Evolv Technology secures $75 million credit facility to support growth

WALTHAM, Mass. - Evolv Technologies Holdings, Inc. (NASDAQ:EVLV), which has seen its stock surge 100% over the past year, has secured a new $75 million credit facility with MidCap Financial to support its subscription-based security solutions business, according to a press release statement issued by the company. InvestingPro data shows the company operates with a moderate debt level, with a debt-to-equity ratio of just 0.12.

The facility consists of a $60 million tranched term loan and a $15 million revolving credit facility. The company has drawn $30 million of the term loan at closing, with an additional $30 million available over the next two years at its discretion. Both facilities have a five-year maturity with an annual interest rate of SOFR plus 5.25%.

The security technology company, which specializes in AI-based screening solutions, plans to use the proceeds for general corporate purposes, primarily to support growing demand for its subscription sales model. Through this model, customers lease the company’s security hardware while entering into multi-year security-as-a-service subscriptions.

"We’re pleased to partner with MidCap Financial on this new credit facility, which provides non-dilutive capital on favorable terms to support the continued growth of our business," said Chris Kutsor, Chief Financial Officer of Evolv Technology.

As of June 30, prior to closing the new credit facility, Evolv reported total cash, cash equivalents, and marketable securities of approximately $37 million, compared to $35 million as of March 31. While maintaining a healthy current ratio of 1.1, the company’s revenue has grown impressively at 36.71% over the last twelve months. For deeper insights into Evolv’s financial health and growth prospects, InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis.

Houlihan Lokey served as financial advisor to Evolv on the transaction. Additional details regarding the financing are available in the company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.

Evolv Technologies develops security screening systems used at venues, companies, schools, hospitals, and public spaces. The company’s systems have scanned more than two billion people since 2019, according to the press release. Despite strong revenue growth, InvestingPro analysis indicates the stock is trading above its Fair Value, with analysts projecting continued losses this year. Get access to the complete Evolv Technologies research report, along with 1,400+ other detailed company analyses, exclusively on InvestingPro.

In other recent news, Evolv Technologies Holdings Inc. reported impressive first-quarter 2025 earnings, with revenue reaching $32 million, exceeding the forecast of $28.15 million. The company also reported an adjusted earnings per share (EPS) of -$0.02, better than the anticipated -$0.06. The company’s financial performance has led Craig-Hallum to maintain a Buy rating while raising the price target to $8.25 from $6.75. Northland has also upgraded Evolv’s stock rating to Outperform, setting a price target of $7.50 following their first earnings call with the new CEO and CFO. Lake Street Capital Markets increased their price target to $5.50, maintaining a Hold rating, reflecting optimism about Evolv’s sales strategy. Additionally, Gwinnett Schools near Atlanta approved a $19.36 million deal to deploy Evolv’s security systems in approximately 60 schools. Northland has reiterated an Outperform rating with a $7.50 price target, citing positive changes in sales cycles and a shift towards subscription sales. Evolv’s management projects an annual growth rate of 20-25%, supported by strategic cost management and the resolution of an FTC inquiry.

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