v3.25.4
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
December 31,
20252024
Computers and telecom equipment$2,350 $2,064 
Lab equipment6,274 5,564 
Furniture and fixtures111 111 
Leasehold improvements607 607 
Leased equipment140,981 112,078 
Capitalized software20,889 14,555 
Sales demo equipment3,038 3,649 
Vehicles604 604 
Equipment held for lease1
10,628 17,347 
Construction in progress35 477 
185,517 157,056 
Less: Accumulated depreciation and amortization(57,995)(33,395)
$127,522 $123,661 
1 Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated.
As of December 31, 2025 and 2024, the net book value of capitalized software was $13.6 million and $11.1 million, respectively. These amounts include $2.8 million and $1.7 million of capitalized stock compensation costs, respectively. Depreciation expense and amortization expense related to property and equipment was $24.3 million and $17.4 million for the years ended December 31, 2025 and 2024, respectively, which included amortization expense of capitalized software of $3.9 million and $1.8 million for the years ended December 31, 2025 and 2024, respectively.
Leased equipment and the related accumulated depreciation were as follows:
December 31,
20252024
Leased equipment$140,981 $112,078 
Accumulated depreciation(44,653)(25,726)
Leased equipment, net$96,328 $86,352 
Depreciation expense related to leased units was $18.3 million and $13.6 million during the years ended December 31, 2025 and 2024, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases.
Loss on impairment of property and equipment was $0.2 million during the year ended December 31, 2024. This primarily related to the removal of Evolv Express systems and IT equipment from service, resulting in an impairment of the remaining economic value of such systems. No loss on impairment of property and equipment was recognized for the year ended December 31, 2025. During the year ended December 31, 2024, the Company recorded an impairment charge related to certain of its software development projects that had previously been capitalized. This resulted in an impairment charge of $1.0 million, and was recorded in cost of subscription revenue.