Mittelman Wealth Opens Large Evolv Technologies Stake: Is the Growth Stock a Buy?

Mittelman Wealth Management disclosed a new 1,511,866‑share position in Evolv Technologies worth $11.41m as of Sept. 30, 2025, representing 7.47% of its $152.74m reportable U.S. equity AUM and making Evolv its sixth‑largest holding in an ETF‑heavy portfolio. Evolv, an AI‑based touchless security screening provider, is trading at $5.66 (market cap ~$987m) after a 107% one‑year gain, with TTM revenue of $136.5m and a TTM net loss of $59.7m; the company reported 57% sales growth in the most recent quarter, 25% ARR growth and management expects a return to positive operating cash flow next quarter. Mittelman’s sizable allocation signals institutional conviction in Evolv’s commercial momentum and valuation (roughly 7x sales versus peers), but the stock’s further upside will depend on continued adoption and conversion to sustained profitability.

Analysis

Mittelman Wealth Management disclosed a new 1,511,866-share position in Evolv Technologies (EVLV) valued at $11.41 million as of Sept. 30, 2025, representing 7.47% of its $152.74 million reportable U.S. equity AUM and making EVLV the fund’s sixth-largest holding. Shares have gained 107% over the past year (Nov. 20, 2025 close $5.66), indicating strong recent investor enthusiasm relative to the broader market.

Evolv’s fundamentals show revenue of $136.5 million (TTM) and a TTM net loss of $59.74 million; sales expanded from $23 million in 2021 to roughly $137 million last year, the most recent quarter saw 57% revenue growth and 25% ARR growth, and management projects a return to positive operating cash flow next quarter. The company sells AI-based touchless security screening hardware and subscriptions across venues such as stadiums, hospitals and schools, supporting recurring revenue potential.

Mittelman’s sizable allocation within an ETF-heavy portfolio signals conviction in commercial traction, and EVLV’s valuation near 7x sales is cheaper than a peer reference (Axon ~16x). Key risks remain execution toward sustained profitability, conversion of ARR into cash, and the potential for volatility if growth slows or OCF targets are missed; market-impact metrics classify the news as moderately positive but limited in broader market effect.

Key Decisions for Investors

• Consider initiating or adding a small-to-moderate position in EVLV contingent on confirmation that operating cash flow turns positive next quarter and ARR growth continues,
• Limit single-name exposure given EVLV's TTM net loss and execution risk; cap allocation to a modest percentage of equity risk-budget rather than treating it as a core holding,
• Use EVLV's ~7x sales versus Axon's ~16x as a relative valuation checkpoint: if cash-flow inflection and margin expansion materialize, reassess for incremental buy; if not, maintain a cautious stance,
• Monitor quarterly OCF, ARR cadence, large-venue rollouts and backlog updates closely and consider hedging larger positions with options around key updates or earnings to mitigate downside risk