Operator

Good afternoon, and welcome to the Evolv Technology Second Quarter Earnings Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to introduce your host for today’s call, Brian Norris, Senior Vice President of Finance and Investor Relations for Evolv Technology. Please go ahead, sir.

Brian Norris
Senior Vice President of Finance and Investor Relations

Thank you, and good afternoon, everyone. Welcome to today’s call. I’m joined today by John Kedzierski, our President and Chief Executive Officer; and Chris Kutsor, our Chief Financial Officer.

Earlier today, we issued a press release detailing our second quarter results and our updated 2026 outlook. This release is available on the Investor Relations section of our website and has been filed with the Securities and Exchange Commission. During today’s call, we will make forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations regarding our business, strategy, growth opportunities, customer activity, strategic partnerships, product demand and financial outlook. All forward-looking statements are subject to material risks, uncertainties and assumptions, some of which are beyond our control.

Actual events or financial results may differ materially due to a number of factors, including those described under the caption Risk Factors in our annual report on Form

ET Intelligence Group: Shiprocket, a micro, small and medium enterprises (MSME) focussed e-commerce solutions provider, plans to raise ₹885 crore through fresh equity to fund technology infrastructure expansion, repay debt and support marketing initiatives. It will also raise ₹732 crore through an offer for sale (OFS). The company has not identified any promoters. Bertelsmann Nederland BV is the largest shareholder with 21.3% stake before the IPO. The stake of co-founders who continue to run the operations including Saahil Goel and Gautam Kapoor will fall to 4.6% each after the IPO from 6.2% earlier after considering ESOPs. Shiprocket is the country’s largest e-com enablement provider by revenue. However, it is yet to report net profit given the investment phase in the emerging segments. Given these factors, investors with a higher risk appetite may consider the IPO for the long term.

Read more: IPO lock-in expiry could bring shares worth $7.6 billion to D-Street

Business

Incorporated in 2011, Shiprocket offers domestic and cross-border shipping services, marketing solutions, and merchant services to help them in business development. Its technology platform simplifies logistics, checkouts, payments, and fulfilment, enabling merchants to sell online and offline. The company has two main business lines: core and emerging. The shipping platform and related apps form the core business while the emerging operations include tools and platforms to facilitate heavy cargo movement, cross-border shipments, marketing ads and solutions. The emerging business is growing rapidly – its share in merchant addition improved to 21% in FY26 from 6.2% in FY24 while its share in revenue increased to 26.6% from 17.6%.

Financials
Revenue grew by 24% annually to ₹2,024 crore between FY24 and FY26. The annual revenue growth for the core and emerging businesses was 17% and 52.6%, respectively, during the period. The core business has been profitable with operating profit growing by 60% annually to ₹186.6 crore in the said period. The emerging business is yet to report a profit given its phase of rapid growth. The company reported a net loss of ₹79.2 crore in FY26. Total operating cash flow improved to ₹52.6 crore in FY26 from an outflow of ₹216 crore in FY24.
Valuation
Given the loss-making operations, price-sales (P/S) multiple will be more appropriate. The company demands a P/S multiple of 3.5 considering FY26 numbers and implied market cap. Unicommerce Esolutions, a profitable e-com enablement services provider, trades at a P/S of 4.7.

Australian badminton clubs and players are facing sharply higher equipment costs as a global shortage of goose and duck feathers, driven by avian influenza outbreaks, pushes up the price of traditional shuttlecocks.

The professional shuttlecock, the conical projectile at the heart of the sport, is made from 16 carefully selected feathers taken from the left wing of a goose or duck. Only two or three feathers from each bird typically meet the precise specifications needed for consistent flight, spin and durability. China remains the primary source for these feathers and for finished shuttlecocks, leaving the supply chain vulnerable to disruptions in poultry farming.

Badminton Australia chief executive Tjitte Weistra said even mid-range products have become significantly more expensive. “A decade ago a tube of a dozen AS-30s would sit from $30 to $35. That’s now well over $70,” he said, referring to a popular Yonex model. “This means the cost of hosting a tournament or even club play can get very, very expensive.”

Great Southern Badminton Association chair Michelle Watson said her group spends about $3,000 on shuttlecocks every four to six months. Nightly fees have risen to maintain access to feathered equipment. “Feathers are what the game should be played with and are far superior,” Watson said. “Players that understand the game and play more than at a social level expect quality shuttles. I believe synthetics will be the way of the future due to feathers being unsustainable [but] they are currently not close to where they need to be to be an appropriate option.”

Western Australia has been particularly exposed because of its heavy reliance on imported equipment. Metamorph Shuttle director Ryan Zengyuan said agricultural supply problems in Asia quickly translate into local shortages and price spikes. “An agricultural supply crash in Asia instantly triggers inventory shortages and doubles prices for local players,” he said. Local retailers have raised prices by 30 to 50 percent in recent years to cover higher costs for raw feathers and international freight, according to Zengyuan.

