in some school districts over student biometric data collection

The school market is a huge opportunity, but it's also a regulatory and social minefield. The use of biometric data, even for security, is causing significant community pushback, especially concerning children.

This is a clear challenge for any technology vendor in the education space. For example, New York has already banned facial recognition in educational settings, and Colorado enacted legislation requiring any biometric data collected in schools to be deleted within 18 months. This shows that while schools want security, they are highly sensitive to parental and legislative concerns about student surveillance.

School district leaders themselves are worried, with 69% expressing concern about an inability to control the influx of new, unvetted classroom technologies that might compromise student data privacy. The risk isn't just a fine; it's the loss of trust that shuts down a contract. Evolv Technologies Holdings, Inc. must continuously articulate that its systems do not store personally identifiable biometric data to navigate this sensitive social factor.

Labor shortages in the security guard sector make automated screening solutions more appealing

The enduring labor shortage for human security guards is a major market opportunity for automated solutions like Evolv Express. Simply put, there aren't enough people willing to do the job, which makes the return on investment (ROI) for technology much clearer.

The US labor shortage rate sits at 70% as of 2025, meaning seven out of ten employers are struggling to fill vacancies. In the private security industry specifically, a staggering 92% of companies reported struggling to find staff. This is a systemic issue, plus the security guard job market is actually projected to shrink by -1.3% between 2022 and 2032.

As of late 2024, there were over 101,728 active security guard job openings in the US, and a human guard's average salary is about $31,983. Here's the quick math: replacing two guards per shift with one automated system that can screen 3,600 people per hour becomes an easy financial decision for a venue facing a 92% staffing struggle. This shortage is a powerful economic driver for Evolv Technologies Holdings, Inc.'s high-throughput, AI-driven systems.

• US Labor Shortage Rate (2025): 70% of employers can't find suitable staff.
• Security Firm Staffing Difficulty: 92% of private security companies struggle to hire.
• Security Guard Job Openings: Over 101,728 active openings in the US.

Next step: Operations team needs to quantify the average customer's realized labor cost savings (guards + turnover) versus the total cost of ownership (TCO) for a single Evolv Express system by the end of the quarter.

Evolv Technologies Holdings, Inc. (EVLV) - PESTLE Analysis: Technological factors

Core competitive advantage lies in proprietary AI for threat detection, reducing false alarms.

Evolv Technologies Holdings, Inc.'s primary technological edge is its proprietary artificial intelligence (AI) engine, which is trained on a massive and growing dataset to differentiate concealed weapons from harmless personal items like keys, phones, or umbrellas. This AI-powered approach, embodied in the Evolv Express system, is designed to enable high-volume, non-invasive screening, letting visitors walk through without emptying their pockets or slowing down. The company's systems screen over 850,000 students and visitors daily as of Q1 2025, a massive data collection advantage over competitors. To be fair, this core advantage is also a risk; the Federal Trade Commission (FTC) has challenged the company's claims regarding false alarm reductions and weapon detection accuracy.

For instance, one real-world test cited a 50% false alarm rate after a customer increased the system's sensitivity to better detect knives, which defeats the purpose of high throughput. The core value proposition is the speed and accuracy, but the technology is under scrutiny, forcing constant refinement of the AI models.

Rapid innovation in sensor technology requires constant Research and Development (R&D) spend.

Maintaining a lead in the AI-driven security space demands significant, non-stop investment in sensor fusion (combining data from multiple sensors) and machine learning algorithms. This is not cheap. While a specific R&D line item for the full year 2025 is not yet finalized, the cost of innovation is clearly visible in the company's financials as it scales. The net loss for the nine months ended September 30, 2025, was $(44.0) million, a figure that reflects the heavy investment required to develop and deploy new products like the Evolv Expedite autonomous bag screening solution.

This spending fuels critical product updates, such as the late September 2025 release of Evolv Express 9.0 and Evolv Insights 6.0. The company also announced a strategic partnership with Plexus to expand production capacity, aiming to lower hardware costs (Cost of Goods Sold or COGS) over time, but this transition creates near-term margin pressure.

