A Primer on Evolv
We have been long-time followers of Evolv (EVLV) in our SA Investment Group, which produces AI-driven detection portals that replace metal detectors, greatly increasing throughput and reducing security staff needs. They are not without competition, though. Ceia from Italy, with its pop-up security solution, is getting considerable traction.
Overview
Evolv is a leader in AI-powered security screening aimed at creating safer environments without compromising visitor flow or the guest experience.
The company’s primary mission is to help facility operators address escalating gun violence, mass shootings, and terrorist attacks while maintaining a positive, non-intrusive environment.
As of late 2025, Evolv systems have screened over four billion visitors worldwide.
Evolv believes it screens more visitors daily than the United States Transportation Security Administration (TSA).
Core Product Portfolio
Evolv Express is the flagship solution designed to detect firearms, improvised explosive devices, and large tactical knives in unstructured, high-volume people flows.
Evolv eXpedite, launched in September 2024, is an autonomous AI-based weapons detection system for bags. It eliminates the need for an operator to manually review X-ray images and can be used as a standalone system or alongside Express.
Evolv Insights is a cloud-based analytics application that provides customers with visibility into system performance, visitor flow, arrival curves, and alarm statistics to inform staffing and security decisions.
MyEvolv Portal is a mobile app and portal allowing customers to remotely manage software updates, change sensitivity settings, and monitor system status.
Business Model
Security-as-a-Service: Evolv’s model integrates proprietary sensors, AI software, cloud connectivity, and onsite support into a unified subscription.
Active Sales Models:
Pure Subscription: The customer leases the hardware and pays for a multi-year security-as-a-service subscription.
Purchase Subscription: The customer buys the hardware outright and enters into a multi-year subscription to operate it.
Expired Model: The “distributor licensing” model with Columbia Tech—where the distributor manufactured and sold hardware while Evolv provided the software subscription—expired on December 31, 2025.
Customer Commitment: Most agreements involve non-cancelable multi-year commitments, typically for an initial term of four years.
Growth Strategy
Key markets include educational institutions (K-12 and higher ed), healthcare facilities, sports/entertainment venues, industrial workplaces, and houses of worship.
Evolv identifies nearly 400K sites and 700K individual thresholds as potential deployment points.
Strategic Playbook:
Metropolitan Targeting: Winning “iconic” customers in specific cities and leveraging those successes for local referrals.
Reseller Network: Utilizing dozens of global value-added resellers to extend reach into markets where Evolv lacks a direct presence.
Product Expansion: Introducing new applications to extend the security perimeter beyond the initial threshold.
Competitive Strengths
Evolv’s AI is trained on a proprietary data set generated from screening 4B+ people since the launch of Evolv Express with 8K device installations. This allows for continuous performance improvements through software updates.
High Throughput: Unlike traditional metal detectors, Evolv allows visitors to walk through at a normal pace without emptying pockets or surrendering bags unless a threat is detected.
The systems visualize the location of a potential threat on a tablet, enabling security teams to perform targeted, minimally intrusive secondary searches.
The proprietary hardware and software are designed to function together and are not intended to be standalone offerings.
Competition
Xtract One’s SmartGateway uses radar-like sensors rather than just magnetic fields; often marketed as more discreet with smaller pillars.
CEIA’s OPENGATE consists of two thin towers that require no cables and can be set up in minutes. Extremely popular for schools and transit.
Garrett’s Paragon is the supposed industry standard for reliability. Their new “Quick-Q” technology allows phones to pass while catching weapons, bridging the gap between old-school tech and AI.
ZeroEyes with AI Gun Detection is not a gateway, but software that overlays existing CCTV cameras. Often sold alongside or as a cheaper alternative to physical gates.
There is an emerging threat from computer vision-based solutions, AI-powered cameras (like those from Verkada or Coram AI), which can identify a weapon the moment it’s drawn in a parking lot, potentially making the front door scanner a secondary layer of defense rather than the primary one.
