Evolv Technologies Holdings, Inc. (EVLV): A Bull Case Theory

We came across a bullish thesis on Evolv Technologies Holdings, Inc on Substack by Multibagger Monitor. In this article, we will summarize the bulls’ thesis on EVLV. Evolv Technologies Holdings, Inc. (EVLV)’s share was trading at $6.01 as of 22^nd May.

Evolv Technologies Holdings, Inc stands out as a compelling investment opportunity in 2025, poised at the intersection of AI innovation and physical security. The company is executing a focused turnaround strategy, targeting positive free cash flow in the next 12 months and projecting over 40% growth in annual recurring revenue (ARR). Evolv’s AI-based security screening technology is transforming how people are protected in high-traffic public venues, and its traction in sectors like education, stadiums, and healthcare demonstrates growing demand for smarter, faster, and non-invasive security solutions. As the clear leader in a market largely untouched by modern software and AI, Evolv benefits from strong network effects—the more customers use the platform, the better its AI becomes. This makes it harder for new entrants to compete and strengthens the company’s moat.

Despite selling off from its previous highs, Evolv is transitioning into a cash-generative business. Management is cutting costs, optimizing cash flow, and focusing on higher-margin deals, signaling discipline and operational maturity. As of now, over 50% of its customers are multi-unit deals, indicating trust and product satisfaction. Importantly, the company has a razor-blade business model—hardware installations lead to recurring software and service revenue, which fuels long-term margin expansion. The current market underappreciates Evolv’s runway. With a unique product in a critical sector, high visibility into future revenue, and a push towards profitability, Evolv is trading well below its intrinsic value. For long-term investors, this represents a rare opportunity to enter a high-growth business before the broader market fully re-rates it.

Evolv Technologies Holdings, Inc. (EVLV) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held EVLV at the end of the fourth quarter which was 18 in the previous quarter. While we acknowledge the risk and potential of EVLV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EVLV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.