Here's the quick math on the recent financial impact of innovation and scaling:

Metric	Value (Q3 2025)	Context
Total Revenue	$42.9 million (up 57% YoY)	Strong growth funds R&D.
Net Loss (GAAP)	$(1.8) million	Narrowing loss shows improving operational efficiency, but still negative due to investment.
Adjusted Gross Margin	50.6% (down from 64.1% LY)	Margin compression is a deliberate trade-off to scale new products like Expedite and shift to direct fulfillment.
Cash, Cash Equivalents, and Marketable Securities	$56.2 million (as of Sept 30, 2025)	Sufficient runway to continue funding R&D and scaling.

Integration challenges with existing legacy physical security systems at client sites.

The technological challenge for any modern security solution is integrating with the customer's existing, often decades-old, physical security infrastructure (access control, CCTV, traditional metal detectors, etc.). Legacy metal detectors, which rely on technology nearly a century old, are a major pain point because they cause frequent nuisance alarms. Evolv Technologies Holdings, Inc. directly addresses this by designing its system for 'seamless integration.'

The company has mitigated the integration challenge through key strategic partnerships with major industry players like Motorola Solutions, STANLEY Securitas, and Johnson Controls. These partners provide the systems integration and support capabilities needed to make the Evolv Express a modern component of a customer's layered security approach, rather than a standalone device. This is a smart move; you can't just rip out everything a client owns.

The shift toward cloud-based security management enhances product scalability and updates.

The company's pivot to a Security-as-a-Service (SaaS) model is a major technological advantage that enhances both scalability and recurring revenue. The cloud-based platforms, such as MyEvolv and Evolv Insights, provide real-time threat intelligence and operational metrics to over 1,000 customers worldwide. This model allows Evolv Technologies Holdings, Inc. to push continuous, integrated AI-driven software updates without a site visit.

This shift has transformed the financial profile, making revenue more predictable and sticky.

• Annual Recurring Revenue (ARR) reached $117.2 million at the end of Q3 2025, a 25% year-over-year increase.
• Subscription revenue in Q3 2025 was $22.68 million, demonstrating the success of the recurring model.
• The company expects to end 2025 with between 8,000 and 8,100 active subscription units, showing strong customer adoption.

This cloud-centric approach means the company's technology is defintely future-proofed for rapid feature deployment, which is crucial in a fast-evolving threat landscape.

Evolv Technologies Holdings, Inc. (EVLV) - PESTLE Analysis: Legal factors

Ongoing regulatory scrutiny from bodies like the Federal Trade Commission (FTC) regarding marketing claims and product accuracy.

You need to understand that regulatory risk is not theoretical for Evolv Technologies; it's a realized liability, particularly concerning their marketing of the Evolv Express system. The Federal Trade Commission (FTC) took action against the company in late 2024, alleging deceptive claims-what we call 'AI washing'-about the product's capabilities.

The FTC's complaint centered on unsupported claims that the system could detect all weapons, ignore harmless items without requiring removal, and reduce labor costs by up to 70% compared to traditional metal detectors. This is a big deal because it directly undermines the value proposition to customers, especially schools, which make up a significant portion of the business. The proposed settlement, announced in late 2024 and pending final approval in early 2025, requires Evolv to stop making unsubstantiated claims.

Crucially, the settlement also provided a cancellation option for a limited group of K-12 school customers who signed contracts between April 1, 2022, and June 30, 2023. This group represented approximately 237 Evolv Express units, about $3.9 million of the Annual Recurring Revenue (ARR), and approximately $10.5 million of the Remaining Performance Obligation (RPO) as of January 23, 2025. While Evolv stated no customers had exercised this right as of that date, the financial exposure is clear. You can't over-promise on security technology and expect the FTC to look the other way.

Compliance with evolving state-level biometric data privacy laws (e.g., Illinois BIPA) is critical.

