Evolv Technologies Holdings, Inc. (EVLV): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at a company in the middle of a major strategic pivot, and as an analyst who's seen a few cycles, I can tell you these shifts are where the real value-or risk-hides. Evolv Technologies Holdings, Inc. is aggressively moving away from old sales models to lock in that sweet, sweet recurring revenue, pushing their AI security screening tools into over 1,200 school buildings and 450+ hospitals. With Annual Recurring Revenue hitting $117.2 million by Q3 2025 and the full-year guidance now sitting between $142 million and $145 million, the pieces are clearly moving. Below, we break down the four P's-Product, Place, Promotion, and Price-to see if this new direct fulfillment strategy is the right move for the next leg up.

Evolv Technologies Holdings, Inc. (EVLV) - Marketing Mix: Product

You're looking at the core of Evolv Technologies Holdings, Inc.'s value proposition: the physical and digital tools they sell to secure venues. This isn't about selling metal detectors; it's about selling an AI-driven security experience.

The core offering from Evolv Technologies Holdings, Inc. is AI-based weapons detection designed for security screening that aims to be seamless. This technology has seen massive adoption, evidenced by the fact that their advanced systems have screened over 3 billion people worldwide since 2019. That's a huge installed base demonstrating real-world use.

The flagship hardware is Evolv Express, which is their high-throughput walk-through screening system. As of the end of 2024, Evolv Technologies Holdings, Inc. had surpassed 6,000 Evolv Express units deployed globally. This installed base serves a diverse set of customers, including over 1,200 school buildings and more than 450 hospital buildings as of that same period. The subscription model for this hardware is a key financial driver; for instance, Annual Recurring Revenue (ARR) stood at $110.5 million at the end of Q2 2025, growing to $117.2 million by Q3 2025.

Next up is Evolv eXpedite, which is the autonomous AI-based solution specifically for bag and parcel screening. This product complements the Express system, allowing for layered security. As of November 12, 2025, Evolv eXpedite had screened over one million bags since its launch the previous year. Early deployment results in education settings showed a promising alert rate of approximately ~2%, which helps security teams focus on actual threats while maintaining flow.

The conveyor belt on Evolv eXpedite operates at approximately 0.75 meters per second, calibrated to match a natural walking pace. This focus on speed and autonomy is critical, as the company reported Q3 2025 revenue of $42.9 million, a 57% increase year-over-year, suggesting strong market acceptance of their integrated hardware solutions.

Software releases, such as the mentioned Express 9.0, are designed to enhance security team operations and analytics. The revenue mix reflects this software focus; for Q1 2025, Subscription Revenue was up 35% year-over-year. The overall financial performance shows this strategy is gaining traction, with the company achieving a positive Adjusted EBITDA margin of 12% in Q3 2025.

Finally, the data layer is provided by systems like Evolv Insights, which offers self-serve analytics on visitor flow and alarm statistics. This data feeds into the centralized security operations goal, accessible via tools like the MyEvolv mobile app, allowing security teams to make proactive adjustments. The company expects full-year 2025 revenue to land between $142 million and $145 million.

Here's a quick look at the key product performance metrics as of late 2025:

You can see the recurring revenue component is substantial, which is what management is focusing on to drive that expected full-year revenue between $142 million and $145 million for 2025.

The product suite includes several key features that drive adoption:

• Evolv Express has DHS SAFETY Act Designation as a QATT.
• Evolv eXpedite has Safety Act Developmental Testing and Evaluation Designation.
• Systems use advanced AI to distinguish threats from everyday items.
• Evolv Express relies on sensors for data capture.
• Evolv eXpedite uses X-rays for data capture.
• Alerts from both systems integrate into a single tablet interface.
• The Gen 2 Express unit is a single SKU for indoor/outdoor use.

Finance: draft 13-week cash view by Friday.

Evolv Technologies Holdings, Inc. (EVLV) - Marketing Mix: Place

The Place strategy for Evolv Technologies Holdings, Inc. centers on gaining control over the customer experience and scaling production to meet accelerating demand across key verticals. This involves a significant structural shift in how the product reaches the end-user.