Given Ceia’s (a private Italian company) commercial success with OPENGATE is a significant competitor; it’s much lighter and easier to set up (25lbs per pillar), is battery powered, and cheaper (a one-time $20K-$30K payment with small fees for software updates and services).
Evolv Express costs $30K-$50K per system per year (‘Security-as-a-Service’ including hardware, software updates, AI training, and 24/7 support). It’s more of a big venue solution as the throughput is higher (4K people per hour versus 1.8K for OPENGATE), and unlike OPENGATE, the Express shows where the threat is on the body (on the tablet image), so guards know where to look in a pat-down.
Evolv’s Express might also have a staffing advantage because Evolv has a higher flow rate; a stadium might only need 4 Evolv Lanes (16 guards) to clear 15K people in an hour.
To do the same with Ceia, they might need 8-10 OPENGATE units (24+ guards) because each unit is slower. On the other hand, staff using Express need to be trained, much less for Ceia’s OPENGATE, which is a Go/No-Go system. If it beeps and turns red, you search. If it’s green, they pass.
One advantage is that the Evolv Express system holds the DHS SAFETY Act Designation. This isn't just a badge; it provides significant benefits for the venues that buy it. For many large venues, this certification is a must-have that their competitors (like Ceia) are still chasing in the same specific category.
Neither system is 100%
Express has been criticized for missing certain types of knives and small-caliber handguns when set to lower sensitivity.
OPENGATE is a sophisticated metal detector; it’s very reliable for metal, but because it lacks an AI-visual layering, it can sometimes be triggered by large umbrellas or bulky metal laptops, leading to nuisance alarms. The late 2025 release of the 2.0 model, which improved the near-zero nuisance alarm rate for shoes and personal items.
The Evolv Express is a better solution for big venues, but Ceia has made some inroads there as well:
NFL: Kansas City Chiefs (Arrowhead Stadium), Denver Broncos (Empower Field), and Miami Dolphins (Hard Rock Stadium).
MLB: Washington Nationals and Arizona Diamondbacks.
Universities/Colleges: Ohio State and Penn State (both for the large stadiums, used as pop-up security, so portability can also be an advantage at large venues).
Manufacturing and Supply Chain
Plexus Partnership: On November 5, 2025, Evolv signed a contract manufacturing agreement with Plexus Corp. to enhance scalability, geographic diversification, and cost-saving opportunities.
Transition Strategy: While onboarding Plexus, Evolv continues to utilize its long-term partner, Columbia Tech, and maintains ample inventory to ensure uninterrupted service.
Internal Oversight: Evolv’s internal teams manage the supply chain for key components to ensure redundancy and a stable supply.
Human Capital and Operations
Workforce Size: As of December 31, 2025, Evolv employed 286 full-time people.
Restructuring: In January 2025, the company implemented a reduction in force of 41 employees to improve profitability and cash flow.
Insourcing Strategy: Evolv has shifted toward insourcing technical field support and general administrative roles, replacing expensive third-party consultants with permanent headcount to build a more scalable foundation.
Diversity and Development: The company emphasizes a skilled, inclusive workforce and offers market-competitive pay, including equity compensation and tuition reimbursement.
Intellectual Property
Evolv protects its core technology through a combination of patents, trademarks, copyrights, and trade secrets.
The company has in-licensed specific technologies related to metamaterials, RF imaging, and signal processing for security applications.
Management pursues patent protection both in the U.S. and internationally to safeguard its competitive advantage.
FY25 Finances
Just for illustrative purposes, not meant as a thorough analytics effort, especially as the company transitioned its business model (see above), which artificially boosted growth during transition but compressed gross margins.
In H2/25, gross margins dipped from the low 60s to about 50%. This is because direct fulfillment carries higher upfront costs for parts and logistics that Evolv now handles itself.
Operating leverage is kicking in with Evolv finally growing revenue (up 32% in Q4/25) significantly faster than its operating expenses (up only 3%), showing that the business is becoming more efficient as it scales.
The shares (at $5.75 per share) are roughly valued at a little under 6x FY26 EV/S.