The highly pathogenic H5N1 strain of avian influenza has killed hundreds of millions of birds worldwide in recent years through both direct mortality and large-scale culling to contain outbreaks. Poultry production of ducks and geese in China has declined, reducing the by-product supply of high-quality flight feathers. Additional pressures include competition for the cork used in the shuttlecock’s base, higher freight and energy costs, and growing demand for badminton itself in major markets.

The Badminton World Federation has responded by authorizing trials of synthetic shuttlecocks in selected lower-tier and junior international tournaments. The organization is collecting performance data and feedback from players, officials and organizers as part of a longer-term review of alternatives for higher-level competition. Traditional feathered shuttlecocks remain the preferred standard for serious play because of their superior flight characteristics, which synthetic versions have not yet fully matched.

Weistra noted that clubs are beginning to accept compromises they previously rejected. Players are seeking lower-grade feathered options that lack the same performance qualities, or considering synthetics for recreational sessions. “In the past, they just weren’t open to it because the crisis wasn’t big enough. But now the cost is becoming really prohibitive,” he said. “I guess they are inclined to look at alternative options and accept that maybe they’re not perfect, but it will do for now.”

Similar price pressures have been reported elsewhere. In Japan, major manufacturers including Yonex have implemented multiple increases, with some products rising about 30 percent over two years amid the same feather shortages. Global production remains concentrated in China, where waterfowl farming has faced repeated disease challenges alongside shifts in domestic meat consumption patterns.

The shortage underscores the specialized nature of the supply chain. Feathers must come from the same wing of the same bird species to ensure uniform curvature and aerodynamic behavior. Mass production of poultry for food generates large volumes of feathers overall, but only a small fraction meet the exacting standards required for competition-grade shuttlecocks. When healthy flocks decline, that limited high-quality fraction shrinks further, amplifying price volatility.

Australian clubs continue to prioritize feathered shuttlecocks for competitive and serious recreational play while monitoring synthetic development. Watson and others maintain that natural feathers deliver a feel and trajectory that current plastic or composite alternatives cannot replicate. At the same time, the long-term sustainability of relying on a by-product of intensive waterfowl farming is increasingly questioned as disease outbreaks become more frequent and widespread.

The impact extends beyond equipment budgets. Higher costs can limit participation, especially for community clubs, junior programs and regional associations that operate on tight margins. Tournament organizers face larger outlays for match-quality shuttles, potentially affecting entry fees or the number of events offered. Players who train frequently can go through dozens of shuttlecocks in a single session, turning the price rise into a substantial ongoing expense.

Bird flu’s arrival in Australia in recent months has heightened local awareness of the disease’s broader effects, even though the country’s badminton equipment challenges stem largely from overseas supply constraints that began years earlier. Authorities continue to manage the domestic outbreak with a focus on poultry industry biosecurity and wildlife monitoring, while the sport adapts to the downstream consequences for its most essential piece of equipment.

Manufacturers and governing bodies are accelerating research into durable synthetic designs that more closely approximate the flight of natural feathers. Progress has been incremental, and elite players and coaches remain skeptical until performance gaps narrow further. In the meantime, Australian badminton communities are adjusting budgets, raising fees where necessary, and weighing the trade-offs between cost, quality and the traditional character of the game.

The feather shortage illustrates how a distant agricultural and veterinary crisis can reshape the economics of a racquet sport played in community halls and competition venues across the country. For now, clubs and players continue to navigate higher prices while hoping that either supply stabilizes or synthetic alternatives improve enough to provide a viable long-term solution.

Eric Flynn’s LinkedIn profile lists the location of his current job, chief wealth officer of Atlanta-based Aprio Wealth Management, as “remote.” He isn’t kidding. Flynn, whose $4.1 billion-asset business sits inside a top-20 accounting firm, works from his sixth-generation family ranch, an hour outside Bozeman, Mont. Although he travels extensively, he says, “Bozeman’s home.”

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President Donald Trump blasted New York City’s new pied-à-terre tax and said his administration is examining whether the federal government has legal authority to intervene, escalating a fight over a surcharge targeting luxury second homes.

Trump argued in a Truth Social post Tuesday that the tax could ultimately cost New York more than it raises by encouraging wealthy property owners and taxpayers to leave for lower-tax states such as Florida and Texas.

“The NYC Pied-a-Terre Tax is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return,” Trump wrote.

He added that Florida, Texas and other states are benefiting financially from people leaving New York and called the policy a dangerous political “experiment.”

NEW YORK’S WEALTHY RUSH TO AVOID MAMDANI’S SECOND-HOME TAX

The president also raised the prospect of federal action.

“I am looking to see if the Federal Government has any legal right to avert this disaster, before it is too late, for the millions of people who cherish New York and want to see it thrive, as opposed to becoming a filthy, crime ridden, decrepit place of mockery and scorn,” Trump wrote.

Trump did not identify what federal law or executive authority his administration could potentially use to challenge the city tax.

The White House did not immediately respond to FOX Business’ request for additional details about what federal authority or action the Trump administration is considering.

