Evolv Technologies Holdings, Inc. (EVLV) Balance Sheet

The balance sheet appears to have stabilized after a volatile 2025, with total assets hovering around $302-305M since 2025Q3. Equity has recovered from $92.7M in 2025Q2 to $118.9M in 2026Q2, driven by a reduction in total liabilities from $202.1M to $183.2M. This stabilization, coupled with revenue growth of 34.4% year-over-year, suggests that the company is managing its capital structure while scaling, though the persistent negative retained earnings of -$402.1M indicate that losses continue to erode book value.

Evolv's debt has more than doubled over the past year, from $14.3M in 2025Q2 to $41.6M in 2026Q2, while the debt-to-equity ratio rose from 0.15 to 0.35. This increase appears strategic, likely to fund growth initiatives and bridge the gap to profitability, but it also introduces refinancing risk given the company's negative operating margins. However, the absolute debt level is modest relative to total assets of $302M, and the D/E remains below the peer average, suggesting that leverage is not yet a constraint.

The asset mix is increasingly dominated by property, plant, and equipment, which grew from $122.2M in 2024Q2 to $140.4M in 2026Q2, now comprising nearly half of total assets. This reflects the company's strategy of deploying hardware as part of its TaaS model, which requires significant upfront investment. The absence of goodwill suggests that growth has been organic, but the high PPE concentration implies that depreciation will continue to weigh on earnings, and the assets may be subject to impairment if technology shifts.

The equity base is of low quality, as retained earnings have deteriorated from -$306.6M in 2024Q2 to -$402.1M in 2026Q2, reflecting cumulative losses that outpace any capital raises. The positive equity balance is entirely attributable to contributed capital, which suggests that shareholders' equity is a function of external funding rather than internal profitability. This pattern is typical of growth-stage companies, but it underscores the reliance on future profitability to justify the current capital structure.

While cash has stabilized around $49-56M over the last three quarters, the current ratio has declined from 1.77 in 2024Q1 to 1.18 in 2026Q2, signaling that current liabilities are growing faster than current assets. This suggests that the company's ability to cover short-term obligations is weakening, and with operating losses persisting, the $52.7M cash balance may only provide a limited runway. Investors should monitor whether the company can achieve cash-flow break-even before needing additional capital.