v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company determined that it has one operating and reporting segment after considering the Company’s organizational structure and the information regularly reviewed and evaluated by the Company’s CODM in deciding how to allocate resources and assess performance. The Company has determined that its CODM is its President and Chief Executive Officer. The CODM evaluates the performance of our segment based upon consolidated net income and considers budget-to-actual or forecast-to-actual variances to assess performance and make decisions about allocating resources. The CODM evaluates segment assets based on total assets on the consolidated balance sheets. Asset information is not presented here because its presentation here would be duplicative of the consolidated balance sheets. On the basis of these factors, the Company determined that it operates and manages its business as one operating and reporting segment, that develops, manufactures, markets and sells security screening products and specific services, and accordingly has one reportable segment for financial reporting purposes.
Information by reportable segment is as follows (in thousands):
Twelve Months Ended
December 31,
20252024
Segment revenue$145,905 $103,865 
Less:
Employee expense67,735 66,847 
Travel and expense4,318 6,043 
Capitalized R&D expense(5,217)(6,027)
Stock-based compensation expense1
20,571 24,756 
Other non-recurring expenses2
8,119 17,212 
Consulting and contract staffing11,841 12,732 
Software subscriptions6,365 6,814 
Depreciation and amortization24,340 17,375 
Restructuring costs2,662 860 
Loss on disposal of property and equipment3,787 — 
Other cost of revenue32,974 18,320 
Other operating expenses16,873 21,240 
Other segment items3
(15,325)(28,290)
Segment net (loss) income$(33,138)$(54,017)
1 Excludes incremental expense related to modified awards included in the Restructuring costs line. See Note 22, Restructuring Charges for additional information.
2 For the year ended December 31, 2025, includes consulting and legal fees and additional audit fees incurred in connection with a previously disclosed investigation and restatement of prior period financial statements, net of estimated insurance recoveries, as well as estimated net losses related to ongoing legal matters. For the year ended December 31, 2024, includes each of the costs described above, as well as costs associated with adverse non-cancellable inventory purchase commitments, inventory reserve associated with the transition of our manufacturing operations to the next generation of Evolv Express systems and the determination that certain components within our legacy systems will not be used in the next generation systems, and severance expense.
3 Refer to Total other income (expense), net and provision for income taxes in the consolidated statements of operations and comprehensive loss.