MAMDANI’S TAX ROLL BLUNDER WILL BACKFIRE ON EVERYDAY NEW YORKERS AS BUYERS HEAD SOUTH, DEVELOPER WARNS

Trump’s comments come one day after a New York judge temporarily restrained Mayor Zohran Mamdani’s administration from moving forward with parts of the tax rollout after three homeowners sued over how the city implemented the surcharge.

Staten Island Supreme Court Justice Wayne Ozzi ordered the city to take down a disputed property roll covering more than 900,000 homeowners and temporarily barred officials from imposing or collecting the surcharge based on the roll without first making the individualized determination and providing the notice required under state tax law.

The lawsuit challenges the administration of the tax rather than the legality of the surcharge itself.

“We disagree with today’s ruling, but we are confident in both the pied-à-terre surcharge and the City’s ability to implement it fairly and effectively,” Mamdani spokesman Matt Rauschenbach said following the ruling.

MAMDANI EXTENDS DEADLINE FOR NYC HOMEOWNERS TO SEEK EXEMPTION FROM NEW PIED-À-TERRE TAX

“This surcharge asks those who own second homes valued at $5 million or more to contribute their fair share to the city they benefit from,” he added.

Mamdani has said about 17,000 homeowners in a city of 8.5 million are potentially affected by the surcharge.

The Mamdani administration did not immediately respond to FOX Business’ request for comment on Trump’s criticism and his argument that the surcharge could drive wealthy taxpayers and property owners out of New York.

Trump also linked the surcharge to New York City’s congestion pricing program.

“Financial, and then Social, RUIN, is a 100% certainty – And then the Radical Left Jihadists charge Congestion Pricing on top of everything else,” Trump wrote.

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Whether the surcharge ultimately causes significant numbers of property owners or taxpayers to leave New York remains unclear.

Gov. Kathy Hochul’s office did not immediately respond to FOX Business’ request for comment on Trump’s criticism of the surcharge or the possibility of federal intervention.

The legal fight over the rollout is continuing as the Mamdani defends the surcharge and Trump considers whether the federal government has an avenue to intervene.

“He was immensely proud of what John Pye & Sons has become, which is thanks to his determination, vision and every single one of the extended John Pye family – his colleagues over all the years,” the statement added.

“He founded John Pye & Sons in 1968 with just a horse and cart, and lived to see a small business grow into a British industry leading company.

“Those of you who knew him or met him will know of his larger than life character, and the positive and playful impact he had on those around him.

“A true local legend.”

For the first two decades, the firm specialised in managing probate house clearances, cessation of business asset disposals and private chattels.

In 1990, the company was incorporated as ‘John Pye & Sons Limited’ and relocated to larger premises at Banton House in Meadow Lane, near Notts County’s stadium, to expand its client base in the East Midlands.

It later acquired the former Shipstone’s ‘Star’ Brewery site in New Basford in 1995 as the business grew in the 1990s, the company said.

The company added it first moved from live traditional auctions to 24-hour timed auctions in 2007.

In addition to the company’s head office in Nottingham, it now has auction hubs across the country, including in Derby, Birmingham, Bo’ness and Margam, with a further site in Zaragoza, Spain.

“On behalf of the Pye family, we would like to thank everyone for their kind words and support at this incredibly sad time.

“He will be greatly missed by all of us,” the statement from the firm added.

Supermarkets including Sainsbury’s, Tesco, Morrisons and Waitrose already have dedicated lines for wonky vegetables.

Calum Kelly, Waitrose’s produce technical manager, said in demanding weather conditions “we relax size and shape guidelines for key veg to avoid waste and provide more income to our growers and farmers”.

“Baking potatoes might be a little smaller than usual this harvest if the drought continues. All these veg still taste great, but like many of us in a heatwave, they might just look a little less than perfect.”

Not every gap can be filled this way though. Andrew Opie, the director of food and sustainability at the British Retail Consortium, said supermarkets are also importing more food from abroad as UK supplies run short.

“Retailers face the dilemma of supporting British farmers, but also making sure that we, as customers, have what we expect to buy when we go in the shop,” he said.

“It’s going to be a challenging period right through into the autumn. We’re hearing potentially it could affect things like cherries as well.”

Approximately 80p a year will be added to all energy bills to fund the discount scheme.

Most households that qualify will receive the discount automatically on their electricity bill every six months although some, such as those on commercial meters, may need to apply.

The first payments will start early next year, when eligible customers will receive more information from their supplier or the energy regulator Ofgem.

An assessment earlier this year estimated that between 120,000 and 160,000 households could eventually receive the discounts as more projects are rolled out.

Rural campaign groups argue it is impossible to put a price on the loss of landscapes, and some residents living close to proposed projects say the money being offered is an insult.

Kate Matthews of the Save Our Mearns campaign group, fighting plans for upgraded pylons in north-east Scotland including the Kintore to Tealing project, said the discount scheme was an insult.

She said: “£2,500 off electricity bills over 10 years is a slap in the face for residents facing ruined businesses and unsellable homes.

“This government is either massively out of touch or is showing their contempt for affected residents and energy consumers.”