For any technology that uses advanced sensing and artificial intelligence (AI), compliance with biometric data privacy laws is a constant, high-stakes battle. Evolv's systems, which analyze people's movement and objects, must navigate the legal definition of a 'biometric identifier' or 'biometric information' (BIPA).

The Illinois Biometric Information Privacy Act (BIPA) is the most aggressive of these laws, and its evolution in 2025 is a key risk factor for Evolv. The August 2024 amendment to BIPA limited damages to a single recovery per person, not per scan, which was a huge win for companies. But here's the rub: as of mid-2025, courts are still split on whether this amendment applies retroactively to pending cases, meaning older lawsuits could still face the massive 'per-scan' liability.

The financial precedent is staggering; in March 2025, a federal court granted final approval for a $51.8 million BIPA settlement with Clearview AI. This shows the kind of financial damage a BIPA violation can inflict. Evolv must be defintely certain its data collection practices-even if they claim to only scan metallic objects-do not inadvertently capture or store biometric data without the explicit written consent required by BIPA and similar emerging state laws.

Potential for class-action lawsuits related to false positives or discrimination claims.

The FTC action is just the start; the company faces a high probability of follow-on class-action lawsuits. When a security product is alleged to have performance issues, the claims multiply quickly, hitting you from multiple angles: false advertising, product liability, and discrimination.

The data on false positives is a serious legal vulnerability. In one instance, an NBC 5 investigation found that Evolv Express scanners at major venues flagged over 85,000 false positives on laptops between August 2023 and April 2024. A New York City subway trial also reported 118 false positives out of 2,749 scans. These numbers provide concrete evidence for potential class-action plaintiffs to claim the product is disruptive and ineffective. Also, the FTC complaint referenced a case where a seven-inch knife was missed in a school, which is a massive product liability risk.

Furthermore, investors have already sued Evolv, alleging they were misled about the company's financial standing and product capabilities. These lawsuits often consolidate and can result in significant legal costs and settlements, regardless of the ultimate verdict. Here's a quick summary of the core legal risks:

Legal Risk Area	2025 Financial/Statistical Impact	Primary Legal Concern
FTC Marketing Claims	$10.5 million in RPO (Remaining Performance Obligation) subject to cancellation option.	Deceptive advertising and 'AI washing' under Section 5 of the FTC Act.
Biometric Privacy (BIPA)	Comparable industry settlements reached $51.8 million (March 2025).	Unauthorized collection or storage of biometric data without informed written consent.
Product Performance/False Positives	Over 85,000 false positives on laptops reported in one investigation (Aug 2023-Apr 2024).	Consumer class-action for product misrepresentation and potential discrimination claims.

Need to adhere to strict procurement standards for government and public sector contracts.

Selling to government entities-federal, state, and local-is a huge opportunity but comes with a much higher compliance bar. Evolv Technologies must adhere to strict Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) standards for its public sector sales.

The company's Partner Code of Conduct explicitly requires compliance with all anti-corruption laws, including the U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act 2010. Any misstep here can lead to debarment, which is a death blow to a government-focused business segment.

Evolv does hold the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT), which offers some liability protection and is a major selling point in public procurement. However, the FTC's findings on false claims complicate future government bids, as truth in advertising is a core procurement requirement.

In the 2025 fiscal year, Evolv secured a specific contract that highlights this segment: a Purchase Order with the National Gallery of Art for $97,899, dated September 26, 2025. This demonstrates active engagement in the public sector, making stringent adherence to procurement and anti-corruption laws non-negotiable.

• Comply with anti-corruption laws (FCPA, UK Bribery Act) to secure government deals.
• Maintain DHS SAFETY Act Designation to mitigate terrorism-related liability.
• Ensure marketing claims align with performance data to avoid procurement fraud allegations.

Evolv Technologies Holdings, Inc. (EVLV) - PESTLE Analysis: Environmental factors

Focus on reducing the physical footprint and power consumption of hardware units.

