Evolv Technology’s shares fell 17.7% after the company’s Q1 report disappointed investors with a cautious outlook and decelerating subscription growth that undercut confidence in its path to sustained profitability.

• Revenue grew 45% year-over-year to $46.3 million, boosted by new customers, unit deployments, and a one-time increase from direct subscription fulfillment.
• Annual recurring revenue (ARR) rose 20% to $127.3 million, reflecting slower subscription scaling relative to total revenue growth.
• Adjusted EBITDA margin improved modestly to 8.5%, up from 6.4% in the prior year, but margin expansion remains limited amid ongoing investments.
• Remaining performance obligation increased 18% to $299 million, yet this failed to reassure investors amid cautious management commentary on future growth.
• The company highlighted geopolitical security challenges as a backdrop but offered only restrained guidance ahead of its June Investor Day, leaving investors uncertain on near-term momentum.