Evolv Technologies Holdings, Inc. , a leader in AI-based weapons detection and security screening, announced on July 30, 2025, a new $75 million non-dilutive credit facility with MidCap Financial. The facility, comprising a $60 million tranched term loan ($30 million drawn at closing, $30 million available over two years) and a $15 million undrawn revolving credit facility, supports Evolv’s growing subscription-based security-as-a-service model. Both facilities have a five-year maturity and an interest rate of SOFR plus 5.25%. As shown in the finance card above, Evolv’s stock price is $6.76, with a market cap of $1.11B and a year-to-date high of $7.09.
Financing Details: $75M credit facility ($60M term loan, $15M revolving credit) from MidCap Financial, with $30M drawn at closing.
Purpose: Funds general corporate needs, primarily supporting Evolv’s subscription model for AI-powered security solutions.
Financial Position: Cash, equivalents, and marketable securities at $37M as of June 30, 2025, up from $35M on March 31, 2025.
Stock Performance: EVLV at $6.76, up 100% over the past year, with a debt-to-equity ratio of 0.12.
Recent Achievements: Q1 2025 revenue of $32M (44% YoY growth), ARR at $106M (34% YoY growth).
Key Partnerships: FIFA Club World Cup, San Francisco Giants, and Gwinnett Schools ($19.36M deal).
The $75 million facility strengthens Evolv’s balance sheet, providing non-dilutive capital to meet rising demand for its subscription model, where customers lease Evolv Express® systems and subscribe to multi-year security-as-a-service contracts. “This facility further strengthens our balance sheet and provides enhanced flexibility to meet the increasing demand for our long-term subscription model,” said CFO Chris Kutsor. The model enhances revenue predictability, deepens customer relationships, and supports margin expansion, with Evolv projecting 20–25% revenue growth to $125–130M in 2025 and positive Adjusted EBITDA.
As of June 30, 2025, Evolv had $37M in cash, cash equivalents, and marketable securities, up from $35M on March 31, 2025, prior to the facility’s closing. The financing, advised by Houlihan Lokey, aligns with Evolv’s prior $75M facility with Silicon Valley Bank in 2022, reflecting a consistent capital strategy.
Evolv reported Q1 2025 revenue of $32M, a 44% increase from $22.2M in Q1 2024, with ARR reaching $106M, up 34% YoY, driven by over 6,600 subscriptions. The company reduced its net loss to $(1.7)M from $(11.3)M and achieved positive Adjusted EBITDA of $1.7M, compared to $(10.4)M in Q1 2024. Evolv plans to deploy ~8,000 units in 2025, fully transitioning to a subscription model. Despite a restatement of 2022–2024 financials correcting $3.1M in revenue recognition errors, Evolv’s Q4 2024 ARR was $99.4M, up 39% YoY.
Evolv’s AI-powered Evolv Express® system, recognized by the DHS SAFETY Act and SIA’s 2024 NPS Award, screens over 425 million people annually, second only to the TSA. Recent partnerships include the FIFA Club World Cup, Stern Grove Festival, and a $19.36M deal with Gwinnett Schools for ~60 schools. The San Francisco Giants renewed a four-year subscription, upgrading to Gen2 units. These contracts underscore Evolv’s traction in sports, education, and entertainment sectors.
The global AI-based security market is projected to grow to $40.7B by 2030 (Statista, 2025), driven by demand for touchless screening. Evolv’s low debt-to-equity ratio of 0.12 and stock surge of 100% over the past year position it favorably against competitors like Knightscope and Liberty Defense. However, ongoing SEC and DOJ investigations into past sales practices and a Nasdaq delinquency notice for delayed filings (resolved by April 2025) pose risks. Evolv’s focus on operational investments ($2M planned for 2025) aims to enhance compliance and efficiency.
Evolv Technologies Holdings, Inc (NASDAQ: EVLV) is designed to transform human security to make a safer, faster, and better experience for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered screening and analytics. Its mission is to transform security to create a safer world to live, work, learn, and play. Evolv has digitally transformed the gateways in many places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced systems have scanned more than two billion people since 2019.
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