Security tech company Evolv investigates sales misconduct, warning recent financials are unreliable

Evolv is warning its shareholders to no longer rely on recent financial statements, as the security technology company investigates employee misconduct related to “certain sales.” A group of independent board directors is currently conducting an internal investigation into the company’s sales practices. The investigating committee estimates that the sales transactions at issue resulted in premature or incorrect revenue recognition of about $4 million to $6 million through the end of June, although that could change pending the conclusion of the investigation. In the meantime, Evolv has delayed its next earnings report and telling shareholders that financial statements between the second quarter or 2022 and that of 2024 are no longer reliable.