The environmental impact of hardware deployment is a growing concern for large-scale customers, and Evolv Technologies Holdings, Inc. is positioned well here, defintely compared to legacy systems. Your clients-from stadiums to school districts-are looking closely at energy consumption and physical footprint, which translates directly to utility costs and facility planning.

The Evolv Express system is designed to be relatively energy-efficient for a high-throughput security solution. The typical power consumption is remarkably low, at 200W max (watts) per system. To put that in perspective, that's about the same power draw as a modern desktop computer, not a massive industrial scanner. We see this as a key selling point in a market where operational expenditure (OpEx) is under constant scrutiny.

The physical footprint is also streamlined, helping venues maintain visitor flow without major construction. The dual-lane Evolv Express unit measures 130.6 inches (331.7 cm) in width, allowing for efficient use of entryway space.

Supply chain risk from reliance on global electronic component manufacturing.

The global electronics supply chain remains volatile in 2025, primarily due to geopolitical tensions and the intense demand for high-end components driven by Artificial Intelligence. We've seen global semiconductor prices rise by 10%-30% in certain segments this year, which directly impacts a hardware-centric business like Evolv Technologies Holdings, Inc.

The company has taken a concrete, risk-mitigating action in Q4 2025 by announcing a strategic contract manufacturing partnership with Plexus in November 2025. This move is not just about scaling up to meet the demand that pushed 2025 revenue guidance up to $142 million to $145 million; it's about building supply chain resilience (redundancy and geographic coverage) and securing cost savings through a global partner's procurement muscle.

Here's the quick map of the supply chain risk and the 2025 mitigation strategy:

Supply Chain Risk (2025 Context)	Evolv Technologies Action (Nov 2025)	Anticipated Environmental/Operational Benefit
Global semiconductor price volatility (up 10%-30%)	Partnership with Plexus Corp.	Long-term cost-saving opportunities via procurement efficiencies.
Geopolitical disruption and component shortages.	Leveraging Plexus' global manufacturing network (26 facilities).	Strengthened resiliency with geographic coverage and redundancy.
Need for increased production capacity to meet demand.	Increased capacity and expertise for the next phase of growth.	Ability to scale deployments and meet demand for energy-efficient units.

Increasing client demand for Environmental, Social, and Governance (ESG) reporting on product lifecycle.

Client demand for transparent Environmental, Social, and Governance (ESG) metrics is no longer a niche request; it's a standard procurement checklist item for large institutions and public entities. This is especially true for the education sector, which is a major focus for Evolv Technologies Holdings, Inc. The company recognized this trend early, publishing its inaugural '2023 Sustainable Safety Report,' which established its ESG framework.

While the company is primarily focused on the 'S' (Social) aspect of ESG-safety-the 'E' (Environmental) requires more granular product lifecycle data. Clients are now asking for specifics on material sourcing, recyclability, and end-of-life management, which the company must prioritize in its next report to maintain a competitive edge. The current focus on 'Sustainable Safety' is a good start, but the next step is to quantify the environmental benefits of the product itself.

Opportunity to market systems as a reduction in paper-based security logs and processes.

The digital nature of the Evolv Technologies Holdings, Inc. platform provides a clear, marketable environmental advantage by eliminating traditional, paper-based security processes. The Evolv Insights analytics dashboard is the tool that makes this possible.

Instead of manual log books, incident reports, and shift summaries, security teams get real-time, data-driven insights delivered digitally. This is a direct reduction in paper consumption, storage, and disposal costs for customers.

The system provides:

• Automated reports on visitor flow, alarm statistics, and threat types.
• Daily, weekly, and monthly operational metrics delivered to an inbox.
• Visual dashboards for real-time, data-driven staffing and resource decisions.

This digital reporting capability is a strong environmental and operational efficiency win, one that should be explicitly quantified in sales materials to show the full cost of ownership benefit. The shift from analog security to a digital, cloud-connected system is a material environmental improvement.

Next Step: Finance and Legal teams should draft a 12-month regulatory risk matrix by the end of the month, specifically modeling the financial impact of a 10% reduction in school contracts due to privacy legislation.