Evolv Technologies Holdings, a leading security technology company pioneering AI-based solutions designed to help create safer experiences, entered into a new $75 million credit facility with MidCap Financial, consisting of a $60 million tranched term loan ($30 million of which was drawn at close with an additional $30 million available to be drawn at the Company’s sole discretion over the next two years) and a $15 million undrawn revolving credit facility. The Company’s agreement includes a five-year maturity for both facilities. The annual interest rate on each is equal to SOFR plus a margin of 5.25%.
Proceeds from the new facility will be used for general corporate purposes, including in large part, to support growing long-term demand for the Company’s subscription sales model. Through this model, customers lease the Company’s purpose-built physical security hardware and enter into multi-year security-as-a-service subscriptions to operate that hardware. Management believes this model enhances revenue visibility, deepens customer relationships, and supports long-term margin expansion. As of June 30, 2025 – prior to the closing of the new credit facility – the Company had total cash, cash equivalents, and marketable securities of approximately $37 million compared to $35 million as of March 31, 2025.
“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 Mr. Chris Kutsor, Chief Financial Officer of Evolv Technology. “We believe this facility further strengthens our balance sheet and provides enhanced flexibility to meet the increasing demand for our long-term subscription model. We’re excited to work with the MidCap Financial team as we enter our next stage of growth.”
Houlihan Lokey served as financial advisor to the Company on the transaction. Additional details regarding the financing are available in the Company’s Current Report on Form 8-K, filed today with the U.S. Securities and Exchange Commission.