Strategic pivot to a direct fulfillment model for subscription orders to capture 100% of Average Revenue Per Unit (ARPU)

Evolv Technologies Holdings, Inc. initiated a pivot from its legacy distribution fulfillment to a direct fulfillment model for channel partner purchase subscription orders, effective in Q3 2025. This move is designed to capture 100% of the Average Revenue Per Unit (ARPU). The transition away from the legacy channel partner model is a deliberate move toward a more controlled, direct approach. This direct purchase fulfillment strategy, however, created a gross margin headwind in the first year of new contracts. For context on the revenue mix shift, units purchased by customers represented 57% of unit activity in Q3 2025, up from 41% in the year-ago period. The company raised its 2025 revenue guidance to between $142 million and $145 million, representing 37% to 40% growth year-over-year, though management estimated a more normalized growth rate for 2025 would have been about 30% year-over-year, excluding the residual effects of the legacy fulfillment and pricing models. The largest customer contract in the company's history, involving more than 250 units, contributed approximately $3 million in Q3 revenue, primarily as onetime product revenue.

The shift in distribution and pricing structure is intended to maximize leverage over time by shifting ARPU from one-time revenue into Annual Recurring Revenue (ARR) and Remaining Performance Obligations (RPO). The company expects ARR growth to outpace total revenue growth in 2026, modeling $\text{ARR growth} \ge 20\%$ for that year.

• Direct purchase fulfillment captures 100% ARPU.
• Q3 2025 revenue was $42.9M, up 57% YoY.
• 2025 revenue guidance raised to $142M-$145M.
• Expected 2025 adjusted gross margin is in the range of 52% to 54%.

Key vertical market expansion in education and healthcare

The Place strategy heavily targets large, high-volume institutional environments. In the education sector, Evolv Technologies Holdings, Inc. continues to see adoption, with one recent deployment bringing the total to over 1,100 school buildings nationwide utilizing the technology as of May 2025. For example, Spartanburg District Five Schools expanded its deployment to 29 Evolv Express systems and four eXpedite units across all 14 schools in the district. In healthcare, as of Q1 2025, Evolv's systems were in 62+ Hospital Buildings in the U.S., screening approximately 112K Healthcare Visitors/Day.

Global supply chain is being scaled through a new strategic contract manufacturing partnership with Plexus Corp.

To support the next phase of growth and meet global demand, Evolv Technologies Holdings, Inc. entered into a strategic contract manufacturing partnership with Plexus Corp. in November 2025. This arrangement leverages Plexus Corp.'s international manufacturing footprint to support global expansion plans. Plexus Corp. is a major Electronics Manufacturing Services provider with 26 facilities and a global team of over 20,000 members. The collaboration is intended to provide increased production capacity, opportunities for long-term cost efficiencies via Plexus's procurement scale, and strengthened operational resiliency through geographic redundancy.

Systems are deployed across professional sports, live entertainment venues, and industrial workplaces.

Beyond education and healthcare, Evolv Technologies Holdings, Inc. maintains a strong presence in high-profile public venues. The San Francisco Giants renewed their agreement, swapping their existing fleet of 20 Evolv Express security systems for the latest Gen2 units. The Seattle Mariners deployed systems ballpark-wide for their 2025 Opening Day, marking the twelfth professional baseball team to partner with Evolv. The company's overall customer base includes deployments across cultural institutions and industrial workplaces.

• San Francisco Giants renewed a subscription, upgrading 20 systems.
• Seattle Mariners deployment was ballpark-wide for the 2025 season opener.
• Evolv systems have scanned more than 3 billion people since 2019.

Distribution is moving away from the legacy channel partner model to a more controlled, direct approach.

The strategic shift detailed above explicitly signals a move away from the legacy channel partner distribution model. The goal is to enhance visibility and coordination across the global supply network by combining Evolv Technologies Holdings, Inc.'s product expertise with Plexus Corp.'s manufacturing capabilities to deliver production and distribution at scale. This direct approach is expected to improve overall forecasting accuracy and reduce revenue volatility associated with the previous distribution method.

