Evolv Technologies faces Nasdaq compliance issue

Published 22/04/2025, 22:12
Evolv Technologies faces Nasdaq compliance issue

WALTHAM, Mass. - Evolv Technologies Holdings, Inc. (NASDAQ: EVLV), an AI-based security technology firm with a market capitalization of $504 million and annual revenue of $89 million, has received a delinquency notice from Nasdaq for not adhering to the Listing Rule 5250(c)(1), which requires timely financial reporting. The company failed to file its Annual Report for the year ended December 31, 2024, due to an internal investigation into sales practices that necessitated financial restatements.

The notice, dated April 16, 2025, does not immediately impact the listing of Evolv’s securities on Nasdaq. The company had previously submitted a compliance plan following a non-compliance notice for its Quarterly Report for the period ended September 30, 2024. Nasdaq has now requested an updated compliance plan by May 1, 2025, and has given Evolv until May 19, 2025, to file the overdue Quarterly Report. Any extension provided by Nasdaq to file all delinquent reports will not exceed 180 days from the original due date of the Quarterly Report. According to InvestingPro data, the stock has declined 28% over the past six months, reflecting investor concerns.

Evolv is working with AlixPartners LLP to finalize and file both the Annual and Quarterly Reports and plans to submit them to the SEC simultaneously. The company is known for its AI-powered security screening and analytics, catering to venues, schools, hospitals, and public spaces. Despite maintaining a healthy current ratio of 1.74 and achieving 17.67% revenue growth, InvestingPro analysis indicates the company is quickly burning through cash. It has scanned over a billion people since 2019 and has received recognition for its technology, including awards for fan experience and sports technology.Get access to 8 additional InvestingPro Tips and comprehensive financial analysis through the detailed Pro Research Report, available exclusively on InvestingPro.

The press release also contains forward-looking statements regarding the anticipated timing of the SEC filings and the company’s efforts to regain Nasdaq compliance. These statements are subject to risks and uncertainties, and actual results may differ materially.

This article is based on a press release statement from Evolv Technologies Holdings, Inc.

In other recent news, Evolv Technologies Holdings, Inc. reported that 92% of their K-12 education customers retained their contracts following a Federal Trade Commission resolution, with four customers even expanding their agreements. This resulted in a 92% net revenue retention and a 94% net unit retention rate. Despite a few cancellations, these customers will maintain their current systems through the end of the 2024-2025 school year. Evolv Technologies also received an extension from the Nasdaq Stock Market to file its overdue financial report, with the new deadline set for May 19, 2025. The company is working with AlixPartners LLP to expedite the filing process and plans to discuss the financial results in a public conference call once the report is filed. Craig-Hallum recently raised Evolv Technologies’ price target from $5.75 to $6.75, maintaining a Buy rating, following a strong end to fiscal year 2024 with unit deployments exceeding forecasts by over 25%. The company also reported no customer cancellations after the FTC settlement and implemented cost reduction measures, including a 14% workforce reduction. Additionally, Evolv Technologies received orders for its new product, eXpedite, which could lead to future estimate revisions.

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