Evolv Technologies Holdings, Inc. (EVLV) - Marketing Mix: Promotion

Promotion for Evolv Technologies Holdings, Inc. centers on validating the efficacy and operational benefits of its AI-based security screening systems to drive adoption across high-traffic venues. A key communication milestone in late 2025 was the announcement of securing the largest customer contract in company history, which contributed approximately $3.0 million of revenue in the third quarter of 2025 alone. This success supported the company's decision to raise its full-year 2025 revenue outlook to a range of $142-$145 million, reflecting growth of 37%-40% year-over-year, following Q3 2025 revenue of $42.9 million.

Executive confidence is publicly broadcast through significant insider share purchases, which serves as a strong promotional signal to the market regarding near-term prospects. You can see the details of these recent transactions here:

The company consistently leverages third-party validation to build trust, particularly in the sensitive security sector. This includes highlighting official industry recognition, which acts as a powerful endorsement of the technology's capability to deter and detect threats effectively.

• Leveraging the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT).
• Promoting awards such as the Security Industry Association (SIA) New Products and Solutions (NPS) Award in the Law Enforcement/Public Safety/Guarding Systems category.
• Highlighting recognition from Sport Business Journal (SBJ) for "Best In Fan Experience Technology" and "Best In Sports Technology."

Marketing efforts focus on the tangible benefits for venues and schools: a security experience that is both faster and less intrusive than traditional methods. This value proposition is underscored by the sheer scale of deployment and usage, which provides a large data set for performance claims. The installed base includes over 7,000 Evolv Express systems serving more than 1,000 customers globally, with the systems having screened more than three billion people since 2019.

Continuous product improvement is promoted through regular software updates designed to enhance operational efficiency for security personnel. The September 2025 release specifically marketed new features that streamline management and detection capabilities:

• Integrated Tablet Management: Allows security personnel to manage alerts from both Evolv Express and Evolv eXpedite systems on a single device for unified threat visibility.
• Express Detection Boost: A new setting designed to support increased detection of firearms with minimal impact to the nuisance alarm rate.
• Expanded Alert Tags: Increased the number of alert tag options to 39 for more precise threat categorization and reporting.

Finance: review the Q4 2025 marketing spend allocation against the raised 2025 revenue guidance by next Tuesday.

Evolv Technologies Holdings, Inc. (EVLV) - Marketing Mix: Price

Evolv Technologies Holdings, Inc.'s pricing strategy centers on a model designed to maximize the long-term value captured from each customer deployment.

The primary revenue model is a pure subscription-based service, typically with four-year lease terms. This structure is integral to the pricing strategy, as the company has actively shifted its focus to recurring revenue streams.

The financial results as of late 2025 reflect this transition:

Effective July 1, 2025, Evolv Technologies Holdings, Inc. repriced its solutions to place a greater emphasis on the software and the Annual Recurring Revenue (ARR) component. This repricing, coupled with the shift to a direct purchase pricing model, is intended to maximize ARR by making the upfront hardware price lower, which is commensurate with a reduction in manufacturing costs.

The strategic shift to direct fulfillment has immediate financial consequences that you must account for when evaluating near-term margins.

• The direct purchase fulfillment model creates a near-term gross margin headwind in the first year of a new contract.
• Over the full term of the subscription contract, this model yields higher total gross profit dollars, higher revenue, higher cash, and higher ARR compared to the legacy distribution fulfillment model.
• Changes to the pricing model are expected to push at least $5 million to $10 million of revenue out of 2026 and into ARR and Remaining Performance Obligation (RPO).
• The higher ARR and associated recurring subscription value will provide higher ARR rates when those contracts move to renewal discussions four years down the road.

The company anticipates delivering positive full-year Adjusted EBITDA in 2025 with margins in the high single digits, and expects to be cash flow positive in the fourth quarter of 2025.